CORRECTING and REPLACING Reserve Primary Fund - Class 8 Ranks as Number 1 Yielding AAA-Rated Prime Money Fund for the Second Consecutive Year; Propels Reserve to Record.

Business Editors

CORRECTION...by The Reserve Funds

NEW YORK--(BUSINESS WIRE)--Feb. 9, 2004

In BW5801 issued Feb. 9, 2004: Footnote 3 should read: As of December 31, 2003 (sted As of December 31, 2004)

The corrected release reads:

RESERVE PRIMARY FUND - CLASS 8 RANKS AS NUMBER 1 YIELDING AAA-RATED PRIME MONEY FUND FOR THE SECOND CONSECUTIVE YEAR; PROPELS RESERVE TO RECORD ASSET LEVELS

The Reserve Primary Fund - Class 8 has earned iMoneyNet's highest ranking for the second consecutive year, maintaining its place as the Top Performing AAA-Rated Prime Money Fund in 2003. According to iMoneyNet's Money Fund Report(TM)(1), the leading independent authority on money fund performance, the Primary Fund - Class 8 delivered the highest 12-month net total return (1.15%) in a universe of 151 triple "A" rated prime money funds for 2003.(2) After more than tripling its assets in 2002, Reserve's Primary Fund - Class 8 grew 38.0% in 2003 with assets rising from $6.10 billion to $8.42 billion.(3) The growth in Reserve's Primary - Class 8 is particularly remarkable considering that overall the money fund industry experienced net outflows of more than $200 billion in 2003.

"Due diligence, diversification, and liquidity have become the watch words for cash managers in today's environment. When it comes to corporate cash, CFOs and treasurers are looking under the hood to see what's in their cash portfolios. And, they are finding that Reserve's approach to institutional portfolios fits nicely with their requirements for quality and security, while also delivering the top returns," says Reserve's President, Bruce Bent II.

The Primary Fund is unique in that it is the only prime money fund that does not invest in commercial paper, asset-backed commercial paper, funding agreements or derivatives. It invests exclusively in deposits of major banks and U.S. government securities, reflecting Reserve's commitment to maintaining a conservative portfolio. The fund carries triple "A" ratings status from both Standard & Poor's and Moody's(4) because of its quality standards. The Reserve Funds is recognized as the architect of the money-market mutual fund, creating The Primary Fund, "The World's First Money-Market Fund"(R) in 1970.

The success of The Primary Fund - Class 8 reflects the overall growth experienced by Reserve in 2003, as investor demand for prime quality portfolios soared. The firm ended the year with a record $24.8 billion in total assets under management, up more than 27% from the previous year. According to iMoneyNet, Reserve was one of only four money fund complexes among the 40 largest with positive net asset flows and the third fastest growing money fund complex in 2003.(5) Overall the industry saw the number of money fund complexes contract from 187 to 180, and assets decline by $222 billion or 11%.

About Reserve:

Reserve Management Co., Inc. (www.reservefunds.com), is the investment adviser to The Reserve Funds family, which consists of 17 money-market funds and Hallmark Funds which includes seven equity funds. Reserve created the first money-market mutual fund in 1970, and today serves hundreds of institutions and over one million individual accounts worldwide.

(1) Money Fund Report(TM), January 30th, 2004.

(2) Money Fund Report(TM), January 30th, 2004. iMoneyNet's universe includes unrestricted funds with monthly net assets of at least $100 million as of December 31, 2003. Criteria based on compound total return among 151 AAA-rated Prime (taxable, non-government) money-market funds.

(3) As of December 31, 2003, total assets in The Reserve Primary Fund were $16.59 billion including $8.42 in Primary Class 8.

(4) Moody's Money Market and Bond Fund Credit Ratings are opinions of the investment quality of shares in mutual funds and similar investment vehicles which principally invest in short-term and long-term fixed income obligations respectively. As such, these ratings incorporate Moody's assessment of a fund's published objectives and policies, the creditworthiness of its assets, and its management characteristics. Standard & Poor's money market fund ratings are based on the analysis of the funds' credit quality, market price exposure, and management. The ratings signify excellent safety of invested principal and a superior capacity to maintain a $1.00 per share net asset value at all times. This is accomplished through conservative investment practices and strict internal controls. Standard & Poor's will monitor the funds' portfolios weekly. Both ratings are not intended, however, to consider the prospective performance of a fund with respect to appreciation, volatility of net asset value, or yield and do not remove market risk. These ratings are subject to change.

(5) Money Market Insight(TM), January 2004.

An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although money market funds seek to preserve the value of your investment at $1.00 per share, it is possible to loose money by investing in a money-market fund. Money-market yields may vary. Institutional classes are available only to institutional investors.

"The Reserve Funds" and its related logos "Reserve Insured Deposits" and "Reserve Return Sweep" are trademarks or registered trademarks of Reserve Management Corporation in the United States and other countries.

For a prospectus including information regarding charges and expenses, please call The Reserve Funds at 800-637-1700 or visit our web site at www.reservefunds.com. Please read it carefully before you invest or send money.

For more complete information about The Reserve Funds, including charges and expenses, call 800-637-1700, or visit www.reservefunds.com for a prospectus. Read it carefully before you invest or send money.

Resrv Partners, Inc. Distributor. Member NASD. 2/04