Receives Favorable Ruling From U.S. District Court of Puerto Rico, Ordering PRITF I, PRITF VI and TFF I to Seat Ocean Capital’s Duly Elected Nominees

Continues to Win Shareholder Votes in Favor of its Nominees by Overwhelming Margins

Reiterates Commitment to Fighting for Shareholder Rights Regardless of Time or Cost

Ocean Capital LLC (collectively with its affiliates, “Ocean Capital” or “we”), a significant shareholder of various Puerto Rico closed-end bond funds (the “Funds”) that are managed or co-managed by UBS Asset Managers of Puerto Rico (“UBS”), today provided the following significant updates regarding its campaigns for change at nine Funds:1

  1. The U.S. District Court for the District of Puerto Rico (the “Court”) issued an opinion and order and final judgment ordering PRITF I, PRITF VI and TFF I to seat the duly elected directors nominated by Ocean Capital. The Court also denied the Funds’ request to stay seating Ocean Capital’s nominees as directors pending the Funds’ appeal.
  2. Rather than honor the Court’s order, the Funds instead filed an “emergency motion” for stay pending appeal, further delaying the time when the elected directors could obtain their rightful board seats. While the Court of Appeals entered an administrative stay, it also ordered a highly expedited schedule for briefing the merits of the Funds’ appeal, with oral argument scheduled for September 10, 2024. Ocean Capital is prepared to refute the Funds’ positions on their appeal and will continue to fight for the rights of shareholders regardless of time or cost.
  3. Ocean Capital continues to receive overwhelming shareholder support for its nominees at the Funds’ annual meetings. Based on a preliminary vote count, the majority of shareholders voted for Ocean Capital’s nominees at TFF I’s 2024 annual meeting held on July 18, 2024, by a margin of approximately 105:1.2 Shareholders have voted by overwhelming margins for Ocean Capital’s nominees at nine annual meetings involving three of the Funds since March 2022. Despite this, these Funds continue to ignore the lawful shareholder votes that took place and refuse to seat the duly elected directors.
  4. Ocean Capital urges Popular Asset Management LLC (“Popular”) and UBS to answer pressing questions regarding Popular’s resignation as co-advisor to PRITF I. Popular and UBS have yet to acknowledge the results of the PRITF I 2023 annual meeting, held on April 18, 2024, which were overwhelmingly favorable to Ocean Capital’s proposal to terminate PRITF I’s management agreements with UBS and Popular.

W. Heath Hawk, managing member of Ocean Capital, commented:

“We are pleased that the Court has validated Ocean Capital’s counterclaims and the lawful shareholder votes that took place at PRITF I, PRITF VI and TFF I. Despite being ordered by the Court to seat the duly elected directors, we are disappointed that the Funds have instead chosen to file an ‘emergency’ motion for stay pending appeal, falsely asserting that the Funds face ‘imminent and irreparable harm’ with the seating of any new directors.

This is clearly yet another desperate attempt by the Funds to continue to evade the will of shareholders by spending even more shareholder capital to drag out this costly litigation. We estimate that the Funds have collectively already spent many millions of dollars on external advisors to fight Ocean Capital and other investors – and it is clear from this most recent maneuver that the Funds’ entrenched directors are intent on allowing that figure to grow.

Further, we remind our fellow shareholders that Popular Asset Management resigned as manager of PRITF I, effective in mid-June. This disclosure lacked any detail about the resignation, and the Funds have refused to provide any follow-up information regarding management of the fund. We urge the Funds to immediately respond to the questions we posed in our May 16th press release, and in follow-on correspondence.

Let it be known that if the entrenched directors continue to refuse to honor the Court’s order, Ocean Capital will hold each and every one of them personally responsible for the prolonged damage they have caused and are continuing to cause to shareholders. We will continue to fight for the will of shareholders – no matter how much time it takes or how much it costs.”

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VOTE “FOR” OCEAN CAPITAL’S HIGHLY QUALIFIED DIRECTOR CANDIDATES ON THE BLUE PROXY CARD TODAY.

IF YOU ARE A FUND ADVISOR WITH CLIENTS WHO WISH TO EXERCISE THEIR RIGHT FOR CHANGE BY VOTING THE BLUE PROXY CARD, PLEASE CONTACT OUR PROXY SOLICITOR, SODALI & CO, AT (203) 658-9400 OR (800) 662-5200, OR VIA E-MAIL AT OCEAN@INVESTOR.MORROWSODALI.COM.

VISIT WWW.IMPROVEUBSPRFUNDS.COM TO LEARN MORE ABOUT OCEAN CAPITAL’S CAMPAIGNS FOR VALUE-ENHANCING CHANGE AT THE FUNDS.

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CERTAIN INFORMATION CONCERNING THE PARTICIPANTS

To the Shareholders of Fund I, Fund II (with respect to both its 2022 Annual Meeting and its 2024 Annual Meeting), Fund III, Fund IV (with respect to both its 2021 Annual Meeting and its 2024 Annual Meeting), Fund V and PRITF IV:

Ocean Capital and the other participants in each solicitation (collectively, the “Participants”) have filed with the Securities and Exchange Commission (the “SEC”) a definitive proxy statement and accompanying form of BLUE proxy card to be used in connection with the solicitation of proxies from the shareholders of each listed Fund for its respective upcoming annual meeting(s) of shareholders. All shareholders of each respective Fund are advised to read the definitive proxy statement, any amendments or supplements thereto and other documents related to the applicable solicitation of proxies by the Participants, as they contain important information, including additional information relating to the Participants and their direct or indirect interests, by security holdings or otherwise. Shareholders can obtain the applicable definitive proxy statement and accompanying BLUE proxy card, any amendments or supplements to the definitive proxy statement and other relevant documents filed by the Participants with the SEC at no charge on the SEC’s website at http://www.sec.gov.

1 The nine Funds include: Tax-Free Fixed Income Fund for Puerto Rico Residents, Inc. (“Fund I”), Tax-Free Fixed Income Fund II for Puerto Rico Residents, Inc. (“Fund II”), Tax-Free Fixed Income Fund III for Puerto Rico Residents, Inc. (“Fund III”), Tax-Free Fixed Income Fund IV for Puerto Rico Residents, Inc. (“Fund IV”), Tax-Free Fixed Income Fund V for Puerto Rico Residents, Inc. (“Fund V”), Puerto Rico Residents Tax-Free Fund, Inc. (“PRITF I”), Puerto Rico Residents Tax-Free Fund IV, Inc (“PRITF IV”), Puerto Rico Residents Tax-Free Fund VI, Inc. (“PRITF VI”) and Tax-Free Fund for Puerto Rico Residents (“TFF I”).

2 The margin of victory for TFF I’s 2024 Annual Meeting is based on preliminary vote tallies provided by Broadridge Financial Solutions, Inc.

Sodali & Co Mike Verrechia / Bill Dooley, 800-662-5200 ocean@investor.morrowsodali.com OR Longacre Square Partners Charlotte Kiaie / Bela Kirpalani, 646-386-0091 ckiaie@longacresquare.com / bkirpalani@longacresquare.com