The subscription price per share will be determined based upon a formula equal to 95% of the reported net asset value or 95% of the market price per share, whichever is lower on the Expiration Date (as defined below). Market price per share will be determined based on the average of the last reported sales price of a share on the NYSE MKT for the five trading days preceding the Expiration Date which has been established to occur on August 8, 2012 (“Expiration Date”). The Rights will expire if they are not exercised by 5:00 PM EDT on the Expiration Date, unless the Fund extends the Rights Offering as set forth in the prospectus.This is a transferrable offering, meaning Rights holders have the opportunity to sell their rights on the exchange under the symbol UTGRT once said rights are distributed. In addition to the prospectus being mailed to shareholders, the prospectus can also be found at the Securities and Exchange Commission’s website at www.sec.gov or the Fund’s website at www.utilityincomefund.com under the Literature tab. The Rights Offering is only made by means of the prospectus and this press release shall not constitute an offer to sell or constitute a solicitation of an offer to buy. Investors should consider the Fund’s investment objectives, risks, charges and expenses carefully before investing. The Fund’s prospectus contains this and other information about the Fund and should be read carefully before investing. For further information regarding the Rights Offering, or to obtain a prospectus, please contact the Fund’s Information Agent: Georgeson Inc.199 Water Street – 26th FloorNew York, NY 10038(888) 877-5373 The Reaves Utility Income Fund The investment objective of the Fund is to provide a high level of income and total return consisting primarily of tax-advantaged dividend income and capital appreciation. There were approximately $837 million of total assets under management and 23.1 million shares outstanding as of July 5, 2012.
The Reaves Utility Income Fund is a closed-end fund and closed-end funds do not continuously issue shares for sale as open-end mutual funds do. Since the initial public offering, the Fund now trades in the secondary market. Investors wishing to buy or sell shares need to place orders through an intermediary or broker. The share price of a closed-end fund is based on the market’s value.