Cornerstone Strategic Value Fund, Inc. Announces Earnings for the Quarter and Year Ended December 31, 2003.

Business Editors

NEW YORK--(BUSINESS WIRE)--Feb. 13, 2004

Cornerstone Strategic Value Fund, Inc. (the "Fund") (AMEX:CLM), a closed-end, diversified management investment company that seeks long-term capital appreciation by investing primarily all of its assets in equity securities of companies listed in the U.S., today announced results for the quarter and year ended December 31, 2003.

At December 31, 2003, total net assets of the Fund were $26,565,307 and the net asset value per share (NAV) was $6.90 based on 3,849,524 shares outstanding. On December 31, 2003, the Fund's common stock closed on the American Stock Exchange, LLC ("AMEX") at $9.00 per share, representing a premium of 30.43% to the Fund's December 31, 2003 NAV. At December 31, 2002, total net assets of the Fund were $24,375,809, and the NAV per share was $6.41 based on 3,803,597 shares outstanding with the common stock closing on the New York Stock Exchange, Inc. at $5.85 per share, representing a discount of 8.74% to the Fund's NAV on December 31, 2002. On Friday, February 6, 2004, the Fund's NAV per share was $6.99 with the common stock closing on the AMEX at $9.61 per share, representing a premium of 37.48%.

For the quarter ended December 31, 2003, the Fund's net investment income was $59,213, equal to $0.02 per average share outstanding, compared to net investment income of $49,910, equal to $0.01 per average share outstanding for the quarter ended December 31, 2002. Net realized and unrealized gains were $2,720,990, equal to $0.71 per average share outstanding, compared to net realized and unrealized gains of $1,933,462, equal to $0.51 per average share outstanding for the quarter ended December 31, 2002.

For the year ended December 31, 2003, the Fund's net investment income was $168,247, equal to $0.04 per average share outstanding, compared to net investment loss of $38,781, equal to $0.01 per average share outstanding for the year ended December 31, 2002. Net realized and unrealized gains were $5,506,445, equal to $1.44 per average share outstanding, compared to net realized and unrealized losses of $8,728,724, equal to $2.29 per average share outstanding for the year ended December 31, 2002.

At December 31, 2003, investments in United States equity securities, including foreign shares listed on U.S. exchanges, totaled $26,435,672 (99.51% of the Fund's net assets) and cash and cash equivalents totaled $129,635 (0.49% of the Fund's net assets). The Fund's ten largest holdings excluding short-term investments at December 31, 2003, representing 26.6% of the Fund's net assets, were:

1.   General Electric Co.
2.   Microsoft Corp.
3.   Exxon Mobil Corp.
4.   Pfizer Inc.
5.   Wal-Mart Stores, Inc.
6.   Tri-Continental Corp.
7.   Citigroup Inc.
8.   Intel Corp.
9.   Adams Express Co.
10.  American International Group, Inc.

After reflecting dividends and distributions of $0.25 paid during the quarter, the Fund's NAV increased by 10.56% for the quarter ended December 31, 2003, from $6.43 on September 30, 2003 (based on total net assets of $24,667,986 and 3,839,351 shares outstanding). For the same period ended December 31, 2002, after reflecting distributions of $0.25 per share paid during the quarter, the Fund's NAV increased by 8.93% from $6.14 on September 30, 2002 (based on total net assets of $23,414,195 and 3,816,377 shares outstanding).

After reflecting dividends and distributions of $0.99 per share paid during the year, the Fund's NAV increased by 24.32% for the year ended December 31, 2003, from $6.41 on December 31, 2002 (based on total net assets of $24,375,809 and 3,803,597 shares outstanding). For the same period ended December 31, 2002, after reflecting distributions of $0.50 per share paid during the year, the Fund's NAV decreased by 24.11% from $9.20 on December 31, 2001 (based on total net assets of $35,256,052 and 3,832,560 shares outstanding).

A substantial portion of the shareholder distributions made during this calendar year represent return-of-capital. 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 shares in the Fund. Fund shareholders are advised to consult their own tax advisers with respect to the tax consequences of their investment in the Fund.

Cornerstone Strategic Value Fund, Inc. is traded on the AMEX under the trading symbol "CLM". The Fund's investment manager is Cornerstone Advisors, Inc.