Cornerstone Funds Monthly Distribution for July.

NEW YORK -- Cornerstone Strategic Value Fund, Inc. (AMEX: CLM), and Cornerstone Total Return Fund, Inc. (AMEX: CRF) , both closed-end management investment companies, today announced that in keeping with previous announcements and the Funds' distribution policies, the Funds will pay distributions for the month of July, 2004 as follows:

Record Date          Payable Date          Per Share

   CLM July 15, 2004     July 30, 2004          $0.087

   CRF July 15, 2004     July 30, 2004          $0.176

These monthly distributions are in accordance with each Board of Directors' previously announced intention to maintain the total annual amount of distributions at or above this level, regardless of market conditions. Each Fund's Board remains convinced that its shareholders are well served by a fixed-payout policy, which provides regular distributions, whether markets are up or down, increases liquidity, and gives flexibility to individual shareholders in managing their investment.

To the extent that these distributions exceed the current earnings of the Fund, the balance will be generated from sales of portfolio securities held by the Fund, which will either be short-term or long-term capital gains or a tax-free return-of-capital. Stockholders have the option of reinvesting these distributions in additional shares of the Fund or receiving them in cash. To the extent such distributions are designated as return-of-capital distributions, 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 in late January 2005 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.

While each Fund seeks to have its long-term investment returns exceed the level of its distributions, there can be no guarantee that this goal will be met.

Cornerstone Strategic Value Fund, Inc. (CLM) and Cornerstone Total Return Fund, Inc. (CRF) are traded on the American Stock Exchange, LLC. The Fund's investment manager is Cornerstone Advisors, Inc.