Reserve International Liquidity Fund Ltd. Makes A Second Distribution of $400 Million

New York, June 16, 2009 – The Reserve is pleased to announce that it will begin its second distribution to shareholders of the Reserve International Liquidity Fund Ltd. on June 19, 2009 in the amount of no more than $400 million. This distribution represents approximately 44% of the remaining total assets of the Fund ($907 million) as of the close of business on June 15, 2009. At the conclusion of this distribution, approximately $2.275 billion or 80% of the Fund’s assets as of the close of business on September 15, 2008 will have been returned to shareholders. Approximately $507 million will remain in the Fund, which includes the Lehman Brothers Holdings Inc. securities, which are valued at zero.

Under the law of the British Virgin Islands (BVI), where the Fund is incorporated, a partial payment of a redemption amount is permitted to fund an existing redemption request. The Board approved an amendment to the Fund’s Articles of Association to permit the Fund to make partial, interim, pro rata distributions.

“This distribution marks a significant step in the process of distributing money back to shareholders of the Reserve International Liquidity Fund Ltd.,” said Bruce R. Bent, president of Reserve Management Company, Inc., the Fund’s adviser. “We are focused on liquidating the fund’s holdings at amortized cost as quickly as possible. Preserving the value of the Fund’s assets and restoring cash to our investors are our top priorities during this process. Thank you for your patience.” The Fund’s total assets were approximately $2.866 billion at the close of business on September 15, 2008 and the Fund’s net asset value fell below $1.00 per share on September 16, 2008.

Each shareholder’s percentage of this distribution was determined by dividing their total unfunded redeemed shares by the aggregate unfunded redeemed shares of the Fund, which was then used to calculate the shareholder’s pro rata portion of this distribution. Under a directive issued on October 17, 2008, by the Financial Services Commission (FSC, the Fund's regulator in the BVI), and an order issued in Caxton International Limited, et al. v. Reserve International Liquidity Fund Ltd., et al., No. 08/602875, then pending in New York County, New York, any distribution to the Fund's shareholders was subject to the approval and supervision of the FSC and the Court overseeing the Caxton action. On January 13, 2009, the FSC amended its directive, and on June 16, 2009 the Court issued an order to permit this distribution. (http://www.ther.com/pdfs/USDS_SDNY_Order_6-16-09.pdf) For more information regarding your specific account, please contact your financial adviser or our customer service department at 800-637-1700.