The Reaves Utility Income Fund Announces Regular Monthly Dividend of $0.115 Per Share

DENVER--(Business Wire)--
The Reaves Utility Income Fund (NYSE Amex: UTG) today announced the next three
monthly dividends at a rate of $0.115 per common share per month, unchanged from
the per share rate paid for the previous quarter. The dividend represents an
annualized yield of 10.26% based on the current market price. As of July 6,
2009, the Fund`s market price was $13.45 per share and its net asset value was
$13.74 per share.

A portion of the distribution may be treated as paid from sources other than net
income, including but not limited to short-term capital gain, long-term capital
gain and return of capital. The final determination of the source of all
distributions in 2009, including the percentage of qualified dividend income,
will be made after year end.

Not less than eighty percent of the Fund`s assets will continue to be invested
in the securities of utility companies. As a policy, the Fund continues to
strive to provide a high level of after-tax income and total return consisting
primarily of tax-advantaged dividend income and capital appreciation.

Ronald Sorenson, CEO, Chief Investment Officer of W. H. Reaves and portfolio
manager of the Fund, noted recently that the most important determinant of the
Fund`s ability to pay its dividend is the dividend-paying ability of the
companies in which the Fund invests. "The Fund`s net asset value dropped over
the past twelve-months," Sorenson commented, "but the ability of our companies
to pay and grow their dividend has not diminished. Earnings growth at many of
the companies in which we invest may be slower than we had anticipated twelve
months ago. Nonetheless, the company fundamentals still point to a trend of
growing earnings and dividends."

The following dates apply to the upcoming dividends that have been declared:

Ex-Distribution Date: July 20, 2009
Record Date: July 22, 2009
Payable Date: July 31, 2009

Ex-Distribution Date: August 17, 2009
Record Date: August 19, 2009
Payable Date: August 31, 2009

Ex-Distribution Date: September 16, 2009
Record Date: September 18, 2009
Payable Date: September 30, 2009

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 $562 million of total assets under
management and 22.7 million common shares outstanding as of July 6, 2009.

An investor should consider investment objectives, risks, charges and expenses
carefully before investing. To obtain a prospectus which contains this and other
information visit www.utilityincomefund.com or call 1-800-644-5571. Read the
prospectus carefully before investing or sending money.

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.

Forward-looking statements are based on information that is available on the
date hereof, and neither the fund manager nor any other person affiliated with
the fund manager has any duty to update any forward-looking statements.
Important factors that could affect actual results to differ from these
statements include, among other factors, material, negative changes to the asset
class and the actual composition of the portfolio.

Reaves Utility Income Fund
Ned Burke, 303-623-2577

Copyright Business Wire 2009