EXHIBIT 99.1

October 16, 2008

To The Reserve’s Primary Fund Investors:

Efforts to implement the first phase of disbursements from the Primary Fund continued today on

both the operations and systems technology fronts.

Operations personnel have reviewed about 50,000 transactions that took place between

September 15, the day before The Reserve had to adjust its computer systems due to a decline

of the net asset value of the fund's shares below $1.00, and October 10. In doing so, they've

identified a number of transactions that have raised issues, most of which have been resolved

between The Reserve and its custodian, State Street Bank & Trust Company.

The Reserve also continues to press ahead to apply software modifications that will allow it to

assemble accurate data on the status of investors’ account balances so that accurate

disbursement of funds can be made at the earliest possible date. All programming tasks have

been completed, and all transactions have been reviewed. Data tracking those transactions has

been linked with systems operated by our institutional and broker-dealer clients that maintain an

electronic interface with The Reserve.

Our job now is to confirm that account balances with State Street and clients who use electronic

interfaces are accurate and that transactions sent to clients are being processed correctly. The

next step involves testing the system that will be used to distribute the money to investors. To

accomplish this task, The Reserve will check to make sure that all data tracking account

balances agree with systems operated by the broker-dealer clients and State Street. To

complete the job, The Reserve will analyze data covering the remaining 10,000 transactions

completed prior to October 10 so that we can calculate final payout amounts.

We sincerely apologize for the delays and thank you for your patience. Our pledge to you is that

we will execute as soon as possible.

Sincerely,

Bruce R. Bent

President

Reserve Management Company, Inc.

The Reserve  -  1250 Broadway, New York, New York 10001  -    www.TheR.com

800-637-1700