Cornerstone Progressive Return Fund Announces Monthly Distribution Policy and Declares Distributions.

NEW YORK -- Cornerstone Progressive Return Fund (AMEX:CFP) (the "Fund"), a new closed-end management investment company, today announced terms of its distribution policy and, commencing with distributions to be paid in October, has set its monthly distribution amount at $0.205 per share. The Fund is declaring the following distributions:

Record Date        <                     <  Payable

Per Share
                   <                     <


October 15, 2007   <                     <  October

$0.205
November 15, 2007  <                     <  November

$0.205
December 14, 2007  <                     <  December

$0.205

In adopting the Fund's distribution policy, the Board of Trustees (the "Board") believes that the Fund's shareholders are well served by regular distributions which increase liquidity and provide flexibility to individual shareholders in managing their investment. Accordingly, it is the intention of the Board that the Fund will make continuous monthly distributions at the current level. The monthly distributions will be reviewed by the Board and declared periodically throughout the year. If the Fund's net asset value per share ("NAV") increases from the current level, the Board will consider increasing the monthly distribution. If the Fund's NAV decreases, the Board intends to maintain the current distribution amount unless and until the annualized distribution amount reaches approximately 21% of the Fund's net assets. At that point, it is expected that the monthly distribution amount will be reset annually to a distribution level not to exceed approximately 21% of net assets per year.

It should be noted that the distributions made pursuant to this policy are not tied to the Fund's investment income or capital gains and do not represent yield or investment return on the Fund's portfolio. The distribution policy will be reviewed and approved at least annually by the Board and can be modified at their discretion for the benefit of the Fund and its shareholders. The Board remains convinced that a managed distribution policy of this kind enhances flexibility for shareholders in managing their investment in the Fund. Shareholders have the option of reinvesting all or a portion of these distributions in additional shares of the Fund through the Fund's reinvestment plan or receiving them in cash. Shareholders should carefully read the description of the reinvestment plan.

Under the 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 the Fund's portfolio, a portion of the Fund's distributions made during this year may consist principally 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 2007 cannot be determined until after the end of the year and is subject to change depending on market conditions during the year and the magnitude of income and realized gains for the year.

In any given year, there can be no guarantee that the Fund's investment returns will exceed the amount of the net distributions. To the extent that the amount of distributions taken in cash exceeds the total net investment returns of the Fund, the assets of the Fund will decline. If the total net investment returns exceed the amount of cash distributions, the assets of the Fund will increase. Distributions designated as return-of-capital 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 2007 distributions in late January 2008 indicating the exact composition per share of the distributions received during the calendar year. Stockholders should consult their tax advisor for proper tax treatment of the Fund's distributions.

Cornerstone Progressive Return Fund is traded on the American Stock Exchange LLC under the trading symbol "CFP". The 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.

In addition to historical information, this report contains forward-looking statements which may concern, among other things, domestic and foreign markets, industry and economic trends and developments and government regulation and their potential impact on the Fund's investment portfolio. These statements are subject to risks and uncertainties, including the factors set forth in the Fund's prospectus, filed with the SEC on September 7, 2007, and actual trends, developments and regulations in the future, and their impact on the Fund could be materially different from those projected, anticipated or implied. The Fund has no obligation to update or revise forward-looking statements.