UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-Q QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT COMPANY Investment Company Act File number 811-21286 Name of Fund: Preferred Income Strategies Fund, Inc. Fund Address: P.O. Box 9011 Princeton, NJ 08543-9011 Name and address of agent for service: Robert C. Doll, Jr., Chief Executive Officer, Preferred Income Strategies Fund, Inc., 800 Scudders Mill Road, Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ 08543-9011 Registrant's telephone number, including area code: (609) 282-2800 Date of fiscal year end: 10/31/2006 Date of reporting period: 05/01/06 - 07/31/06 Item 1 - Schedule of Investments Preferred Income Strategies Fund, Inc. Schedule of Investments as of July 31, 2006 (in U.S. dollars) Preferred Securities ---------------------------------------------------------------------------------------------------------------------------------- Face Industry Amount Capital Trusts Value ---------------------------------------------------------------------------------------------------------------------------------- Commercial Banks - 20.9% $ 12,035,000 ABN AMRO North America Holding Preferred Capital Repackaging Trust I, 6.523% (a)(b)(c) $ 12,259,766 2,000,000 Bank One Capital III, 8.75% due 9/01/2030 2,500,666 1,000,000 Chase Capital I Series A, 7.67% due 12/01/2026 1,042,598 16,455,000 Chase Capital II Series B, 5.989% due 2/01/2027 (b) 15,814,999 34,000,000 Dresdner Funding Trust I, 8.151% due 6/30/2031 (a) 38,728,958 3,630,000 First Empire Capital Trust II, 8.277% due 6/01/2027 3,833,538 1,820,000 First Security Capital I, 8.41% due 12/15/2026 1,909,648 5,600,000 Firstar Capital Trust I Series B, 8.32% due 12/15/2026 5,880,426 2,000,000 HSBC America Capital Trust I, 7.808% due 12/15/2026 (a) 2,090,084 15,835,000 HSBC Capital Funding LP/Jersey Channel Islands, 10.176% (a)(b)(c) 22,226,497 7,300,000 HSBC Finance Capital Trust IX, 5.911% due 11/30/2035 (b) 7,111,784 12,275,000 Hubco Capital Trust II Series B, 7.65% due 6/15/2028 12,766,000 998,000 JPM Capital Trust I, 7.54% due 1/15/2027 1,049,375 2,000,000 Lloyds TSB Bank Plc, 6.90% (c) 1,997,500 13,500,000 Mizuho JGB Investment LLC, 9.87% (a)(b)(c) 14,486,121 18,470,000 Nationsbank Capital Trust III, 6.057% due 1/15/2027 (b) 17,816,827 2,000,000 Republic New York Corp., 7.53% due 12/04/2026 2,082,940 10,000,000 SB Treasury Co. LLC, 9.40% (a)(b)(c) 10,639,300 4,500,000 ST George Funding Co. LLC, 8.485% (a)(c) 4,822,636 4,000,000 Wachovia Capital Trust III, 5.80% (b)(c) 3,935,192 --------------- 182,994,855 ---------------------------------------------------------------------------------------------------------------------------------- Consumer Finance - 3.0% 21,670,000 Capital One Capital III, 7.686% due 8/15/2036 21,656,998 4,630,000 MBNA Capital A, 8.278% due 12/01/2026 4,849,355 --------------- 26,506,353 ---------------------------------------------------------------------------------------------------------------------------------- Diversified Financial 15,000,000 Agfirst Farm Credit Bank, 8.393% due 12/12/2016 (b) 16,246,920 Services - 5.4% 10,000,000 CIT Capital Trust I, 7.70% due 2/15/2027 10,419,230 9,000,000 Farm Credit Bank of Texas Series 1, 7.561% (b)(c) 9,475,740 10,000,000 Sun Life Canada US Capital Trust, 8.526% (a)(c) 10,587,020 --------------- 46,728,910 ---------------------------------------------------------------------------------------------------------------------------------- Electric Utilities - 2.3% 14,950,000 HL&P Capital Trust II Series B, 8.257% due 2/01/2037 15,473,250 5,000,000 SWEPCO Capital I, 5.25% due 10/01/2043 (b) 4,933,840 --------------- 20,407,090 ---------------------------------------------------------------------------------------------------------------------------------- Gas Utilities - 0.6% 5,000,000 AGL Capital Trust I Series B, 8.17% due 6/01/2037 5,265,165 ---------------------------------------------------------------------------------------------------------------------------------- Insurance - 18.7% 24,175,000 AON Corp., 8.205% due 1/01/2027 26,530,419 21,300,000 Ace Capital Trust II, 9.70% due 4/01/2030 27,014,897 23,725,000 Axa, 8.60% due 12/15/2030 29,000,040 15,000,000 Farmers Exchange Capital, 7.05% due 7/15/2028 (a) 14,543,775 10,000,000 GE Global Insurance Holding Corp., 7.75% due 6/15/2030 11,509,120 1,000,000 Genamerica Capital I, 8.525% due 6/30/2027 (a) 1,061,184 6,066,000 ING Capital Funding Trust III, 8.439% (b)(c) 6,678,636 1,000,000 Markel Capital Trust I Series B, 8.71% due 1/01/2046 1,054,385 3,605,000 Oil Casualty Insurance Ltd., 8% due 9/15/2034 (a) 3,472,278 6,325,000 Principal Life Insurance Co., 8% due 3/01/2044 (a) 6,612,699 14,000,000 QBE Insurance Group Ltd., 5.647% due 7/01/2023 (a)(b) 13,350,862 6,225,000 Transamerica Capital III, 7.625% due 11/15/2037 6,715,212 15,600,000 Zurich Capital Trust I, 8.376% due 6/01/2037 (a) 16,490,308 --------------- 164,033,815 ---------------------------------------------------------------------------------------------------------------------------------- Multi-Utilities - 3.1% 10,000,000 Dominion Resources Capital Trust I, 7.83% due 12/01/2027 10,520,870 15,000,000 Dominion Resources Capital Trust III, 8.40% due 1/15/2031 16,811,955 --------------- 27,332,825 ---------------------------------------------------------------------------------------------------------------------------------- Oil, Gas & Consumable 9,850,000 Phillips 66 Capital Trust II, 8% due 1/15/2037 10,314,624 Fuels - 1.2% ---------------------------------------------------------------------------------------------------------------------------------- Preferred Income Strategies Fund, Inc. Schedule of Investments as of July 31, 2006 (in U.S. dollars) Preferred Securities ---------------------------------------------------------------------------------------------------------------------------------- Face Industry Amount Capital Trusts Value ---------------------------------------------------------------------------------------------------------------------------------- Thrifts & Mortgage $ 1,000,000 Astoria Capital Trust I, 9.75% due 11/01/2029 (a) $ 1,104,600 Finance - 4.6% 5,000,000 Astoria Capital Trust I Series B, 9.75% due 11/01/2029 5,579,600 5,760,000 Dime Capital Trust I Series A, 9.33% due 5/06/2027 6,162,071 12,765,000 Greenpoint Capital Trust I, 9.10% due 6/01/2027 13,616,196 3,005,000 ML Capital Trust I, 9.875% due 3/01/2027 3,189,519 9,775,000 Webster Capital Trust I, 9.36% due 1/29/2027 (a) 10,322,400 --------------- 39,974,386 ---------------------------------------------------------------------------------------------------------------------------------- Total Capital Trusts (Cost - $519,183,448) - 59.8% 523,558,023 ---------------------------------------------------------------------------------------------------------------------------------- Shares Held Preferred Stocks ---------------------------------------------------------------------------------------------------------------------------------- Capital Markets - 2.0% 96,000 Goldman Sachs Group, Inc. Series A, 3.91% (b) 2,457,600 600,000 Lehman Brothers Holdings, Inc., 6.50% 15,396,000 --------------- 17,853,600 ---------------------------------------------------------------------------------------------------------------------------------- Commercial Banks - 7.9% 435,200 Banco Santander Central Hispano SA, 6.41% 10,827,776 4,000,000 Barclays Bank Plc, 6.278% (b) 3,655,640 137,579 First Republic Bank, 6.25% 3,301,896 4,650 First Tennessee Bank NA, 3.90% (a)(b) 4,776,422 166,800 Provident Financial Group, Inc., 7.75% 4,310,746 750,000 Royal Bank of Scotland Group Plc Series L, 5.75% 16,897,500 23,000 SG Preferred Capital II, 6.302% 23,898,437 48,000 Sovereign Bancorp, Inc. Series C, 7.30% (d) 1,248,000 --------------- 68,916,417 ---------------------------------------------------------------------------------------------------------------------------------- Consumer Finance - 1.9% 668,080 Capital One Capital II, 7.50% 17,069,444 ---------------------------------------------------------------------------------------------------------------------------------- Diversified Financial 855,000 CIT Group, Inc. Series A, 6.35% 21,546,000 Services - 4.1% 272,000 Cobank ACB, 7% (a) 14,041,184 --------------- 35,587,184 ---------------------------------------------------------------------------------------------------------------------------------- Electric Utilities - 4.2% 14,000 Alabama Power Co., 5.83% 334,600 80,000 Duquesne Light Co., 6.50% 4,020,000 114,400 Entergy Arkansas, Inc., 6.45% 2,877,881 89,850 Entergy Louisiana LLC, 6.95% (a) 8,715,450 80,000 Interstate Power & Light Co. Series B, 8.375% 2,488,000 304,000 PPL Electric Utilities Corp., 6.25% 7,419,515 433,400 PPL Energy Supply LLC, 7% 10,887,008 --------------- 36,742,454 ---------------------------------------------------------------------------------------------------------------------------------- Gas Utilities - 1.6% 556,000 Southern Union Co., 7.55% 14,333,680 ---------------------------------------------------------------------------------------------------------------------------------- Insurance - 8.6% 880,000 ACE Ltd. Series C, 7.80% 22,871,200 140,000 Axis Capital Holdings Ltd. Series A, 7.25% 3,500,000 139,200 Endurance Specialty Holdings Ltd., 7.75% 3,450,768 1,260,000 MetLife, Inc. Series B, 6.50% 31,739,400 140,000 Prudential Plc, 6.50% 3,458,000 9,800 Zurich RegCaPS Funding Trust, 6.58% (a)(b) 10,008,250 --------------- 75,027,618 ---------------------------------------------------------------------------------------------------------------------------------- Multi-Utilities - 0.4% 140,000 Pacific Gas & Electric Co. Series A, 6% 3,441,200 ---------------------------------------------------------------------------------------------------------------------------------- Thrifts & Mortgage 1,210,000 Fannie Mae, 7% (b) 65,037,500 Finance - 8.7% 264,650 Fannie Mae Series L, 5.125% 11,247,625 --------------- 76,285,125 ---------------------------------------------------------------------------------------------------------------------------------- Wireless 2,423 Centaur Funding Corp., 9.08% (a) 2,745,562 Telecommunication Services - 0.3% ---------------------------------------------------------------------------------------------------------------------------------- Total Preferred Stocks (Cost - $345,258,970) - 39.7% 348,002,284 ---------------------------------------------------------------------------------------------------------------------------------- Preferred Income Strategies Fund, Inc. Schedule of Investments as of July 31, 2006 (in U.S. dollars) Preferred Securities ---------------------------------------------------------------------------------------------------------------------------------- Shares Industry Held Real Estate Investment Trusts Value ---------------------------------------------------------------------------------------------------------------------------------- Real Estate Investment 251,400 Alexandria Real Estate Equities, Inc. Series C, 8.375% $ 6,543,942 Trusts (REITs) - 22.5% 400,000 CBL & Associates Properties, Inc. Series C, 7.75% 10,172,000 600,000 CarrAmerica Realty Corp. Series E, 7.50% 15,187,500 680,000 Developers Diversified Realty Corp., 8% 17,462,400 80,000 Duke Realty Corp. Series K, 6.50% 1,883,200 2,390 First Industrial Realty Trust, Inc., 6.236% (b) 2,387,759 4,000 Firstar Realty LLC, 8.875% (a) 5,016,250 768,000 Health Care Property Investors, Inc. Series F, 7.10% 18,969,600 172,800 Health Care REIT, Inc. Series F, 7.625% 4,395,600 684,700 Kimco Realty Corp. Series F, 6.65% 16,672,445 1,600,000 New Plan Excel Realty Trust Series E, 7.625% 40,816,000 72,000 PS Business Parks, Inc. Series K, 7.95% 1,857,600 64,000 PS Business Parks, Inc. Series M, 7.20% 1,560,320 160,000 Public Storage, Inc. Series I, 7.25% (d) 4,090,000 320,000 Public Storage, Inc. Series X, 6.45% 7,420,800 58,000 Regency Centers Corp., 7.25% 1,471,750 607,550 Regency Centers Corp., 7.45% 15,364,939 11,857 Sovereign Real Estate Investment Corp., 12% (a) 16,006,950 145,000 Vornado Realty Trust Series E, 7% 3,611,413 130,000 Wachovia Preferred Funding Corp. Series A, 7.25% 3,537,300 96,000 Weingarten Realty Investors Series D, 6.75% 2,414,400 ---------------------------------------------------------------------------------------------------------------------------------- Total Real Estate Investment Trusts (Cost - $196,765,535) - 22.5% 196,842,168 ---------------------------------------------------------------------------------------------------------------------------------- Face Amount Trust Preferred ---------------------------------------------------------------------------------------------------------------------------------- Capital Markets - 0.1% $ 875,000 Lehman Brothers Holdings Capital Trust III Series K, 1.558% due 3/15/2052 844,123 ---------------------------------------------------------------------------------------------------------------------------------- Communications 2,000,000 Corporate-Backed Trust Certificates, 8.375% due 11/15/2028 2,070,150 Equipment - 0.2% ---------------------------------------------------------------------------------------------------------------------------------- Electric Utilities - 1.5% 4,750,000 Georgia Power Co. Series O, 1.475% due 4/15/2033 4,411,235 3,000,000 HECO Capital Trust III, 6.50% due 3/18/2034 2,989,484 5,000,000 National Rural Utilities Cooperative Finance Corp., 6.75% due 2/15/2043 4,926,673 950,000 Virginia Power Capital Trust II, 1.844% due 7/30/2042 952,842 --------------- 13,280,234 ---------------------------------------------------------------------------------------------------------------------------------- Gas Utilities - 0.7% 500,000 Dominion CNG Capital Trust I, 1.95% due 10/31/2041 500,270 5,750,000 Southwest Gas Capital II, 7.70% due 9/15/2043 5,858,594 --------------- 6,358,864 ---------------------------------------------------------------------------------------------------------------------------------- Insurance - 3.3% 16,000,000 ABN AMRO North America Capital Funding Trust II, 5.384% (a)(b)(c) 15,750,722 7,375,000 Berkley W R Capital Trust, 6.75% due 7/26/2045 7,043,736 1,000,000 Everest Re Capital Trust, 1.963% due 11/15/2032 1,015,147 5,000,000 Lincoln National Capital VI Series F, 6.75% due 9/11/2052 5,066,798 --------------- 28,876,403 ---------------------------------------------------------------------------------------------------------------------------------- Multi-Utilities - 0.1% 397,425 PSEG Funding Trust II, 8.75% due 12/31/2032 420,758 ---------------------------------------------------------------------------------------------------------------------------------- Thrifts & Mortgage 27,000,000 Countrywide Financial Corp., 1.50% due 4/01/2033 26,382,860 Finance - 3.7% 6,000,000 Dime Community Capital I, 7% due 4/14/2034 5,520,000 --------------- 31,902,860 ---------------------------------------------------------------------------------------------------------------------------------- Total Trust Preferred (Cost - $84,974,549) - 9.6% 83,753,392 ---------------------------------------------------------------------------------------------------------------------------------- Total Preferred Securities (Cost - $1,146,182,502) - 131.6% 1,152,155,867 ---------------------------------------------------------------------------------------------------------------------------------- Corporate Bonds ---------------------------------------------------------------------------------------------------------------------------------- Automobiles - 3.4% 22,500,000 DaimlerChrysler NA Holding Corp., 8.50% due 1/18/2031 25,984,913 5,000,000 Ford Motor Co., 7.45% due 7/16/2031 3,675,000 --------------- 29,659,913 ---------------------------------------------------------------------------------------------------------------------------------- Preferred Income Strategies Fund, Inc. Schedule of Investments as of July 31, 2006 (in U.S. dollars) Face Industry Amount Corporate Bonds Value ---------------------------------------------------------------------------------------------------------------------------------- Capital Markets - 0.5% $ 4,000,000 Ameriprise Financial, Inc., 7.518% due 6/01/2066 (b) $ 4,113,708 ---------------------------------------------------------------------------------------------------------------------------------- Commercial Banks - 3.5% 5,000,000 HBOS Plc, 5.92% (a)(b)(c) 4,691,460 20,000,000 Resona Preferred Global Securities Ltd., 7.191% (a)(b)(c) 20,376,680 4,800,000 Royal Bank of Scotland Group Plc, 9.118% (c) 5,309,770 --------------- 30,377,910 ---------------------------------------------------------------------------------------------------------------------------------- Diversified Financial 8,000,000 Ford Motor Credit Co., 7% due 10/01/2013 7,026,608 Services - 2.5% 15,000,000 Sigma Finance Corp., 7.405% due 8/15/2011 (e) 15,000,000 --------------- 22,026,608 ---------------------------------------------------------------------------------------------------------------------------------- Diversified 25,500,000 France Telecom SA, 8.50% due 3/01/2031 31,459,146 Telecommunication Services - 3.6% ---------------------------------------------------------------------------------------------------------------------------------- Electric Utilities - 1.2% 10,000,000 FirstEnergy Corp. Series B, 6.45% due 11/15/2011 10,278,710 ---------------------------------------------------------------------------------------------------------------------------------- Insurance - 1.8% 3,900,000 Great West Life & Annuity Insurance Co., 7.153% due 5/16/2046 (a)(b) 3,884,248 5,000,000 Oil Insurance Ltd., 7.558% (a)(b)(c) 5,048,922 7,200,000 ZFS Finance (USA) Trust I, 6.15% due 12/15/2065 (a)(b) 6,991,524 --------------- 15,924,694 ---------------------------------------------------------------------------------------------------------------------------------- Media - 3.4% 5,000,000 Comcast Corp., 7.05% due 3/15/2033 5,102,600 5,000,000 Time Warner, Inc., 7.625% due 4/15/2031 5,376,390 18,000,000 Time Warner, Inc., 7.70% due 5/01/2032 19,559,160 --------------- 30,038,150 ---------------------------------------------------------------------------------------------------------------------------------- Multi-Utilities - 2.8% 4,800,000 Dominion Resources, Inc., 7.50% due 6/30/2066 (b) 4,829,794 16,575,000 Duke Energy Field Services LLC, 8.125% due 8/16/2030 19,667,762 --------------- 24,497,556 ---------------------------------------------------------------------------------------------------------------------------------- Oil, Gas & Consumable 7,225,000 Enterprise Products Operating LP, 8.375% due 8/01/2066 (b) 7,389,549 Fuels - 0.8% ---------------------------------------------------------------------------------------------------------------------------------- Road & Rail - 0.4% 3,750,000 BNSF Funding Trust I, 6.613% due 12/15/2055 (b) 3,569,239 ---------------------------------------------------------------------------------------------------------------------------------- Thrifts & Mortgage 8,000,000 Roslyn Real Estate Asset Corp. Series D, 9.149% (b)(c) 8,037,500 Finance - 0.9% ---------------------------------------------------------------------------------------------------------------------------------- Wireless 18,000,000 AT&T Wireless Services, Inc., 8.75% due 3/01/2031 22,288,338 Telecommunication 2,000,000 Sprint Capital Corp., 6.90% due 5/01/2019 2,077,304 Services - 6.1% 24,000,000 Sprint Capital Corp., 8.75% due 3/15/2032 29,232,624 --------------- 53,598,266 ---------------------------------------------------------------------------------------------------------------------------------- Total Corporate Bonds (Cost - $268,410,798) - 30.9% 270,970,949 ---------------------------------------------------------------------------------------------------------------------------------- Beneficial Interest Short-Term Securities ---------------------------------------------------------------------------------------------------------------------------------- $ 5,336,892 Merrill Lynch Liquidity Series, LLC Cash Sweep Series I, 5.07% (f)(g) 5,336,892 ---------------------------------------------------------------------------------------------------------------------------------- Total Short-Term Securities (Cost - $5,336,892) - 0.6% 5,336,892 ---------------------------------------------------------------------------------------------------------------------------------- Total Investments (Cost - $1,419,930,192*) - 163.1% 1,428,463,708 Liabilities in Excess of Other Assets - (0.2%) (1,697,092) Preferred Stock, at Redemption Value - (62.9%) (550,825,784) --------------- Net Assets Applicable to Common Stock - 100.0% $ 875,940,832 =============== * The cost and unrealized appreciation (depreciation) of investments as of July 31, 2006, as computed for federal income tax purposes, were as follows: Aggregate cost $ 1,413,700,407 =============== Gross unrealized appreciation $ 40,752,610 Gross unrealized depreciation (25,989,309) --------------- Net unrealized appreciation $ 14,763,301 =============== (a) The security may be offered and sold to "qualified institutional buyers" under Rule 144A of the Securities Act of 1933. (b) Floating rate security. (c) The security is a perpetual bond and has no definite maturity date. (d) Depositary receipts. Preferred Income Strategies Fund, Inc. Schedule of Investments as of July 31, 2006 (in U.S. dollars) (e) Restricted security as to resale, representing approximately 1.7% of net assets was as follows: ------------------------------------------------------------------------------------------- Issue Acquisition Date Cost Value ------------------------------------------------------------------------------------------- Sigma Finance Corp., 7.405% due 8/15/2011 2/13/2004 $ 15,000,000 $ 15,000,000 ------------------------------------------------------------------------------------------- (f) Investments in companies considered to be an affiliate of the Fund, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows: --------------------------------------------------------------------------------------- Interest Affiliate Net Activity Income --------------------------------------------------------------------------------------- Merrill Lynch Liquidity Series, LLC Cash Sweep Series I $ 5,336,892 $912,065 --------------------------------------------------------------------------------------- (g) Represents the current yield as of July 31, 2006. o For Fund compliance purposes, the Fund's industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease. Industries are shown as a percent of net assets. o Financial futures contracts sold as of July 31, 2006 were as follows: ---------------------------------------------------------------------------------------- Number of Expiration Face Unrealized Contracts Issue Date Value Depreciation ---------------------------------------------------------------------------------------- 2,771 10-Year U.S. Treasury Notes September 2006 $ 290,318,009 $ (3,494,585) ---------------------------------------------------------------------------------------- o Swap contracts outstanding as of July 31, 2006 were as follows: ----------------------------------------------------------------------------------------- Notional Unrealized Amount Appreciation ----------------------------------------------------------------------------------------- Sold credit default protection on a basket of preferred securities and receive 2.03% Broker, Lehman Brothers Special Finance Expires September 2007 $ 36,000,000 $ 419,760 Pay a fixed rate of 5.2687% and receive a floating rate based on 3-month LIBOR Broker, HSBC Bank USA Expires March 2016 $ 80,000,000 1,619,083 Pay a fixed rate of 5.117% and receive a floating rate based on 3-month LIBOR Broker, Lehman Brothers Special Finance Expires March 2036 $ 72,000,000 5,557,252 ----------------------------------------------------------------------------------------- Total $ 7,596,095 ============ Item 2 - Controls and Procedures 2(a) - The registrant's certifying officers have reasonably designed such disclosure controls and procedures to ensure material information relating to the registrant is made known to us by others particularly during the period in which this report is being prepared. The registrant's certifying officers have determined that the registrant's disclosure controls and procedures are effective based on our evaluation of these controls and procedures as of a date within 90 days prior to the filing date of this report. 2(b) - There were no changes in the registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the last fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting. Item 3 - Exhibits Certifications - Attached hereto Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. Preferred Income Strategies Fund, Inc. By: /s/ Robert C. Doll, Jr. --------------------------- Robert C. Doll, Jr. Chief Executive Officer Preferred Income Strategies Fund, Inc. Date: September 20, 2006 Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated. By: /s/ Robert C. Doll, Jr. --------------------------- Robert C. Doll, Jr. Chief Executive Officer Preferred Income Strategies Fund, Inc. Date: September 20, 2006 By: /s/ Donald C. Burke --------------------------- Donald C. Burke Chief Financial Officer Preferred Income Strategies Fund, Inc. Date: September 20, 2006