Cornerstone Funds Announce Reverse Stock Splits and Reaffirm Distribution Policy

Cornerstone Strategic Value Fund, Inc. (AMEX:CLM) and Cornerstone Total Return Fund, Inc. (AMEX:CRF), (individually the “Fund” or, collectively, the “Funds”), each a closed-end management investment company, today announced that the Board of Directors of each Fund has adopted a proposal, previously approved by stockholders, for Reverse Stock Splits of 1:4 for CLM and 1:2 for CRF. Each Board expects the effective date for these respective Reverse Stock Splits to be after the close of business on Monday, December 22, 2008.

Each Fund’s distribution policy provides for the resetting of the monthly distribution amount per share (“Distribution Amount”) annually, based on the Fund’s net asset value on the last business day of each October and the annualized Distribution Percentage approved by the Boards. Each Board previously announced, and reaffirmed its decision today, that the Distribution Percentage for the calendar year 2009 would remain unchanged from the previous year at 21% of the net asset value of each Fund. In order to avoid confusion with regard to the Reverse Stock Splits, each Fund will declare its distributions for the first quarter of 2009 and notify stockholders in a December 2008 press release after the Reverse Stock Splits become effective.

Each Board of Directors believes that each Fund’s distribution policy maintains a stable, high rate of distribution. These distributions are not tied to the Fund’s investment income or capital gains and do not represent yield or investment return on the Fund’s portfolio. The Distribution Amount from one calendar year to the next will increase or decrease based on the change in each Fund’s net asset value. The terms of each distribution policy will be reviewed and approved at least annually by the respective Board of Directors and, as always, can be modified at their discretion for the benefit of the Fund and its stockholders.

Each Fund’s Board of Directors remains convinced that its shareholders are well served by a policy of regular distributions which increase liquidity and provide flexibility to individual shareholders in managing their investment. Shareholders have the option of reinvesting these distributions in additional shares of the Fund or receiving them in cash. Shareholders may consider reinvesting all or a portion of their regular distributions through their Fund’s reinvestment plan. Shareholders should carefully read the description of the dividend reinvestment plan contained in each Fund's Reports to Shareholders.

Under its policy, each Fund may distribute to shareholders each month a minimum fixed percentage per year of the net asset value or market price per share of its common stock or at least a minimum fixed dollar amount per year. In determining to adopt this policy, the Board of Directors of each Fund sought to make regular monthly distributions throughout the year. Under each policy, the Fund’s distributions will consist either of (1) earnings, (2) capital gains, or (3) return-of-capital (“paid-in-capital”), or some combination of one or more of the above. A return-of-capital is the return of a portion of the investor’s original investment.

Given the current economic environment and the composition of each Fund’s portfolio, a substantial portion of each Fund’s distributions made during this current calendar quarter is expected toconsist of a return of the investor’s capital. Accordingly, these distributions should not be confused with yield or investment return on the Fund’s portfolio. The final composition of the distributions for 2008 cannot be determined until after the end of the year and is subject to change depending on market conditions during the year and the magnitude of income and realized gains for the year.

In any given year, there can be no guarantee that the Fund’s investment returns will exceed the amount of the net distributions. To the extent that the amount of distributions taken in cash exceeds the total net investment returns of the Fund, the assets of the Fund will decline. If the total net investment returns exceed the amount of cash distributions, the assets of the Fund will increase. Distributions designated as return-of-capital are not taxed as ordinary income dividends and are sometimes referred to as tax-free dividends or nontaxable distributions. A return-of-capital distribution reduces the cost basis of an investor’s shares in the Fund. Stockholders can expect to receive tax-reporting information for 2008 distributions in late January 2009 indicating the exact composition per share of the dividends and distributions received during the calendar year. Stockholders should consult their tax advisor for proper tax treatment of the Fund’s distributions.

Cornerstone Strategic Value Fund, Inc. and Cornerstone Total Return Fund, Inc. are traded on the American Stock Exchange LLC under the trading symbols “CLM” and “CRF”, respectively. Each Fund’s investment adviser is Cornerstone Advisors, Inc., which also serves as investment adviser to another closed-end fund, Cornerstone Progressive Return Fund (AMEX:CFP).

Past performance is no guarantee of future performance. An investment in a Fund is subject to certain risks, including market risk. In general, shares of closed-end funds often trade at a discount from their net asset value and at the time of sale may be trading on the exchange at a price that is more or less than the original purchase price or the net asset value. An investor should carefully consider a Fund’s investment objective, risks, charges and expenses. Please read a Fund’s disclosure documents before investing.

In addition to historical information, this report contains forward-looking statements, which may concern, among other things, domestic and foreign markets, industry and economic trends and developments and government regulation and their potential impact on the Fund’s investment portfolio. These statements are subject to risks and uncertainties and actual trends, developments and regulations, in the future and their impact on the Fund could be materially different from those projected, anticipated or implied. The Fund has no obligation to update or revise forward-looking statements.

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