NEW YORK, Dec. 13 /PRNewswire-FirstCall/ -- The board of directors of Cohen & Steers Select Utility Income Fund (NYSE:UTF) announced an increase of $0.0525 per common share in the fund's regular monthly distribution, raising it to $0.185 per common share. The new monthly distribution rate, which becomes effective in January 2008, is a 39.6% increase over the prior monthly distribution rate of $0.1325 per share. The fund also intends to pay a capital gain distribution on December 31, 2007 to shareholders of record on December 26, 2007. The ex-dividend date is December 21, 2007. The payment date represents a change from the Cohen & Steers press release of November 19, 2007. This will be the fund's third increase in its distribution rate in the past 12 months, and the fifth increase since inception on March 30, 2004. At this new level, the fund's distribution rate will have increased 80% in 12 months and 118% since inception. The annual distribution rate will be $2.22 per share, which represents a distribution yield of 7.9% based on the December 12, 2007 closing price of $28.18 per share, and an 11.1% distribution yield based on the IPO price of $20.00 per share. The fund's history of dividend increases is shown in the table below. UTF Distribution Increases Since Inception Monthly Distribution Annual Distribution Date Rate Rate Change December 2007 $0.1850 $2.22 39.6% June 2007 $0.1325 $1.59 23.3% March 2007 $0.1075 $1.29 4.9% March 2006 $0.1025 $1.23 2.5% March 2005 $0.1000 $1.20 17.6% April 2004 $0.0850 $1.02 - The monthly distribution rate of $0.185 per share reflects both the increased investment income that the fund's investment manager believes the fund will earn in 2008 and the decision to implement a policy to pay a level- rate distribution. The monthly distributions will be comprised of investment income and return of capital. In reaching this decision, the board also took into account the significant increase in the fund's capital since its initial public offering due to appreciation in its portfolio investments. The fund has filed an application with the Securities and Exchange Commission for exemptive relief to permit it to make distributions from capital gains as part of its regular dividend payments, potentially reducing the return of capital. No assurance can be given if or when such exemptive relief will be granted. As of December 12, 2007 the fund had unrealized appreciation in its portfolio investments equivalent to $12.26 per share. Utilities have been among the strongest performing sectors in the S&P 500 this year. UTF has consistently had strong performance compared with the S&P 1500 Utilities Index and the S&P 500 Index since inception. Annualized Total Return as of December 12, 2007 UTF Market Price UTF NAV S&P 1500 Utilities S&P 500 Year-to-date 20.83% 16.99% 17.87% 6.71% One year 22.38% 17.02% 17.47% 7.33% Three years 19.29% 20.69% 19.63% 9.78% Since inception (3/30/04) 16.12% 21.38% 19.64% 9.77% Reflecting the new distribution rate, the board of directors of the fund has declared three monthly distributions of $0.185 per common share for January, February and March 2008.* Details are as follows: The January 2008 distribution is payable on January 31, 2008 to shareholders of record on January 15, 2008. The ex-dividend date is January 11, 2008. The February 2008 distribution is payable on February 29, 2008 to shareholders of record on February 15, 2008. The ex-dividend date is February 13, 2008. The March 2008 distribution is payable on March 31, 2008 to shareholders of record on March 14, 2008. The ex-dividend date is March 12, 2008. Please note that the distributions paid by the fund to shareholders are subject to recharacterization for tax purposes. The final tax treatment of these distributions is reported to shareholders on their 1099-DIV forms, which are mailed to shareholders after the close of each fiscal year. In addition, the fund pays distributions pursuant to a level rate distribution policy. Under this policy, the fund expects to pay distributions in excess of the fund's net investment income, and this excess will be a tax-free return of capital distributed from the fund's assets. Distributions of capital decrease the fund's total assets and, therefore, could have the effect of increasing the fund's expense ratio. In addition, in order to make these distributions, the fund may have to sell portfolio securities during unfavorable market conditions. Information concerning the estimated composition of each fund distribution is available at cohenandsteers.com. DATASOURCE: Cohen & Steers Select Utility Income Fund CONTACT: Francis C. Poli, executive vice president and general counsel, Cohen & Steers Capital Management, Inc., +1-212-446-9112 Web site: http://www.cohenandsteers.com/

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