Cornerstone Strategic Value Fund, Inc. and Cornerstone Progressive Return Fund Announce Proposed Merger - Seite 2

4. It is anticipated that the merged Fund's annual expense ratio based on net asset value will be reduced.
5. The merger will be considered a tax-free "reorganization." No gain or loss will be recognized by either of the Funds as a result of the merger. The tax basis of each individual CFP shareholder will flow through to the surviving Fund, CLM, without adverse effect. No gain or loss will be recognized by individual shareholders except in regard to the distribution of cash-in-lieu of fractional shares for shareholders of CFP.

On February 27, 2015, CLM filed a preliminary combined proxy statement/prospectus on Form N-14 with the U.S. Securities and Exchange Commission ("SEC") which describes in detail the terms of the proposed merger. Shareholders of each Fund are encouraged to review the Form N-14 on the SEC website at www.sec.gov.

Cornerstone Strategic Value Fund, Inc. and Cornerstone Progressive Return Fund are traded on the NYSE MKT LLC under the trading symbols "CLM" and "CFP", respectively. Each Fund's investment adviser is Cornerstone Advisors, Inc., which also serves as the investment adviser to another closed-end fund, Cornerstone Total Return Fund, Inc. (NYSE MKT: CRF). For more information regarding each Fund please visit www.cornerstonestrategicvaluefund.com, www.cornerstoneprogressivereturnfund.com and www.cornerstonetotalreturnfund.com.

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 disclosure documents, filed with the SEC, 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.