Reaves Utility Income Fund (NYSE MKT: UTG) has established a subscription price of $24.41 per common share (“Share”) in connection with its previously announced rights offering (“Rights Offering”), which represents 95% of the reported market price per share, based on the average of the last reported sales price of a Share on the NYSE MKT for the five trading days preceding the August 8, 2012 expiration date (the “Expiration Date”). As of 5:00 p.m Eastern Time on the Expiration Date, rights had been exercised to purchase 5,909,311 Shares of the total 7,699,623 Shares being offered, including 1,741,038 Shares pursuant to notices of guaranteed delivery. The deadline for payment of guaranteed delivery is August 13, 2012. The Fund will announce on or around Monday, August 13, 2012 the final results of the Rights Offering and the number of new Shares issued. This communication is not an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities, in any state or jurisdiction in which such offer, solicitation or sale is not permitted. 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. The prospectus can be found on file with the Securities and Exchange Commission and should be read carefully before investing. 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 $856 million of total assets under management and 23.1 million Shares outstanding as of August 7, 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.