Cornerstone Funds Increase Monthly Distribution Amounts, Update Distribution Policies.

NEW YORK -- 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 increases in their respective monthly distribution amounts. Commencing with distributions to be paid in January, Cornerstone Strategic Value Fund, Inc. will increase its monthly distribution to $0.093 per share and Cornerstone Total Return Fund, Inc. will increase its monthly distribution to $0.178 from the current levels of $0.087 and $0.176, respectively, per share. Each Fund is declaring the following distributions.

     <                     <  Record Date        <
Payable Date

Per Share
     <                     <                     <



CLM  <                     <  January 15, 2007   <
January 31, 2007

$0.093
CLM  <                     <  February 15, 2007  <
February 28, 2007

$0.093
CLM  <                     <  March 15, 2007     <
March 30, 2007

$0.093
     <                     <                     <



CRF  <                     <  January 15, 2007   <
January 31, 2007

$0.178
CRF  <                     <  February 15, 2007  <
February 28, 2007

$0.178
CRF  <                     <  March 15, 2007     <
March 30, 2007

$0.178

In order to provide increased long-term stability for each Fund's distribution policy, now in its fifth year, each Fund's Board of Directors has updated its existing distribution policy to provide for the resetting of the monthly distribution amount per share ("Distribution Amount") annually (beginning in 2007) based on the Fund's net asset value on the last business day of each October. Under the updated policy, the Distribution Amount for the calendar year 2007 has been calculated based on an annual total of 21% of the net asset value of each Fund at the end of October, 2006 ("Distribution Percentage") divided equally over twelve monthly distributions for such calendar year. The net asset value per share at October 31, 2006, for each of CLM and CRF was $5.32 and $10.18, respectively. Each Board of Directors believes that this update of each Fund's distribution policy maintains a stable, high rate of distribution. The Distribution Amount from one calendar year to the next will increase or decrease based on the increase or decrease in each Fund's net assets. The terms of each distribution policy will be re-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 shareholders.

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. Each Fund's reinvestment plan, which currently reinvests distributions at the lower of net asset value or market price, is particularly advantageous whenever a Fund's shares are trading at a premium to its net asset value.

Under its policy, each Fund will 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 to consist 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 2006 cannot be determined until after the end of the year and are subject to change depending on market conditions during the year and the magnitude of income and realized gains for the year.

While each Fund seeks to have its long-term investment return exceed the level of its net distributions, there can be no guarantee that this goal will be met. To the extent such distributions are designated as return-of-capital, they 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 2006 distributions in late January 2007 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.

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.