Cohen & Steers REIT and Utility Income Fund, Inc. Announces Filing of Registration Statement to Issue Additional Auction Market Preferred Shares NEW YORK, Nov. 16 /PRNewswire-FirstCall/ -- Cohen & Steers REIT and Utility Income Fund, Inc. today filed a registration statement on Form N-2 to register additional auction market preferred shares. If issued, the additional series of preferred shares would have the effect of increasing the fund's targeted leverage from 33-1/3% to approximately 35% of the fund's capital after issuance. The proposed offering also would take into account the increase that has occurred in the value of the fund's net assets since the offering of the fund's common stock in January 2004. The offering of the additional preferred shares would create the opportunity to increase the net income available to common shareholders as long as the rate of return, net of applicable fund expenses, on the fund's portfolio investments exceeds the dividend rate, as reset periodically, on the preferred shares and/or the payment rate set by any interest rate swap or cap transaction the fund enters into in connection with this proposed preferred share offering. Whether the fund effects the proposed issuance in the future will depend on market conditions at that time. The proposed issuance of the additional preferred shares could increase the likelihood of greater volatility of net asset value and market price of the fund's common shares. It also could increase the possibility that common share income will fluctuate or fall if the dividend rate on the preferred shares rises. The fund is a closed-end investment company with a primary investment objective of high current income through investment primarily in real estate and utility securities. Capital appreciation is a secondary investment objective. The fund's common shares trade on the New York Stock Exchange under the symbol "RTU." The fund is managed by Cohen & Steers Capital Management, Inc., which is a wholly owned subsidiary of Cohen & Steers, Inc., a publicly traded company whose common stock is listed on the New York Stock Exchange under the symbol "CNS." For more complete information about the fund, including charges and expenses, please call 1-800-330-REIT. There are special risks associated with an investment in the fund, which are similar to the risks of investing directly in REITs and utilities. These risks are described in the prospectus, which you should read carefully before you invest or send money. Please note that a Registration Statement relating to the additional series of preferred shares has been filed with the Securities and Exchange Commission but has not yet become effective. The information in this document is not complete and may be changed. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of any offer to buy nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any state. DATASOURCE: Cohen & Steers REIT and Utility Income Fund, Inc. CONTACT: Lawrence. B. Stoller, senior vice president and general counsel, +1-212-832-3232, for Cohen & Steers REIT and Utility Income Fund, Inc. Web site: http://www.cohenandsteers.com/

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