<Page>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: 811-10533
Exact name of registrant as specified
in charter: Reserve Municipal Money Market Trust
Address of principal executive offices: 1250 Broadway
New York, NY 10001-3701
Name and address of agent for service: Richard Goodman
1250 Broadway
New York, NY 10001-3701
Registrant's telephone number, including
area code: 212-401-5710
Date of fiscal year end: May 31, 2003
Date of reporting period: May 31, 2003
<Page>
Item 1 -- Reports to Stockholders
<Page>
[THE RESERVE FUNDS(R) LOGO]
1250 Broadway, New York, NY 10001-3701
(212) 401-5500
GENERAL INFORMATION AND 24-HOUR YIELD AND BALANCE
INFORMATION
800-637-1700 / / www.reservefunds.com
This literature is not authorized for distribution to prospective investors
unless preceded or accompanied by an appropriate current prospectus.
Distributor--Resrv Partners, Inc.
RTET/ANNUAL 06/03
[THE RESERVE FUNDS(R) LOGO]
ANNUAL REPORT
RESERVE NEW YORK TAX-EXEMPT TRUST
NEW YORK TAX-EXEMPT FUND
RESERVE TAX-EXEMPT TRUST
CALIFORNIA II TAX-EXEMPT FUND
CONNECTICUT TAX-EXEMPT FUND
FLORIDA TAX-EXEMPT FUND
MASSACHUSETTS TAX-EXEMPT FUND
MICHIGAN TAX-EXEMPT FUND
NEW JERSEY TAX-EXEMPT FUND
OHIO TAX-EXEMPT FUND
PENNSYLVANIA TAX-EXEMPT FUND
VIRGINIA TAX-EXEMPT FUND
RESERVE MUNICIPAL MONEY-MARKET TRUST
LOUISIANA MUNICIPAL MONEY-MARKET FUND
MINNESOTA MUNICIPAL MONEY-MARKET FUND
MAY 31, 2003
<Page>
[PHOTO OF BRUCE BENT]
Bruce Bent July 30, 2003
CHAIRMAN & CEO,
The Reserve Funds
Dear Investor,
Of all my outstanding characteristics the one that impresses me the
most is my humility, which is fortunate since the White House, Congress, and the
Federal Reserve all dismissed me and my opinions last quarter. I screamed at all
of them that the tax reduction on dividends, while equitable, would be
ineffective in stimulating current spending and, therefore, the economy. I was
equally vocal in my opinion that another rate cut would be useless at best
(.25%) or disastrous (.50%) at worst. Well, I was ignored in both cases ... but
since I am certainly a cheerleader for the U.S. economy, I hope I was wrong and
that they are right. But one of the beauties of economic forecasting is that
even after the fact, you never know what the causes actually were and 'what if'
scenarios go on forever. Kind of like dinner at my house as a kid; there were
seven of us and a minimum of eight opinions. One of the other beauties is that
despite Congress, me and the Federal Reserve, the economy will ultimately do
what it is going to do since the vast majority of our economic life is driven by
people who never address economic theory, monetary or fiscal policy, but who
spend or save based on personal economics and personal psychology not GDP, GNP,
trade deficits or any of the other statistics that excite economists and the
Federal Reserve.
The stock market hit its bottom (so far that is) in October 2002
rallying back approximately 28% for the Dow and the S&P and nearly 60% for the
NASDAQ but that only puts them where they were in June 2002. Despite these gains
the Dow is still 22% below its high, the S&P off 34% and NASDAQ is still off 66%
so the return to irrational exuberance is still a hope for the future. Do I
believe this rally is for real or is the siren song of the sea nymph enticing
the unwary onto the rocks? Since I have been at sea for an extended period I may
not have a clear head, but I don't see the danger, so steady as she goes.
As to the interest rate cut on June 25, what was Greenspan really
trying to say? (Sometimes I think I should get a deck of tarot cards and a
degree in phrenology). Was the cut only .25% because the economy has truly
turned and he was simply taking out insurance or is he still concerned and
wanted to have room for another .25%? Did he really want to take .50% but felt
it would not be taken positively as a real catalyst for economic growth, but
rather a warning that the economy was in deep trouble and the Fed was desperate
so he defaulted to .25%? Tune in tomorrow night for the next exciting episode of
ALAN, GEORGE, AND THE MYSTERIOUS ECONOMY.
But the most important message is: recently we introduced another
financial service that involves us with the American heartland -- 8,000
community bankers. These institutions have truly placed our finger on the pulse
of America and that pulse is strong to say the least. In addition to the
predictable home refinancings, we are seeing business demand for plant,
equipment and working capital. These organizations invest based on what they see
and feel, not because interest rates are 4% or 8%. No orders, no optimism, no
investment: graphic proof that the Fed CANNOT stimulate business spending by
reducing interest rates. Demand drives the economy and that's exactly what we're
starting to see, demand.
I am serious, I love what I do, I look forward to coming in every day
and working hard to assure our investors that we are doing the most we possibly
can to protect the safety and liquidity of the cash they have entrusted to us.
Thank you for your continued confidence in Reserve and the American economy. We
shall overcome ... sooner rather than later.
Bruce Bent
Chairman & CEO
2
<Page>
RESERVE NEW YORK TAX-EXEMPT TRUST--NEW YORK TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2003
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--99.4% (NOTE 1)
--------- ----------------------------- --------
$ 3,000,000 Albany IDA University Foundation, Series C, 1.15%,
11/1/32(a).............................................. $ 3,000,000
3,600,000 Arlington CSD, BAN, 2.50%, 6/20/03(b)................... 3,601,395
2,170,000 Bleecker HDC for Terrace Apt. Project S85, 1.25%,
7/1/15(a)............................................... 2,170,000
3,320,000 Chemung County IDA for Civic Arnot Ogden Medical Center,
1.15%, 3/1/19(a) ....................................... 3,320,000
4,400,000 Clarkstown CSD, TAN, 2.25%, 6/27/03(b).................. 4,402,233
3,900,000 East Williston School District, TAN, 2.50%, 6/26/03..... 3,902,255
4,340,000 Fairport CSD, RAN, 2.375%, 6/19/03(b)................... 4,341,201
2,785,000 Franklin County IDA for Civic Trudeau Institute Inc.
Project, 1.15%, 12/1/20(a) ............................. 2,785,000
1,000,000 Glens Falls IDA for Broad Street Professional Center
Project, 1.25%, 8/1/05(a) .............................. 1,000,000
1,330,000 Great Neck North Water Authority, WSR, 1.25%,
1/1/20(a)............................................... 1,330,000
2,700,000 Guilderland IDA for Eastern Industrial Park, 1.15%,
12/1/08(a).............................................. 2,700,000
4,000,000 Ithaca City, BAN, 2.25%, 8/8/03......................... 4,005,058
2,000,000 Jay Street Development Corp., Series A1, 1.10%,
5/1/22(a)............................................... 2,000,000
3,500,000 Jay Street Development Corp., Series A3, 1.15%,
5/1/21(a)............................................... 3,500,000
4,610,000 Katonah-Lewisboro UFSD, BAN, 2.50%, 7/25/03(b).......... 4,616,192
5,800,000 Long Island Power Authority, Series 2A & 2B, 1.10% -
1.25%, 5/1/33(a)........................................ 5,800,000
6,700,000 Long Island Power Authority, Series 7B, 1.10%,
4/1/25(a)............................................... 6,700,000
2,000,000 Middle Country CSD Centereach, TAN, 2.50%, 6/26/03(b)... 2,001,165
2,800,000 New York City, GO Series A5, 1.30%, 8/1/15(a)........... 2,800,000
2,600,000 New York City, GO Series A5, 1.30%, 8/1/16(a)........... 2,600,000
7,000,000 New York City, GO Series C4, 1.10%, 8/1/20(a)........... 7,000,000
1,000,000 New York City, GO Series A8, 1.10%, 11/1/23(a).......... 1,000,000
3,045,000 New York City, GO Series B8, 1.15%, 8/15/24(a).......... 3,045,000
1,000,000 New York City, GO Series D, 1.15%, 2/1/20(a)............ 1,000,000
2,050,000 New York City, GO Series D, 1.15%, 2/1/22(a)............ 2,050,000
5,300,000 New York City, GO Series E4, 1.32%, 8/1/21(a)........... 5,300,000
1,100,000 New York City, GO Series A4, 1.35%, 8/1/21(a)........... 1,100,000
4,600,000 New York City, GO Series F4, 1.15%, 2/15/20(a).......... 4,600,000
3,350,000 New York City, GO Series F5, 1.15%, 2/15/16(a).......... 3,350,000
200,000 New York City, GO Series F6, 1.22%, 2/15/18(a).......... 200,000
85,000 New York City, GO Series H6, 1.10%, 8/1/13(a)........... 85,000
11,400,000 New York City, GO Series H2, 1.10%, 8/1/10(a)........... 11,400,000
3,000,000 New York City, GO Series A4, 1.30%, 8/1/22(a)........... 3,000,000
1,000,000 New York City HDC Monteray, Series A, 1.10%,
11/15/19(a) ............................................ 1,000,000
1,000,000 New York City IDA for Abraham Joshua Heschel Project,
1.25%, 4/1/32(a)........................................ 1,000,000
5,300,000 New York City IDA for American Society Technion Project,
1.15%, 10/1/33(a)....................................... 5,300,000
4,300,000 New York City IDA for Childrens Onocology Society,
1.15%, 5/1/21(a)........................................ 4,300,000
4,035,000 New York City IDA for Union Foundation, 1.15%,
6/1/12(a)............................................... 4,035,000
1,500,000 New York City IDR for Stroheim & Romann Inc. Project,
1.15%, 12/1/15(a)....................................... 1,500,000
700,000 New York City, Municipal Water Financial Authority,
Series C, 1.30%, 6/15/23(a) ............................ 700,000
1,700,000 New York State Dormitory Authority for Public Library,
1.10%, 7/1/28(a)........................................ 1,700,000
4,000,000 New York State Dormitory Authority State Personal Income
Tax, 2.00%, 12/15/03.................................... 4,021,212
3,900,000 New York State Energy Resources and Development,
1.22% - 1.35%, 10/1/29(a) .............................. 3,900,000
3,745,000 New York State HFA for 10 Liberty Street, 1.10%,
11/1/35(a).............................................. 3,745,000
5,900,000 New York State HFA for Liberty View, Series A, 1.10%,
11/15/19(a)............................................. 5,900,000
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<Page>
RESERVE NEW YORK TAX-EXEMPT TRUST--NEW YORK TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2003 (CONTINUED)
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS (CONTINUED) (NOTE 1)
--------- ---------------------------------- --------
$ 1,980,000 New York State HFA for Normandie Project, Series I,
1.18%, 5/15/15(a)....................................... $ 1,980,000
15,850,000 New York State HFA, Series C, 1.125%, 3/15/26(a)........ 15,850,000
21,540,000 New York State Local Government Assistance Corp., Series
C, D, E & F, 1.10% - 1.15%, 4/1/25(a) .................. 21,540,000
2,300,000 New York State PCR for NY Electric & Gas, Series B,
1.30%, 2/1/29(a)........................................ 2,300,000
900,000 New York State Thruway Authority, 1.32%, 1/1/24(a)...... 900,000
1,200,000 Onondaga County IDR for McLane Co. Project, 1.50%,
11/1/04(a).............................................. 1,200,000
4,000,000 Pearl River UFSD, TAN, 2.25%, 6/26/03(b)................ 4,001,683
4,270,000 Sachem CSD, BAN, 2.375%, 7/23/03(b)..................... 4,274,964
4,000,000 Schenectady County IDA Sunnyview Hospital & Rehab.,
1.20%, 8/1/33(a) ....................................... 4,000,000
4,300,000 South Hampton UFSD, TAN, 2.00%, 6/26/03(b).............. 4,301,312
8,400,000 Triborough Bridge & Tunnel Authority, Series A & B,
1.15%, 1/1/31(a)........................................ 8,400,000
4,600,000 Triborough Bridge & Tunnel Authority, Series C, 1.10%,
1/1/33(a)............................................... 4,600,000
7,000,000 Yonkers IDR for Civic Consumers Union Facility, 1.15%,
7/1/21, 7/1/24(a)....................................... 7,000,000
-----------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $227,153,670)............... 99.4% 227,153,670
OTHER ASSETS, LESS LIABILITIES...................... 0.6 1,259,345
-------- -----------------
NET ASSETS.......................................... 100.0% $ 228,413,015
======== =================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE BASED
ON 228,413,015 SHARES OF BENEFICIAL INTEREST, $.001 PAR VALUE
OUTSTANDING................................................... $1.00
=================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<Page>
RESERVE TAX-EXEMPT TRUST--CALIFORNIA II TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2003
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--99.2% (NOTE 1)
--------- ----------------------------- --------
CALIFORNIA--97.6%
$ 485,000 Alameda Contra Costa Capital Improvements, Series E,
1.30%, 6/1/22(a)........................................ $ 485,000
585,000 Alameda Contra Costa Capital Improvements, Series F,
1.35%, 8/1/23(a)........................................ 585,000
1,000,000 Anaheim UFSD for Facilities Building Funding, 1.15%,
9/1/13(a)............................................... 1,000,000
1,700,000 Bay Area Toll for San Fancisco Bay, 1.15%, 4/1/36(a).... 1,700,000
1,650,000 California EFA for Loyola Marymount University, 1.20%,
10/1/27(a).............................................. 1,650,000
1,000,000 California HFA for Adventist Health System, Series A,
1.30%, 9/1/25(a)........................................ 1,000,000
4,700,000 California RAN, 2.50%, 6/20/03(b)....................... 4,702,134
4,000,000 California School Cash Reserve Program Authority, RAN,
Series A, 3.00%, 7/3/03(b).............................. 4,004,444
1,170,000 California School COP for Capital Improvements, Series
C, 1.15%, 7/1/22(a) .................................... 1,170,000
900,000 California Transit Finance Authority, Series 97, 1.25%,
10/1/27(a).............................................. 900,000
3,000,000 California Statewide Community Center for Early
Education, 1.20%, 9/1/31(a) ............................ 3,000,000
5,100,000 California Statewide for Covenant Retirement Community,
1.10%, 12/1/25(a)....................................... 5,100,000
2,400,000 California Water Reserve Powersupply, 1.30%,
5/1/22(a)............................................... 2,400,000
3,400,000 California Water Supply, Series B6-C15, 1.20% - 1.25%,
5/1/22(a)............................................... 3,400,000
500,000 Carlsbad UFSD COP for School Facility Bridge Funding,
1.15%, 9/1/14(a)........................................ 500,000
500,000 Elsinore Valley, COP for Water District, Series A,
1.10%, 7/1/29(a)........................................ 500,000
2,500,000 Fremont COP for Family Resource Center, 1.25%, 8/1/28,
8/1/30(a)............................................... 2,500,000
2,000,000 Fresno Sewer & Water, Series A, 1.10%, 9/1/25(a)........ 2,000,000
500,000 Grant School Facility Building Fund, 1.15%, 9/1/25(a)... 500,000
1,000,000 Hemet MFHR for Sunwest Retirement, Series 99A, 1.13%,
1/1/25(a)............................................... 1,000,000
1,000,000 Irvine Assessment, District 85-7, 1.15%, 9/2/11(a)...... 1,000,000
1,400,000 Irvine Assessment, District 94-15, 1.20%, 9/2/20(a)..... 1,400,000
5,729,000 Irvine Assessment, District 97-16, 1.25%, 9/2/22(a)..... 5,729,000
3,387,000 Irvine Assessment, Series A, 1.25%, 9/2/26(a)........... 3,387,000
2,000,000 Irvine Ranch Water District, 1.30%, 8/1/16(a)........... 2,000,000
1,415,000 Irvine Ranch Water District, Orange County, Series 85,
1.25%, 10/1/05(a)....................................... 1,415,000
500,000 Irvine Ranch Water District, Series B, 1.25%,
8/1/09(a)............................................... 500,000
1,500,000 Irvine Ranch Water District, Series B, 1.25%,
10/1/09(a).............................................. 1,500,000
420,000 Irvine Ranch Water District, Series 85, 1.25%,
10/1/10(a).............................................. 420,000
1,100,000 Kern County COP, Series 86A, 1.10%, 8/1/06(a)........... 1,100,000
1,100,000 Los Angeles MHR for Malibu Meadow Project, Series 91A,
1.15%, 4/15/28(a)....................................... 1,100,000
1,200,000 Los Angeles USD for Land Acquisition Program, 1.25%,
12/1/21(a).............................................. 1,200,000
3,500,000 Milpitas USD, TRAN, 3.00%, 7/1/03(b).................... 3,503,692
3,100,000 Moorpark USD, TRAN, 3.00%, 7/1/03(b).................... 3,103,270
1,845,000 MSR Public Power Agency for San Juan Project, Series E,
1.15%, 7/1/22(a)........................................ 1,845,000
2,900,000 Orange County HDC for Capistrano Pointe-A Project,
1.15%, 12/1/29(a)....................................... 2,900,000
2,000,000 Orange County HDC for Lakes Project, Series A, 1.13%,
12/1/06(a).............................................. 2,000,000
800,000 Orange County for Florence Crittendoc Services, 1.14%,
3/1/16(a)............................................... 800,000
500,000 Orange County for Trabuco Woods Project, 1.13%,
11/15/28(a)............................................. 500,000
100,000 Orange County Sanitation Authority, 1.10%, 8/1/13(a).... 100,000
600,000 Orange County Sanitation Authority, Series 93, 1.25%,
8/1/16(a)............................................... 600,000
400,000 Rancho Mirage for Eisenhower Medical Centre, Series A,
1.23%, 1/1/26(a)........................................ 400,000
1,000,000 Rancho Water District Financing Authority, Series A,
2.25%, 8/1/03(a) ....................................... 1,001,300
3,125,000 Redland USD, School Facility Bridge, COP, 1.10%,
9/1/34(a)............................................... 3,125,000
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<Page>
RESERVE TAX-EXEMPT TRUST--CALIFORNIA II TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2003 (CONTINUED)
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS (CONTINUED) (NOTE 1)
--------- ---------------------------------- --------
CALIFORNIA (CONTINUED)
$2,100,000 Riverside County Community Facilities District #88-4,
1.15%, 9/1/14(a)........................................ $ 2,100,000
600,000 Riverside County Housing Authority for Emirtus Park,
1.10%, 7/15/18(a)....................................... 600,000
400,000 Riverside County for Tyler Spring Apartments, Series C,
1.13%, 1/15/27(a)....................................... 400,000
350,000 Riverside County USD, School Facility, COP, 1.15%,
9/1/11(a)............................................... 350,000
1,000,000 Sacramento County, MHR, Series A, 1.13%, 4/1/26(a)...... 1,000,000
5,000,000 Sacramento County, Sanitation District Financing
Authority, Series C, 1.10%, 12/1/30(a) ................. 5,000,000
1,000,000 San Diego County School District, TRAN, Series B, 3.00%,
7/31/03(b).............................................. 1,002,471
4,000,000 San Francisco Community Facilities for District 4,
1.15%, 8/1/31(a)........................................ 4,000,000
2,700,000 San Francisco MHR for Filmore Center, Series B, 1.20%,
12/1/17(a).............................................. 2,700,000
800,000 San Leandro MHR, 1.10%, 7/15/18(a)...................... 800,000
1,535,000 Santa Ana Unified School District, 1.15%, 7/1/15(a)..... 1,535,000
3,700,000 Santa Barbara County School Finance Authority, TRAN,
3.00%, 6/30/03(b)....................................... 3,703,768
1,000,000 Upland MHR for Northwoods, 1.15%, 2/15/30(a)............ 1,000,000
410,000 Wateruse Finance Authority, 1.25%, 5/1/28(a)............ 410,000
3,000,000 Yuba Community College, TRAN, 2.50%, 10/15/03(b)........ 3,012,028
-----------------
106,339,107
-----------------
PUERTO RICO--1.6%
1,100,000 Puerto Rico Government Development Bank, 1.05%, 12/1/15
(a)..................................................... 1,100,000
700,000 Puerto Rico Highway & Transportation Authority, Series
A, 1.10%, 7/1/28 (a).................................... 700,000
-----------------
1,800,000
-----------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $108,139,107)............... 99.2% 108,139,107
OTHER ASSETS, LESS LIABILITIES...................... 0.8 853,659
-------- -----------------
NET ASSETS.......................................... 100.0% $ 108,992,766
======== =================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE,
BASED ON 108,992,766 SHARES OF BENEFICIAL INTEREST, $.001 PAR
VALUE OUTSTANDING............................................. $1.00
=================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<Page>
RESERVE TAX-EXEMPT TRUST--CONNECTICUT TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2003
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--98.1% (NOTE 1)
--------- ----------------------------- --------
CONNECTICUT--95.4%
$2,360,000 Connecticut Development Authority Independent Living
Project, 1.12%, 7/1/15(a) .............................. $ 2,360,000
2,800,000 Connecticut GO, Series 1A, 1.30%, 2/15/21(a)............ 2,800,000
2,550,000 Connecticut GO, Series 97B, 1.20%, 5/15/14(a)........... 2,550,000
1,750,000 Connecticut HEFA, Series A, 1.15%, 7/01/32(a) .......... 1,750,000
400,000 Connecticut HEFA, Series C, 1.16%, 7/01/27(a) .......... 400,000
400,000 Connecticut HEFA, Series X-3, 1.30%, 7/01/37(a) ........ 400,000
2,600,000 Connecticut HEFA for Hotchkiss School, Series A, 1.15%,
7/1/30(a)............................................... 2,600,000
400,000 Connecticut HEFA for Middlesex Hospital, 1.15%,
7/1/26(a)............................................... 400,000
1,000,000 Connecticut HEFA for Pomfret School, Series A, 1.20%,
7/1/24(a)............................................... 1,000,000
2,700,000 Connecticut HEFA for Raphael Hospital, Series J, 1.11%,
7/1/22(a)............................................... 2,700,000
550,000 Connecticut HEFA for Stamford Hospital, 1.07%,
7/1/24(a)............................................... 550,000
2,600,000 Connecticut HEFA for Summerwood University Park, Series
A, 1.11%, 7/1/30(a)..................................... 2,600,000
450,000 Connecticut HEFA for United Methodist, 1.15%,
7/1/31(a)............................................... 450,000
200,000 Connecticut HEFA for Yale University, Series T-1, 1.30%,
7/1/29(a)............................................... 200,000
700,000 Connecticut HEFA for Yale University, Series T-2,
1.125%, 7/1/29(a)....................................... 700,000
515,000 Connecticut HEFA for Yale University, Series U, 1.20%,
7/1/33(a)............................................... 515,000
1,900,000 Connecticut HFA, Program Mortgage, Series D3, 1.10%,
5/15/18(a).............................................. 1,900,000
3,000,000 Connecticut Special Tax Obligation for Transportation
Infrastructure, 1.25%, 9/1/20(a) ....................... 3,000,000
2,800,000 Hartford County Redev. Agency MFHR for Underwood Towers
Project, 1.15%, 6/1/20(a) .............................. 2,800,000
500,000 New Canaan Housing Authority for Geer Woods, 1.15%,
08/01/31(a)............................................. 500,000
1,800,000 New Canaan Housing Authority for Village at Waveny Care
Center, 1.20%, 1/1/22(a) ............................... 1,800,000
1,500,000 Shelton County HFA for Crosby Commons Project, 1.20%,
1/1/31(a)............................................... 1,500,000
215,000 Stafford GO, 3.00%, 8/1/03(b)........................... 215,594
1,000,000 Weston, GO, 2.25%, 8/1/03(b)............................ 1,001,431
----------------
34,692,025
----------------
PUERTO RICO--2.7%
400,000 Puerto Rico Government Development Bank, 1.05%,
12/1/15(a).............................................. 400,000
600,000 Puerto Rico Highway & Transportation Authority, Series
A, 1.10%, 7/1/28(a)..................................... 600,000
----------------
1,000,000
----------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $35,692,025)................ 98.1% 35,692,025
OTHER ASSETS, LESS LIABILITIES...................... 1.9 691,185
-------- ----------------
NET ASSETS.......................................... 100.0% $ 36,383,210
======== ================
NET ASSETS VALUE, OFFERING AND REDEMPTION PRICE PER SHARE,
BASED ON 36,383,210 SHARES OF BENEFICIAL INTEREST, $.001 PAR
VALUE OUTSTANDING............................................. $1.00
================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<Page>
RESERVE TAX-EXEMPT TRUST--FLORIDA TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2003
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--98.8% (NOTE 1)
--------- ----------------------------- --------
FLORIDA--83.8%
$1,500,000 Brevard County School District, TAN, 2.25%,
6/30/03(b)........................................ $ 1,500,946
2,130,000 Broward County HFA for Jacaranda Village
Apartments, 1.20%, 9/1/22(a)...................... 2,130,000
1,800,000 Citrus Park Community Development for Capital
Improvement, 1.21%, 11/1/16(a).................... 1,800,000
1,500,000 Collier County for Cleveland Health Clinic, 1.30%,
1/1/35(a)......................................... 1,500,000
320,000 Dade County Fixed Capital Asset, 1.30%,
10/1/10(a)........................................ 320,000
505,000 Dade County IDA for Aviation Authority Facilities,
Series 84A, 1.21%, 10/01/09(a).................... 505,000
1,625,000 Dade County IDA for Dolphins Stadium, Project B, C
& D, 1.15%, 1/1/16(a)............................. 1,625,000
300,000 Dade County IDA for Florida Power & Light Co.,
1.37%, 6/1/21(a).................................. 300,000
1,500,000 Duval County HFA MFH for Lighthouse Bay
Apartments, 1.20%, 12/1/32(a)..................... 1,500,000
175,000 Florida Department of Environmental Preservation,
6.00%, 7/1/03(b).................................. 175,603
1,800,000 Florida HFA for Kings Colony, 1.23%, 8/1/06(a).... 1,800,000
500,000 Florida HFA for Reflections, Series 5, 1.20%,
7/1/31(b)......................................... 500,000
900,000 Florida HFA for River Oaks, Series 85TT, 1.20%,
12/1/29(a)........................................ 900,000
200,000 Florida Municipal Power for Stanton Project,
1.15%, 10/1/19(a)................................. 200,000
125,000 Gulf Breeze Local Government Loan Program, Series
85C, 1.20%, 12/1/15(a)............................ 125,000
100,000 Jacksonville PCR for Florida Power & Light, Series
95, 1.40%, 5/1/29(a).............................. 100,000
2,000,000 Lakeland Energy System Revenue, 1.20%,
10/1/35(a)........................................ 2,000,000
1,100,000 Lakeland Energy System Revenue, 1.20%,
10/1/37(a)........................................ 1,100,000
1,465,000 Lee County IDA for Bonita Community Health
Services, Series A, 1.21%, 12/1/29(a)............. 1,465,000
2,000,000 Lee County IDA HFA for Cypress Cove Healthpark,
Series B, 1.30%, 10/1/07(a)....................... 2,000,000
800,000 Manatee County PCR for Florida Power & Light,
1.30%, 9/1/24(a).................................. 800,000
1,300,000 Miami Dade County School District, TAN, 2.75%,
6/26/03(b)........................................ 1,301,044
900,000 Orange County IDA for Adventist Health Care,
1.20%, 11/15/14(a)................................ 900,000
315,000 Orange County School Board COP, Series B, 1.25%,
8/01/27(a)........................................ 315,000
300,000 Orange County for YMCA, Series A, 1.25%,
5/1/27(a)......................................... 300,000
500,000 Orlando & Orange County Expressway Authority,
1.15%, 7/1/25(a).................................. 500,000
650,000 Palm Beach County for Norton Gallery School of
Art, 1.20%, 5/1/30(a)............................. 650,000
1,000,000 Palm Beach County for Raymond F Kravis Center
Project, 1.10%, 7/01/32(a)........................ 1,000,000
1,800,000 Palm Beach County School Board, Series B, 1.15%,
8/1/27(a)......................................... 1,800,000
1,100,000 Pinellas County HCF, 1.20%, 11/1/15(a)............ 1,100,000
900,000 Pinellas County MFH for Foxbridge Apartments,
1.20%, 6/15/25(a)................................. 900,000
1,200,000 Pinellas County Pooled Hospital Program, Series
85, 1.35%, 12/1/15(a)............................. 1,200,000
500,000 Polk County IDR for Convention Center, 1.30%,
1/1/11(a)......................................... 500,000
2,000,000 Port Orange Palmer College Project, 1.21%,
10/1/32(a)........................................ 2,000,000
980,000 Putam County PCR for Florida Power & Light, 1.30%,
9/1/24(a)......................................... 980,000
150,000 Saint Lucie County IDR for Convalescent Centers,
1.30%, 1/1/11(a).................................. 150,000
500,000 Sarasota County HFF for Bay Village, 1.25%,
12/1/23(a)........................................ 500,000
300,000 Seminole County IDA HCF for Florida Living
Nursing, 1.39%, 2/1/11(a)......................... 300,000
400,000 University of North Florida Capital Improvements
Project, 1.30%, 11/1/24(a)........................ 400,000
750,000 Volusia County HEFA for South West Volusia Health,
1.20%, 11/15/23(a)................................ 750,000
565,000 Volusia County IDR for Easter Seal Society of
Volusia, 1.30%, 9/1/21(a)......................... 565,000
----------------
38,457,593
----------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<Page>
RESERVE TAX-EXEMPT TRUST--FLORIDA TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2003 (CONTINUED)
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS (CONTINUED) (NOTE 1)
- --------- ---------------------------------- --------
NEW YORK--11.5%
$1,500,000 Long Island Power Authority, Series 2B, 1.25%,
5/1/33(a)......................................... $ 1,500,000
75,000 New York City GO, Series B, 1.30%, 10/1/22(a)..... 75,000
1,115,000 New York City GO, Series A5, 1.30%, 8/1/15(a)..... 1,115,000
1,900,000 New York City GO, Series A4, 1.35%, 8/1/21(a)..... 1,900,000
700,000 New York City Water Finance Authority, WSR, Series
C, 1.30%, 6/15/23(a).............................. 700,000
----------------
5,290,000
----------------
PENNSYLVANIA--3.5%
1,600,000 Wilkins IDA for Fairview, Series B, 1.15%,
1/1/21(a)......................................... 1,600,000
----------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $45,347,593)................ 98.8% 45,347,593
OTHER ASSETS, LESS LIABILITIES...................... 1.2 527,702
-------- ----------------
NET ASSETS.......................................... 100.0% $ 45,875,295
======== ================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE,
BASED ON 45,875,295 SHARES OF BENEFICIAL INTEREST, $.001 PAR
VALUE OUTSTANDING............................................. $1.00
================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<Page>
RESERVE TAX-EXEMPT TRUST--MASSACHUSETTS TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2003
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--98.3% (NOTE 1)
--------- ----------------------------- --------
$ 500,000 Boston WSR, Series A, 1.20%, 11/1/24(a)........... $ 500,000
800,000 Edgartown BAN, 2.50%, 8/01/03(b).................. 801,295
1,000,000 Massachusetts DFA for Bedford Notre Dame Health
Care, 1.19%, 10/1/29(a)........................... 1,000,000
600,000 Massachusetts DFA for Clarke University, 1.15%,
10/01/30(a)....................................... 600,000
1,000,000 Massachusetts DFA for Jewish High School Project,
1.08%, 6/1/32(a).................................. 1,000,000
100,000 Massachusetts DFA for New Bedford Whaling Museum,
1.25%, 9/1/29(a).................................. 100,000
1,100,000 Massachusetts DFA for Smith College, 1.15%,
7/1/24(a)......................................... 1,100,000
1,100,000 Massachusetts DFA IDR for Ocean Spray Cranberry,
1.16%, 10/15/11(a)................................ 1,100,000
850,000 Massachusetts GO, Series B, 1.15%, 9/1/16(a)...... 850,000
100,000 Massachusetts HEFA, Series B, 1.30%, 7/1/10(a).... 100,000
265,000 Massachusetts HEFA for Becker College, Series A-2,
1.25%, 7/1/09(a).................................. 265,000
200,000 Massachusetts HEFA for Boston University, Series
85, 1.15%, 12/1/29(a)............................. 200,000
500,000 Massachusetts HEFA for Brigham & Women's Hospital,
1.15%, 7/1/17(a).................................. 500,000
700,000 Massachusetts HEFA for Cap Asset Program, Series
E, 1.35%, 1/1/35(a)............................... 700,000
1,000,000 Massachusetts HEFA for Falmouth Assisted Living,
Series D, 1.15%, 11/1/26(a)....................... 1,000,000
1,000,000 Massachusetts HEFA for Harvard University, Series
Y, 1.00%, 7/1/35(a)............................... 1,000,000
1,000,000 Massachusetts HEFA for Partners Health Systems,
Series P-1, 1.15%, 7/1/27(a)...................... 1,000,000
1,000,000 Massachusetts HEFA for University of
Massachusetts, Series A, 1.10%, 11/1/30(a)........ 1,000,000
1,100,000 Massachusetts HEFA for Wellesley College, Series
E, 1.15%, 7/1/22(a)............................... 1,100,000
400,000 Massachusetts HEFA for Williams College, Series E,
1.10%, 8/1/14(a).................................. 400,000
1,000,000 Massachusetts HFA for Multifamily Housing, 1.10%,
1/15/10(a)........................................ 1,000,000
785,000 Massachusetts IFA for Lowell Mills Association,
Series 95, 1.25%, 12/1/20(a)...................... 785,000
1,250,000 Massachusetts WRA, Series A & 97A, 1.10%,
4/1/28(a)......................................... 1,250,000
200,000 Massachusetts WRA, Series B, 1.15%, 4/1/28(a)..... 200,000
600,000 Massachusetts WRA, Series C, 1.15%, 8/1/37(a)..... 600,000
500,000 Massachusetts WRA, Series C, 1.25%, 8/1/20(a)..... 500,000
900,000 Massachusetts WRA, Series D, 1.25%, 8/1/17(a)..... 900,000
865,000 Winchester BAN, 2.35%, 7/2/03(b).................. 865,539
----------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $20,416,834)................ 98.3% 20,416,834
OTHER ASSETS, LESS LIABILITIES...................... 1.7 361,820
-------- ----------------
NET ASSETS.......................................... 100.0% $ 20,778,654
======== ================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE,
BASED ON 20,778,654 SHARES OF BENEFICIAL INTEREST, $.001 PAR
VALUE OUTSTANDING............................................. $1.00
================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<Page>
RESERVE TAX-EXEMPT TRUST--MICHIGAN TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2003
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--92.3% (NOTE 1)
--------- ----------------------------- --------
MICHIGAN--87.2%
$150,000 Bruce Township HDA for Catholic Initiatives, 1.10%,
5/1/18(a)............................................... $ 150,000
500,000 Detroit EDC for Waterfront Reclamation, Series A & C,
1.20% - 1.35%, 5/1/09(a) ............................... 500,000
245,000 Detroit Sewage District Revenue, Series A, 1.15%,
7/1/23(a)............................................... 245,000
95,000 Detroit Sewage District Revenue, Series C2, 1.15%,
7/1/29(a)............................................... 95,000
100,000 Detroit Water Supply, Series 93, 1.20%, 7/1/13(a)....... 100,000
300,000 Flint Hospital Hurley Medical Center, Series B, 1.20%,
7/1/15(a)............................................... 300,000
705,000 Garden City Hospital Finance Authority, Series 96A,
1.23%, 9/1/26(a)........................................ 705,000
200,000 Gaylord Hospital Otsego Memorial Hospital, 1.21%,
12/1/26(a).............................................. 200,000
205,000 Grand Rapids Water Supply System, 1.10%, 1/1/20(a)...... 205,000
400,000 Green Lake EDA for Interlocken Center Arts, 1.20%,
6/1/27(a)............................................... 400,000
500,000 Jackson County EDC for Thrifty Leoni Project, 1.50%,
12/1/14(a).............................................. 500,000
300,000 Michigan Building Authority Multi Modual Facilities
Program II, 1.10%, 10/15/36(a) ......................... 300,000
300,000 Michigan Grant Anticipation Notes, Series C, 1.10%,
9/15/08(a).............................................. 300,000
400,000 Michigan HDA, Series B, 1.20%, 4/1/19(a)................ 400,000
100,000 Michigan HDA for Harbortown Ltd., Series 91, 1.325%,
6/1/04(a)............................................... 100,000
200,000 Michigan HDA for Pine Ridge Ltd., 1.20%, 10/1/07(a)..... 200,000
400,000 Michigan Hospital Finance Authority for Mt. Clemens
Hospital, 1.30%, 8/15/15(a) ............................ 400,000
400,000 Michigan Job Development Authority for Wyandotte Court,
1.20%, 12/1/09(a) ...................................... 400,000
400,000 Michigan State University, Series A, 1.25%,
8/15/32(a).............................................. 400,000
200,000 Michigan Strategic Fund for Clark Retirement Community,
1.10%, 6/1/31(a)........................................ 200,000
300,000 Michigan Strategic Fund for Henry Ford Museum, 1.30%,
12/1/33(a).............................................. 300,000
450,000 Michigan Strategic Fund IDR for Allen Group Inc., 1.10%,
11/1/25(a).............................................. 450,000
---------------
6,850,000
---------------
PUERTO RICO--5.1%
400,000 Puerto Rico Highway & Transportation Authority, Series
A, 1.10%, 7/1/28(a) .................................... 400,000
---------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $7,250,000)................. 92.3% 7,250,000
OTHER ASSETS, LESS LIABILITIES...................... 7.7 608,043
-------- ---------------
NET ASSETS.......................................... 100.0% $ 7,858,043
======== ===============
</Table>
RESERVE TAX-EXEMPT TRUST--MICHIGAN TAX-EXEMPT FUND
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 2003
<Table>
<Caption>
ASSETS
Investments in securities, at value (Cost $7,250,000)......... $ 7,250,000
Cash.......................................................... 597,534
Interest receivable........................................... 11,155
---------------
Total Assets.................................................. 7,858,689
---------------
LIABILITIES
Accrued Expenses.............................................. 646
---------------
Total Liabilities............................................. 646
---------------
NET ASSETS.................................................... $ 7,858,043
===============
</Table>
<Table>
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE,
BASED ON 7,858,043 SHARES OF BENEFICIAL INTEREST,
$.001 PAR VALUE OUTSTANDING................................... $1.00
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<Page>
RESERVE TAX-EXEMPT TRUST--NEW JERSEY TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2003
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--97.7% (NOTE 1)
--------- ----------------------------- --------
NEW JERSEY--97.3%
$2,700,000 Atlantic City Pooled Government Loan Program, 1.15%,
7/1/26(a)............................................... $ 2,700,000
600,000 Camden County Improvement Authority for Village Harvest,
1.25%, 7/1/29(a) ....................................... 600,000
700,000 Essex City GO, 4.25%, 6/1/03(b)......................... 700,000
500,000 Essex County Improvement Authority for the Children's
Institute, 1.26%, 2/1/20(a) ............................ 500,000
4,475,000 Jersey City Redevelopment Authority for Dixon Mills
Apartments, 1.15%, 5/15/30(a) .......................... 4,475,000
1,700,000 Monmouth County Pooled Government Loan Program, 1.00%,
8/1/16(a)............................................... 1,700,000
550,000 New Jersey EDA, Series CC, 1.20%, 12/1/09(a)............ 550,000
745,000 New Jersey EDA for Catholic Community Services, 1.26%,
11/01/13(a)............................................. 745,000
2,695,000 New Jersey EDA for Church & Dwight, 1.15%, 12/1/08(a)... 2,695,000
2,200,000 New Jersey EDA for Crowley Liner, 1.15%, 4/01/13(a) .... 2,200,000
590,000 New Jersey EDA for Economic Growth, Series F, 1.15%,
8/1/14(a)............................................... 590,000
1,300,000 New Jersey EDA for Foreign Trade, Series 98, 1.30%,
12/1/07(a).............................................. 1,300,000
2,700,000 New Jersey EDA for Geriatric Services Housing, 1.20%,
11/01/31(a) ............................................ 2,700,000
2,700,000 New Jersey EDA for International Drive Partner, 1.18%,
9/1/05(a)............................................... 2,700,000
2,200,000 New Jersey EDA for Presbyterian, Series C, 1.15%,
11/1/11(a).............................................. 2,200,000
500,000 New Jersey EDA for Princeton University, Series B,
1.25%, 7/1/21(a)........................................ 500,000
1,148,000 New Jersey EDA for RJB Associates, Economic Recovery
Notes, 1.20%, 8/1/08(a) ................................ 1,148,000
500,000 New Jersey EDA for Stolthaven Perth Amboy, 1.20%,
1/15/18(a).............................................. 500,000
2,705,000 New Jersey EDA for US Golf Association, 1.20%,
5/01/23(a) ............................................. 2,705,000
1,500,000 New Jersey EDA for Water Facilities, 1.30%,
11/1/26(a) ............................................. 1,500,000
500,000 New Jersey EDA for Water Project B, 1.25%, 11/1/25(a)... 500,000
2,200,000 New Jersey EFA, Series B, 1.25%, 7/1/22(a).............. 2,200,000
3,000,000 New Jersey HCF, Series A-3, 1.15%, 7/1/21(a)............ 3,000,000
1,000,000 New Jersey HCF for Christ Hospital, Series A-2, 1.15%,
7/1/13(a) .............................................. 1,000,000
400,000 New Jersey HCF for Hospital Capital Asset, Series C,
1.10%, 7/1/35(a)........................................ 400,000
1,700,000 New Jersey HCF for Saint Barnabas, Series 2001A, 1.20%,
7/1/31(a)............................................... 1,700,000
3,440,000 New Jersey Sports Authority Expo, Series C, 1.10%,
9/1/24(a)............................................... 3,440,000
4,100,000 New Jersey Turnpike Authority, Series 91D, 1.15%,
1/1/18(a)............................................... 4,100,000
400,000 Readington Township Board of Education GO, 4.00%,
7/15/03(b).............................................. 401,127
1,594,670 Rumson BAN, Series C, 2.375%, 7/30/03(b)................ 1,596,733
2,150,000 Rutgers State University, Series A, 1.20%,
5/01/18(a) ............................................. 2,150,000
1,000,000 West Essex Regional School District GO, 3.00%,
11/01/03(b)............................................. 1,007,760
300,000 Woodbridge Township GO, 3.75%, 7/15/03(b)............... 300,786
----------------
54,504,406
----------------
PUERTO RICO--0.4%
200,000 Puerto Rico Government Development Bank, 1.05%,
12/1/15(a).............................................. 200,000
----------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $54,704,406)................ 97.7% 54,704,406
OTHER ASSETS, LESS LIABILITIES...................... 2.3 1,316,941
-------- ----------------
NET ASSETS.......................................... 100.0% $ 56,021,347
======== ================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE,
BASED ON 56,021,347 SHARES OF BENEFICIAL INTEREST, $.001 PAR
VALUE OUTSTANDING............................................. $1.00
================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<Page>
RESERVE TAX-EXEMPT TRUST--OHIO TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2003
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--100.3% (NOTE 1)
- --------- ------------------------------ --------
$ 300,000 Allen County HCF for Mennonite Home Project, 1.20%,
2/1/18(a)............................................... $ 300,000
800,000 Butler County HCF for Lifesphere Project, 1.20%,
5/1/27(a) .............................................. 800,000
230,000 Centerville Health for Bethany Lutheran Church, 1.23%,
5/1/08(a)............................................... 230,000
750,000 Cleveland Airport Systems, Series C, 1.20%, 1/1/31(a)... 750,000
493,000 Cleveland Income Tax Revenue, 1.16%, 5/15/24(a)......... 493,000
400,000 Clinton County Airport for Wilmington Airport Inc,
1.20%, 6/1/11(a)........................................ 400,000
200,000 Columbus Tax Increment for Lyra Gemini Polaris, 1.22%,
8/1/11(a)............................................... 200,000
750,000 Cuyahoga County HRB for Cleveland Botanical, 1.23%,
7/1/31(a)............................................... 750,000
400,000 Cuyahoga County HRB for Cleveland Clinic, Series B-1,
1.30%, 1/1/35(a)........................................ 400,000
500,000 Cuyahoga County EDA for Cleveland Orchestra Project,
1.35%, 4/1/28(a) ....................................... 500,000
500,000 Cuyahoga County IDA for Allen Group Project, 1.10%,
12/1/15(a).............................................. 500,000
300,000 Delaware County IDR for Radiation Sterilizers, 1.40%,
12/1/04(a).............................................. 300,000
1,000,000 Evandale County IDR for SHV Real Estate Inc., 1.40%,
9/1/15(a)............................................... 1,000,000
260,000 Franklin County Community Housing Network, 1.21%,
12/1/20(a).............................................. 260,000
100,000 Franklin County for US Health Corporation, Series A,
1.20%, 12/1/21(a)....................................... 100,000
35,000 Franklin County for US Health Corporation, Series B,
1.20%, 12/1/20(a)....................................... 35,000
500,000 Green County IDA for Fairview, Series B, 1.15%,
1/1/11(a)............................................... 500,000
150,000 Hamilton County HRB for Alliance Health, Series A,
1.16%, 1/1/18(a)........................................ 150,000
400,000 Indian Hill EDA for Cincinnati Country Day School,
1.23%, 5/1/19(a)........................................ 400,000
350,000 Kent State University Receipts, 1.25%, 5/1/31(a)........ 350,000
65,000 Lorain County Independent Living for Elyria United
Methodist, 1.22%, 6/1/22(a) ............................ 65,000
235,000 Lucas County for Toledo Project, 1.20%, 10/1/05(a)...... 235,000
135,000 Marion County Hospital Pooled Lease Program, 1.25%,
11/1/21(a).............................................. 135,000
265,000 Middleburgh Heights Southwest General Hospital, 1.26%,
8/15/22(a).............................................. 265,000
400,000 Ohio Air Quality DAR for Cincinnati Gas, Series B,
1.30%, 9/1/30(a)........................................ 400,000
100,000 Ohio Air Quality DAR for Edison, Series C, 1.35%,
6/1/23(a)............................................... 100,000
150,000 Ohio Air Quality DAR for Timkem Project, 1.20%,
11/1/25(a).............................................. 150,000
400,000 Ohio WDA PCR for Cleveland Electric, Series B, 1.15%,
8/1/20(a)............................................... 400,000
270,000 Ottawa County HRB for Luther Home of Mercy, 1.26%,
10/1/17(a).............................................. 270,000
----------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $10,438,000)................ 100.3% 10,438,000
LIABILITIES IN EXCESS OF OTHER ASSETS............... (0.3) (28,087)
-------- ----------------
NET ASSETS.......................................... 100.0% $ 10,409,913
======== ================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE BASED
ON 10,409,913 SHARES OF BENEFICIAL INTEREST, $.001 PAR
VALUE OUTSTANDING............................................. $1.00
================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<Page>
RESERVE TAX-EXEMPT TRUST--PENNSYLVANIA TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2003
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--99.3% (NOTE 1)
--------- ----------------------------- --------
$1,100,000 Allegheny HDA for Health Care Dialysis Clinic, 1.20%,
12/1/19(a).............................................. $ 1,100,000
1,400,000 Allegheny HDA for Presbyterian University Hospital,
Series B3, 1.25%, 3/1/18(a) ............................ 1,400,000
2,000,000 Lehigh County IDR for Visiting Nurse Services, Series A
& B, 1.30%, 12/1/15(a) ................................. 2,000,000
1,000,000 Berks County IDR for Visiting Nurse Services, Series A &
B, 1.30 - 1.45%, 12/1/15(a)............................. 1,000,000
2,000,000 Blair County IDR for Village of Penn State, Series C,
1.16%, 1/1/11(a)........................................ 2,000,000
2,000,000 Bucks County IDA for SHV Real Estate Inc., 1.30%,
7/01/15(a).............................................. 2,000,000
500,000 Chartiers Valley IDA for 1133 Penn Ave. Associates,
Project A, 1.25%, 8/1/07(a) ............................ 500,000
2,000,000 Chester County Health & Education Facilities Authority,
1.25%, 10/1/30(a) ...................................... 2,000,000
145,000 Dauphin County General Authority, 1.27%, 11/1/17(a)..... 145,000
1,000,000 Delaware County IDA for Scotfoam Corp. for Simpson
Meadows Project, 1.35%, 10/1/05(a)...................... 1,000,000
1,450,000 Delaware County IDR for Sun Inc., 1.20%, 11/01/33(a).... 1,450,000
500,000 Delaware Valley Finance Authority, Series 85A, 1.20%,
12/1/19(a).............................................. 500,000
1,500,000 Delaware Valley Finance Authority, Series B & D, 1.20%,
12/1/20(a).............................................. 1,500,000
1,400,000 Emmaus General Authority, 1.25%, 3/1/24(a).............. 1,400,000
2,400,000 Geisinger Health Systems, 1.30%, 8/1/28(a).............. 2,400,000
2,000,000 Lancaster County HRB for Brethren Village, 1.25%,
6/15/20(a).............................................. 2,000,000
2,350,000 Lebanon County HCF for ECC Retirement Village, 1.25%,
10/15/25(a)............................................. 2,350,000
1,080,000 Lehigh County IDR for Radnor Lehigh, 1.65%, 2/1/17(a)... 1,080,000
200,000 Montgomery County Higher Education & Health Authority
for William Penn Charter, 1.24%, 9/15/31(a)............. 200,000
430,000 Montgomery County IDR for Girl Scouts, 1.30%,
2/1/25(a)............................................... 430,000
300,000 Northeastern HEFA for Wyoming Valley Health, 1.30%,
1/1/24(a)............................................... 300,000
555,000 Pennsylvania HEFA Series U, 2.00%, 6/15/03.............. 555,088
1,225,000 Pennsylvania HEFA for Temple University, 1.25%,
10/1/09(a).............................................. 1,225,000
500,000 Philadelphia IDR for Fox Chase Cancer Center Project,
1.30%, 7/01/10(a)....................................... 500,000
300,000 Philadelphia IDR for Fox Chase Cancer Center Project,
1.30%, 7/01/25(a)....................................... 300,000
560,000 Philadelphia IDR for Interim House West Project, 1.30%,
9/1/26(a)............................................... 560,000
1,625,000 Philadelphia Water & WasteWater Revenue, 1.15%,
6/15/23(a).............................................. 1,625,000
40,000 Quakertown General Authority, Series A, 1.15%,
6/1/28(a)............................................... 40,000
1,800,000 Schuylkill County IDA for Northeastern Power, 1.40%,
12/1/22(a).............................................. 1,800,000
1,900,000 Scranton-Lackawanna Health & Welfare Authority for Univ.
of Scranton, RAW, 1.15%, 5/01/18(a) .................... 1,900,000
2,000,000 University of Pittsburgh of the Commonwealth System of
Higher Education, Series B, 1.25%, 9/15/29(a) .......... 2,000,000
2,000,000 Wilkins Area IDA for Fairview Extended Services Care,
Series B, 1.15%, 01/1/21(a) ............................ 2,000,000
600,000 York County IDA for Philadelphia Electric Co., Series A,
1.05%, 7/17/03(a)....................................... 600,000
450,000 York County, Series A, 1.20%, 9/01/26(a)................ 450,000
----------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $40,310,088)................ 99.3% 40,310,088
OTHER ASSETS, LESS LIABILITIES...................... 0.7 282,247
-------- ----------------
NET ASSETS.......................................... 100.0% $ 40,592,335
======== ================
NET ASSETS VALUE, OFFERING AND REDEMPTION PRICE PER SHARE,
BASED ON 40,592,335 SHARES OF BENEFICIARY INTEREST, $.001 PAR
VALUE OUTSTANDING............................................. $1.00
================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<Page>
RESERVE TAX-EXEMPT TRUST--VIRGINIA TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2003
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--98.6% (NOTE 1)
--------- ----------------------------- --------
VIRGINIA--85.3%
$ 550,000 Albemarle County IDA University Health Services for
University of Virginia, 1.20%, 10/1/22(a) .............. $ 550,000
500,000 Alexandria IDA Pooled Loan Program, Series A, 1.20%,
7/1/26(a)............................................... 500,000
90,000 Alexandria Redevelopment & Housing Authority for Goodwin
House, Series B, 1.25%, 10/1/06(a) ..................... 90,000
700,000 Arlington County for Ballston Public Parking, 1.20%,
8/1/17(a)............................................... 700,000
500,000 Chesapeake Hospital Authority IDA for Chesapeake General
Hospital, Series B, 1.20%, 7/1/31(a) ................... 500,000
550,000 Clarke County IDA for Winchester Medical Center, 1.35%,
1/1/30(a)............................................... 550,000
500,000 Hampton MHR for Avalon at Hampton I Project, 1.10%,
6/15/26(a).............................................. 500,000
1,100,000 Hampton MHR for Shoreline Apartments, 1.20%,
12/1/19(a).............................................. 1,100,000
900,000 Loudoun County IDA for Falcons Landing, 1.20%,
11/1/28(a).............................................. 900,000
800,000 Lynchburgh IDA VHA MidAtlantic Capital, Series B, 1.20%,
12/1/25(a).............................................. 800,000
1,400,000 Peninsula Port Authority for Dominion Terminal, 1.27% -
1.35%, 7/1/16(a)........................................ 1,400,000
430,000 Richmond IDR for Ninth & Cary Association, 1.25%,
9/1/10(a)............................................... 430,000
500,000 Roanoke IDA for Carilion Health Systems, 1.30%,
7/1/27(a)............................................... 500,000
30,000 Roanoke IDA for Friendship Manor, 1.20%, 8/1/13(a)...... 30,000
1,050,000 University of Virginia, Series A, 1.20%, 6/1/34(a)...... 1,050,000
----------------
9,600,000
----------------
PUERTO RICO--13.3%
500,000 Puerto Rico Government Development Bank, 1.05%,
12/1/15(a).............................................. 500,000
300,000 Puerto Rico Highway & Transportation Authority, Series
A, 1.10%, 7/1/28(a) .................................... 300,000
700,000 Puerto Rico TRAN, Series A, 2.50%, 7/30/03(b)........... 701,589
----------------
1,501,589
----------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $11,101,589)................ 98.6% 11,101,589
OTHER ASSETS, LESS LIABILITIES...................... 1.4 158,455
-------- ----------------
NET ASSETS.......................................... 100.0% $ 11,260,044
======== ================
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE,
BASED ON 11,260,044 SHARES OF BENEFICIAL INTEREST, $.001 PAR
VALUE OUTSTANDING............................................. $1.00
================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<Page>
RESERVE MUNICIPAL MONEY-MARKET TRUST--LOUISIANA MUNICIPAL MONEY-MARKET FUND
STATEMENT OF NET ASSETS--MAY 31, 2003
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--75.1% (NOTE 1)
- --------- ----------------------------- --------
LOUISIANA--56.1%
$10,000 Ascension IDA for Borden Inc. Project, 1.27%,
12/01/09(a)............................................. $ 10,000
11,000 Calcasieu Parish IDR for Citgo, 1.25%, 8/01/04(a)....... 11,000
10,000 East Baton Rouge Rhone-Poulenc Inc. Project, 1.35%,
12/01/11(a)............................................. 10,000
10,000 Lake Charles Revenue District for CONOCO, 1.20%,
9/01/29(a).............................................. 10,000
10,000 Louisiana Public Facilities Authority for Kenner Hotel
Ltd., 1.30%, 12/01/15(a)................................ 10,000
11,000 Louisiana State University Agriculture & Mechanical
College, 1.25%, 7/01/30(a).............................. 11,000
-------------
62,000
-------------
PUERTO RICO--19.0%
11,000 Puerto Rico Government Development Bank, 1.05%,
12/01/15(a)............................................. 11,000
10,000 Puerto Rico Highway & Transportation Authority,
Series A, 1.10%, 7/01/28(a)............................. 10,000
-------------
21,000
-------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $83,000).................... 75.1% 83,000
OTHER ASSETS, LESS LIABILITIES...................... 24.9 27,502
-------- -------------
NET ASSETS.......................................... 100.0% $ 110,502
======== =============
</Table>
RESERVE MUNICIPAL MONEY-MARKET TRUST--LOUISIANA MUNICIPAL MONEY-MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 2003
<Table>
<Caption>
ASSETS
Investments in securities, at value (Cost $83,000)............ $ 83,000
Cash.......................................................... 27,419
Interest receivable........................................... 83
-------------
Total Assets.................................................. 110,502
-------------
NET ASSETS.................................................... $ 110,502
=============
</Table>
<Table>
NET ASSETS VALUE, OFFERING AND REDEMPTION PRICE PER SHARE,
BASED ON 110,502 SHARES OF BENEFICIAL INTEREST, $.0001 PAR
VALUE OUTSTANDING............................................. $1.00
=============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<Page>
RESERVE MUNICIPAL MONEY-MARKET TRUST--MINNESOTA MUNICIPAL MONEY-MARKET FUND
STATEMENT OF NET ASSETS--MAY 31, 2003
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT TAX-EXEMPT OBLIGATIONS--90.8% (NOTE 1)
- --------- ----------------------------- --------
MINNESOTA--76.2%
$10,000 Arden Hills Housing for Presbyterian Homes, 1.35%,
9/1/29(a)............................................... $ 10,000
17,000 Beltrami County for Northwood Panelboard, 1.30%,
12/1/21(a).............................................. 17,000
7,000 Brooklyn Center, 1.35%, 12/01/14(a)..................... 7,000
12,000 City of New Brighton for Unicare Homes, 1.28%,
12/01/14(a)............................................. 12,000
10,000 Cohasset for Minnesota Power & Light, 1.30%,
12/1/07(a).............................................. 10,000
7,000 Cohasset for Minnesota Power & Light, 1.30%,
06/01/20(a)............................................. 7,000
7,000 Duluth Tax for Lake Superior Paper, 1.15%, 9/1/10(a).... 7,000
17,000 Hennepin County, Series B, 1.05%, 12/01/10(a)........... 17,000
17,000 Hennepin County, Series B, 1.05%, 12/01/20(a)........... 17,000
10,000 Mankato for Bethany Lutheran College, 1.35%,
11/1/15(a).............................................. 10,000
10,000 Minnesota Higher Education for Saint Olaf College,
1.30%, 10/1/30(a)....................................... 10,000
17,000 University of Minnesota Intermediate Term Funding,
Series A, 1.25%, 7/01/08(a)............................. 17,000
-------------
141,000
-------------
PUERTO RICO--14.6%
17,000 Puerto Rico Government Development Bank, 1.05%,
12/01/15(a)............................................. 17,000
10,000 Puerto Rico Highway & Transportation Authority, Series
A, 1.10%, 7/01/28(a).................................... 10,000
-------------
27,000
-------------
</Table>
<Table>
TOTAL INVESTMENTS (COST $168,000)................... 90.8% 168,000
OTHER ASSET, LESS LIABILITIES....................... 9.2 17,021
-------- -------------
NET ASSETS.......................................... 100.0% $ 185,021
======== =============
</Table>
RESERVE MUNICIPAL MONEY-MARKET TRUST--MINNESOTA MUNICIPAL MONEY-MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 2003
<Table>
<Caption>
ASSETS
Investments in securities, at value (Cost $168,000)........... $ 168,000
Cash.......................................................... 16,850
Interest receivable........................................... 171
-------------
Total Assets.................................................. 185,021
-------------
NET ASSETS.................................................... $ 185,021
=============
</Table>
<Table>
NET ASSETS VALUE, OFFERING AND REDEMPTION PRICE PER SHARE,
BASED ON 185,021 SHARES OF BENEFICIAL INTEREST, $.0001 PAR
VALUE OUTSTANDING............................................. $1.00
=============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<Page>
SECURITY TYPE ABBREVIATIONS
<Table>
BAN -- Bond Anticipation Notes HRB -- Hospital Revenue Bonds
COP -- Certificate of Participation IDA -- Industrial Development Authority
Revenue Bonds
CSD -- Central School District IDR -- Industrial Development Agency
Revenue Bonds
DAR -- Development Authority Revenue Bonds IFA -- Industrial Finance Authority
DFA -- Development Finance Agency MFH -- Multi-family Housing Revenue Bonds
ECC -- Evangelical Congregation Church MFHR -- Multi-family Facilities Housing
Revenue Bonds
EDA -- Economic Development Authority MSR -- Modesto Irrigation
Revenue Bonds
EDC -- Economic Development Corporation PCR -- Pollution Control Revenue Bonds
EFA -- Education Facilities Authority RAN -- Revenue Anticipation Notes
GO -- General Obligation RAW -- Revenue Anticipation Warrants
HCF -- Health Care Facilities Revenue TAN -- Tax Anticipation Notes
Bonds
HDA -- Hospital Development Authority TRAN -- Tax and Revenue Anticipation Notes
HDC -- Housing Development Corporation UFSD -- Union Free School District
Bonds
HEFA -- Health & Education Facilities USD -- Union School District
Authority
HFA -- Housing Finance Authority Revenue WDA -- Water Development Authority
Bonds
HFF -- Health Facilities Financing WRA -- Water Resource Authority
Authority
WSR -- Water & Sewer System Revenue Bonds
</Table>
- -----------------
(a) Variable rate securities. The interest rates, as reported on May 31, 2003,
are subject to change periodically. Securities are payable on demand and
are collateralized by bank letters of credit or other credit agreements.
(b) Securities are collateralized by bank letters of credit or other credit
agreements
SEE NOTES TO FINANCIAL STATEMENTS.
18
<Page>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MAY 31, 2003
<Table>
<Caption>
RESERVE NEW YORK
TAX-EXEMPT TRUST RESERVE TAX-EXEMPT TRUST
---------------- ----------------------------------------------------
NEW YORK CALIFORNIA II CONNECTICUT FLORIDA MASSACHUSETTS
FUND FUND FUND FUND FUND
---------------- ------------- ----------- --------- -------------
INTEREST INCOME (Note
1)..................... $3,162,841 $1,511,702 $461,482 $501,272 $293,745
---------- ---------- -------- -------- --------
EXPENSES (Note 2)
Comprehensive
management fees...... 1,897,792 918,786 299,192 299,652 183,410
Distribution (12b-1)
fees................. 474,448 229,695 74,798 74,919 45,853
Trustee fees........... 3,415 1,600 567 469 303
---------- ---------- -------- -------- --------
Total expenses before
waiver............. 2,375,655 1,150,081 374,557 375,040 229,566
Less: expenses waived
(Note 2)........... (7,257) (6,774) (7,440) (1,576) (3,525)
---------- ---------- -------- -------- --------
Net Expenses......... 2,368,398 1,143,307 367,117 373,464 226,041
---------- ---------- -------- -------- --------
NET INVESTMENT INCOME,
representing Net
Increase in Net Assets
from Investment
Operations............. $ 794,443 $ 368,395 $ 94,365 $127,808 $ 67,704
========== ========== ======== ======== ========
</Table>
<Table>
<Caption>
RESERVE TAX-EXEMPT TRUST
-------------------------------------------------------
MICHIGAN NEW JERSEY OHIO PENNSYLVANIA VIRGINIA
FUND FUND FUND FUND FUND
-------- ---------- -------- ------------ ---------
INTEREST INCOME (Note
1)..................... $119,028 $719,666 $123,368 $562,393 $158,111
-------- -------- -------- -------- --------
EXPENSES (Note 2)
Comprehensive
management fees...... 75,053 458,935 76,834 333,994 105,799
Distribution (12b-1)
fees................. 18,763 114,734 19,207 83,499 26,450
Trustee fees........... 121 811 93 694 187
-------- -------- -------- -------- --------
Total expenses before
waiver............. 93,937 574,480 96,134 418,187 132,436
Less: expenses waived
(Note 2)........... (1,869) (18,427) (1,034) (1,275) (5,632)
-------- -------- -------- -------- --------
Net Expenses......... 92,068 556,053 95,100 416,912 126,804
-------- -------- -------- -------- --------
NET INVESTMENT INCOME,
representing Net
Increase in Net Assets
from Investment
Operations............. $26,960 $163,613 $ 28,268 $145,481 $ 31,307
======== ======== ======== ======== ========
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<Page>
STATEMENTS OF OPERATIONS (CONTINUED)
FOR THE YEAR ENDED MAY 31, 2003
<Table>
<Caption>
RESERVE MUNICIPAL MONEY-MARKET TRUST
------------------------------------
LOUISIANA FUND MINNESOTA FUND
----------------- -----------------
INTEREST INCOME (Note 1)................ $ 980 $1,454
------ ------
EXPENSES (Note 2)
Comprehensive management fees......... 881 1,039
Distribution (12b-1) fees............. 220 259
Trustee fees.......................... 1 1
------ ------
Total expenses before waiver........ 1,102 1,299
Less: expenses waived (Note 2)...... (468) (395)
------ ------
Net Expenses........................ 634 904
------ ------
NET INVESTMENT INCOME, representing Net
Increase in Net Assets from Investment
Operations............................ $ 346 $ 550
====== ======
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<Page>
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
RESERVE NEW YORK
TAX-EXEMPT TRUST RESERVE TAX-EXEMPT TRUST
-------------------------------- ------------------------------------------------------------------
NEW YORK FUND CALIFORNIA II FUND CONNECTICUT FUND
-------------------------------- -------------------------------- --------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, 2003 MAY 31, 2002 MAY 31, 2003 MAY 31, 2002 MAY 31, 2003 MAY 31, 2002
--------------- --------------- --------------- --------------- --------------- ---------------
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment
income............... $ 794,443 $ 2,471,483 $ 368,395 $ 1,212,281 $ 94,365 $ 369,571
------------- ------------- ------------- ------------- ------------ ------------
DIVIDENDS PAID TO SHAREHOLDERS FROM:
Net investment income
(Note 1)............. (794,443) (2,471,483) (368,395) (1,212,281) (94,365) (369,571)
------------- ------------- ------------- ------------- ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00 per share):
Proceeds from sale of
shares............... 592,663,728 696,162,904 392,076,216 462,779,496 68,379,658 93,098,785
Dividends reinvested... 794,443 2,471,483 368,395 1,212,281 94,365 369,571
Cost of shares
redeemed............. (599,479,326) (745,812,142) (392,783,651) (490,906,345) (73,337,022) (92,419,191)
------------- ------------- ------------- ------------- ------------ ------------
(6,021,155) (47,177,755) (339,040) (26,914,568) (4,862,999) 1,049,165
------------- ------------- ------------- ------------- ------------ ------------
Net increase (decrease)
in net assets........ (6,021,155) (47,177,755) (339,040) (26,914,568) (4,862,999) 1,049,165
NET ASSETS:
Beginning of year...... 234,434,170 281,611,925 109,331,806 136,246,374 41,246,209 40,197,044
------------- ------------- ------------- ------------- ------------ ------------
End of year............ $ 228,413,015 $ 234,434,170 $ 108,992,766 $ 109,331,806 $ 36,383,210 $ 41,246,209
============= ============= ============= ============= ============ ============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<Page>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<Table>
<Caption>
RESERVE TAX-EXEMPT TRUST
----------------------------------------------------------------------------------------------------
FLORIDA FUND MASSACHUSETTS FUND MICHIGAN FUND
-------------------------------- -------------------------------- --------------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, 2003 MAY 31, 2002 MAY 31, 2003 MAY 31, 2002 MAY 31, 2003 MAY 31, 2002
--------------- --------------- --------------- --------------- --------------- ---------------
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment
income............... $ 127,808 $ 324,477 $ 67,704 $ 186,349 $ 26,960 $ 46,422
------------- ------------- ------------ ------------ ------------ ------------
DIVIDENDS PAID TO SHAREHOLDERS FROM:
Net investment income
(Note 1)............. (127,808) (324,477) (67,704) (186,349) (26,960) (46,422)
------------- ------------- ------------ ------------ ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00 per share):
Proceeds from sale of
shares............... 145,621,862 155,543,426 61,356,637 54,996,937 35,519,672 48,699,873
Dividends reinvested... 127,808 324,477 67,704 186,349 26,960 46,422
Cost of shares
redeemed............. (131,964,326) (152,689,419) (61,605,935) (53,021,393) (36,203,291) (44,988,452)
------------- ------------- ------------ ------------ ------------ ------------
13,785,344 3,178,484 (181,594) 2,161,893 (656,659) 3,757,843
------------- ------------- ------------ ------------ ------------ ------------
Net increase (decrease)
in net assets........ 13,785,344 3,178,484 (181,594) 2,161,893 (656,659) 3,757,843
NET ASSETS:
Beginning of year...... 32,089,951 28,911,467 20,960,248 18,798,355 8,514,702 4,756,859
------------- ------------- ------------ ------------ ------------ ------------
End of year............ $ 45,875,295 $ 32,089,951 $ 20,778,654 $ 20,960,248 $ 7,858,043 $ 8,514,702
============= ============= ============ ============ ============ ============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<Page>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<Table>
<Caption>
RESERVE TAX-EXEMPT TRUST
--------------------------------------------------------
NEW JERSEY FUND OHIO FUND
---------------------------- --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, MAY 31, MAY 31, MAY 31,
2003 2002 2003 2002
------------- ------------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income...................... $ 163,613 $ 596,005 $ 28,268 $ 61,819
------------- ------------- ------------ ------------
DIVIDENDS PAID TO SHAREHOLDERS FROM:
Net investment income (Note 1)............. (163,613) (596,005) (28,268) (61,819)
------------- ------------- ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00 per share):
Proceeds from sale of shares............... 152,886,030 240,597,119 39,006,284 33,551,931
Dividends reinvested....................... 163,613 596,005 28,268 61,819
Cost of shares redeemed.................... (154,556,551) (236,555,353) (34,280,515) (36,011,184)
------------- ------------- ------------ ------------
(1,506,908) 4,637,771 4,754,037 (2,397,434)
------------- ------------- ------------ ------------
Net increase (decrease) in net assets...... (1,506,908) 4,637,771 4,754,037 (2,397,434)
NET ASSETS:
Beginning of year.......................... 57,528,255 52,890,484 5,655,876 8,053,310
------------- ------------- ------------ ------------
End of year................................ $ 56,021,347 $ 57,528,255 $10,409,913 $ 5,655,876
============= ============= ============ ============
<Caption>
RESERVE TAX-EXEMPT TRUST
--------------------------------------------------------
PENNSYLVANIA FUND VIRGINIA FUND
---------------------------- --------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, MAY 31, MAY 31, MAY 31,
2003 2002 2003 2002
------------- ------------- ------------ ------------
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income...................... $ 145,481 $ 414,178 $ 31,307 $ 58,600
------------- ------------- ------------ ------------
DIVIDENDS PAID TO SHAREHOLDERS FROM:
Net investment income (Note 1)............. (145,481) (414,178) (31,307) (58,600)
------------- ------------- ------------ ------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00 per share):
Proceeds from sale of shares............... 109,365,156 145,997,774 48,777,938 25,423,512
Dividends reinvested....................... 145,481 414,178 31,307 58,600
Cost of shares redeemed.................... (120,377,989) (129,012,883) (50,593,354) (19,159,452)
------------- ------------- ------------ ------------
(10,867,352) 17,399,069 (1,784,109) 6,322,660
------------- ------------- ------------ ------------
Net increase (decrease) in net assets...... (10,867,352) 17,399,069 (1,784,109) 6,322,660
NET ASSETS:
Beginning of year.......................... 51,459,687 34,060,618 13,044,153 6,721,493
------------- ------------- ------------ ------------
End of year................................ $ 40,592,335 $ 51,459,687 $11,260,044 $ 13,044,153
============= ============= ============ ============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<Page>
STATEMENTS OF CHANGES IN NET ASSETS (CONTINUED)
<Table>
<Caption>
RESERVE MUNICIPAL MONEY-MARKET TRUST
--------------------------------------------------------------
LOUISIANA FUND MINNESOTA FUND
------------------------------ ------------------------------
YEAR ENDED PERIOD ENDED YEAR ENDED PERIOD ENDED
MAY 31, 2003 MAY 31, 2002(A) MAY 31, 2003 MAY 31, 2002(A)
------------ ---------------- ------------ ----------------
INCREASE IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income........................... $ 346 $ 156 $ 550 $ 190
-------- -------- -------- --------
DIVIDENDS PAID TO SHAREHOLDERS FROM:
Net investment income (Note 1).................. (346) (156) (550) (190)
-------- -------- -------- --------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00 per share):
Proceeds from sale of shares.................... -- 110,000 74,281 110,000
Dividends reinvested............................ 346 156 550 190
-------- -------- -------- --------
346 110,156 74,831 110,190
-------- -------- -------- --------
Net increase in net assets...................... 346 110,156 74,831 110,190
NET ASSETS:
Beginning of period............................. 110,156 -- 110,190 --
-------- -------- -------- --------
End of period................................... $110,502 $110,156 $185,021 $110,190
======== ======== ======== ========
</Table>
- -----------------
(a) From April 17, 2002 (Commencement of Operations) to May 31, 2002.
SEE NOTES TO FINANCIAL STATEMENTS.
24
<Page>
NOTES TO FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES:
- --------------------------------------------------------------------------------
Reserve New York Tax-Exempt Trust, Reserve Tax-Exempt Trust and Reserve
Municipal Money-Market Trust (collectively the "Trusts") are registered
with the Securities Exchange Commission ("SEC") under the Investment
Company Act of 1940 as non-diversified, open-end management investment
companies. The policies summarized below are consistently followed in the
preparation of their financial statements in conformity with generally
accepted accounting principles.
A. The Trusts' authorized shares of beneficial interest are unlimited. As
of May 31, 2003, there were eleven (11) separate series of Reserve
Tax-Exempt Trust authorized and outstanding (Interstate, Interstate II,
California II, Connecticut, Florida, Massachusetts, Michigan, New Jersey,
Ohio, Pennsylvania and Virginia Tax-Exempt Funds), one (1) separate series
of Reserve New York Tax-Exempt Trust (New York Tax-Exempt Fund) and two (2)
separate series of Reserve Municipal Money-Market Trust (Louisiana and
Minnesota Funds) authorized and outstanding (each a "Fund", collectively
the "Funds"). These financial statements and notes apply to all above-
mentioned series of all Trusts, except for Interstate Tax-Exempt Fund and
Interstate II Tax-Exempt Fund.
B. Securities are valued at amortized cost, which approximates market
value. The amortized cost method values a security at cost plus accrued
interest at the time of purchase and thereafter assumes a constant
amortization to maturity of any discount or premium, irrespective of
intervening changes in interest rates or market values. For purposes of
compliance with Rule 2a-7 of the Investment Company Act of 1940 and for
computing the portfolios' average weighted life to maturity, the maturity
of floating or variable rate instruments in which the Funds may invest will
be deemed to be for floating rate instruments (1) the notice period
required before the Funds are entitled to receive payment of the principal
amount of the instrument; and for variable rate instruments the longer of
(1) above or (2) the period remaining until the instrument's next rate
adjustment.
C. It is each Fund's policy to comply with Subchapter M of the Internal
Revenue Code and to distribute all income to its shareholders. Accordingly,
no Federal income tax provision is required.
D. Security transactions are recorded on a trade date basis. Interest
income is accrued daily and security premium or discount is amortized or
accreted daily.
E. Net investment income is distributed to shareholders daily and
automatically reinvested in additional Fund shares.
(2) MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
- --------------------------------------------------------------------------------
Pursuant to an Investment Management Agreement (the "Agreement") between
Reserve Management Company, Inc. ("RMCI") and each Fund, RMCI serves as
each Fund's Investment Adviser subject to the policies adopted by the Board
of Trustees. Under the Agreement, RMCI is responsible for the supervision
of the day-to-day operations, manages each Fund's investments, effects
purchases and sales thereof, and absorbs certain promotional expenses. For
its services as Investment Adviser, RMCI receives a comprehensive
management fee, which is accrued daily at the annual rate of 0.80% of the
average daily net assets of each Fund. The comprehensive management fee
includes the advisory fee, all administrative and customary operating
expenses of each Fund, as well as shareholder liaison services (such as,
responding to customer inquiries and providing information on their
investments), recordkeeping charges, accounting expenses and transfer agent
costs. Excluded from the definition of customary operating expenses are:
interest charges, taxes, brokerage fees and commissions, extraordinary
legal and accounting fees and other extraordinary expenses, payments under
the Trust's Distribution Plan and the fees of the disinterested Trustees
for which each Fund pays its direct or allocated share. The Louisiana and
Minnesota Municipal Money-Market Funds also pay the state (blue sky) and
SEC registration fees applicable to those Funds. For the year ended
May 31, 2003, RMCI voluntarily waived its comprehensive management fee in
the amounts listed below:
<Table>
<Caption>
FUND AMOUNT
- ---- -------
New York Tax-Exempt Fund.......................... $ 7,257
California II Tax-Exempt Fund..................... 6,774
Connecticut Tax-Exempt Fund....................... 7,440
Florida Tax-Exempt Fund........................... 1,576
Massachusetts Tax-Exempt Fund..................... 3,525
Michigan Tax-Exempt Fund.......................... 1,869
New Jersey Tax-Exempt Fund........................ 18,427
Ohio Tax-Exempt Fund.............................. 1,034
Pennsylvania Tax-Exempt Fund...................... 1,275
Virginia Tax-Exempt Fund.......................... 5,632
Louisiana Municipal Money-Market Fund............. 468
Minnesota Municipal Money-Market Fund............. 395
</Table>
25
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(2) MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES: (CONTINUED)
- --------------------------------------------------------------------------------
As of May 31, 2003, RMCI owned 100% of the Louisiana and 60% of the
Minnesota Municipal Money-Market Funds. Certain Officers/ Trustees of the
Trusts are also Officers of RMCI.
DISTRIBUTION ASSISTANCE:
---------------------------------------------------------------------------
The Funds have adopted a Rule 12b-1 Plan, with Resrv Partners, Inc., an
affiliate of RMCI, which allows the Funds to pay distribution fees for the
sale and distribution of its shares. The rate of distribution expenses is
0.20% per year of each Funds' average daily net assets. The Plan requires
RMCI to pay an equivalent amount from its own resources.
(3) MANAGEMENT'S USE OF ESTIMATES:
- --------------------------------------------------------------------------------
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities on
the date of the financial statements and the reported amounts of income and
expenses during the reporting periods. Actual results could differ from
those estimates.
(4) INVESTMENT CONCENTRATION:
- --------------------------------------------------------------------------------
The Funds invest substantially all of their assets in portfolios of
tax-exempt obligations issued by states, territories and possessions of the
United States and their subdivisions. The issuers' ability to meet their
obligations may be affected by economic, regional or political
developments. In order to reduce the credit risk associated with such
factors, the Funds invest substantially in obligations backed by letters of
credit, bond insurance of financial institutions, financial guaranty
assurance agencies and or other credit enhancement arrangements as shown
below as a percentage of each Fund's net assets at May 31, 2003:
NEW YORK TAX-EXEMPT FUND 80.41%
<Table>
LETTER OF CREDIT
Allied Irish Bank 2.76% Kredietbank NV, Brussells 2.36%
Bank of New York 3.72% Landesbank Baden-Westdeutsche 0.48%
Bank of Nova Scotia 4.99% Landesbank Hessen-Thurgen 4.30%
Banque Paribas 5.25% Mellon Bank 1.01%
Bay Landesbank Girozentrale 4.46% Societe Generale 4.99%
Dexia 4.75% State Street Bank & Trust Co. 2.32%
Fleet Bank 4.99% Sun Trust Bank 0.44%
FNB 1.71% Toronto Dominion 4.55%
FNMA 3.02% Wachovia Bank & Trust Company 0.53%
JP Morgan / Chase 4.18% Westdeutsche Landesbank Girozentrale 2.85%
Keybank 1.75%
* BOND INSURANCE
AMBAC 4.99% FSA 3.68%
FGIC 2.62% MBIA 3.71%
</Table>
26
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(4) INVESTMENT CONCENTRATION (CONTINUED)
- --------------------------------------------------------------------------------
CALIFORNIA II TAX-EXEMPT FUND 78.00%
<Table>
LETTER OF CREDIT
Allied Irish Bank 2.75% FRMC 5.41%
Bank of America 3.67% JP Morgan / Chase 0.92%
Bank of New York 3.47% Kredietbank NV, Brussels 4.91%
Bank of Nova Scotia 3.20% La Salle National Bank 4.68%
Banque Paribas 1.41% Landesbank Hessen-Thurgen 1.76%
Bay Landesbank Girozentrale 3.21% Landesbank Hessen-Thurin 1.30%
CIBC 3.65% Societe Generale 1.61%
Credit Agricole Indosuez 4.59% State Street Bank & Trust Co. 2.57%
Credit Suisse 2.48% Toronto Dominion Bank 2.29%
FNMA 4.95% Union Bank of Switzerland 0.73%
* BOND INSURANCE
AMBAC 3.95% FSA 7.14%
FGIC 3.21% MBIA 4.22%
</Table>
CONNECTICUT TAX-EXEMPT FUND 95.34%
<Table>
LETTER OF CREDIT
Allied Irish Bank 4.81% La Salle National Bank 7.15%
Bay Landesbank Girozentrale 7.01% Landesbank Hessen-Thurgen 7.69%
Fleet Bank 7.70% Northern Trust Company 7.14%
JP Morgan/Chase 6.49% Wachovia Bank & Trust Company 7.83%
Kredietbank NV, Brussels 8.52% Yale University 4.99%
* BOND INSURANCE
AMBAC 6.87% FSA 7.70%
FGIC 8.24% MBIA 3.20%
</Table>
FLORIDA TAX-EXEMPT FUND 92.73%
<Table>
LETTER OF CREDIT
Bank of America 4.51% Keybank 4.36%
Bay Landesbank Girozentrale 3.27% Kredietbank NV, Brussells 2.43%
Credit Suisse 3.92% La Salle National Bank 4.36%
Dresdner Bank 3.92% Landesbank Baden-Wurternberg 4.14%
Fifth Third Bank 3.19% Northern Trust Company 2.18%
Fleet Bank 3.49% Republic National Bank 4.64%
Florida Power & Light 4.75% Societe Generale 3.54%
FNMA 1.96% Sun Trust Bank 6.00%
FRMC 6.32% Toronto Dominion Bank 5.78%
JP Morgan / Chase 4.37% Wachovia Bank & Trust Company 4.50%
* BOND INSURANCE
AMBAC 3.00% FSA 5.02%
FGIC 1.96% MBIA 1.12%
</Table>
27
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(4) INVESTMENT CONCENTRATION (CONTINUED)
- --------------------------------------------------------------------------------
MASSACHUSETTS TAX-EXEMPT FUND 90.23%
<Table>
LETTER OF CREDIT
Allied Irish Bank 4.81% Landesbank Hessen-Thurgen 4.81%
Dexia 4.81% Smith College 5.29%
Fleet Bank 5.04% State Street Bank & Trust Co. 3.37%
FNB Bank 3.37% Toronto Dominion Bank 4.09%
FNMA 4.81% Wachovia Bank & Trust Company 5.29%
Harvard University 4.81% Wellesley College 5.30%
Kredietbank NV, Brussells 4.81% Williams College 1.93%
Landesbank Baden-Westdeutsche 4.33%
* BOND INSURANCE
AMBAC 9.87% FSA 4.81%
FGIC 7.70% MBIA 0.48%
</Table>
MICHIGAN TAX-EXEMPT FUND 92.25%
<Table>
LETTER OF CREDIT
Bank of America 4.77% Keybank 1.59%
Bank One 8.91% La Salle National Bank 9.54%
Bay Landesbank Girozentrale 5.09% Landesbank Hessen-Thurgen 5.09%
Comerica Bank 8.91% National City Bank 8.97%
Deutsche Bank 1.27% Northern Trust Company 5.09%
Dexia 5.09% Westdeutsche Landesbank Girozentrale 3.82%
Fifth Third Bank 5.09%
* BOND INSURANCE
AMBAC 5.09% FSA 3.82%
FGIC 5.09% MBIA 5.02%
</Table>
NEW JERSEY TAX-EXEMPT FUND 94.79%
<Table>
LETTER OF CREDIT
Bank of New York 5.35% JP Morgan / Chase 4.82%
Bank of Nova Scotia 4.81% Kredietbank NV, Brussells 4.82%
Banque Paribas 3.93% Landesbank Hessen-Thurlia 3.84%
Barclays Bank 4.82% Lloyds 4.82%
Citibank 4.82% PNC Bank 7.86%
Fleet Bank 8.19% Princeton University 4.82%
FNMA 7.99% Wachovia Bank & Trust Company 2.22%
* BOND INSURANCE
AMBAC 3.57% FSA 3.05%
FGIC 8.57% MBIA 6.49%
</Table>
28
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(4) INVESTMENT CONCENTRATION (CONTINUED)
- --------------------------------------------------------------------------------
OHIO TAX-EXEMPT FUND 100.26%
<Table>
LETTER OF CREDIT
ABN/AMRO 9.61% Keybank 4.80%
Allied Irish Bank 7.20% La Salle National Bank 4.80%
Bank of America 4.80% National City Bank 4.80%
Bank One 4.80% Northern Trust Co. 1.44%
Barclays Bank 7.69% US Bank 7.69%
Fifth Third Bank 8.26% Wachovia Bank & Trust Company 4.80%
Fleet Bank 4.80% Wells Fargo 2.88%
JP Morgan / Chase 5.14%
* BOND INSURANCE
AMBAC 4.74% MBIA 4.80%
FSA 7.21%
</Table>
PENNSYLVANIA TAX-EXEMPT FUND 99.30%
<Table>
LETTER OF CREDIT
ABN/AMRO 4.93% Kredietbank NV, Brussels 3.45%
Allied Irish Bank 4.93% Landesbank Hessen-Thurgen 3.01%
Bank of America 6.28% Northern Trust Co. 5.79%
Bank of Nova Scotia 2.46% PNC Bank 6.50%
Bank One 4.93% Rabobank 4.93%
Banque Paribas 4.93% Sun Trust Bank 4.93%
Dexia 4.43% Toronto Dominion Bank 4.93%
Dresdner Bank 2.66% University of Pittsburgh 4.93%
Fleet Bank 4.93% Wachovia Bank & Trust Company 4.90%
JP Morgan / Chase 7.88%
* BOND INSURANCE
AMBAC 3.57% FSA 4.00%
</Table>
VIRGINIA TAX-EXEMPT FUND 92.35%
<Table>
LETTER OF CREDIT
Bank of America 4.44% JP Morgan / Chase 4.44%
Bank of Scotland 7.99% Sun Trust Bank 4.44%
Citibank 9.77% University of Virginia 9.32%
Credit Suisse 4.44% US Bank 8.88%
FRMC 9.77% Wachovia Bank & Trust Company 9.77%
* BOND INSURANCE
AMBAC 9.77% MBIA 4.44%
FSA 4.88%
</Table>
29
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(4) INVESTMENT CONCENTRATION (CONTINUED)
- --------------------------------------------------------------------------------
LOUISIANA MUNICIPAL MONEY-MARKET FUND 75.10%
<Table>
LETTER OF CREDIT
Bank of America 9.05% Fleet Bank 9.05%
Bank One 9.05% Westdeutsche Landesbank Girozentrale 9.96%
Banque Paribas 9.05%
* BOND INSURANCE
AMBAC 9.05% MBIA 9.95%
FGIC 9.95%
MINNESOTA MUNICIPAL MONEY-MARKET FUND 90.80%
LETTER OF CREDIT
ABN/AMRO 9.19% University of Minnesota 9.19%
Bank of America 6.48% US Bank 9.19%
Harris Trust & Savings Bank 5.40% Wells Fargo Bank 9.19%
Landesbank Hessen-Thurgen 9.19% Westdeutsche Landesbank Girozentrale 9.19%
Toronto Dominion Bank 9.19%
* BOND INSURANCE
AMBAC 5.40%
MBIA 9.19%
* Some securities are backed by both a line of credit and bond insurance.
</Table>
(5) COMPOSITION OF NET ASSETS
- --------------------------------------------------------------------------------
At May 31, 2003, the composition of each Fund's net assets was as follows:
<Table>
<Caption>
NEW YORK CALIFORNIA II CONNECTICUT FLORIDA MASSACHUSETTS
FUND FUND FUND FUND FUND
------------ ------------- ----------- ----------- -------------
Par Value................ $ 228,413 $ 108,993 $ 36,383 $ 45,875 $ 20,779
Additional-Paid-in-Capital... 228,184,602 108,883,773 36,346,827 45,829,420 20,757,875
------------ ------------ ----------- ----------- -----------
Net Assets............... $228,413,015 $108,992,766 $36,383,210 $45,875,295 $20,778,654
============ ============ =========== =========== ===========
</Table>
<Table>
<Caption>
MICHIGAN NEW JERSEY OHIO PENNSYLVANIA VIRGINIA
FUND FUND FUND FUND FUND
------------ ------------ ----------- ------------ -----------
Par Value................ $ 7,858 $ 56,021 $ 10,410 $ 40,592 $ 11,260
Additional-Paid-in-Capital... 7,850,185 55,965,326 10,399,503 40,551,743 11,248,784
------------ ------------ ----------- ----------- -----------
Net Assets............... $ 7,858,043 $ 56,021,347 $10,409,913 $40,592,335 $11,260,044
============ ============ =========== =========== ===========
</Table>
<Table>
<Caption>
LOUISIANA FUND MINNESOTA FUND
-------------- --------------
Par Value............................... $ 11 $ 19
Additional-Paid-in-Capital.............. 110,491 185,002
-------- --------
Net Assets.............................. $110,502 $185,021
======== ========
</Table>
(6) FINANCIAL HIGHLIGHTS:
30
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
- --------------------------------------------------------------------------------
Contained below is per share operating performance data for a share of
beneficial interest outstanding for each of the periods as indicated.
<Table>
<Caption>
FISCAL YEARS ENDED MAY 31,
------------------------------------------------
2003 2002 2001 2000 1999
-------- -------- -------- -------- --------
NEW YORK TAX-EXEMPT FUND
--------------------------------------------------
Net asset value at beginning of year.............. $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
-------- -------- -------- -------- --------
Net investment income............................. 0.0034 0.0095 0.0281 0.0258 0.0222
Dividends from net investment income.............. (0.0034) (0.0095) (0.0281) (0.0258) (0.0222)
-------- -------- -------- -------- --------
Net asset value at end of year.................... $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
======== ======== ======== ======== ========
Total Return...................................... 0.34% 0.95% 2.87% 2.58% 2.22%
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------
Net assets end of year (millions)................. $ 228.4 $ 234.4 $ 281.6 $ 228.4 $ 186.0
Ratio of expenses to average net assets........... 1.00%(c) 1.01% 1.01% 1.00% 1.00%
Ratio of net investment income to average net
assets.......................................... 0.33%(c) 0.94% 2.81% 2.55% 2.19%
</Table>
<Table>
<Caption>
PERIOD
FISCAL YEARS ENDED MAY 31, ENDED
---------------------------- MAY 31,
2003 2002 2001 2000(A)
-------- -------- -------- ----------
CALIFORNIA II TAX-EXEMPT FUND
------------------------------
Net asset value at beginning
of period................... $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
-------- -------- -------- --------
Net investment income......... 0.0033 0.0098 0.0236 0.0208
Dividends from net investment
income...................... (0.0033) (0.0098) (0.0236) (0.0208)
-------- -------- -------- --------
Net asset value at end of
period...................... $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
======== ======== ======== ========
Total Return.................. 0.33% 0.98% 2.42% 2.27%(b)
RATIOS/SUPPLEMENTAL DATA
------------------------------
Net assets end of period
(millions).................. $ 109.0 $ 109.3 $ 136.2 $ 91.4
Ratio of expenses to average
net assets.................. 1.00%(c) 1.01% 1.00% 1.00%(b)(c)
Ratio of net investment income
to average net assets....... 0.31%(c) 1.00% 2.36% 2.27%(b)(c)
</Table>
31
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(6) FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
FISCAL YEARS ENDED MAY 31,
--------------------------------------------
2003 2002 2001 2000 1999
-------- ------- ------- ------- -------
CONNECTICUT TAX-EXEMPT FUND
--------------------------------------------------
Net asset value at beginning of year.............. $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- -------
Net investment income............................. 0.0025 0.0092 0.0273 0.0248 0.0221
Dividends from net investment income.............. (0.0025) (0.0092) (0.0273) (0.0248) (0.0221)
------- ------- ------- ------- -------
Net asset value at end of year.................... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= =======
Total Return...................................... 0.25% 0.92% 2.75% 2.48% 2.21%
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------
Net assets end of year (millions)................. $ 36.4 $ 41.2 $ 40.2 $ 51.1 $ 55.4
Ratio of expenses to average net assets........... 1.00%(c) 1.01% 1.01% 1.00% 1.00%
Ratio of net investment income to average net
assets.......................................... 0.23%(c) 0.92% 2.73% 2.42% 2.17%
</Table>
<Table>
<Caption>
FISCAL YEARS ENDED MAY 31,
--------------------------------------------
2003 2002 2001 2000 1999
-------- ------- ------- ------- -------
FLORIDA TAX-EXEMPT FUND
-------------------------
Net asset value at
beginning of year...... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- -------
Net investment income.... 0.0036 0.0105 0.0294 0.0272 0.0237
Dividends from net
investment income...... (0.0036) (0.0105) (0.0294) (0.0272) (0.0237)
------- ------- ------- ------- -------
Net asset value at end of
year................... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= =======
Total Return............. 0.36% 1.05% 2.98% 2.72% 2.37%
RATIOS/SUPPLEMENTAL DATA
-------------------------
Net assets end of year
(millions)............. $ 45.9 $ 32.1 $ 28.9 $ 28.9 $ 22.6
Ratio of expenses to
average net assets..... 1.00%(c) 1.00% 1.01% 1.00% 1.00%
Ratio of net investment
income to average net
assets................. 0.34%(c) 0.99% 2.94% 2.68% 2.30%
</Table>
<Table>
<Caption>
FISCAL YEARS ENDED MAY 31,
--------------------------------------------
2003 2002 2001 2000 1999
-------- ------- ------- ------- -------
MASSACHUSETTS TAX-EXEMPT FUND
--------------------------------------------------
Net asset value at beginning of year.............. $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- -------
Net investment income............................. 0.0030 0.0099 0.0279 0.0256 0.0220
Dividends from net investment income.............. (0.0030) (0.0099) (0.0279) (0.0256) (0.0220)
------- ------- ------- ------- -------
Net asset value at end of year.................... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= =======
Total Return...................................... 0.30% 0.99% 2.85% 2.56% 2.20%
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------
Net assets end of year (millions)................. $ 20.8 $ 21.0 $ 18.8 $ 16.1 $ 19.9
Ratio of expenses to average net assets........... 1.00%(c) 1.00% 1.00% 1.00% 1.00%
Ratio of net investment income to average net
assets.......................................... 0.28%(c) 0.99% 2.79% 2.55% 2.17%
</Table>
32
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(6) FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
PERIOD
FISCAL YEARS ENDED MAY 31, ENDED
----------------------------------- MAY 31,
2003 2002 2001 2000 1999(D)
-------- ------- ------- ------- ----------
MICHIGAN TAX-EXEMPT FUND
-------------------------
Net asset value at
beginning of period.... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- -------
Net investment income.... 0.0029 0.0080 0.0276 0.0263 0.0118
Dividends from net
investment income...... (0.0029) (0.0080) (0.0276) (0.0263) (0.0118)
------- ------- ------- ------- -------
Net asset value at end of
period................. $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= =======
Total Return............. 0.29% 0.81% 2.83% 2.63% 2.55%(b)
RATIOS/SUPPLEMENTAL DATA
-------------------------
Net assets end of period
(millions)............. $ 7.9 $ 8.5 $ 4.8 $ 2.2 $ 1.2
Ratio of expenses to
average net assets..... 1.00%(c) 1.01%(c) 1.00% 1.00% 1.00%(b)(c)
Ratio of net investment
income to average net
assets................. 0.27%(c) 0.63%(c) 2.76% 2.60% 2.02%(b)(c)
</Table>
<Table>
<Caption>
FISCAL YEARS ENDED MAY 31,
--------------------------------------------
2003 2002 2001 2000 1999
-------- ------- ------- ------- -------
NEW JERSEY TAX-EXEMPT FUND
--------------------------------------------------
Net asset value at beginning of year.............. $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- -------
Net investment income............................. 0.0029 0.0101 0.0277 0.0249 0.0223
Dividends from net investment income.............. (0.0029) (0.0101) (0.0277) (0.0249) (0.0223)
------- ------- ------- ------- -------
Net asset value at end of year.................... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= =======
Total Return...................................... 0.29% 1.01% 2.83% 2.49% 2.23%
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------
Net assets end of year (millions)................. $ 56.0 $ 57.5 $ 52.9 $ 44.4 $ 41.3
Ratio of expenses to average net assets........... 1.00%(c) 1.01% 1.01% 1.05% 1.00%
Ratio of net investment income to average net
assets.......................................... 0.25%(c) 0.94% 2.77% 2.46% 2.17%
</Table>
<Table>
<Caption>
FISCAL YEARS ENDED MAY 31,
--------------------------------------------
2003 2002 2001 2000 1999
-------- ------- ------- ------- -------
OHIO TAX-EXEMPT FUND
-------------------------
Net asset value at
beginning of year...... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- -------
Net investment income.... 0.0030 0.0082 0.0281 0.0256 0.0236
Dividends from net
investment income...... (0.0030) (0.0082) (0.0281) (0.0256) (0.0236)
------- ------- ------- ------- -------
Net asset value at end of
year................... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= =======
Total Return............. 0.30% 0.83% 2.88% 2.56% 2.36%
RATIOS/SUPPLEMENTAL DATA
-------------------------
Net assets end of year
(millions)............. $ 10.4 $ 5.7 $ 8.1 $ 8.9 $ 1.2
Ratio of expenses to
average net assets..... 1.00%(c) 1.01%(c) 1.00% 1.00% 1.00%(c)
Ratio of net investment
income to average net
assets................. 0.28%(c) 0.81%(c) 2.81% 2.95% 2.16%(c)
</Table>
33
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(6) FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
FISCAL YEARS ENDED MAY 31,
--------------------------------------------
2003 2002 2001 2000 1999
-------- ------- ------- ------- -------
PENNSYLVANIA TAX-EXEMPT FUND
-------------------------
Net asset value at
beginning of year...... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- ------- -------
Net investment income.... 0.0036 0.0097 0.0287 0.0276 0.0234
Dividends from net
investment income...... (0.0036) (0.0097) (0.0287) (0.0276) (0.0234)
------- ------- ------- ------- -------
Net asset value at end of
year................... $1.0000 $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= ======= =======
Total Return............. 0.36% 0.97% 2.97% 2.76% 2.34%
RATIOS/SUPPLEMENTAL DATA
-------------------------
Net assets end of year
(millions)............. $ 40.6 $ 51.5 $ 34.1 $ 21.1 $ 16.9
Ratio of expenses to
average net assets..... 1.00%(c) 1.01% 1.00% 1.00% 1.00%
Ratio of net investment
income to average net
assets................. 0.34%(c) 0.89% 2.87% 2.73% 2.28%
</Table>
<Table>
<Caption>
PERIOD
FISCAL YEARS ENDED MAY 31, ENDED
----------------------------- MAY 31,
2003 2002 2001 2000(E)
--------- -------- -------- ----------
VIRGINIA TAX-EXEMPT FUND
------------------------------
Net asset value at beginning
of period................... $1.0000 $1.0000 $1.0000 $1.0000
------- ------- ------- -------
Net investment income......... 0.0025 0.0069 0.0253 0.0075
Dividends from net investment
income...................... (0.0025) (0.0069) (0.0253) (0.0075)
------- ------- ------- -------
Net asset value at end of
period...................... $1.0000 $1.0000 $1.0000 $1.0000
======= ======= ======= =======
Total Return.................. 0.25% 0.69% 2.77% 3.08%(b)
RATIOS/SUPPLEMENTAL DATA
------------------------------
Net assets end of period
(millions).................. $ 11.3 $ 13.0 $ 6.7 $ 2.1
Ratio of expenses to average
net assets.................. 1.00%(c) 1.01%(c) 1.00% 1.01%(b)(c)
Ratio of net investment income
to average net assets....... 0.19%(c) 0.58%(c) 2.53% 3.19%(b)(c)
</Table>
<Table>
<Caption>
YEAR ENDED PERIOD ENDED
LOUISIANA MUNICIPAL MONEY-MARKET FUND MAY 31, 2003 MAY 31, 2002(F)
------------------------------------- ------------ ---------------
Net asset value at beginning of period............ $1.0000 $1.0000
------- -------
Net investment income............................. 0.0032 0.0014
Dividends from net investment income.............. (0.0032) (0.0014)
------- -------
Net asset value at end of period.................. $1.0000 $1.0000
======= =======
Total Return...................................... 0.32% 0.14%
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------
Net assets end of period (millions)............... $ 0.1 $ 0.1
Ratio of expenses to average net assets........... 1.00%(c) 1.04%(b)(c)
Ratio of net investment income (loss) to average
net assets...................................... (0.11)%(c) 0.36%(b)(c)
</Table>
34
<Page>
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
(6) FINANCIAL HIGHLIGHTS (CONTINUED)
- --------------------------------------------------------------------------------
<Table>
<Caption>
YEAR ENDED PERIOD ENDED
MINNESOTA MUNICIPAL MONEY-MARKET FUND MAY 31, 2003 MAY 31, 2002(F)
------------------------------------- ------------ -----------------
Net asset value at beginning of period............ $1.0000 $1.0000
------- -------
Net investment income............................. 0.0044 0.0017
Dividends from net investment income.............. (0.0044) (0.0017)
------- -------
Net asset value at end of period.................. $1.0000 $1.0000
======= =======
Total Return...................................... 0.44% 0.17%
RATIOS/SUPPLEMENTAL DATA
--------------------------------------------------
Net assets end of period (millions)............... $ 0.2 $ 0.1
Ratio of expenses to average net assets........... 1.00%(c) 1.04%(b)(c)
Ratio of net investment income to average net
assets.......................................... 0.12%(c) 0.36%(b)(c)
</Table>
- ---------------
(a) From July 2, 1999 (Commencement of Operations) to May 31, 2000.
(b) Annualized.
(c) Due to the voluntary waiver of certain expense by RMCI for certain funds,
the actual expense and net investment income ratios amounted to:
<Table>
<Caption>
NET
EXPENSE INVESTMENT
FISCAL YEAR RATIO INCOME
----------- ------- ----------
New York........................... 2003 0.99% 0.34%
California II...................... 2003 0.99% 0.32%
2000 0.96%(b) 2.31%(b)
Connecticut........................ 2003 0.98% 0.25%
Florida............................ 2003 0.99% 0.35%
Massachusetts...................... 2003 0.98% 0.30%
Michigan........................... 2003 0.98% 0.29%
2002 1.00% 0.64%
1999 0.49%(b) 2.53%(b)
New Jersey......................... 2003 0.97% 0.28%
Ohio............................... 2003 0.99% 0.29%
2002 1.01% 0.81%
1999 0.83% 2.32%
Pennsylvania....................... 2003 1.00% 0.34%
Virginia........................... 2003 0.95% 0.24%
2002 0.99% 0.60%
2000 0.97%(b) 3.23%(b)
Louisiana.......................... 2003 0.57% 0.32%
2002 0.00%(b) 1.15%(b)
Minnesota.......................... 2003 0.69% 0.43%
2002 0.00%(b) 1.40%(b)
</Table>
(d) From December 14, 1998 (Commencement of Operations) to May 31,1999.
(e) From March 3, 2000 (Commencement of Operations) to May 31, 2000.
(f) From April 17, 2002 (Commencement of Operations) to May 31, 2002.
---------------
FEDERAL TAX INFORMATION (UNAUDITED)
---------------
The dividends distributed by the Funds are "exempt interest dividends" for
federal tax purposes.
35
<Page>
REPORT OF INDEPENDENT AUDITORS
- --------------------------------------------------------------------------------
To the Boards of Trustees and Shareholders of Reserve New York Tax-Exempt Trust,
Reserve Tax-Exempt Trust and Reserve Municipal Money-Market Trust:
In our opinion, the accompanying statements of net assets (and for the Michigan
Tax-Exempt Fund, Louisiana Municipal Money-Market Fund, and Minnesota Municipal
Money-Market Fund, the statements of assets and liabilities) and the related
statements of operations and of changes in net assets and the financial
highlights present fairly, in all material respects, the financial position of
New York Tax-Exempt Fund (a portfolio of Reserve New York Tax-Exempt Trust), the
California II Tax-Exempt Fund, Connecticut Tax-Exempt Fund, Florida Tax-Exempt
Fund, Massachusetts Tax-Exempt Fund, Michigan Tax-Exempt Fund, New Jersey
Tax-Exempt Fund, Ohio Tax-Exempt Fund, Pennsylvania Tax-Exempt Fund, and
Virginia Tax-Exempt Fund (nine of the portfolios constituting Reserve Tax-Exempt
Trust) and the Louisiana Municipal Money-Market Fund and Minnesota Municipal
Money-Market Fund (constituting Reserve Municipal Money-Market Trust)
(collectively, the "Funds") at May 31, 2003, the results of each of their
operations for the year then ended and the changes in each of their net assets
and the financial highlights for the each of the periods indicated, in
conformity with accounting principles generally accepted in the United States of
America. These financial statements and financial highlights (hereafter referred
to as "financial statements") are the responsibility of the Funds' management;
our responsibility is to express an opinion on these financial statements based
on our audits. We conducted our audits of these financial statements in
accordance with auditing standards generally accepted in the United States of
America, which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits, which included confirmation of securities at May 31, 2003 by
correspondence with the custodian, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
July 18, 2003
36
<Page>
THE JOINT BOARD OF TRUSTEES AND EXECUTIVE OFFICERS OF THE FUNDS
The Board of Trustees is responsible for the management and supervision of the
Funds. The Trustees approve all significant agreements between the Funds and
those companies that furnish services to the Funds. The Trustees and the
Executive Officers of the Funds oversee 28 portfolios in the Reserve fund
complex. None of the Trustees or Executive Officers hold other directorships
outside The Reserve Funds with the exception of Father Donald Harrington, a
Director of The Bear Stearns Companies, Inc. (financial institution) since 1993
and Patrick Foye a Director of The Philadelphia Trust Company since 2002. The
Trustees and Executive Officers of the Funds, together with information as to
their principal business occupations during at least the last five years, are
shown below:
INTERESTED TRUSTEE*
<Table>
<Caption>
CURRENT POSITIONS HELD TERM OF OFFICE ** PRINCIPAL OCCUPATIONS DURING
NAME, ADDRESS, AGE WITH THE FUNDS AND LENGTH OF SERVICE THE LAST FIVE YEARS
- --------------------------------------------------------------------------------------------------------------
BRUCE R. BENT Chairman/Chief Since 2000 President of Reserve Management
Age: 66 Executive Officer and Company, Inc. ("RMCI"), Director
The Reserve Funds Trustee of The Reserve and Chairman/Chief Executive
1250 Broadway Fund ("RF"), Reserve Officer of Reserve Management
New York, NY 10001-3701 Tax-Exempt Trust Corporation ("RMC"); Chairman and
("RTET"), Reserve New Director of Resrv Partners, Inc.
York Tax-Exempt Trust ("RESRV") (2000 - present) and
("RNYTET"), Reserve Chairman and Director of the
Municipal Money-Market Reserve International Liquidity
Trust ("RMMMT") and Fund Ltd. (1990 - present)
Reserve Private Equity Co-founder of The Reserve Funds
Series ("RPES"). (1970); various executive officer
positions (1970 - present).
</Table>
* MR. BENT IS CONSIDERED TO BE AN "INTERESTED PERSON" OF THE FUNDS AS DEFINED
IN THE 1940 ACT DUE TO HIS EMPLOYMENT WITH RMC, RMCI AND RESRV.
DISINTERESTED TRUSTEES
<Table>
<Caption>
CURRENT POSITIONS HELD TERM OF OFFICE ** PRINCIPAL OCCUPATIONS DURING
NAME, ADDRESS, AGE WITH THE FUNDS AND LENGTH OF SERVICE THE LAST FIVE YEARS
- --------------------------------------------------------------------------------------------------------------
EDWIN EHLERT, JR. Trustee of RF, RTET, Since 1970 Retired. President, Premier
Age: 72 RNYTET, RMMMT and Resources, Inc. (meeting
125 Elm Street RPES. management firm) (1987 - 2001).
Westfield, NJ 07091
- --------------------------------------------------------------------------------------------------------------
PATRICK J. FOYE Trustee of RF, RTET, Since 2000 Deputy Chairman of Long Island
Age: 46 RNYTET, RMMMT and Power Authority (1995 - present).
c/o AIMCO RPES. Executive Vice President of
2000 S. Colorado Blvd. Apartment Investment and Management
Tower Two Company ("AIMCO") (real estate
Suite 2-1000 investment trust) (1998 - present);
Denver, CO 80222 Partner, Skadden, Arps, Slate,
Meagher & Flom LLP (Law firm)
(1989 - 1998).
- --------------------------------------------------------------------------------------------------------------
DONALD J. HARRINGTON, C.M. Trustee of RF, RTET, Since 1987 President of St. John's University,
Age: 57 RNYTET, RMMMT and NY (1989 - present).
c/o St. John's University RPES.
8000 Utopia Parkway
Jamaica, NY 11439
- --------------------------------------------------------------------------------------------------------------
WILLIAM J. MONTGORIS Trustee of RF, RTET, Since 1999 Retired. Former Chief Operating
Age: 56 RNYTET, RMMMT and Officer of The Bear Stearns
286 Gregory Road RPES. Companies, Inc. (1979 - 1999).
Franklin Lakes, NJ 07417
- --------------------------------------------------------------------------------------------------------------
WILLIAM E. VIKLUND Trustee of RF, RTET, Currently, since Retired. Former President and COO
Age: 62 RNYTET, RMMMT and 1999. (Previously, of Long Island Bankcorp (1980 -
110 Grist Mill Lane RPES. 1987 - 1990) 1996).
Plandome Manor, NY
11030-1110
</Table>
** EACH TRUSTEE SHALL HOLD OFFICE UNTIL HE RESIGNS, IS REMOVED OR UNTIL HIS
SUCCESSOR IS DULY ELECTED AND QUALIFIED. A TRUSTEE SHALL RETIRE UPON
ATTAINING THE AGE OF SEVENTY-FIVE (75) YEARS. TRUSTEES NEED NOT BE
SHAREHOLDERS.
37
<Page>
OFFICERS WHO ARE NOT TRUSTEES
<Table>
<Caption>
CURRENT POSITIONS HELD TERM OF OFFICE ** PRINCIPAL OCCUPATIONS DURING
NAME, ADDRESS, AGE WITH THE FUNDS AND LENGTH OF SERVICE THE LAST FIVE YEARS
- --------------------------------------------------------------------------------------------------------------
BRUCE R. BENT II President and Since 2000 and 2002, Senior Vice President, Secretary
Age: 37 Assistant Treasurer of Respectively and Assistant Treasurer of RMCI;
The Reserve Funds RF, RTET, RNYTET, Senior Vice President, Secretary
1250 Broadway RMMMT and RPES. and Assistant Treasurer of RMC;
New York, NY 10001-3701 and, Secretary and Director of
Trustee of RMMMT. RESRV (2000 - present). Trustee of
RF, RTET, RNYTET, and RPES (1999 -
2001). Vice President RMC, RMCI and
RESRV (1992 - 2000).
- --------------------------------------------------------------------------------------------------------------
ARTHUR T. BENT III Chief Operating Since 2000 and 2002, Chief Operating Officer/Treasurer,
Age: 35 Officer/Treasurer, respectively. Senior Vice President and Assistant
The Reserve Funds Senior Vice President Secretary of RMCI; President,
1250 Broadway and Assistant Treasurer and Assistant Secretary
New York, NY 10001-3701 Secretary of RF, RTET, of RMC; and, Treasurer and Director
RNYTET, RMMMT and of RESRV (2000 - present). Vice
RPES. President RMC, RMCI and RESRV
Trustee of RMMMT. (1997 - 2000).
- --------------------------------------------------------------------------------------------------------------
RICHARD GOODMAN Controller of RF, Since 2003 Controller of RMC, RMCI and RESRV.
Age: 42 RTET, RNYTET, RMMMT (2003 - present) Vice President,
The Reserve Funds and RPES. Zurich Capital Market, Inc.
1250 Broadway (Investment Adviser) (2002 - 2003);
New York, NY 10001-3701 Director, Sanford C. Bernstein &
Co., Inc. (Investment Adviser)
(1989 - 2001).
</Table>
** OFFICERS HOLD THEIR POSITIONS WITH THE TRUST UNTIL A SUCCESSOR HAS BEEN
DULY ELECTED AND QUALIFIED.
The Statement of Additional Information includes additional information about
Fund Trustees and is available, without charge, upon request, at 1-800-637-1700.
38
<Page>
Item 2 -- Code of Ethics -- Not required in this filing
Item 3 -- Audit Committee Financial Expert -- Not required in this filing
Item 4 -- Principal Accountant Fees and Services -- Not required in this filing
Item 5 -- Reserved
Item 6 -- Reserved
Item 7 -- Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies -- Not Applicable
Item 8 -- Reserved
Item 9 -- Controls and Procedures
(a) It is the conclusion of the registrant's principal executive officer
and principal financial officer that the effectiveness of the
registrant's current disclosure controls and procedures (such
disclosure controls and procedures having been evaluated within 90
days of the date of this filing) provide reasonable assurance that the
information required to be disclosed by the registrant has been
recorded, processed, summarized and reported within the time period
specified in the Commission's rules and forms and that the information
required to be disclosed by the registrant has been accumulated and
communicated to the registrant's principal executive officer and
principal financial officer in order to allow timely decisions
regarding required disclosure.
(b) There have been no significant changes in the registrant's internal
controls or in other factors that could significantly affect these
controls subsequent to the date of their evaluation, including any
corrective actions with regard to significant deficiencies and
material weaknesses.
Item 10 -- Exhibits
(a) Code of Ethics -- Not required in this filing
(b) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act --
Attached hereto
<Page>
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
Reserve Municipal Money Market Trust
/s/ Bruce Bent
-------------------------
Bruce Bent
Chief Executive Officer
Date: August 11, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
/s/ Bruce Bent
-------------------------
Bruce Bent
Chief Executive Officer
Date: August 11, 2003
/s/ Arthur Bent
-------------------------
Arthur Bent
Treasurer and Principal Financial Officer
Date: August 11, 2003
Attached hereto as an exhibit are the certifications pursuant to Section 906 of
the Sarbanes-Oxley Act.