More money is headed towards the wallets of Reserve fund shareholders. On Tuesday the New York-based money fund manager unveiled an $800 million, pro rata, initial distribution to investors in the Yield Plus Fund (not a money market, but, like the now infamous Primary fund, it also broke the buck in September) and simultaneously liquidated the $107,155 Arizona Municipal Money-Market Fund.

For the full story on the the death of the Reserve and its Primary Fund, see MFWire's timeline.

The Yield Plus distribution represents about 70 percent of the fund's remaining assets, with about $354 million still waiting to be distributed. President Bruce Bent called the distribution a "significant first step," but hinted at no timeframe for distributing the remainder of the fund's assets. The NAV used for distribution was not revealed.

As for the Arizona fund, its shareholders will get their full $1 per share.

"We are pleased to be able to return the Fund's money to investors," Bent stated. "I want to thank our investors for their patience and understanding during these past few months."

Company Press Release (Yield Plus)

New York, December 30, 2008 � The Reserve is pleased to announce that it is in the process of making the initial $800 million distribution to Reserve Yield Plus Fund shareholders today. This distribution represents approximately 70 percent of the total assets of the Fund as of the close of business on December 19, 2008. Approximately $354 million in total assets remain in the Fund.

This initial distribution is being paid to all investors remaining in the Fund, including those who submitted redemption orders that had not been funded and those who have not submitted redemption orders. The distribution is being made on a pro rata basis to all of those investors. Each investor is receiving approximately 70% of their current account balance.

�This distribution marks a significant step in the process of liquidating the Yield Plus Fund and distributing money back to shareholders,� said Bruce R. Bent, president of Reserve Management Company, Inc., the Fund�s adviser. �We are committed to making future distributions when more cash becomes available.�

The Fund�s total assets have been approximately $1.2 billion since the close of business on September 15.

In calculating each investor�s pro rata share, The Reserve began with the number of shares each investor held as of the close of business on September 14. The September 14 account balance includes the balance from the end of day September 12 plus the accrued dividends from September 1 through September 14. Then, any funded redemption requests or exchanges, subscriptions and service transactions (check and Automatic Clearing House services) were applied.

The resulting number, representing each investor�s shares in the Reserve Yield Plus Fund at the close of business on September 15, 2008, was then divided by the aggregated shares of all investors (approximately 1.2 billion shares), to arrive at an ownership percentage, which was used to calculate each investor�s pro rata distribution.

Interest income earned from September 1 through September 14, 2008, has been credited to each shareholder�s account. The distribution of income after that date will be addressed in the Fund�s Plan of Liquidation.

For more information regarding your specific account, please contact your financial adviser or our customer service department at 800-637-1700.

Note: The receipt of the distribution is without prejudice to any legal rights or remedies available to an investor.

The Reserve Yield Plus Fund is not a money fund. Achievement of the Fund�s objectives cannot be assured. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. Yields may vary.

Resrv Partners, Inc., Distributor. Member FINRA. 12/08

Company Press Release (Arizona Municipal)

New York, December 30, 2008 � The Reserve is pleased to announce that the Plan of Liquidation for the Reserve Arizona Municipal Money-Market Fund has been finalized. The Plan was subject to the U.S. Securities and Exchange Commission�s supervision.

All assets are in the process of being distributed to investors. Under the Plan of Liquidation, the distribution includes the Fund�s net assets and any accrued income, less Fund expenses. The accrued income was reinvested in additional shares, which are distributed at $1.00 per share. Investors received $1.00 per share with 107,155 shares outstanding.

�We are pleased to be able to return the Fund�s money to investors,� said Bruce R. Bent, president of Reserve Management Company, Inc., the Fund�s adviser. �I want to thank our investors for their patience and understanding during these past few months.�

Updates to all of The Reserve�s funds can be found on our website at www.TheR.com. An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. Money market yields may vary.

Resrv Partners, Inc., Distributor. Member FINRA. 12/08

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