<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: Amy W. Bizar
1250 Broadway
New York, NY 10001-3701
Registrant's telephone number, including
area code: 212-401-5500
Date of fiscal year end: May 31
Date of reporting period: May 31, 2005
<Page>
ITEM 1. SEMI-ANNUAL REPORTS TO SHAREHOLDERS
<Page>
[THE RESERVE FUNDS(R) LOGO]
FOUNDERS OF
"THE WORLD'S FIRST MONEY-MARKET FUND"(R)
EST. 1970
ANNUAL REPORT
RESERVE TAX-EXEMPT TRUST
INTERSTATE TAX-EXEMPT FUND
CALIFORNIA 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 NEW YORK TAX-EXEMPT TRUST
NEW YORK TAX-EXEMPT FUND
RESERVE MUNICIPAL MONEY-MARKET TRUST
LOUISIANA MUNICIPAL MONEY-MARKET FUND
MINNESOTA MUNICIPAL MONEY-MARKET FUND
MAY 31, 2005
ELIMINATE MAIL CLUTTER AND SAVE NATURAL RESOURCES!
Sign up for Reserve eDelivery at www.reservefunds.com/edelivery
<Page>
[PHOTO OF BRUCE BENT]
Bruce Bent May 31, 2005
CHAIRMAN & CEO,
The Reserve Funds
Reserve Tax-Exempt Trust
Reserve New York Tax-Exempt Trust
Reserve Municipal Money-Market Trust
Dear Investor,
The Federal Reserve put the pedal to the metal starting in June 2004, and
since then the overnight bank rate increased 2.25%. Tax-exempt rates increased
approximately 1.30% over the same time, and the economy continues to move along
rather nicely. For the year ended May 31, 2005, the Reserve Interstate
Tax-Exempt Fund had a gross yield of 1.69% while the most recent seven-day gross
yield was 2.32% (as of July 26, 2005). As an indication of the current market,
the seven-day gross yield for all of the Reserve municipal and tax-exempt funds
runs between 2.20% and 2.40%. For the net return of your fund please refer to
the Financial Highlights portion of the Notes To Financial Statements section of
this report.
The Trusts remain well positioned to respond to rate increases with the
majority of assets invested in one-day and seven-day variable rate debt. These
instruments respond quickly to higher rates and we will continue to employ this
strategy until the Federal Reserve changes its signals.
Thank you for choosing The Reserve Funds. We are always eager to receive
your comments and suggestions. Input from our clients is the best way for us to
maximize our service to you.
Bruce R. Bent
Chairman & CEO
1
<Page>
RESERVE TAX-EXEMPT TRUST--INTERSTATE TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2005
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS--99.5%
ARIZONA--1.1%
$ 5,100,000 Apache County IDA for Tucson Electric Power Co., 2.97% - 2.98%, 12/15/18(a) $ 5,100,000
2,000,000 Apache County IDA for Tucson Electric Power Co., 2.97%, 12/1/20(a) 2,000,000
3,600,000 Arizona HCF for Royal Oaks, 2.96%, 3/1/27(a) 3,600,000
1,000,000 Phoenix IDR for Del Mar Terrace, 2.95%, 10/1/29(a) 1,000,000
3,400,000 Pima County IDA for Tucson Electric Power Co., Series A, 2.98%, 12/1/22(a) 3,400,000
1,000,000 Yuma IDA for El Encanto Apt., MFH, 2.97%, 4/15/33(a) 1,000,000
---------------
16,100,000
---------------
CALIFORNIA--14.1%
5,900,000 California Statewide for Covenant Retirement Community, 2.91%, 12/1/25(a) 5,900,000
119,480,000 California Water Department Reserve Powersupply, Series B-6, 2.83% - 2.93%, 5/1/22(a) 119,480,000
3,000,000 Irvine Ranch Water District, 2.93%, 4/1/33(a) 3,000,000
300,000 Kern County COP, Series A, 2.90%, 8/1/06(a) 300,000
32,620,000 Long Beach California Harbor, Series A, 2.96%, 5/15/27(a) 32,620,000
1,100,000 Orange County HDC for Nigel Summit, Series B, 2.95%, 11/2/09(a) 1,100,000
9,355,000 Orange County HDC for Sanitation, 2.90%, 8/1/13(a) 9,355,000
6,100,000 Orange County HDC for the Lakes, Series A, 2.92%, 12/1/06(a) 6,100,000
18,300,000 Riverside CFD, Special Tax # 88-4, 2.93%, 9/1/14(a) 18,300,000
1,200,000 San Francisco for Filmore Center, Series B-1, 1.98%, 12/1/17(a) 1,200,000
154,770 Santa Ana USD, 2.90%, 7/1/15(a) 154,770
---------------
197,509,770
---------------
COLORADO--1.8%
700,000 Arapahoe County for Stratford State, 2.98%, 11/1/17(a) 700,000
500,000 Broomfield IDA for Buckeye Investments, 2.98%, 12/1/09(a) 500,000
20,900,000 Colorado HFA for Adventist Health Sunbelt, Series B, 2.96%, 11/15/34(a) 20,900,000
2,800,000 University of Colorado, Series B, 2.96%, 11/15/35(a) 2,800,000
---------------
24,900,000
---------------
CONNECTICUT--6.2%
760,000 Connecticut DAR for Independent Living, 2.95%, 7/1/15(a) 760,000
290,000 Connecticut DAR for Pierce Memorial Baptist, 2.94%, 10/1/28(a) 290,000
800,000 Connecticut HEFA for Hotchkiss School, Series A, 2.98%, 7/1/30(a) 800,000
350,000 Connecticut HEFA for Klingberg Family Center, 2.91%, 7/1/32(a) 350,000
37,000,000 Connecticut HEFA for Yale University, Series T-2, 2.95%, 7/1/29(a)(c) 37,000,000
25,660,000 Connecticut HEFA for Yale University, Series V-2, 3.05%, 7/1/36(a)(c) 25,660,000
580,000 Connecticut HFA, Series D-3, 2.90%, 5/15/18(a) 580,000
200,000 Connecticut Special Tax for Transportation Infrastructure, Series 1, 3.03%, 9/1/20(a) 200,000
1,700,000 Connecticut State Development Authority for Solid Waste, 3.00%, 8/1/23(a) 1,700,000
1,900,000 Connecticut State GO, Series 1-A, 3.00%, 2/15/21(a) 1,900,000
14,795,000 Connecticut State GO, Series 97-B, 2.90%, 5/15/14(a) 14,795,000
1,000,000 Hartford Redev. Agency MHR for Underwood Towers Project, 2.91%, 6/1/20(a) 1,000,000
850,000 New Canaan Housing Authority for Village at Waveny Care Center, 2.95%, 1/1/22(a) 850,000
500,000 North Canaan HFA for Geer Woods, 2.95%, 8/1/31(a) 500,000
630,000 Shelton County HFA for Crosby Commons Project, 3.00%, 1/1/31(a) 630,000
---------------
87,015,000
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
2
<Page>
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS (CONTINUED)
DISTRICT OF COLUMBIA--0.2%
$ 3,000,000 District of Columbia GO, Series D-2, 3.03%, 6/1/26(a) $ 3,000,000
---------------
FLORIDA--8.8%
27,635,000 Alachua County HFA for Oak Hammock University, 2.97%, 10/1/32(a) 27,635,000
210,000 Broward County HFA for Jacaranda Village Apartments, 2.98%, 9/1/22(a) 210,000
400,000 Broward County HFA for Multi-Family Margate, 2.98%, 11/1/05(a) 400,000
3,610,000 Capital Finance Authority for Glenridge Palmer Ranch, 2.97%, 6/1/12(a) 3,610,000
1,300,000 Collier County for Cleveland Health Clinic, 2.97%, 1/1/35(a) 1,300,000
21,045,000 Dade County IDA for Florida Power & Light, 2.99%, 6/1/21(a) 21,045,000
4,810,000 Dade County Water Service, 2.94%, 10/5/22(a) 4,810,000
300,000 Duval County HFA for Lighthouse Bay Apartments, 2.96%, 12/1/32(a) 300,000
1,000,000 Florida HFC for Reflections, Series 5, 2.97%, 7/1/31(a) 1,000,000
2,765,000 Florida HFC Multifamily for Bridgewater Club, 2.99%, 6/1/34(a) 2,765,000
5,420,000 Florida HFC Multifamily for Magnolia Pointe Apartments, Series J, 3.02%, 6/1/39(a) 5,420,000
6,450,000 Florida State Municipal Power for Stanton, 2.87%, 10/1/19(a) 6,450,000
14,600,000 Jacksonville Florida District Energy System Series A, 2.92%, 10/1/34(a) 14,600,000
9,810,000 Manatee County PCR for Florida Power & Light Co., 2.97%, 9/1/24(a) 9,810,000
7,900,000 Miami Dade County IDA for Airis Miami LLC, Series A, 3.00%, 10/15/25(a) 7,900,000
1,100,000 Orange County for YMCA, Series A, 3.01%, 5/1/27(a) 1,100,000
8,500,000 Palm Beach County for Morse Obligation Group, 2.99%, 5/1/33(a) 8,500,000
500,000 Palm Beach County for Norton Gallery School of Art, 2.98%, 5/1/30(a) 500,000
300,000 Palm Beach County for Raymond F Kravis Center, 2.90%, 7/1/32(a) 300,000
1,000,000 Palm Beach County for School Board, Series B, 2.95%, 8/1/27(a) 1,000,000
2,000,000 Pinellas County HFA for Foxbridge Apartments, 2.94%, 6/15/25(a) 2,000,000
2,800,000 Putnam County Dev. Authority PCR for Florida Power & Light, 2.97%, 9/1/24(a) 2,800,000
500,000 Sarasota County HFA for Bay Village, 3.01%, 12/1/23(a) 500,000
100,000 University of Florida Athletic Association Stadium Project, 3.05%, 2/1/20(a) 100,000
---------------
124,055,000
---------------
GEORGIA--0.1%
1,211,106 Georgia Muni Assoc. Pool Bd. COP, 2.97%, 12/15/20(a) 1,211,106
---------------
HAWAII--1.0%
12,000,000 Honolulu City & County GO, Series 2001-C, 2.28%, 12/1/13(b) 12,000,000
1,800,000 Honolulu City & County GO, Series 2001-C, 2.28%, 12/1/18(b) 1,800,000
---------------
13,800,000
---------------
IDAHO--1.1%
14,800,000 Idaho HCF for St Lukes Medical Center Project, 2.97%, 5/1/22(a) 14,800,000
---------------
ILLINOIS--0.1%
1,700,000 McCook County for Saint Andrews, 2.98%, 12/1/21(a) 1,700,000
---------------
IOWA--0.5%
1,000,000 Des Moines HRB for Iowa Methodist Medical Center, 2.97%, 8/1/15(a) 1,000,000
5,725,000 Iowa Community Project, Series C, 2.96%, 11/15/34(a) 5,725,000
---------------
6,725,000
---------------
KENTUCKY--0.5%
7,700,000 Ashland PCR for Ashland Oil, 2.90%, 4/1/09(a) 7,700,000
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
3
<Page>
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS (CONTINUED)
LOUISIANA--2.3%
$ 205,000 East Baton Rouge for Rhone-Poulenc Inc., 2.99%, 12/1/11(a) $ 205,000
983,000 Lake Charles District Revenue for Conoco, Series A, 2.99%, 9/1/29(a) 983,000
986,000 Lake Charles HRB & Term. District Revenue for CITGO Corp., 2.98%, 8/1/07(a) 986,000
986,000 Louisiana Environmental Facilities Community DAR, Series A, 2.98%, 11/1/34(a) 986,000
3,093,000 Louisiana Offshore Term. Auth. Deepwater Port Rev. for Loop LLC, Series A, 2.97%, 9/1/17(a) 3,093,000
86,000 Louisiana Offshore Term. Auth. Deepwater Port Rev. for Loop LLC, Series A, 2.99%, 9/1/14(a) 86,000
1,686,000 Louisiana PFA for Kenner Hotel Ltd., 2.92%, 12/1/15(a) 1,686,000
7,075,000 Louisiana PFA, Multi-family, 2.98%, 6/15/31(a) 7,075,000
1,386,000 Louisiana University for Agriculture & Mechanical College, 3.03%, 7/1/30(a) 1,386,000
9,386,000 South Louisiana Port , 3.03%, 1/1/27(a) 9,386,000
4,975,000 South Louisiana Port Marine Term. for Occidental Petroleum Corp., 2.95%, 7/1/18(a) 4,975,000
1,390,000 South Louisiana Port Marine Term. for Occidental Petroleum Corp., 2.98%, 7/1/21(a) 1,390,000
---------------
32,237,000
---------------
MARYLAND--2.0%
1,000,000 Anne Arundel County Multi-family Rev. for Mill Pond Apt., 2.83%, 10/1/33(a) 1,000,000
1,000,000 Baltimore Housing for Spring Hill, 2.96%, 9/20/28(a) 1,000,000
1,000,000 Baltimore IDA City Council, 2.97%, 8/1/16(a) 1,000,000
4,000,000 Howard County for Vantage House Facility, Series A, 2.96% 6/1/32(a) 4,000,000
1,200,000 Howard County Multi-Family for Sherwood Crossing Apt., 2.96% 7/15/33(a) 1,200,000
1,300,000 Maryland HEFA Pooled Loan Program, Series 1985, 2.96%, 4/1/35(a) 1,300,000
1,340,000 Maryland HEFA Pooled Loan Program, Series D, 2.95%, 1/1/29(a) 1,340,000
1,000,000 Maryland State Health & Higher Education for Carnegie Institute, 3.00%, 10/1/37(a) 1,000,000
1,975,000 Maryland State Health & Higher Education for Trinity College, 2.97%, 11/1/26(a) 1,975,000
4,780,000 Maryland State HEFA for Adventist Health Care, Series A, 2.98%, 1/1/35(a) 4,780,000
8,350,000 Maryland State Trans. Auth. for Baltimore/Washington Airport, Series A, 2.90%, 7/1/13(a) 8,350,000
1,000,000 Montgomery County EDA for Riderwood Village Inc., 3.10%, 3/1/34(a) 1,000,000
---------------
27,945,000
---------------
MASSACHUSETTS--12.0%
2,440,000 Massachusetts DFA for Bedford Notre Dame Health Care, 3.06%, 10/1/29(a) 2,440,000
6,200,000 Massachusetts DFA for Briarwood Retirement, Series A, 2.95%, 1/1/35(a) 6,200,000
21,500,000 Massachusetts DFA for Brooksby Village Project, 2.95%, 7/1/32(a) 21,500,000
9,945,000 Massachusetts DFA for Jewish Geriatric Services, 2.97%, 5/15/34(a) 9,945,000
200,000 Massachusetts DFA for Jewish High School Project, 1.67%, 6/1/32(a) 200,000
10,369,000 Massachusetts DFA for Smith College, 2.91%, 7/1/24(a)(c) 10,369,000
600,000 Massachusetts DFA IDR for Ocean Spray Cranberry, 2.96%, 10/15/11(a) 600,000
6,000,000 Massachusetts GO, Series 97-B, 2.93%, 9/1/16(a) 6,000,000
100,000 Massachusetts HEFA for Berklee College of Music, Series D, 2.85%, 10/1/27(a) 100,000
28,190,000 Massachusetts HEFA for Cap Asset Program, Series E, 2.98%, 1/1/35(a) 28,190,000
25,900,000 Massachusetts HEFA for Harvard University, Series Y, 2.76%, 7/1/35(a)(c) 25,900,000
34,525,000 Massachusetts HEFA for Massachusetts Institute of Technology, Series J-2, 2.81%, 7/1/31(a) 34,525,000
800,000 Massachusetts HEFA for University of Massachusetts, Series A, 2.92%, 11/1/30(a) 800,000
200,000 Massachusetts HEFA for Williams College, Series E, 2.97%, 8/1/14(a)(c) 200,000
300,000 Massachusetts HFA for Multifamily Housing, 2.95%, 1/15/10(a) 300,000
3,550,000 Massachusetts WRA, Series 99-B, 2.90%, 8/1/28(a) 3,550,000
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
4
<Page>
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS (CONTINUED)
MASSACHUSETTS (CONTINUED)
$ 4,500,000 Massachusetts WRA, Series B, 2.95%, 4/1/28(a) $ 4,500,000
2,600,000 Massachusetts WRA, Series C, 2.95%, 8/1/37(a) 2,600,000
5,100,000 Massachusetts WRA, Series C, 3.05%, 8/1/20(a) 5,100,000
3,800,000 Massachusetts WRA, Series D, 2.95%, 11/1/26(a) 3,800,000
1,000,000 Massachusetts WRA, Series D, 2.97%, 8/1/17(a) 1,000,000
1,300,000 Massachusetts WSR, Series A, 2.90% 11/1/24(a) 1,300,000
---------------
169,119,000
---------------
MICHIGAN--2.9%
8,500,000 Detroit Sewage District Revenue, Series B, 2.97%, 7/1/23(a) 8,500,000
1,200,000 Jackson County EDC for Thrifty Leoni Inc., 2.99%, 12/1/14(a) 1,200,000
5,150,000 Michigan HDA for Berrien Woods, Series A, 3.07%, 7/1/32(a) 5,150,000
200,000 Michigan HDA for Parks of Taylor Apt., Series A, 2.97% - 2.98%, 8/15/32(a) 200,000
275,000 Michigan HDA, Series B, 2.95%, 4/1/19(a) 275,000
6,790,000 Michigan State University Revenue, Series A, 2.97%, 8/15/32(a) 6,790,000
400,000 Michigan Strategic Fund for Clark Retirement Community, 2.98%, 6/1/31(a) 400,000
2,395,000 Michigan Strategic Fund for Haven Christian Services, 2.99%, 11/15/34(a) 2,395,000
13,540,000 Michigan Strategic Fund for Henry Ford Museum Village, 2.97%, 12/1/33(a) 13,540,000
235,000 Michigan Strategic Fund for M&P Cap LLC, Series A, 3.05%, 6/1/34(a) 235,000
940,000 Michigan Strategic Fund for Peachwood Center Association, 2.96%, 6/1/16(a) 940,000
800,000 Oakland University, 3.03%, 3/1/31(a) 800,000
200,000 Wayne Charter County Airport, Series A, 2.99%, 12/1/32(a) 200,000
1,000,000 Woodhaven Brownstown School District, Series B, 1.86%, 5/1/34(a) 1,000,000
---------------
41,625,000
---------------
MINNESOTA--0.6%
132,000 Andover Senior Housing for Presbyterian Homes, 2.97%, 11/15/33(a) 132,000
290,000 Cohasset for Minnesota Power & Light, 2.97%, 12/1/07(a) 290,000
337,000 Cohasset for Minnesota Power & Light, 2.97%, 6/1/13(a) 337,000
700,000 Cohasset for Minnesota Power & Light, Project A, 2.97%, 6/1/20(a) 700,000
1,792,000 Duluth Tax for Lake Superior Paper, 2.95%, 9/1/10(a) 1,792,000
152,000 Hennepin County, Series B, 2.82%, 12/1/20(a) 152,000
32,000 Mankato Multi-family Revenue for Highland Park, 3.01%, 5/1/27(a) 32,000
1,350,000 Minnesota HEFA for St. Olaf College, Series 5-H, 2.97%, 10/1/30(a)(c) 1,350,000
990,000 Minnesota HEFA for St. Olaf College, Series 5-M1, 2.97%, 10/1/32(a)(c) 990,000
1,935,000 Minnesota Housing Finance Agency, Series C, 3.00%, 1/1/35(a) 1,935,000
232,000 Regents University, Series A, 3.06%, 7/1/08(a) 232,000
180,000 Roseville Commercial Development for Berger Transfer & Storage, 2.92%, 12/1/15(a) 180,000
59,000 St. Paul Housing & Redev. Authority District Heating Revenue, 2.98%, 12/1/12(a) 59,000
860,000 St. Paul Housing & Redev. Authority MHR for Highland Ridge, 2.97%, 10/1/33(a) 860,000
---------------
9,041,000
---------------
MISSOURI--0.0%^
225,000 Platte County IDR for Platte Care Facility, 3.33%, 10/1/10(a) 225,000
---------------
NEVADA--1.3%
19,000,000 Carson City Tahoe Hospital Project, Series B, 2.96%, 9/1/33(a) 19,000,000
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
5
<Page>
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS (CONTINUED)
NEW HAMPSHIRE--0.2%
$ 3,160,000 New Hampshire HEFA for Exeter Hospital, Series B, 3.03%, 10/1/23(a) $ 3,160,000
---------------
NEW JERSEY--9.2%
1,250,000 Atlantic County Pooled Government Loan Program, 2.93%, 7/1/26(a) 1,250,000
500,000 Essex County Improvement Authority for the Children's Institute, 3.05%, 2/1/20(a) 500,000
575,000 Jersey City IDA for Dixon Mills Apartments, 2.93%, 5/15/30(a) 575,000
5,600,000 Monmouth County Pooled Government Loan Program, 2.88%, 8/1/16(a) 5,600,000
11,600,000 New Jersey EDA for Bayonne Dock, 2.95%, 12/1/27(a) 11,600,000
400,000 New Jersey EDA for Catholic Community Services, 3.05%, 11/1/13(a) 400,000
2,700,000 New Jersey EDA for Foreign Trade, Series 98, 3.00%, 12/1/07(a) 2,700,000
2,800,000 New Jersey EDA for Geriatric Services Housing Project, 2.94%, 11/1/31(a) 2,800,000
14,595,000 New Jersey EDA for Huntington School, 2.93%, 11/1/34(a) 14,595,000
2,050,000 New Jersey EDA for Princeton University, Series B, 2.90%, 7/1/22(a)(c) 2,050,000
500,000 New Jersey EDA for RJB Associates, ERN, 2.93%, 8/1/08(a) 500,000
5,200,000 New Jersey EDA for Thermal Energy LLC, 2.92%, 9/1/31(a) 5,200,000
2,400,000 New Jersey EDA for US Golf Association, 2.93%, 5/1/23(a) 2,400,000
12,400,000 New Jersey for Hospital Capital Asset, Series C, 2.89%, 7/1/35(a) 12,400,000
1,400,000 New Jersey HCF for Community Hospital Group, Series A-1, 2.95%, 7/1/20(a) 1,400,000
895,000 New Jersey HCF for St. Barnabas Hospital, Series A, 2.94%, 7/1/31(a) 895,000
3,330,000 New Jersey Sports Authority Expo, Series C, 2.90%, 9/1/24(a) 3,330,000
3,650,000 New Jersey Turnpike Authority, Series 91-D, 2.93%, 1/1/18(a) 3,650,000
50,400,000 New Jersey Turnpike Authority, Series C-1, 2.95%, 1/1/24(a) 50,400,000
6,000,000 Port Authority of New York & New Jersey Special Obligation Revenue, 2.96%, 8/1/24(a) 6,000,000
1,000,000 Port Authority of New York & New Jersey Versatile Structure, 2.96%, 6/1/20(a) 1,000,000
---------------
129,245,000
---------------
NEW MEXICO--1.0%
14,495,000 Farmington County PCR for Arizona Public Service, Series B, 2.97%, 9/1/24(a) 14,495,000
---------------
NEW YORK--18.1%
925,000 Franklin County IDA Civic Facility for Trudeau Institute, 2.91%, 12/1/20(a) 925,000
2,400,000 Guilderland IDA for Eastern Industrial Park, 2.91%, 12/1/08(a) 2,400,000
2,200,000 Jay Street Development Corp., 2.92%, 5/1/21(a) 2,200,000
2,500,000 Jay Street Development Corp., 2.94%, 5/1/22(a) 2,500,000
4,900,000 New York City Cultural Revenue for Alvin Ailey Dance Foundation, 2.90%,7/1/33(a) 4,900,000
7,425,000 New York City GO, Series A-4, 2.94%, 8/1/22(a) 7,425,000
11,350,000 New York City GO, Series A-4, 2.94%, 8/1/23(a) 11,350,000
7,000,000 New York City GO, Series A-4, A-7, 2.94% - 2.95%, 8/1/21(a) 7,000,000
500,000 New York City GO, Series A-5, 2.96%, 8/1/31(a) 500,000
8,000,000 New York City GO, Series A-6, 2.94%, 11/1/26(a) 8,000,000
8,300,000 New York City GO, Series F-2, 2.92%, 2/15/12(a) 8,300,000
8,740,000 New York City GO, Series F-4, 2.94%, 2/15/20(a) 8,740,000
2,400,000 New York City GO, Series F-5, 2.94%, 2/15/16(a) 2,400,000
6,445,000 New York City GO, Series H-2, 2.90%, 8/1/10(a) 6,445,000
9,100,000 New York City GO, Series H-2, 2.95%, 8/1/14(a) 9,100,000
3,875,000 New York City HDC for Monterey, Series A, 2.92%, 11/15/19(a) 3,875,000
1,100,000 New York City IDA for Civic Facility, 2.95%, 5/1/21(a) 1,100,000
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
6
<Page>
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS (CONTINUED)
NEW YORK (CONTINUED)
$ 23,800,000 New York City IDA for Korean Airlines, Series A, 2.97%, 11/1/24(a) $ 23,800,000
34,670,000 New York City MWFA WSR, Series C-1, 2.95%, 6/15/18(a) 34,670,000
4,200,000 New York City MWFA WSR, Series G, 2.94%, 6/15/24(a) 4,200,000
20,300,000 New York City MWFA WSR, Series G, 2.95%, 6/15/33(a) 20,300,000
37,650,000 New York City WSR Rev, 2.93%, 6/15/25(a) 37,650,000
6,055,000 New York State GO, Series A, 1.80%, 3/13/20(a) 6,055,000
2,010,000 New York State HFA for Bleecker Terrace Apt., 3.00%, 7/1/15(a) 2,010,000
2,300,000 New York State HFA for Liberty View, Series A, 2.92%, 11/15/19(a) 2,300,000
3,550,000 New York State HFA, Series C, 2.94%, 3/15/26(a) 3,550,000
25,450,000 New York State LGAC., Series C, D, E & F, 2.87% - 2.93%, 4/1/25(a) 25,450,000
7,705,000 Triborough Bridge & Tunnel Authority, Series C, 2.92%, 1/1/33(a) 7,705,000
400,000 Yonkers IDA Civic Facility for Consumers Union, 2.98%, 7/1/21(a) 400,000
---------------
255,250,000
---------------
NORTH CAROLINA--0.1%
700,000 North Carolina EFA for Cardinal Gibbons, 2.96%, 8/1/14(a) 700,000
1,000,000 North Carolina Medical Care Community for Stanley Total Living Center, 3.02%, 4/1/18(a) 1,000,000
---------------
1,700,000
---------------
OHIO--3.0%
3,200,000 Akron Bath Copley HDR for Summa Health System, Series B, 3.00%, 11/1/34(a) 3,200,000
200,000 Butler County HCF for Lifesphere, 2.96%, 5/1/27(a) 200,000
300,000 Clinton County for Wilmington Airport, 2.97%, 6/1/11(a) 300,000
3,800,000 Cuyahoga County EDA for Cleveland Botanical Gardens, 3.01%, 7/1/31(a) 3,800,000
3,000,000 Cuyahoga County for Cleveland Health Education Museum, 2.98%, 3/1/32(a) 3,000,000
300,000 Cuyahoga County HCF for Devon Oaks, 2.97%, 2/1/34(a) 300,000
6,800,000 Evandale County IDR for SHV Realty, Inc., 3.05%, 9/1/15(a) 6,800,000
300,000 Franklin County Hospital Revenue for U.S. Health Corp., 2.95%, 12/1/20(a) 300,000
590,000 Franklin County Hospital Revenue for U.S. Health Corp., Series 96, 2.95%, 12/1/21(a) 590,000
1,810,000 Hamilton County HRB, 2.95%, 1/1/22(a) 1,810,000
4,000,000 Licking County HCF, 2.97%, 11/1/33(a) 4,000,000
175,000 Lucas County for Toledo, 2.98%, 10/1/05(a) 175,000
25,000 Marion County Hospital Improvement, Pooled Lease Program, 2.99%, 11/1/21(a) 25,000
1,345,000 Middleburgh Heights for Southwest General Hospital, 3.01%, 8/15/22(a) 1,345,000
6,800,000 Ohio Air Quality DAR for Columbus Southern, Series C, 2.98%, 12/1/38(a) 6,800,000
100,000 Ohio Air Quality DAR for Ohio Edison, Series A, 2.95%, 2/1/14(a) 100,000
6,700,000 Ohio Air Quality DAR PCR for Ohio Edison, Series C, 2.98%, 6/1/23(a) 6,700,000
1,400,000 Ohio Higher EFA for Ashland University, 3.01%, 9/1/24(a) 1,400,000
700,000 Ohio WDA PCR for Cleveland Electric, Series B, 2.98%, 8/1/20(a) 700,000
200,000 Toledo City Services Special Assessment, 2.98%, 12/1/06(a) 200,000
---------------
41,745,000
---------------
OKLAHOMA--0.0%^
500,000 Oklahoma City for Christian College, 1.92%, 7/1/15(a) 500,000
---------------
OREGON--0.0%^
500,000 Portland MFH for South Park, 1.57%, 12/1/11(a) 500,000
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
7
<Page>
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS (CONTINUED)
PENNSYLVANIA--5.3%
$ 1,050,000 Allegheny HDA for Dialysis Clinic, 2.96%, 12/1/19(a) $ 1,050,000
2,200,000 Allegheny HDA for Presbyterian University Hospital, 2.96%, 3/1/18(a) 2,200,000
810,000 Blair County IDR for Village of Penn State, Series C, 2.89%, 1/1/11(a) 810,000
3,080,000 Bucks County IDA, 2.96%, 5/1/33(a) 3,080,000
2,400,000 Bucks County IDA, 3.05%, 7/1/15(a) 2,400,000
400,000 Chester County HEFA for Simpsons Meadows, 2.99%, 10/1/30(a) 400,000
1,750,000 Delaware County IDR for Sun, Inc., 2.98%, 11/1/33(a) 1,750,000
500,000 Delaware Valley Finance Authority, Series 85-A, 2.96%, 12/1/19(a) 500,000
300,000 Delaware Valley Finance Authority, Series A, 2.96%, 12/1/17(a) 300,000
2,300,000 Delaware Valley Finance Authority, Series B, 2.96%, 12/1/20(a) 2,300,000
1,000,000 Emmaus General Authority Revenue, 2.97%, 12/1/28(a) 1,000,000
11,000,000 Emmaus General Authority Revenue, Series G-18, 3.00%, 3/1/24(a) 11,000,000
1,620,000 Lawrence County for Villa Maria, 2.98%, 7/1/33(a) 1,620,000
1,235,000 Lebanon County HCF for ECC Retirement Village, 3.01%, 10/15/25(a) 1,235,000
3,000,000 Lehigh County IDA, 3.05%, 12/1/15(a) 3,000,000
5,300,000 Montgomery County for Forge Gate Apartments, Series A, 2.92%, 8/15/31(a) 5,300,000
1,900,000 Montgomery County for Higher Ed. William Penn Charter, 3.01%, 9/15/31(a) 1,900,000
16,400,000 Pennsylvania HEFA for Temple University, 2.99%, 6/1/29(a) 16,400,000
1,150,000 Philadelphia Housing Revenue Authority, Series A, 3.02%, 6/1/25(a) 1,150,000
11,010,000 Quakertown Pennsylvania General Authority Revenue, 2.95%, 7/1/26(a) 11,010,000
1,580,000 Schuylkill County IDA for Northeastern Power, 2.98%, 12/1/22(a) 1,580,000
1,000,000 Scranton Redevelopment Authority Revenue for Parking Facility, 3.01%, 6/1/33(a) 1,000,000
3,935,000 Wilkens Area IDA for Fairview Extended Care, Series B, 2.91%, 1/1/21(a) 3,935,000
---------------
74,920,000
---------------
PUERTO RICO--1.5%
21,100,000 Puerto Rico Commonwealth TRAN, 3.00%, 7/29/05(b) 21,144,194
29,000 Puerto Rico Government Development Bank, 2.85%, 12/1/15(a) 29,000
338,000 Puerto Rico Highway & Transportation Authority, Series A, 2.90%, 7/1/28(a) 338,000
---------------
21,511,194
---------------
TENNESSEE--0.0%^
695,000 Chattanooga IDA for Baylor School, 2.97%, 11/1/16(a) 695,000
---------------
TEXAS--2.5%
35,575,000 Harris County IDA for Baytank Houston, Inc., 2.96%, 7/1/26(a) 35,575,000
---------------
UTAH--0.1%
2,000,000 Utah Transit Authority Sales Tax Revenue, Series B, 2.95%, 9/1/32(a) 2,000,000
---------------
VIRGINIA--1.9%
7,200,000 Alexandria County IDA for Goodwin House, 2.93%, 10/1/35(a) 7,200,000
1,115,000 Alexandria County IDA Pooled Loan, Series A, 2.96%, 7/1/26(a) 1,115,000
920,000 Arlington County Virginia Rev for Ballston Public Parking, 2.77%, 8/1/17(a) 920,000
335,000 Charlottesville IDA for Seminole, Series B, 3.00%, 12/1/13(a) 335,000
1,200,000 Chesapeake County IDA for Cheaspeake General Hospital, Series B, 2.97%, 7/1/31(a) 1,200,000
275,000 Hampton County MFH for Avalon Apartments, 1.75%, 6/15/26(a) 275,000
750,000 Hampton County MFH for Shoreline Apartments, 2.98%, 12/1/19(a) 750,000
300,000 Hampton MFH for Avalon, 2.95%, 6/15/26(a) 300,000
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
8
<Page>
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS (CONTINUED)
VIRGINIA (CONTINUED)
$ 200,000 Hanover County IDA for Covenent Woods, 3.00%, 7/1/29(a) $ 200,000
50,000 Henrico County EDA for Westminster Centerbury, Series B, 2.97%, 7/1/08(a) 50,000
405,000 James City & County IDA for Chambrel, 2.97%, 11/15/32(a) 405,000
6,680,000 Peninsula Port Authority for Dominion Terminal, 2.97%, 7/1/16(a) 6,680,000
2,120,000 Portsmouth Redevelopment & MFHR - Multifamily, 3.02%, 6/1/30(a) 2,120,000
4,400,000 Richmond IDA for Cogentrix of Richmond Proj A, 2.99% - 3.02%, 12/1/17(a) 4,400,000
1,000,000 University of Virginia, Series A, 2.98%, 6/1/34(a) 1,000,000
---------------
26,950,000
---------------
TOTAL INVESTMENTS (COST* $1,405,954,070) 99.5% 1,405,954,070
COMPREHENSIVE MANAGEMENT FEES PAYABLE (0.0)^ (9,346)
DISTRIBUTION (12b-1) FEES PAYABLE (0.0)^ (1,437)
OTHER ASSETS 0.5 6,378,464
------- ---------------
NET ASSETS 100.0% $ 1,412,321,751
======= ===============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE OF EACH CLASS
BASED ON SHARES OF BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING AND
EQUIVALENT TO THE NET ASSETS OF EACH CLASS:
261,429,054 SHARES CLASS R $ 1.00
===============
48,712,712 SHARES CLASS TREASURER'S TRUST $ 1.00
===============
101 SHARES CLASS 75 $ 1.00
===============
944,908 SHARES CLASS 70 $ 1.00
===============
69,851 SHARES CLASS 45 $ 1.00
===============
77,667,399 SHARES CLASS 25 $ 1.00
===============
102,829 SHARES CLASS 15 $ 1.00
===============
10,070 SHARES CLASS 12 $ 1.00
===============
1,023,384,827 SHARES CLASS 8 $ 1.00
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
9
<Page>
RESERVE TAX-EXEMPT TRUST--CALIFORNIA TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2005
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS--96.7%
CALIFORNIA--92.9%
$ 485,000 Alameda Contra Costa Capital Improvements, Series E, 3.06%, 6/1/22(a) $ 485,000
495,000 Alameda Contra Costa Capital Improvements, Series F, 3.11%, 8/1/23(a) 495,000
3,720,000 California Infrastructure & Economic Development, Series A, 2.95%, 9/1/28(a) 3,720,000
5,000,000 California Pollution Control Finance Auth, 2.94%, 11/1/26(a) 5,000,000
1,905,000 California Pollution Control Finance Auth, Series A, 2.96%, 12/1/16(a) 1,905,000
870,000 California School Facilities for Capital Improvements, Series C, 2.94%, 7/1/22(a) 870,000
4,700,000 California Statewide CDA for Covenant Retirement Community, 2.91%, 12/1/25(a) 4,700,000
2,200,000 California Statewide CDA for Early Education Community Center, 2.95%, 9/1/31(a) 2,200,000
1,200,000 California Statewide CDA for House Ear Institute COP, 2.94%, 12/1/18(a) 1,200,000
4,000,000 California Water Department Reserve Powersupply, Series B-3, 2.50%, 5/1/22(a) 4,000,000
4,600,000 California Water Department Reserve Powersupply, Series C-9, 2.90%, 5/1/22(a) 4,600,000
2,450,000 California Water Department Reserve Powersupply, Series B-6, 2.93%, 5/1/22(a) 2,450,000
3,648,000 California Water Department Reserve Powersupply, Series B-4, 2.93%, 5/1/22(a) 3,648,000
2,500,000 California Water Department Reserve Powersupply, Series C-15 2.83%, 5/1/22(a) 2,500,000
2,175,000 Chula Vista Charter City for Home Depot, Inc., 2.80%, 12/1/10(a) 2,175,000
1,800,000 Contra Costa County MFH for Delta Square Apt., 2.92%, 10/15/29(a) 1,800,000
1,000,000 Fremont Calif COP Improvement Financing PJ 3.03%, 8/1/30(a) 1,000,000
1,400,000 Fremont Calif COP Police Fac Refing Proj, 3.03%, 8/1/28(a) 1,400,000
2,200,000 Irvine Ranch Calif Wtr Dist, 2.93%, 10/1/10(a) 2,200,000
3,200,000 Irvine Ranch Calif Wtr Dist, 2.89%, 8/1/16(a) 3,200,000
1,300,000 Irvine Calif Impt GOB Act 1915, 2.93%, 9/2/22(a) 1,300,000
2,068,000 Irvine Calif Impt GOB Act 1915, 2.93%, 9/2/24(a) 2,068,000
1,129,000 Irvine Improvement Bond Act of 1915 Assessment District #00-18, Series A, 2.93%, 9/2/26 1,129,000
7,065,000 Long Beach Calif Hbr Rev, Series A, 2.96%, 5/15/27(a) 7,065,000
2,400,000 Los Angeles Calif Cmnty Redev Multifamily HSG, Series A, 2.95%, 12/1/38(a) 2,400,000
1,100,000 Los Angeles Calif HSG Auth Multifamily, 2.92%, 4/15/28(a) 1,100,000
2,200,000 Orange County HDC for Capistrano Pointe, Series A, 2.92%, 12/1/29(a) 2,200,000
700,000 Orange County HDC for Florence Crittendoc Services, 2.86%, 3/1/16(a) 700,000
4,351,000 Orange County HDC for Niguel Summit Ser B , 2.65%, 11/2/09(a) 4,351,000
900,000 Orange County HDC for the Lakes Project, Series A, 2.92%, 12/1/06(a) 900,000
500,000 Orange County HDC for Trabuco Woods, 2.92%, 11/15/28(a) 500,000
1,200,000 Orange County MFH for Heritage, 2.96%, 5/1/22(a) 1,200,000
5,000,000 Orange County Sanitation Authority, 2.90%, 8/1/13(a) 5,000,000
3,400,000 Riverside CFD, Special Tax 88-4, 2.93%, 9/1/14(a) 3,400,000
400,000 Riverside County for Tyler Spring Apartments, Series C, 2.92%, 1/15/27(a) 400,000
4,000,000 San Francisco Community Facilities for District 4, 2.95%, 8/1/31(a) 4,000,000
1,500,000 San Francisco MFHR for Filmore Center, Series B-1, 1.99%, 12/1/17(a) 1,500,000
800,000 San Leandro MFHR, 2.90%, 7/15/18(a) 800,000
1,458,868 Santa Ana USD, 2.90%, 7/1/15(a) 1,458,868
3,800,000 Stockton HCF for Dameron Hosp., Series A, 2.94%, 12/1/32(a) 3,800,000
2,900,000 Turlock Irrigation District for Transportation, Series A, 2.93%, 1/1/31(a) 2,900,000
---------------
97,719,868
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
10
<Page>
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS (CONTINUED)
PUERTO RICO--3.8%
$ 4,000,000 Puerto Rico Commonwealth TRAN, 3.00%, 7/29/05(b) $ 4,008,378
---------------
TOTAL INVESTMENTS (COST* $101,728,246) 96.7% 101,728,246
COMPREHENSIVE MANAGEMENT FEES PAYABLE (0.0)^ (2,306)
DISTRIBUTION (12b-1) FEES PAYABLE (0.0)^ (576)
OTHER ASSETS, LESS LIABILITIES 3.3 3,476,809
------- ---------------
NET ASSETS 100.0% $ 105,202,173
======= ===============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE, BASED ON 105,202,173
SHARES OF BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING $ 1.00
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
11
<Page>
RESERVE TAX-EXEMPT TRUST--CONNECTICUT TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS--MAY 31, 2005
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS--88.1%
CONNECTICUT--79.5%
$ 1,900,000 Connecticut DAR for Independent Living, 2.95%, 7/1/15(a) $ 1,900,000
1,000,000 Connecticut DAR for Pierce Memorial Baptist, 2.94%, 10/1/28(a) 1,000,000
1,000,000 Connecticut HEFA for Edgehill Health, Series A, 2.84%, 7/1/27(a) 1,000,000
1,000,000 Connecticut HEFA for Hotchkiss School, Series A, 2.98%, 7/1/30(a) 1,000,000
950,000 Connecticut HEFA for Klingberg Family Center, 2.91%, 7/1/32(a) 950,000
1,000,000 Connecticut HEFA for Yale University, Series T-2, 2.85%, 7/1/29(a)(c) 1,000,000
930,000 Connecticut HFA, Sub Series D-3, 2.90%, 5/15/18(a) 930,000
2,000,000 Connecticut Special Tax Obligation for Transportation Infrastructure,
3.03%, 9/1/20(a) 2,000,000
1,800,000 Connecticut State Development Authority for Solid Waste, 3.00%, 8/1/23(a) 1,800,000
2,300,000 Connecticut State GO, Series 1-A, 3.00%, 2/15/21(a) 2,300,000
1,720,000 Connecticut State GO, Series 97-B, 2.90%, 5/15/14(a) 1,720,000
1,000,000 Hartford Redev. Agency MHR for Underwood Towers Project, 2.91%, 6/1/20(a) 1,000,000
1,000,000 New Canaan Housing Authority for Village at Waveny Care Center, 2.95%, 1/1/22(a) 1,000,000
1,000,000 Shelton County HFA for Crosby Commons Project, 3.00%, 1/1/31(a) 1,000,000
---------------
18,600,000
---------------
PUERTO RICO--8.6%
1,000,000 Puerto Rico Government Development Bank, 2.85%, 12/1/15(a) 1,000,000
1,000,000 Puerto Rico Commonwealth TRAN, 3.00%, 7/29/05(b) 1,002,095
---------------
2,002,095
---------------
TOTAL INVESTMENTS (COST* $20,602,095) 88.1% 20,602,095
OTHER ASSETS, LESS LIABILITIES 11.9 2,784,674
------- ---------------
NET ASSETS 100.0% $ 23,386,769
======= ===============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE, BASED ON 23,386,769
SHARES OF BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING $ 1.00
===============
</Table>
RESERVE TAX-EXEMPT TRUST--CONNECTICUT TAX EXEMPT FUND
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 2005
<Table>
ASSETS
Investments in securities, at value (Cost $20,602,095) $ 20,602,095
Cash 2,722,722
Interest receivable 65,154
---------------
Total Assets 23,389,971
---------------
LIABILITIES
Comprehensive management fees payable 2,562
Distribution (12b-1) fees payable 640
---------------
Total Liabilities 3,202
---------------
NET ASSETS $ 23,386,769
===============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE, BASED ON 23,386,769
SHARES OF BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING $ 1.00
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
12
<Page>
RESERVE TAX-EXEMPT TRUST--FLORIDA TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2005
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS--100.1%
$ 1,590,000 Alachua County HFA for Oak Hammock University, 2.97%, 10/1/32(a) $ 1,590,000
2,000,000 Broward County Florida Educational Facs Auth, City College Project,
2.96%, 11/1/31(a) 2,000,000
1,800,000 Broward County HFA for Jacaranda Village Apartments, 2.98%, 9/1/22(a) 1,800,000
1,600,000 Broward County HFA for Margate Project, 2.98%, 11/1/05(a) 1,600,000
905,000 Capital Finance Authority for Glenride Palmer Ranch, 2.97%, 6/1/12(a) 905,000
1,250,000 Collier County for Cleveland Health Clinic, 2.97%, 1/1/35(a) 1,250,000
1,625,000 Dade County IDA for Dolphins Stadium, Series C, 2.96%, 1/1/16(a) 1,625,000
800,000 Dade County IDA for Florida Power & Light, 2.99%, 6/1/21(a) 800,000
2,200,000 Dade County Water Service, 2.94%, 10/5/22(a) 2,200,000
1,200,000 Duval County HFA for Lighthouse Bay Apartments, 2.96%, 12/1/32(a) 1,200,000
1,800,000 Florida HFA for Kings Colony, 3.01%, 8/1/06(a) 1,800,000
900,000 Florida HFA for River Oaks, Series 85-TT, 2.98%, 12/1/29(a) 900,000
2,000,000 Florida HFC Multifamily for Bridgewater Club, 2.99%, 6/1/34(a) 2,000,000
1,130,000 Florida HFC Multifamily for Magnolia Pointe Apartments, 3.02%, 6/1/39(a) 1,130,000
2,200,000 Jacksonville Florida District Energy System Series A, 2.92%, 10/1/34(a) 2,200,000
1,295,000 Lee County IDA for Bonita Community Health Services, Series A, 2.98%, 12/1/29(a) 1,295,000
1,300,000 Manatee County PCR for Florida Power & Light, 2.97%, 9/1/24(a) 1,300,000
3,600,000 Miami Dade County IDA for Airis Miami LLC, Series A, 3.00%, 10/15/25(a) 3,600,000
1,185,000 Orange County YMCA, Series A, 3.01%, 5/1/27(a) 1,185,000
1,500,000 Palm Beach County for Morse Obligation Group, 2.99%, 5/1/33(a) 1,500,000
500,000 Palm Beach County for Norton Gallery School of Art, 2.98%, 5/1/30(a) 500,000
1,700,000 Palm Beach County for Raymond F Kravis Center Project, 2.90%, 7/1/32(a) 1,700,000
2,200,000 Palm Beach County for School Board, Series B, 2.95%, 8/1/27 (a) 2,200,000
1,100,000 Pinellas County HFA, 2.97%, 11/1/15(a) 1,100,000
1,800,000 Pinellas County MFH for Foxbridge Apartments, Series A, 2.94%, 6/15/25(a) 1,800,000
2,000,000 Port Orange for Palmer College, 2.96%, 10/1/32(a) 2,000,000
680,000 Putnam County Dev. Authority PCR for Florida Power & Light, 2.97%, 9/1/24(a) 680,000
200,000 Seminole County IDA HCF for Florida Living Nursing, 3.16%, 2/1/11(a) 200,000
400,000 University of North Florida Capital Improvements Project, 3.06%, 11/1/24(a) 400,000
700,000 Volusia County IDR for Easter Seal Society of Volusia, 3.07%, 9/1/21(a) 700,000
---------------
TOTAL INVESTMENTS (COST* $43,160,000) 100.1% 43,160,000
DUE TO CUSTODIAN (0.4) (181,579)
COMPREHENSIVE MANAGEMENT FEES PAYABLE (0.0)^ (4,763)
DISTRIBUTION (12b-1) FEES PAYABLE (0.0)^ (1,191)
OTHER ASSETS 0.3 121,052
------- ---------------
NET ASSETS 100.0% $ 43,093,519
======= ===============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE, BASED ON 43,093,519
SHARES OF BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING. $ 1.00
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
13
<Page>
RESERVE TAX-EXEMPT TRUST--MASSACHUSETTS TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2005
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS--96.8%
MASSACHUSETTS--93.2%
$ 800,000 Massachusetts DFA for Briarwood Retirement, Series A, 2.95%, 1/1/35(a) $ 800,000
1,000,000 Massachusetts DFA for Brooksby Village Project, 2.95%, 7/1/32(a) 1,000,000
700,000 Massachusetts DFA for Jewish Geriatric Services, 2.97%, 5/15/34(a) 700,000
800,000 Massachusetts DFA for Jewish High School Project, 1.95%, 6/1/32(a) 800,000
800,000 Massachusetts DFA for Smith College, 2.91%, 7/1/24(a)(c) 800,000
600,000 Massachusetts DFA IDR for Ocean Spray Cranberries, 2.96%, 10/15/11(a) 600,000
2,750,000 Massachusetts GO, Series 97-B, 2.93%, 9/1/16(a) 2,750,000
135,000 Massachusetts HEFA for Becker College, Series A-2, 3.04%, 7/1/09(a) 135,000
700,000 Massachusetts HEFA for Berklee College of Music, Series B, 2.85%, 10/1/27(a) 700,000
900,000 Massachusetts HEFA for Cap Asset Program, Series E, 2.98%, 1/1/35(a) 900,000
1,000,000 Massachusetts HEFA for Harvard University, Series Y, 2.76%, 7/1/35(a)(c) 1,000,000
1,000,000 Massachusetts HEFA for Massachusetts Institute of Technolgy, Series J-2,
2.81%, 7/1/31(a)(c) 1,000,000
1,100,000 Massachusetts HEFA for Wellesley College, Series E, 2.93%, 7/1/22(a)(c) 1,100,000
800,000 Massachusetts HEFA for Williams College, Series E, 2.97%, 8/1/14(a)(c) 800,000
700,000 Massachusetts HFA for Multifamily Housing, 2.95%, 1/15/10(a) 700,000
680,000 Massachusetts HFA for Single Family, 2.98%, 12/1/30(a) 680,000
875,000 Massachusetts IFA for Lowell Mills Association, Series 95, 3.04%, 12/1/20(a) 875,000
1,200,000 Massachusetts WRA, Series C, 3.05%, 8/1/20(a) 1,200,000
700,000 Massachusetts WRA, Series 99-B, 2.90%, 8/1/28(a) 700,000
600,000 Massachusetts WRA, Series B, 2.95%, 4/1/28(a) 600,000
800,000 Massachusetts WRA, Series C, 2.95%, 8/1/37(a) 800,000
1,200,000 Massachusetts WRA, Series D, 2.97%, 8/1/17(a) 1,200,000
800,000 Massachusetts WSR, Series A, 2.90%, 11/1/24(a) 800,000
---------------
20,640,000
---------------
PUERTO RICO--3.6%
800,000 Puerto Rico Commonwealth TRAN, 3.00%, 7/29/05(b) 801,676
---------------
TOTAL INVESTMENTS (COST* $21,441,676) 96.8% 21,441,676
COMPREHENSIVE MANAGEMENT FEES PAYABLE (0.0)^ (607)
DISTRIBUTION (12b-1) FEES PAYABLE (0.0)^ (2,429)
OTHER ASSETS, LESS LIABILITIES 3.2 713,941
------- ---------------
NET ASSETS 100.0% $ 22,152,581
======= ===============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE, BASED ON 22,152,581
SHARES OF BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING $ 1.00
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
14
<Page>
RESERVE TAX-EXEMPT TRUST--MICHIGAN TAX-EXEMPT FUND
SCHEDULE OF INVESTMENTS--MAY 31, 2005
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS--94.4%
MICHIGAN--84.5%
$ 753,000 Detroit EDC for Water Front Reclamation, Series A, 2.96%, 5/1/09(a) $ 753,000
125,000 Detroit EDC for Water Front Reclamation, Series C, 3.11%, 5/1/09(a) 125,000
1,500,000 Detroit Mich Sew Disp Rev Var, Series B, 2.97%, 7/1/33(a) 1,500,000
600,000 Garden City Hospital Finance Authority, Series 96-A, 3.01%, 9/1/26(a) 600,000
1,400,000 Jackson County for Vista Grande Villa, Series A, 2.98%, 11/1/31(a) 1,400,000
800,000 Michigan HDA for Berrien Woods, Series A, 3.07%, 7/1/32(a) 800,000
800,000 Michigan HDA for Parks of Taylor Apt., Series A, 2.97%, 8/15/32(a) 800,000
1,100,000 Michigan HDA for Pine Ridge Oblig. Ltd., 3.00%, 10/1/07(a) 1,100,000
100,000 Michigan HDA Oblig Rev Nonprofit HSG, 3.00%, 6/1/25(a) 100,000
800,000 Michigan HDA, Series B, 2.95%, 4/1/19(a) 800,000
1,525,000 Michigan State University Revenue, Series A, 2.97%, 8/15/32(a) 1,525,000
800,000 Michigan Strategic Fund for Haven Christian Services, 2.99%, 11/15/34(a) 800,000
1,360,000 Michigan Strategic Fund for Henry Ford Museum Village, 2.97%, 12/1/33(a) 1,360,000
800,000 Michigan Strategic Fund for M&P Cap LLC, Series A, 3.05%, 6/1/34(a) 800,000
800,000 Michigan Strategic Fund for Peachwood Center Association, 2.96%, 6/1/16(a) 800,000
800,000 Wayne Charter Cnty Michigan Airport, Series A, 2.99%, 12/1/32(a) 800,000
---------------
14,063,000
---------------
PUERTO RICO--9.9%
300,000 Puerto Rico Commonwealth TRAN, 3.00%, 7/29/05(b) 300,628
540,000 Puerto Rico Government Development Bank, 2.52%, 12/1/15(a) 540,000
800,000 Puerto Rico Highway & Transportation Authority, Series A, 2.90%, 7/1/28(a) 800,000
---------------
1,640,628
---------------
TOTAL INVESTMENTS (COST* $15,703,628) 94.4% 15,703,628
OTHER ASSETS, LESS LIABILITIES 5.6 928,622
------- ---------------
NET ASSETS 100.0% $ 16,632,250
======= ===============
</Table>
RESERVE TAX-EXEMPT TRUST--MICHIGAN TAX-EXEMPT FUND
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 2005
<Table>
ASSETS
Investments in securities, at value (Cost $15,703,628) $ 15,703,628
Cash 882,471
Interest receivable 48,561
---------------
Total Assets 16,634,660
---------------
LIABILITIES
Comprehensive management fees payable 1,830
Distribution (12b-1) fees payable 580
---------------
Total Liabilities 2,410
---------------
NET ASSETS $ 16,632,250
===============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE, BASED ON 16,632,250
SHARES OF BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING $ 1.00
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
15
<Page>
RESERVE TAX-EXEMPT TRUST--NEW JERSEY TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2005
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS--99.5%
NEW JERSEY--93.9%
$ 2,000,000 Atlantic County Pooled Government Loan Program, 2.93%, 7/1/26(a) $ 2,000,000
1,600,000 Hudson County NJ Impt Auth, 2.90%, 7/15/26(a) 1,600,000
2,000,000 Jersey City IDA for Dixon Mills Apartments, 2.93%, 5/15/30(a) 2,000,000
2,000,000 New Jersey EDA for Bayonne Dock, 2.95%, 12/1/27(a) 2,000,000
1,915,000 New Jersey EDA for Church & Dwight, 2.96%, 12/1/08(a) 1,915,000
880,000 New Jersey EDA for Economic Growth, Series F, 2.97%, 8/1/14(a) 880,000
400,000 New Jersey EDA for Foreign Trade, Series 98, 3.00%, 12/1/07(a) 400,000
2,000,000 New Jersey EDA for Geriatrics Housing Services Series P-J, 2.94% 11/1/31(a) 2,000,000
2,000,000 New Jersey EDA for International Drive Partners, 2.97%, 9/1/05(a) 2,000,000
2,300,000 New Jersey EDA for Newark Container LLC, 2.99%, 7/1/30(a) 2,300,000
2,000,000 New Jersey EDA for RBJ Associates, ERN, 2.93%, 8/1/08(a) 2,000,000
2,000,000 New Jersey EDA for SCH Princeton Project, 2.93%, 11/1/34(a)(c) 2,000,000
1,400,000 New Jersey EDA for Stolt haven Proj, Series A, 2.88%, 1/15/18(a) 1,400,000
4,000,000 New Jersey EDA for Thermal Marina Energy LLC, Series A, 2.92%, 9/1/31(a) 4,000,000
2,135,000 New Jersey EFA for Princeton University, Series B, 2.90%, 7/1/22(a) 2,135,000
1,400,000 New Jersey HCF Financing Authority Revenue, Series B, 2.89%, 7/1/35(a) 1,400,000
600,000 New Jersey HCF Financing Authority Revenue, Series A, 2.94%, 7/1/31(a) 600,000
4,045,000 New Jersey Sports Authority Expo, Series C, 2.90%, 9/1/24(a) 4,045,000
2,000,000 New Jersey Turnpike Authority, Series 91-D, 2.93%, 1/1/18(a) 2,000,000
2,000,000 New Jersey Turnpike Authority, Series C-1, 2.95%, 1/1/24(a) 2,000,000
3,600,000 Port Authority of New York & New Jersey Special Obligation Revenue,
2.96%, 8/1/24(a) 3,600,000
---------------
42,275,000
---------------
PUERTO RICO--5.6%
2,500,000 Puerto Rico Commonwealth TRAN 3.00%, 7/29/05(b) 2,505,236
---------------
TOTAL INVESTMENTS (COST* $48,780,236) 99.5% 44,780,236
COMPREHENSIVE MANAGEMENT FEES PAYABLE (0.0)^ (4,943)
DISTRIBUTION (12b-1) FEES PAYABLE (0.0)^ (1,236)
OTHER ASSETS 0.5 215,027
------- ---------------
NET ASSETS 100.0% $ 44,989,084
======= ===============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE, BASED ON 44,989,084
SHARES OF BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING $ 1.00
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
16
<Page>
RESERVE TAX-EXEMPT TRUST--OHIO TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2005
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS--97.5%
OHIO--94.9%
$ 1,800,000 Akron Bath Copley HDR for Summa Health System, Series B, 3.00%, 11/1/34(a) $ 1,800,000
375,000 Allen County HCF for Mennonite Home, 2.97%, 2/1/18(a) 375,000
800,000 Butler County HCF for Lifesphere, 2.97%, 5/1/27(a) 800,000
500,000 Centerville HCR for Bethany Lutheran, 3.02%, 5/1/08(a) 500,000
400,000 Cleveland Airport Systems Revenue, Series C, 2.99%, 1/1/27(a) 400,000
200,000 Clinton County for Wilmington Airport, 2.97%, 6/1/11(a) 200,000
490,000 Cuyahoga County for S&R Playhouse, 2.30%, 12/1/09(a) 490,000
700,000 Cuyahoga County HCF for Devon Oaks, 2.97%, 2/1/34(a) 700,000
700,000 Cuyahoga County HRB EDA for Cleveland Botanical Gardens, 3.01%, 7/1/31(a) 700,000
1,400,000 Evandale County IDR for SHV Realty Inc., 3.05%, 9/1/15(a) 1,400,000
290,000 Franklin County Community HRB Network, 2.95%, 12/1/20(a) 290,000
600,000 Franklin County Hospital Revenue for U.S. Health Corp., Series A, 2.95%, 12/1/21(a) 600,000
100,000 Franklin County MHR for Housing Network, 2.98%, 12/1/20(a) 100,000
735,000 Greene County IDA for Fairview, Series B, 2.91%, 1/1/11(a) 735,000
300,000 Jackson County for Leoni Project, 2.99%, 12/1/14(a) 300,000
805,000 Hamilton County HRB for Alliance Health, Series A, 2.85%, 1/1/18(a) 805,000
1,500,000 Licking County HCF, 2.97%, 11/1/33(a) 1,500,000
350,000 Middleburgh Heights HRB for Southwest General Health, 3.01%, 8/15/22(a) 350,000
700,000 Ohio Air Quality DAR for Columbus Southern, Series C, 2.98%, 12/1/38(a) 700,000
1,500,000 Ohio Air Quality DAR PCR for Ohio Edison, Series C, 2.98%, 6/1/23(a) 1,500,000
600,000 Ohio State Higher Educational Facility Revenue for Ashland Univ. 3.01%, 9/1/24(a) 600,000
700,000 Ohio WDA PCR for Cleveland Electric, Series B, 2.98%, 8/1/20(a) 700,000
1,700,000 Paulding County Waste Disposal for Lafarge Corporation, 2.92%, 8/1/26(a) 1,700,000
800,000 Toledo City Services Special Assessment, 2.98%, 12/1/06(a) 800,000
---------------
18,045,000
---------------
PUERTO RICO--2.6%
500,000 Puerto Rico Commonwealth TRAN, 3.00%, 7/29/05(a) 501,047
---------------
TOTAL INVESTMENTS (COST* $18,546,047) 97.5% 18,546,047
COMPREHENSIVE MANAGEMENT FEES PAYABLE (0.0)^ (2,090)
DISTRIBUTION (12b-1) FEES PAYABLE (0.0)^ (523)
OTHER ASSETS 2.5 480,552
------- ---------------
NET ASSETS 100.0% $ 19,023,986
======= ===============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE BASED ON 19,023,986
SHARES OF BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING $ 1.00
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
17
<Page>
RESERVE TAX-EXEMPT TRUST--PENNSYLVANIA TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2005
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS--98.0%
PENNSYLVANIA--93.5%
$ 50,000 Allegheny HDA for Dialysis Clinic, 2.96%, 12/1/19(a) $ 50,000
285,000 Allegheny HDA for Presbyterian University Hospital, Series B-3, 2.96%, 3/1/18(a) 285,000
1,800,000 Allegheny IDA for UPMC Health Systems, Series C, 2.98%, 3/1/15(a) 1,800,000
200,000 Berks County IDR for Visiting Nurse Services, Series A, 3.07%, 12/1/15(a) 200,000
745,000 Berks County IDR for Visiting Nurse Services, Series A, 3.22%, 12/1/15(a) 745,000
2,000,000 Blair County IDR for Village of Penn State, Series C, 2.89%, 1/1/11(a) 2,000,000
1,570,000 Bucks County IDA, 2.96%, 5/1/33(a) 1,570,000
4,000,000 Bucks County IDA, 3.05%, 7/1/15(a) 4,000,000
459,000 Chartiers Valley IDR, 2.99%, 8/1/07(a) 459,000
1,535,000 Chester County HEFA for Simpsons Meadows, 2.99%, 10/1/30(a) 1,535,000
1,000,000 Delaware County IDA for Scotfoam Corp., 2.80%, 10/1/05(a) 1,000,000
700,000 Delaware County IDR for Sun, Inc., 2.98%, 11/1/33(a) 700,000
300,000 Delaware Valley Finance Authority, Series A, 2.96%, 12/1/17(a) 300,000
1,700,000 Delaware Valley Finance Authority, Series B, 2.96%, 12/1/20(a) 1,700,000
2,000,000 Emmaus General Authority Revenue, Series G, 3.00%, 3/1/24(a) 2,000,000
700,000 Lawrence County IDA for Var Villa Maria PJ., 2.98%, 7/1/33(a) 700,000
2,000,000 Lebanon County HCF for ECC Retirement Village, 3.01%, 10/15/25(a) 2,000,000
2,000,000 Lehigh County IDA, 3.05%, 12/1/15(a) 2,000,000
430,000 Montgomery County IDR for Girl Scouts of Southeastern PA, 3.07%, 2/1/25(a) 430,000
2,000,000 Montgomery County Multifamily for Forge Gate, Series A, 2.92%, 8/15/31(a) 2,000,000
2,840,000 Pennsylvania EDA for B & W Ebensburg Project, 2.99%, 12/1/11(a) 2,840,000
460,000 Pennsylvania HEFA for Temple University, 2.93%, 10/1/09(a) 460,000
2,000,000 Pennsylvania HEFA for Temple University, 2.99%, 6/1/29(a) 2,000,000
495,000 Philadelphia Housing Revenue Authority, Series A, 3.02%, 6/1/25(a) 495,000
1,715,000 Philadelphia IDR for Fox Chase Cancer Center Project, 2.98%, 7/1/25(a) 1,715,000
1,600,000 Quakertown Pennsylvania General Authority Revenue, 2.95%, 7/1/05(a) 1,600,000
2,000,000 Quakertown Pennsylvania General Authority Revenue, 2.95%, 7/1/26(a) 2,000,000
3,940,000 Schuylkill County IDA for Northeastern Power, 2.98%, 12/1/22(a) 3,940,000
1,275,000 Wilkins Area IDA for Fairview Extended Care, Series B, 2.91%, 1/1/21(a) 1,275,000
---------------
41,799,000
---------------
PUERTO RICO--4.5%
2,000,000 Puerto Rico Commonwealth TRAN, 3.00%,7/29/05(b) 2,004,189
---------------
TOTAL INVESTMENTS (COST* $43,803,189) 98.0% 43,803,189
COMPREHENSIVE MANAGEMENT FEES PAYABLE (0.0)^ (21,853)
DISTRIBUTION (12b-1) FEES PAYABLE (0.0)^ (5,463)
OTHER ASSETS, LESS LIABILITIES 2.0 917,492
------- ---------------
NET ASSETS 100.0% $ 44,693,365
======= ===============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE, BASED ON 44,693,365
SHARES OF BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING $ 1.00
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
18
<Page>
RESERVE TAX-EXEMPT TRUST--VIRGINIA TAX EXEMPT FUND
SCHEDULE OF INVESTMENTS--MAY 31, 2005
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS--80.2%
VIRGINIA--73.6%
$ 1,000,000 Alexandria County IDA for Goodwin House, 2.98%, 10/1/35(a) $ 1,000,000
170,000 Alexandria County IDR, Pooled Loan Program, Series A, 2.96%, 7/1/26(a) 170,000
1,130,000 Arlington County for Ballston Public Parking, 2.77%, 8/1/17(a) 1,130,000
265,000 Charlottesville IDA for Seminole, Series B, 3.00%, 12/1/13(a) 265,000
600,000 Hampton MFH for Avalon, 1.65%, 6/15/26(a) 600,000
600,000 Hampton MFH for Shoreline Apartments, 2.98%, 12/1/19(a) 600,000
335,000 Hanover County IDA for Covenent Woods, 3.00%, 7/1/29(a) 335,000
1,100,000 Henrico County EDA for Westminster Centerbury, Series B, 2.97%, 7/1/08(a) 1,100,000
1,095,000 James City and County IDA for Chambrel, 2.97%, 11/15/32(a) 1,095,000
900,000 Norfolk IDR for Hospital Facilities - Children, 2.96%, 6/1/20(a) 900,000
1,100,000 Peninsula Port Authority for Dominion Terminal, 2.97%, 7/1/16(a) 1,100,000
600,000 Portsmouth Redev & HSG - Multifamily, 3.02%, 6/1/30(a) 600,000
600,000 Richmond IDA for Cogentrix of Richmond Proj A, 3.02%, 12/1/17(a) 600,000
600,000 University of Virginia Revenue, Series A, 2.98%, 6/1/34(a)(c) 600,000
---------------
10,095,000
---------------
PUERTO RICO--6.6%
600,000 Puerto Rico Highway & Transportation Authority, Series A, 2.90%, 7/1/28(a) 600,000
300,000 Puerto Rico Commonwealth TRAN, 3.00%, 7/29/05(b) 300,628
---------------
900,628
---------------
TOTAL INVESTMENTS (COST* $10,995,628) 80.2% 10,995,628
OTHER ASSETS, LESS LIABILITIES 19.8 2,709,970
------- ---------------
NET ASSETS 100.0% $ 13,705,598
======= ===============
</Table>
RESERVE TAX-EXEMPT TRUST--VIRGINIA TAX EXEMPT FUND
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 2005
<Table>
ASSETS
Investments in securities, at value (Cost $10,995,628) $ 10,995,628
Cash 2,678,478
Interest receivable 33,356
---------------
Total Assets 13,707,462
---------------
LIABILITIES
Comprehensive management fees payable 1,491
Distribution (12b-1) fees payable 373
---------------
Total Liabilities 1,864
---------------
NET ASSETS $ 13,705,598
===============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE, BASED ON 13,705,598
SHARES OF BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING $ 1.00
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
19
<Page>
RESERVE NEW YORK TAX-EXEMPT TRUST--NEW YORK TAX-EXEMPT FUND
STATEMENT OF NET ASSETS--MAY 31, 2005
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS--99.1%
NEW YORK--94.5%
$ 3,700,000 Cattarausus County IDA for YMCA, 3.03%, 9/1/28(a) $ 3,700,000
1,625,000 Franklin County IDA Civic Facility for Trudeau Institute, 2.91%, 12/1/20(a) 1,625,000
5,500,000 Jay Street Development Corp., Series A-1, 2.94%, 5/1/22(a) 5,500,000
3,300,000 Jay Street Development Corp., Series A-3, 2.94%, 5/1/21(a) 3,300,000
6,000,000 Long Island Power Authority Electric System Revenue, Series 7-A, 2.87%, 4/1/25(a) 6,000,000
1,500,000 Monroe County for St. Ann's Home, 2.94%, 7/1/30(a) 1,500,000
13,000,000 New York City DAR for Greenwich LLC, Series , 2.93% - 2.94% 12/1/39(a) 13,000,000
6,050,000 New York City GO, Series A-1, 1.80%, 3/13/20(a) 6,050,000
3,000,000 New York City GO, Series A-2, 2.90%, 8/1/31(a) 3,000,000
2,595,000 New York City GO, Series A-4, 2.95%, 8/1/21(a) 2,595,000
6,500,000 New York City GO, Series A-5, 2.96%, 8/1/31(a) 6,500,000
1,200,000 New York City GO, Series A-7, 2.94%, 8/1/20(a) 1,200,000
3,045,000 New York City GO, Series B-8, 2.94%, 8/15/24(a) 3,045,000
2,800,000 New York City GO, Series C-4, 2.90%, 8/1/20(a) 2,800,000
3,000,000 New York City GO, Series F-4, 2.94%, 2/15/20(a) 3,000,000
950,000 New York City GO, Series F-5, 2.94%, 2/15/16(a) 950,000
7,500,000 New York City GO, Series H-2, 2.90%, 8/1/10(a) 7,500,000
3,900,000 New York City HDC for Monterey, Series A, 2.92%, 11/15/19(a) 3,900,000
1,000,000 New York City IDA for Abraham Joshua Heschel, 2.99%, 4/1/32(a) 1,000,000
5,300,000 New York City IDA for American Society for Technion, 2.92%, 10/1/33(a) 5,300,000
2,900,000 New York City IDA for Childrens Oncology Society, 2.95%, 5/1/21(a) 2,900,000
1,415,000 New York City IDA for Church of the Heavenly Rest, 2.94%, 7/1/21(a) 1,415,000
10,400,000 New York City IDA for Korean Airlines, Series A, 2.97%, 11/1/24(a) 10,400,000
3,900,000 New York City Muni Water, Series C-1, 2.95%, 6/15/18(a) 3,900,000
7,900,000 New York City WSA Rev, 2.93%, 6/15/25(a) 7,900,000
2,000,000 New York State HFA for 10 Liberty Street, 2.92%, 11/1/35(a) 2,000,000
3,600,000 New York State HFA for Liberty View, Series A, 2.92%, 11/15/19(a) 3,600,000
1,780,000 New York State HFA for Normandie Court, Series I, 2.92%, 5/15/15(a) 1,780,000
4,900,000 New York State HFA, Series C, 2.94%, 3/15/26(a) 4,900,000
6,540,000 New York State LGAC., Series C, D, E & F, 2.88% - 2.93%, 4/1/25(a) 6,540,000
6,000,000 New York State R&D Con Ed, Series C-2, 3.00%, 11/1/39(a) 6,000,000
6,000,000 Port Authority of New York & New Jersey Obligation Revenue, 2.96%, 6/1/20 (a) 6,000,000
3,810,000 Schenectady County IDA for Sunnyview Hospital & Rehab., Series A, 2.98%, 8/1/33(a) 3,810,000
4,760,000 Tompkins County IDA for Kendal Ithaca Community Care, Series B, 2.96%, 7/1/24(a) 4,760,000
4,500,000 Triborough Bridge & Tunnel Authority, Series C, 2.92%, 1/1/33(a) 4,500,000
3,600,000 Yonkers IDA Civic Facility for Consumers Union, 2.98%, 7/1/21(a) 3,600,000
---------------
155,470,000
---------------
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
20
<Page>
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS (CONTINUED)
PUERTO RICO--4.6%
$ 7,500,000 Puerto Rico Commonwealth TRAN, 3.00%, 7/29/05(b) $ 7,515,709
---------------
TOTAL INVESTMENTS (COST* $162,985,709) 99.1% 162,985,709
COMPREHENSIVE MANAGEMENT FEES PAYABLE (0.0)^ (3,604)
DISTRIBUTION (12b-1) FEES PAYABLE (0.0)^ (901)
OTHER ASSETS 0.9 1,441,766
------- ---------------
NET ASSETS 100.0% $ 164,422,970
======= ===============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE BASED ON 164,422,970
SHARES OF BENEFICIAL INTEREST, $.001 PAR VALUE OUTSTANDING $ 1.00
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
21
<Page>
RESERVE MUNICIPAL MONEY-MARKET TRUST--LOUISIANA MUNICIPAL MONEY-MARKET FUND
SCHEDULE OF INVESTMENTS--MAY 31, 2005
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS--83.9%
LOUISIANA--74.4%
$ 25,000 East Baton Rouge for Rhone-Poulenc Inc., 2.99%, 12/1/11(a) $ 25,000
17,000 Lake Charles HRB District Revenue for Conoco, Project A, 2.99%, 9/1/29(a) 17,000
14,000 Lake Charles HRB & Term. District Revenue for CITGO Corp., 2.98%, 8/1/07(a) 14,000
14,000 Louisiana Environment Facilities Community DAR, Series A, 2.98%, 11/1/34(a) 14,000
14,000 Louisiana Offshore Term. Auth. Deepwater Port Rev. for Loop LLC, Series A,
2.99%, 9/1/14(a) 14,000
7,000 Louisiana Offshore Term. Auth. Deepwater Port Rev. for Loop LLC, Series A,
2.97%, 9/1/17(a) 7,000
14,000 Louisiana PFA for Kenner Hotel Limited, 2.92%, 12/1/15(a) 14,000
25,000 Louisiana PFA, Multi-family, 2.98%, 6/15/31(a) 25,000
14,000 Louisiana University Agriculture & Mechanical College, 3.03%, 7/1/30(a) 14,000
25,000 South Louisiana Port Marine Term. for Occidental Petroleum Corp., 2.95%, 7/1/18(a) 25,000
35,000 South Louisiana Port Marine Term. for Occidental Petroleum Corp., 2.98%, 7/1/21(a) 35,000
14,000 South Louisiana Port Marine Term. for Holnam Project., 3.03%, 1/1/27(a) 14,000
---------------
218,000
---------------
PUERTO RICO--9.5%
14,000 Puerto Rico Government Development Bank, 2.85%, 12/1/15(a) 14,000
14,000 Puerto Rico Highway & Transportation Authority, Series A, 2.90%, 07/1/28(a) 14,000
---------------
28,000
---------------
TOTAL INVESTMENTS (COST* $246,000) 83.9% 246,000
OTHER ASSETS, LESS LIABILITIES 16.1 47,185
------- ---------------
NET ASSETS 100.0% $ 293,185
======= ===============
</Table>
RESERVE MUNICIPAL MONEY-MARKET TRUST--LOUISIANA MUNICIPAL MONEY-MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 2005
<Table>
ASSETS
Investments in securities, at value (Cost $246,000) $ 246,000
Cash 46,687
Interest receivable 549
---------------
Total Assets 293,236
---------------
LIABILITIES
Comprehensive management fees payable 41
Distribution (12b-1) fees payable 10
---------------
Total Liabilities 51
---------------
NET ASSETS $ 293,185
===============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE, BASED ON 293,185
SHARES OF BENEFICIAL INTEREST, $.0001 PAR VALUE OUTSTANDING $ 1.00
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
22
<Page>
RESERVE MUNICIPAL MONEY-MARKET TRUST--MINNESOTA MUNICIPAL MONEY-MARKET FUND
SCHEDULE OF INVESTMENTS--MAY 31, 2005
<Table>
<Caption>
PRINCIPAL VALUE
AMOUNT (NOTE 1)
- --------------- ---------------
TAX-EXEMPT OBLIGATIONS--87.6%
MINNESOTA--79.3%
$ 68,000 Andover Senior Housing for Presbyterian Homes, 2.97%, 11/15/33(a) $ 68,000
100,000 Brooklyn Center for Brookdale Corp II, 3.02%, 12/1/14(a) 100,000
68,000 Cohasset for Minnesota Power & Light, Project B, 2.97%, 6/1/13(a) 68,000
68,000 Duluth Tax for Lake Superior Paper, 2.95%, 9/1/10(a) 68,000
108,000 Hennepin County, Series B, 2.82%, 12/1/20(a) 108,000
105,000 Hennepin County, Series C, 2.82%, 12/1/10(a) 105,000
68,000 Mankato Multi-family Revenue for Highland Park, 3.02%, 5/1/27(a) 68,000
40,000 Minnesota HEFA for St. Olaf College, Series 5-H, 2.97%, 10/1/30(a) 40,000
65,000 Minnesota HEFA for St. Olaf College, Series 5-M1, 2.97%, 10/1/32(a) 65,000
65,000 Minnesota Housing Finance Agency, Series C, 3.00%, 1/1/35(a) 65,000
100,000 St. Louis Park Revenue for Catholic Finance Corp., 2.99%, 10/1/25(a) 100,000
51,000 St. Paul Housing & Redev. Authority District Heating Revenue, 2.98%, 12/1/12(a) 51,000
140,000 St. Paul Housing & Redev. Authority MHR for Highland Ridge, 2.97%, 10/1/33(a) 140,000
68,000 University of Minnesota, Series A, 3.06%, 7/1/08(a)(c) 68,000
---------------
1,114,000
---------------
PUERTO RICO--8.3%
68,000 Puerto Rico Government Development Bank, 2.85%, 12/1/15(a) 68,000
48,000 Puerto Rico Highway & Transportation Authority, Series A, 2.90%, 7/1/28(a) 48,000
---------------
116,000
---------------
TOTAL INVESTMENTS (COST* $1,230,000) 87.6% 1,230,000
OTHER ASSETS, LESS LIABILITIES 12.4 174,639
------- ---------------
NET ASSETS 100.0% $ 1,404,639
======= ===============
</Table>
RESERVE MUNICIPAL MONEY MARKET TRUST--MINNESOTA MUNICIPAL MONEY-MARKET FUND
STATEMENT OF ASSETS AND LIABILITIES
MAY 31, 2005
<Table>
ASSETS
Investments in securities, at value (Cost $1,230,000) $ 1,230,000
Cash 171,699
Interest receivable 3,134
---------------
Total Assets 1,404,833
---------------
LIABILITIES
Comprehensive management fees payable 155
Distribution (12b-1) fees payable 39
---------------
Total Liabilities 194
---------------
NET ASSETS $ 1,404,639
===============
NET ASSET VALUE, OFFERING AND REDEMPTION PRICE PER SHARE, BASED ON 1,404,639
SHARES OF BENEFICIAL INTEREST, $.0001 PAR VALUE OUTSTANDING $ 1.00
===============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
23
<Page>
SECURITY TYPE ABBREVIATIONS
CDA -- Community Development Authority
CFD -- Community Facility District
COP -- Certificate of Participation
DAR -- Development Authority Revenue Bonds
DFA -- Development Finance Agency
ECC -- Evangelical Congregation Church
EDA -- Economic Development Authority Revenue Bonds
EDC -- Economic Development Corporation
EFA -- Education Facilities Authority
ERN -- Economic Recovery Notes
GOB -- General Obligation Bonds
HCF -- Health Care Facilities Revenue Bonds
HDA -- Hospital Development Authority
HDC -- Housing Development Corporation Bonds
HDR -- Hospital District Revenue Bond
HEFA -- Health & Education Facilities Authority
HFA -- Housing Finance Authority Revenue Bonds
HFC -- Housing Finance Corporation
HRB -- Hospital Revenue Bonds
IDA -- Industrial Development Authority Revenue Bonds
IDR -- Industrial Development Agency Revenue Bonds
IFA -- Industrial Finance Authority
LGAC -- Local Government Assistance Corp.
MFH -- Multifamily Housing Revenue Bonds
MFHR -- Multifamily Facilities Housing Revenue Bonds
MHR -- Multifamily Housing Revenue Bonds
MWFA -- Municipal Water Finance Authortiy
PCR -- Pollution Control Revenue Bonds
PFA -- Public Finance Authority
TRAN -- Tax Revenue Anticipation Notes
USD -- United School District
WDA -- Water Development Authority
WRA -- Water Resource Authority
WSR -- Water & Sewer System Revenue Bonds
- ----------
(a) Variable rate securities. The interest rates shown are as reported on May
31, 2005, and are subject to change periodically. Securities payable on
demand are collateralized by bank letters of credit or other credit
agreements.
(b) Securities are collateralized by bank letters of credit or other credit
agreements.
(c) Obligations of Educational Facilities.
* The cost of the investments for federal income tax purposes is the same as
the cost for financial reporting purposes.
^ Amount is less than 0.05%.
SEE NOTES TO FINANCIAL STATEMENTS.
24
<Page>
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MAY 31, 2005
<Table>
<Caption>
RESERVE NEW YORK
TAX-EXEMPT TRUST RESERVE TAX-EXEMPT TRUST
---------------- ----------------------------------------------------------
NEW YORK CALIFORNIA CONNECTICUT FLORIDA MASSACHUSETTS
FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ -------------
INTEREST INCOME (Note 1) $ 2,902,553 $ 1,749,617 $ 350,955 $ 770,435 $ 304,760
------------ ------------ ------------ ------------ -------------
EXPENSES (Note 2)
Comprehensive management fees 1,402,546 827,926 167,520 355,130 144,635
Distribution (12b-1) fees 350,636 206,982 41,880 88,782 36,159
Interest expense 1,448 1,554 647 437 713
Trustee fees 2,407 1,343 284 581 240
------------ ------------ ------------ ------------ -------------
Total expenses before waiver 1,757,037 1,037,805 210,331 444,930 181,747
Less: expenses waived (Note 2) (10,280) (6,457) (1,022) (1,408) (881)
------------ ------------ ------------ ------------ -------------
Net Expenses 1,746,757 1,031,348 209,309 443,522 180,866
------------ ------------ ------------ ------------ -------------
NET INVESTMENT INCOME, representing Net Increase in
Net Assets from Investment Operations $ 1,155,796 $ 718,269 $ 141,646 $ 326,913 $ 123,894
============ ============ ============ ============ =============
<Caption>
RESERVE TAX-EXEMPT TRUST
---------------------------------------------------------------------------
MICHIGAN NEW JERSEY OHIO PENNSYLVANIA VIRGINIA
FUND FUND FUND FUND FUND
------------ ------------ ------------ ------------ -------------
INTEREST INCOME (Note 1) $ 191,119 $ 845,689 $ 254,024 $ 742,300 $ 196,737
------------ ------------ ------------ ------------ -------------
EXPENSES (Note 2)
Comprehensive management fees 86,242 409,126 113,527 348,640 92,769
Distribution (12b-1) fees 21,560 102,281 28,381 87,160 23,192
Interest expense 455 266 102 241 19
Trustee fees 153 777 160 617 158
------------ ------------ ------------ ------------ -------------
Total expenses before waiver 108,410 512,450 142,170 436,658 116,138
Less: expenses waived (Note 2) (206) (3,951) (77) (453) (476)
------------ ------------ ------------ ------------ -------------
Net Expenses 108,204 508,499 142,093 436,205 115,662
------------ ------------ ------------ ------------ -------------
NET INVESTMENT INCOME, representing Net Increase in
Net Assets from Investment Operations $ 82,915 $ 337,190 $ 111,931 $ 306,095 $ 81,075
============ ============ ============ ============ =============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
25
<Page>
<Table>
<Caption>
RESERVE MUNICIPAL MONEY-MARKET TRUST
------------------------------------
LOUISIANA MINNESOTA
MUNICIPAL MUNICIPAL
MONEY-MARKET MONEY-MARKET
FUND FUND
------------- -------------
INTEREST INCOME (Note 1) $ 4,436 $ 17,181
------------- -------------
EXPENSES (Note 2)
Comprehensive management fees 2,044 7,752
Distribution (12b-1) fees 511 1,938
Interest Expense 5 19
Trustee fees 12 25
------------- -------------
Total expenses 2,572 9,734
Less: expenses waived (Note 2) (24) (76)
------------- -------------
Net Expenses 2,548 9,658
------------- -------------
NET INVESTMENT INCOME, representing Net Increase in
Net Assets from Investment Operations $ 1,888 $ 7,523
============= =============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
26
<Page>
<Table>
INTEREST INCOME (Note 1) $ 15,948,222
-----------------
EXPENSES (Note 2)
COMPREHENSIVE MANAGEMENT FEES:
Class R 2,217,976
Class Treasurer's Trust 172,758
Class 75 --^^
Class 70 9,970
Class 45 50
Class 25 54,894
Class 15 153
Class 12 3
Class 8 436,794
DISTRIBUTION (12b-1) FEES:
Class R 554,494
Class 75 --^^
Class 70 3,988
Interest expense 21,216
Trustee fees 10,881
-----------------
Total expenses before waiver 3,483,177
Less: expenses waived (Note 2) (12,553)
-----------------
Net Expenses 3,470,624
-----------------
NET INVESTMENT INCOME, representing Net Increase in
Net Assets from Investment Operations $ 12,477,598
=================
</Table>
- ----------
^^ Amount is less than $0.50.
RESERVE TAX-EXEMPT TRUST--INTERSTATE TAX-EXEMPT FUND
STATEMENTS OF CHANGES IN NET ASSETS
<Table>
<Caption>
YEAR ENDED YEAR ENDED
MAY 31, 2005 MAY 31, 2004
----------------- -----------------
INCREASE IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income $ 12,477,598 $ 927,612
----------------- -----------------
DIVIDENDS PAID TO SHAREHOLDERS FROM
NET INVESTMENT INCOME (Note 1):
Class R (1,904,802) (265,314)
Class Treasurer's Trust (357,612) (96,414)
Class 75 (2) --
Class 70 (21,974) --
Class 45 (158) (45)
Class 25 (387,135) (127,864)
Class 15 (1,570) (857)
Class 12 (71) --
Class 8 (9,804,274) (437,118)
----------------- -----------------
Total dividends to shareholders (12,477,598) (927,612)
----------------- -----------------
FROM CAPITAL SHARE TRANSACTIONS (NOTE 6)
(at net asset value of $1.00 per share):
Proceeds from sale of shares 7,530,222,443 1,725,177,076
Dividends reinvested 12,477,598 927,612
Cost of shares redeemed (6,518,644,846) (1,665,413,585)
----------------- -----------------
1,024,055,195 60,691,103
----------------- -----------------
Net increase in net assets 1,024,055,195 60,691,103
NET ASSETS:
Beginning of year 388,266,556 327,575,453
----------------- -----------------
End of year $ 1,412,321,751 $ 388,266,556
================= =================
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
27
<Page>
<Table>
<Caption>
RESERVE NEW YORK
TAX-EXEMPT TRUST RESERVE TAX-EXEMPT TRUST
----------------------------- -------------------------------------------------------------
NEW YORK FUND CALIFORNIA FUND CONNECTICUT FUND
----------------------------- ----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, 2005 MAY 31, 2004 MAY 31, 2005 MAY 31, 2004 MAY 31, 2005 MAY 31, 2004
------------- ------------- ------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income $ 1,155,796 $ 121,640 $ 718,269 $ 65,151 $ 141,646 $ 17,239
------------- ------------- ------------- ------------- ------------- -------------
DIVIDENDS PAID TO SHAREHOLDERS
FROM:
Net investment income (Note 1) (1,155,796) (121,640) (718,269) (65,151) (141,646) (17,239)
------------- ------------- ------------- ------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00
per share):
Proceeds from sale of shares 517,833,490 649,496,561 450,880,899 505,853,333 64,118,583 79,082,035
Dividends reinvested 1,155,796 121,640 718,269 65,151 141,646 17,239
Cost of shares redeemed (527,148,018) (705,449,514) (447,611,652) (513,696,593) (62,338,249) (94,017,695)
------------- ------------- ------------- ------------- ------------- -------------
(8,158,732) (55,831,313) 3,987,516 (7,778,109) 1,921,980 (14,918,421)
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease) in
net assets (8,158,732) (55,831,313) 3,987,516 (7,778,109) 1,921,980 (14,918,421)
NET ASSETS:
Beginning of year 172,581,702 228,413,015 101,214,657 108,992,766 21,464,789 36,383,210
------------- ------------- ------------- ------------- ------------- -------------
End of year $ 164,422,970 $ 172,581,702 $ 105,202,173 $ 101,214,657 $ 23,386,769 $ 21,464,789
============= ============= ============= ============= ============= =============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
28
<Page>
<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, MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
2005 2004 2005 2004 2005 2004
------------- ------------- ------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income $ 326,913 $ 26,892 $ 123,894 $ 10,897 $ 82,915 $ 4,956
------------- ------------- ------------- ------------- ------------- -------------
DIVIDENDS PAID TO SHAREHOLDERS
FROM:
Net investment income (Note 1) (326,913) (26,892) (123,894) (10,897) (82,915) (4,956)
------------- ------------- ------------- ------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00
per share):
Proceeds from sale of shares 212,489,726 187,577,015 70,696,703 79,829,239 40,145,244 36,464,490
Dividends reinvested 326,913 26,892 123,894 10,897 82,915 4,956
Cost of shares redeemed (209,176,509) (194,025,813) (66,487,254) (82,799,552) (35,670,278) (32,253,120)
------------- ------------- ------------- ------------- ------------- -------------
3,640,130 (6,421,906) 4,333,343 (2,959,416) 4,557,881 4,216,326
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease) in
net assets 3,640,130 (6,421,906) 4,333,343 (2,959,416) 4,557,881 4,216,326
NET ASSETS:
Beginning of year 39,453,389 45,875,295 17,819,238 20,778,654 12,074,369 7,858,043
------------- ------------- ------------- ------------- ------------- -------------
End of year $ 43,093,519 $ 39,453,389 $ 22,152,581 $ 17,819,238 $ 16,632,250 $ 12,074,369
============= ============= ============= ============= ============= =============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
29
<Page>
<Table>
<Caption>
RESERVE TAX-EXEMPT TRUST
---------------------------------------------------------------------------------------------
NEW JERSEY FUND OHIO FUND PENNSYLVANIA FUND
----------------------------- ----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, MAY 31, MAY 31, MAY 31, MAY 31, MAY 31,
2005 2004 2005 2004 2005 2004
------------- ------------- ------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income $ 337,190 $ 31,405 $ 111,931 $ 7,585 $ 306,095 $ 30,826
------------- ------------- ------------- ------------- ------------- -------------
DIVIDENDS PAID TO SHAREHOLDERS
FROM:
Net investment income (Note 1) (337,190) (31,405) (111,931) (7,585) (306,095) (30,826)
------------- ------------- ------------- ------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00
per share):
Proceeds from sale of shares 282,434,698 194,005,843 80,335,415 64,441,135 163,192,232 151,857,837
Dividends reinvested 337,190 31,405 111,931 7,585 306,095 30,826
Cost of shares redeemed (288,028,722) (199,812,677) (72,335,170) (63,946,823) (164,865,058) (146,420,902)
------------- ------------- ------------- ------------- ------------- -------------
(5,256,834) (5,775,429) 8,112,176 501,897 (1,366,731) 5,467,761
------------- ------------- ------------- ------------- ------------- -------------
Net increase (decrease) in
net assets (5,256,834) (5,775,429) 8,112,176 501,897 (1,366,731) 5,467,761
NET ASSETS:
Beginning of year 50,245,918 56,021,347 10,911,810 10,409,913 46,060,096 40,592,335
------------- ------------- ------------- ------------- ------------- -------------
End of year $ 44,989,084 $ 50,245,918 $ 19,023,986 $ 10,911,810 $ 44,693,365 $ 46,060,096
============= ============= ============= ============= ============= =============
<Caption>
RESERVE TAX-EXEMPT TRUST
-----------------------------
VIRGINIA FUND
-----------------------------
YEAR ENDED YEAR ENDED
MAY 31, MAY 31,
2005 2004
------------- -------------
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income $ 81,075 $ 7,292
------------- -------------
DIVIDENDS PAID TO SHAREHOLDERS
FROM:
Net investment income (Note 1) (81,075) (7,292)
------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00
per share):
Proceeds from sale of shares 72,769,957 73,535,462
Dividends reinvested 81,075 7,292
Cost of shares redeemed (70,194,502) (73,753,730)
------------- -------------
2,656,530 (210,976)
------------- -------------
Net increase (decrease) in
net assets 2,656,530 (210,976)
NET ASSETS:
Beginning of year 11,049,068 11,260,044
------------- -------------
End of year $ 13,705,598 $ 11,049,068
============= =============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
30
<Page>
<Table>
<Caption>
RESERVE MUNICIPAL MONEY-MARKET TRUST
-------------------------------------------------------------
LOUISIANA MUNICIPAL MINNESOTA MUNICIPAL
MONEY-MARKET FUND MONEY-MARKET FUND
----------------------------- -----------------------------
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
MAY 31, 2005 MAY 31, 2004 MAY 31, 2005 MAY 31, 2004
------------- ------------- ------------- -------------
INCREASE (DECREASE) IN NET ASSETS
FROM INVESTMENT OPERATIONS:
Net investment income $ 1,888 $ 106 $ 7,523 $ 227
------------- ------------- ------------- -------------
DIVIDENDS PAID TO SHAREHOLDERS FROM:
Net investment income (Note 1) (1,888) (106) (7,523) (227)
------------- ------------- ------------- -------------
FROM CAPITAL SHARE TRANSACTIONS
(at net asset value of $1.00 per share):
Proceeds from sale of shares 1,146,967 538,385 5,904,669 1,910,895
Dividends reinvested 1,888 106 7,523 227
Cost of shares redeemed (1,041,556) (463,107) (5,153,400) (1,450,296)
------------- ------------- ------------- -------------
107,299 75,384 758,792 460,826
------------- ------------- ------------- -------------
Net increase in net assets 107,299 75,384 758,792 460,826
NET ASSETS:
Beginning of year 185,886 110,502 645,847 185,021
------------- ------------- ------------- -------------
End of year $ 293,185 $ 185,886 $ 1,404,639 $ 645,847
============= ============= ============= =============
</Table>
SEE NOTES TO FINANCIAL STATEMENTS.
31
<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 amended ("the Investment Company Act"), as
nondiversified, open-end management investment companies. The policies
summarized below are consistently followed in the preparation of each
Trust's financial statements in conformity with generally accepted
accounting principles.
A. The Trusts' authorized shares of beneficial interest are unlimited. As
of May 31, 2005, there were eleven (11) separate series of Reserve
Tax-Exempt Trust authorized (Interstate Tax-Exempt Fund, California
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 and Interstate II Tax-Exempt Fund (which has not
commenced operations)); one (1) 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 Money-Market Fund and Minnesota
Money-Market Fund) authorized and outstanding (each a "Fund", and,
collectively, the "Funds"). The Funds each offer a single class of shares,
except for the Interstate Tax-Exempt Fund, which currently offers twelve
classes of shares as follows: Class 8, Class 12, Class 15, Class 20, Class
25, Class 35, Class 45, Treasurer's Trust, Class 70, Class 75, Class 95
and Class R. These financial statements and notes apply to all above
mentioned series of all Trusts, except for the 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, 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. The Interstate Tax-Exempt Fund allocates investment income
and fund level expenses (expenses other than the comprehensive management
fee and distribution fee) on a daily basis based upon the relative
proportion of net assets of each class.
E. Net investment income is distributed to shareholders daily and
automatically reinvested in additional Fund shares, unless the shareholder
has elected in writing to receive cash.
F. 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.
G. During the fiscal year, the Funds incurred overdraft positions with
their custodian bank. Any related interest charges are shown in each
Fund's statement of operations.
(2) MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
Pursuant to an Investment Management Agreement (the "Agreement") between
Reserve Management Company, Inc. ("RMCI") and each Trust on behalf of each
of its series, 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. The Funds, with the exception of Interstate
Tax-Exempt Fund, pay RMCI 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 Interstate Tax-Exempt Fund pays RMCI a comprehensive management
fee, accrued daily, at an annual rate based on the average daily net
assets of each class of the Fund's shares according to the following
schedule: Class 8, 0.08%; Class 12, 0.12%; Class 15, 0.15%; Class 20,
0.20%; Class 25, 0.25%; Class 35, 0.35%; Class 45, 0.45%; Treasurer's
Trust, 0.60%; Class 70, 0.50%; Class 75, 0.55%; Class 95, 0.75%; Class R,
0.80%. The comprehensive management fee includes the investment 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, transfer agent costs and the expenses of
preparing, printing and mailing shareholder reports and prospectuses.
Excluded from the definition of customary operating expenses are:
compensation of Chief Compliance Officer, interest charges, taxes,
brokerage fees and commissions, extraordinary legal and accounting fees
and other extraordinary expenses, payments under the Trust's Distribution
Plan, as defined below, and the fees of the Trustees who are not
interested persons, as defined in the Investment Company Act (the
"non-interested 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
32
<Page>
those Funds. For the year ended May 31, 2005, RMCI voluntarily waived a
portion of its comprehensive management fee in the amounts listed below:
<Table>
<Caption>
FUND AMOUNT
---- ------
New York Tax-Exempt Fund $ 10,280
Interstate Tax-Exempt Fund--Class R 12,553
California Tax-Exempt Fund 6,457
Connecticut Tax-Exempt Fund 1,022
Florida Tax-Exempt Fund 1,408
Massachusetts Tax-Exempt Fund 881
Michigan Tax-Exempt Fund 206
New Jersey Tax-Exempt Fund 3,951
Ohio Tax-Exempt Fund 77
Pennsylvania Tax-Exempt Fund 453
Virginia Tax-Exempt Fund 476
Louisiana Municipal Money-Market Fund 24
Minnesota Municipal Money-Market Fund 76
</Table>
Certain Officers and Trustees of the Trusts are also Officers of RMCI.
As of May 31, 2005, RMCI owned 38% of the Louisiana and 8% of the
Minnesota Municipal-Money Market Funds.
DISTRIBUTION ASSISTANCE:
The Funds have adopted a Rule 12b-1 Distribution Plan and entered into a
Distribution Agreement with Resrv Partners, Inc., an affiliate of RMCI,
which allows the Funds to pay fees for certain shareholder services and
for expenses related to the sale of its shares for the Funds that offer a
single class of shares and of Interstate Tax-Exempt Fund Class R, Class
95, Class 75 and Class 70 Shares. The rate of distribution expenses may
not exceed 0.20% per year of the Classes' average daily net assets. The
Distribution Plan requires RMCI to pay at least an equal amount from its
own resources.
(3) CONCENTRATION OF CREDIT RISK:
Total assets of each Fund in the Trusts include a concentration of cash
that is held in accounts with the Funds' Custodian.
(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 risks associated with such
factors, the Funds invest substantially all of their portfolio assets 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, 2005:
NEW YORK TAX-EXEMPT FUND 94.5%
<Table>
LETTER OF CREDIT
Allied Irish Bank, PLC 3.8%
Bank of America NA 4.0%
Bank of New York 4.8%
Bank of Nova Scotia 4.6%
Bayerische Landesbank Girozentrale 2.4%
BNP Paribas 4.6%
Citibank, NA 3.6%
Depfa Bank, PLC 5.4%
Dexia Bank 3.7%
FNMA 4.6%
JPMorganChase Bank 4.4%
Keybank NA 4.6%
Landesbank Baden-Wurttemberg 1.6%
Landesbank Hessen-Thueringen Girozentrale 4.5%
Lloyds 3.0%
Rabobank 6.3%
Republic N.B. New York 4.9%
Societe Generale 2.4%
State Street Bank & Trust Co. 2.4%
Wachovia Bank NA 2.9%
Wells Fargo Bank NA 4.9%
* BOND INSURANCE
AMBAC 2.7%
FGIC 4.8%
MBIA 3.6%
</Table>
33
<Page>
INTERSTATE TAX-EXEMPT FUND 90.5%
<Table>
LETTER OF CREDIT
ABN-AMRO Bank NV 0.7%
Allied Irish Bank, PLC 1.7%
BancOhio N.B. 0.1%
Bank of America NA 3.9%
Bank of Montreal 0.1%
Bank of New York 3.3%
Bank of Nova Scotia 2.5%
Barclays Bank PLC 1.1%
Bayerische Landesbank Girozentrale 4.6%
BNP Paribas 2.8%
Branch Banking & Trust Co. --^
Citibank, NA 3.0%
Comerica Bank 2.7%
Credit Suisse First Boston 0.4%
DEPFA Bank, PLC 1.6%
Dexia Bank 2.3%
FHLB 0.4%
Fifth Third Bank 0.4%
Florida Power & Light 2.4%
FNMA 1.8%
Harris Trust & Savings Bank 1.2%
HBOS PLC 0.5%
JPMorganChase Bank 4.6%
Keybank NA 0.9%
Kredietbank NV 0.5%
La Salle Bank, NA 2.5%
Landesbank Baden-Wurttemberg 0.4%
Landesbank Hessen-Thuerinigen Girozentrale 2.3%
Lloyds TSB Bank PLC 1.0%
Massachusetts Institute of Technology 2.4%
M&T Bank 0.4%
Natexis Banques Populaires 0.1%
Northern Trust Co. 0.4%
PNC Bank, NA 1.2%
Rabobank Nederland 1.9%
Regions Bank 0.1%
Republic N.B. New York 0.1%
Societe Generale 0.9%
Standard Federal Bank, NA 0.1%
State Street Bank & Trust Co. 4.2%
Suntrust Bank of Nashville NA 3.1%
Suntrust Bank of Atlanta 0.3%
Toronto-Dominion Bank 0.8%
US Bank NA 1.8%
Wachovia Bank NA 3.0%
Wells Fargo Bank NA 0.5%
Westdeutsche Landesbank AG 1.2%
* BOND INSURANCE
AMBAC 3.3%
FGIC 5.2%
FRMC 0.9%
FSA 5.2%
MBIA 3.7%
</Table>
CALIFORNIA TAX-EXEMPT FUND 93.1%
<Table>
LETTER OF CREDIT
Allied Irish Bank, PLC 3.2%
Bank of America NA 3.8%
Bank of New York 4.9%
Bank of Nova Scotia 3.8%
Bayerische Landesbank Girozentrale 3.5%
BNP Paribas 1.4%
Citibank, NA 4.4%
Comerica Bank 3.2%
FNMA 4.4%
JPMorganChase Bank 5.9%
Kredietbank NV, Brussels 4.6%
La Salle Bank, NA 4.5%
Landesbank Baden-Wurttemberg 3.0%
Landesbank Hessen-Thuerinigen Girozentrale 3.9%
Northern Trust Co. 4.1%
Republic N.B. New York 2.3%
Societe Generale 2.8%
State Street Bank & Trust Co. 3.6%
Union Bank of Switzerland 0.7%
US Bank NA 3.6%
Wachovia Bank NA 2.1%
Wells Fargo Bank NA 3.5%
* BOND INSURANCE
AMBAC 4.8%
FRMC 4.4%
MBIA 6.7%
</Table>
34
<Page>
CONNECTICUT TAX-EXEMPT FUND 79.8%
<Table>
LETTER OF CREDIT
Allied Irish Bank, PLC 4.1%
Bank of America 4.3%
Bank of Montreal 7.7%
Bayerische Landesbank Girozentrale 7.4%
JPMorganChase Bank 8.1%
KBC Bank NV 4.3%
La Salle Bank, NA 4.3%
Landesbank Hessen-Thueringen Girozentrale 9.8%
Northern Trust Co. 4.3%
Wachovia Bank NA 4.3%
* BOND INSURANCE
AMBAC 4.0%
FGIC 8.6%
FSA 4.3%
MBIA 4.3%
</Table>
FLORIDA TAX-EXEMPT FUND 100.2%
<Table>
LETTER OF CREDIT
Bank of America NA 4.4%
BNP Paribas 3.7%
Citibank, NA 4.6%
Credit Suisse First Boston 4.2%
FHLB 3.7%
Fifth Third Bank 3.0%
Florida Power & Light 6.5%
FNMA 4.2%
HBOS PLC 2.1%
JPMorganChase Bank 2.9%
Keybank NA 3.5%
La Salle Bank NA 4.6%
Northern Trust Co. 3.9%
Republic National Bank 4.2%
Societe Generale 3.8%
State Street Bank & Trust Co. 5.1%
Suntrust Bank 4.6%
Wachovia Bank NA 7.7%
* BOND INSURANCE
AMBAC 8.4%
FGIC 5.1%
FRMC 4.9%
FSA 5.1%
</Table>
MASSACHUSETTS TAX-EXEMPT FUND 72.0%
<Table>
LETTER OF CREDIT
Allied Irish Bank, PLC 3.6%
Bank of America 8.6%
Comercia Bank, Detroit 3.6%
Depfa Bank, PLC 3.8%
FNMA 3.2%
La Salle Bank, NA 4.5%
Landesbank Baden-Wurttemberg 5.4%
Landesbank Hessen-Thueringen Girozentrale 8.6%
Lloyds TSB Bank PLC 3.2%
State Street Bank & Trust Co. 3.6%
Wachovia Bank NA 2.7%
Westdeutsche Landesbank AG 8.6%
* BOND INSURANCE
AMBAC 2.7%
FGIC 3.6%
FSA 3.1%
MBIA 3.2%
</Table>
35
<Page>
MICHIGAN TAX-EXEMPT FUND 92.5%
<Table>
LETTER OF CREDIT
Bank of America, NA 4.5%
Comerica Bank 8.2%
Depfa Bank PLC 9.2%
FHLB 4.8%
Fifth Third Bank 4.8%
FNMA 4.8%
JPMorganChase Bank 7.2%
Keybank NA 0.8%
Kredietbank NV 4.8%
La Salle Bank, NA 8.4%
Landesbank Hessen-Thuerinigen Girozentrale 4.8%
National City Bank 3.6%
Standard Federal Bank, NA 4.8%
* BOND INSURANCE
AMBAC 4.8%
FGIC 4.8%
FSA 9.0%
MBIA 3.2%
</Table>
NEW JERSEY TAX-EXEMPT FUND 88.8%
<Table>
LETTER OF CREDIT
Allied Irish Bank, PLC 4.4%
Bank of America 2.0%
Bank of New York 4.4%
Bank of Nova Scotia 4.3%
Barclay Bank PLC 4.4%
Bayerische Landesbank Girozentrale 8.0%
Citibank, NA 8.2%
FNMA 4.4%
JPMorganChase Bank 4.4%
KBC Bank NV 4.4%
Lloyds TSB Bank PLC 4.4%
PNC Bank, NA 4.4%
Suntrust Bank 4.4%
Wachovia Bank NA 8.9%
* BOND INSURANCE
FGIC 4.4%
FSA 4.4%
MBIA 9.0%
</Table>
OHIO TAX-EXEMPT FUND 95.0%
<Table>
LETTER OF CREDIT
ABN-AMRO Bank NV 7.4%
Allied Irish Bank, PLC 3.7%
Bank of America, NA 3.9%
Barclays Bank PLC 3.7%
Bayerische Landesbank Girozentrale 8.9%
BNP Paribas 3.7%
Citibank, NA 4.7%
Fifth Third Bank 3.9%
HBOS PLC 7.9%
JPMorganChase Bank 9.5%
Keybank NA 3.2%
La Salle Bank, NA 3.7%
National City Bank 2.6%
Republic National Bank 2.6%
State Street Bank & Trust Co. 4.2%
US Bank NA 4.2%
Wachovia Bank NA 8.9%
Wells Fargo Bank NA 2.0%
Westdeutsche Landesbank AG 2.1%
* BOND INSURANCE
MBIA 4.2%
</Table>
36
<Page>
PENNSYLVANIA TAX-EXEMPT FUND 93.8%
<Table>
LETTER OF CREDIT
ABN-AMRO Bank NV 9.0%
Allied Irish Bank, PLC 8.5%
Bank of America NA 6.8%
BNP Paribas 4.5%
Comerica Bank 4.0%
Depfa Bank, PLC 4.5%
Dexia Bank 8.8%
FNMA 4.5%
JPMorganChase Bank 4.5%
Landesbank Hessen-Thuerinigen Girozentrale 7.4%
Northern Trust Co. 4.5%
PNC Bank, NA 9.1%
Rabobank Nederland 4.5%
Toronto-Dominion Bank 4.5%
Wachovia Bank NA 4.2%
* BOND INSURANCE
AMBAC 4.5%
</Table>
VIRGINIA TAX-EXEMPT FUND 73.8%
<Table>
LETTER OF CREDIT
Bank of America NA 9.5%
BNP Paribas 4.4%
BB&T NA 4.4%
Credit Suisse First Boston 4.4%
FNMA 8.0%
KBC Bank NV 8.0%
Suntrust Bank 4.4%
US Bank NA 8.0%
Wachovia Bank NA 13.9%
* BOND INSURANCE
AMBAC 4.4%
FRMC 4.4%
</Table>
LOUISIANA MUNICIPAL MONEY-MARKET FUND 84.0%
<Table>
LETTER OF CREDIT
Bank of America NA 4.8%
Bank of New York 8.5%
Bayerische Landesbank Girozentrale 11.9%
BNP Paribas 8.5%
FNMA 8.5%
JPMorganChase Bank 8.2%
Natexis Banques Populaires 4.8%
Regions Bank 4.8%
Suntrust Bank 4.8%
Wachovia Bank 4.8%
* BOND INSURANCE
AMBAC 4.8%
FGIC 4.8%
MBIA 4.8%
</Table>
MINNESOTA MUNICIPAL MONEY-MARKET FUND 82.5%
<Table>
LETTER OF CREDIT
ABN-AMRO Bank NV 4.8%
Allied Irish Bank, PLC 7.1%
Dexia Bank 3.6%
FNMA 4.8%
Harris Trust & Savings Bank 7.5%
La Salle Bank, NA 4.8%
Landesbank Hessen-Thuerinigen Girozentrale 7.7%
Lloyds TSB Bank PLC 4.6%
US Bank NA 7.1%
Wells Fargo Bank NA 4.8%
Westdeutsche Landesbank AG 7.5%
* BOND INSURANCE
AMBAC 3.4%
FRMC 10.0%
MBIA 4.8%
</Table>
* Some securities may be backed by both a line of credit and bond insurance.
^ Amount is less than 0.05%.
37
<Page>
(5) COMPOSITION OF NET ASSETS
At May 31, 2005, the composition of each Fund's net assets was as follows:
<Table>
<Caption>
NEW YORK INTERSTATE CALIFORNIA CONNECTICUT FLORIDA
FUND FUND FUND FUND FUND
-------------- -------------- ------------- -------------- --------------
Par Value $ 164,423 $ 1,412,322 $ 105,202 $ 23,387 $ 43,094
Additional-Paid-in-Capital 164,258,547 1,410,909,429 105,096,971 23,363,382 43,050,425
-------------- -------------- ------------- -------------- --------------
Net Assets $ 164,422,970 $1,412,321,751 $ 105,202,173 $ 23,386,769 $ 43,093,519
============== ============== ============= ============== ==============
<Caption>
MASSACHUSETTS MICHIGAN NEW JERSEY OHIO PENNSYLVANIA
FUND FUND FUND FUND FUND
-------------- -------------- ------------- -------------- --------------
Par Value $ 22,153 $ 16,632 $ 44,989 $ 19,024 $ 44,693
Additional-Paid-in-Capital 22,130,428 16,615,618 44,944,095 19,004,962 44,648,672
-------------- -------------- ------------- -------------- --------------
Net Assets $ 22,152,581 $ 16,632,250 $ 44,989,084 $ 19,023,986 $ 44,693,365
============== ============== ============= ============== ==============
<Caption>
VIRGINIA LOUISIANA MINNESOTA
FUND FUND FUND
------------- -------------- --------------
Par Value $ 13,706 $ 29 $ 140
Additional-Paid-in-Capital 13,691,892 293,156 1,404,499
------------- -------------- --------------
Net Assets $ 13,705,598 $ 293,185 $ 1,404,639
============= ============== ==============
</Table>
The tax basis of each Fund's assets is the same as the basis for financial
reporting at May 31, 2005. There was no undistributed net investment
income for any of the Funds at May 31, 2005. All dividends paid during the
year ended May 31, 2005 were federally tax-exempt dividends.
The income dividends were classified as tax-exempt income for federal
income tax purposes for the years shown below:
<Table>
<Caption>
2005 2004
------------ -----------
Interstate Tax-Exempt Fund $ 12,477,598 $ 927,612
California Tax-Exempt Fund 718,269 65,151
Connecticut Tax-Exempt Fund 141,646 17,239
Florida Tax-Exempt Fund 326,913 26,892
Massachusetts Tax-Exempt Fund 123,894 10,897
Michigan Tax-Exempt Fund 82,915 4,956
New Jersey Tax-Exempt Fund 337,190 31,405
Ohio Tax-Exempt Fund 111,931 7,585
Pennsylvania Tax-Exempt Fund 306,095 30,826
Virginia Tax-Exempt Fund 81,075 7,292
New York Tax-Exempt Fund 1,155,796 121,640
Louisiana Municipal Money-Market Fund 1,888 106
Minnesota Municipal Money-Market Fund 7,523 227
</Table>
38
<Page>
(6) CAPITAL SHARE TRANSACTIONS:
For the years ended May 31, 2005 and May 31, 2004, the capital share
transactions of each class of the Interstate Tax-Exempt Fund, each at a
net asset value of $1 per share, were as follows:
<Table>
<Caption>
YEAR ENDED MAY 31, 2005
------------------------------------------------------------------------------------------------------------
OCTOBER 1, 2004* OCTOBER 1, 2004*
TREASURER'S TO MAY 31, 2005 TO MAY 31, 2005
CLASS R TRUST CLASS 75 CLASS 70 CLASS 45 CLASS 25
--------------- --------------- ---------------- ---------------- ---------------- ---------------
Sold 1,218,219,096 257,552,413 1,510 75,609,267 65,703 106,352,469
Reinvested 1,904,802 357,612 2 21,974 158 387,135
Redeemed (1,242,244,626) (231,731,228) (1,411) (74,686,333) (6,055) (44,943,518)
--------------- --------------- ---------------- ---------------- ---------------- ---------------
Net Increase
(Decrease) (22,120,728) 26,178,797 101 944,908 59,806 61,796,086
=============== =============== ================ ================ ================ ===============
<Caption>
FEBRUARY 1, 2005*
TO MAY 31, 2005
CLASS 15 CLASS 12 CLASS 8
---------------- ---------------- ---------------
Sold 24 9,999 5,872,411,962
Reinvested 1,570 71 9,804,274
Redeemed (15) -- (4,925,031,660)
---------------- ---------------- ---------------
Net Increase (Decrease) 1,579 10,070 957,184,576
================ ================ ===============
<Caption>
YEAR ENDED MAY 31, 2004
------------------------------------------------------------------------------------------------------------
AUGUST 7, 2003*
TREASURER'S TO MAY 31, 2004
CLASS R TRUST CLASS 45 CLASS 25 CLASS 15 CLASS 8
--------------- --------------- ---------------- ---------------- ---------------- ---------------
Sold 956,117,978 204,132,027 10,000 42,163,525 2 522,753,544
Reinvested 265,314 96,414 45 127,864 857 437,118
Redeemed (953,227,161) (210,879,759) -- (44,215,837) -- (457,090,828)
--------------- --------------- ---------------- ---------------- ---------------- ---------------
Net Increase
(Decrease) 3,156,131 (6,651,318) 10,045 (1,924,448) 859 66,099,834
=============== =============== ================ ================ ================ ===============
</Table>
- ----------
* Commencement of Class operations.
39
<Page>
(7) FINANCIAL HIGHLIGHTS:
Contained below is per share operating performance data for a share of
beneficial interest outstanding for each of the periods as indicated.
<Table>
<Caption>
CLASS R
---------------------------------------------------------
YEARS ENDED MAY 31,
---------------------------------------------------------
2005 2004 2003 2002 2001
--------- --------- --------- --------- ---------
INTERSTATE TAX-EXEMPT FUND
Net asset value at beginning of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
--------- --------- --------- --------- ---------
Net investment income 0.0070 0.0010 0.0034 0.0108 0.0289
Dividends from net investment income (0.0070) (0.0010) (0.0034) (0.0108) (0.0289)
--------- --------- --------- --------- ---------
Net asset value at end of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
========= ========= ========= ========= =========
Total Return 0.70% 0.10% 0.34% 1.09% 2.95%
RATIOS/SUPPLEMENTAL DATA
Net assets end of year (millions) $ 261.4 $ 283.5 $ 280.4 $ 295.7 $ 296.2
Ratio of expenses to average net assets 1.00% 1.00% 1.00% 1.01% 1.01%
Ratio of expenses to average net assets net of
fee waivers 1.00% 0.90% 0.99% 1.01% 1.01%
Ratio of net investment income to average net assets 0.69% 0.10% 0.33% 1.08% 2.89%
<Caption>
TREASURER'S TRUST
---------------------------------------------------------
APRIL 17,
YEARS ENDED MAY 31, 2001* TO
--------------------------------------------- MAY 31,
2005 2004 2003 2002 2001
--------- --------- --------- --------- ---------
Net asset value at beginning of period $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
--------- --------- --------- --------- ---------
Net investment income 0.0109 0.0040 0.0074 0.0149 0.0002
Dividends from net investment income (0.0109) (0.0040) (0.0074) (0.0149) (0.0002)
--------- --------- --------- --------- ---------
Net asset value at end of period $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
========= ========= ========= ========= =========
Total Return 1.10% 0.40% 0.74% 1.50% 0.02%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (millions) $ 48.7 $ 22.5 $ 29.2 $ 20.5 $ 85.4
Ratio of expenses to average net assets 0.60% 0.60% 0.60% 0.61% 0.60%(a)
Ratio of net investment income to average net assets 1.24% 0.37% 0.71% 1.59% 2.56%(a)
</Table>
40
<Page>
<Table>
<Caption>
CLASS 75 CLASS 70 CLASS 45
------------- ---------- ------------------------
SEPTEMBER 23, AUGUST 16, YEAR AUGUST 7,
2004* TO 2004* TO ENDED 2003* TO
MAY 31, MAY 31, MAY 31, MAY 31,
2005 2005 2005 2004
------------- ---------- ----------- ----------
Net asset value at beginning of period $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
------------- ---------- ----------- ----------
Net investment income 0.0083 0.0092 0.0123 0.0044
Dividends from net investment income (0.0083) (0.0092) (0.0123) (0.0044)
------------- ---------- ----------- ----------
Net asset value at end of period $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
============= ========== =========== ==========
Total Return 0.83% 0.93% 1.25% 0.45%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (millions) $ --^ $ 0.9 $ 0.10 $ --^
Ratio of expenses to average net assets 0.75%(a) 0.71%(a) 0.46% 0.44%(a)
Ratio of net investment income to average net assets 1.60%(a) 1.10%(a) 1.37% 0.55%(a)
<Caption>
CLASS 25
---------------------------------------------------------
MAY 29,
YEARS ENDED MAY 31, 2001* TO
--------------------------------------------- MAY 31,
2005 2004 2003 2002 2001
--------- --------- --------- --------- ---------
Net asset value at beginning of period $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
--------- --------- --------- --------- ---------
Net investment income 0.0144 0.0075 0.0109 0.0184 0.0002
Dividends from net investment income (0.0144) (0.0075) (0.0109) (0.0184) (0.0002)
--------- --------- --------- --------- ---------
Net asset value at end of period $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
========= ========= ========= ========= =========
Total Return 1.46% 0.75% 1.09% 1.86% 0.02%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (millions) $ 77.7 $ 15.9 $ 17.8 $ 16.3 $ 45.7
Ratio of expenses to average net assets 0.25% 0.25% 0.25% 0.26% 0.25%(a)
Ratio of net investment income to average net assets 1.76% 0.74% 1.07% 1.96% 2.91%(a)
<Caption>
CLASS 15
----------------------------------
YEARS ENDED JANUARY 13,
--------------------- 2003* TO
MAY 31, MAY 31, MAY 31,
2005 2004 2003
--------- --------- ----------
Net asset value at beginning of period $ 1.0000 $ 1.0000 $ 1.0000
--------- --------- ----------
Net investment income 0.0154 0.0085 0.0039
Dividends from net investment income (0.0154) (0.0085) (0.0039)
--------- --------- ----------
Net asset value at end of period $ 1.0000 $ 1.0000 $ 1.0000
========= ========= ==========
Total Return 1.56% 0.86% 0.39%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (millions) $ 0.10 $ 0.1 $ 0.1
Ratio of expenses to average net assets 0.16% 0.15% 0.15%(a)
Ratio of net investment income to average net assets 1.54% 0.85% 1.03%(a)
</Table>
41
<Page>
<Table>
<Caption>
CLASS 12 CLASS 8
----------- ---------------------------------------
FEBRUARY 1, JANUARY 13,
2005* TO YEARS ENDED MAY 31, 2003* TO
MAY 31, ------------------------ MAY 31,
2005 2005 2004 2003
----------- ---------- ---------- -----------
Net asset value at beginning of period $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
----------- ---------- ---------- -----------
Net investment income 0.0069 0.0161 0.0092 0.0042
Dividends from net investment income (0.0069) (0.0161) (0.0092) (0.0042)
----------- ---------- ---------- -----------
Net asset value at end of period $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
=========== ========== ========== ===========
Total Return 0.70% 1.64% 0.93% 0.42%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (millions) $ --^ $ 1,023.4 $ 66.2 $ 0.1
Ratio of expenses to average net assets 0.12%(a) 0.08% 0.08% 0.08%(a)
Ratio of net investment income to average net assets 2.12%(a) 1.80% 0.92% 1.10%(a)
<Caption>
YEARS ENDED MAY 31,
---------------------------------------------------------
2005 2004 2003 2002 2001
--------- --------- --------- --------- ---------
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 0.0067 0.0006 0.0034 0.0095 0.0281
Dividends from net investment income (0.0067) (0.0006) (0.0034) (0.0095) (0.0281)
--------- --------- --------- --------- ---------
Net asset value at end of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
========= ========= ========= ========= =========
Total Return 0.67% 0.06% 0.34% 0.95% 2.87%
RATIOS/SUPPLEMENTAL DATA
Net assets end of year (millions) $ 164.4 $ 172.6 $ 228.4 $ 234.4 $ 281.6
Ratio of expenses to average net assets 1.02% 1.02% 1.00% 1.01% 1.01%
Ratio of expenses to average net assets net of fee
waivers 1.01% 0.89% 0.99% 1.01% 1.01%
Ratio of net investment income to average net assets 0.66% 0.06% 0.34% 0.94% 2.81%
</Table>
42
<Page>
<Table>
<Caption>
YEARS ENDED MAY 31,
---------------------------------------------------------
2005 2004 2003 2002 2001
--------- --------- --------- --------- ---------
CALIFORNIA TAX-EXEMPT FUND
Net asset value at beginning of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
--------- --------- --------- --------- ---------
Net investment income 0.0068 0.0006 0.0033 0.0098 0.0236
Dividends from net investment income (0.0068) (0.0006) (0.0033) (0.0098) (0.0236)
--------- --------- --------- --------- ---------
Net asset value at end of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
========= ========= ========= ========= =========
Total Return 0.69% 0.06% 0.33% 0.98% 2.42%
RATIOS/SUPPLEMENTAL DATA
Net assets end of year (millions) $ 105.2 $ 101.2 $ 109.0 $ 109.3 $ 136.2
Ratio of expenses to average net assets 1.00% 1.00% 1.00% 1.01% 1.00%
Ratio of expenses to average net assets net of fee
waivers 1.00% 0.89% 0.99% 1.01% 1.00%
Ratio of net investment income to average net assets 0.69% 0.06% 0.32% 1.00% 2.36%
<Caption>
YEARS ENDED MAY 31,
---------------------------------------------------------
2005 2004 2003 2002 2001
--------- --------- --------- --------- ---------
CONNECTICUT TAX-EXEMPT FUND
Net asset value at beginning of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
--------- --------- --------- --------- ---------
Net investment income 0.0068 0.0006 0.0025 0.0092 0.0273
Dividends from net investment income (0.0068) (0.0006) (0.0025) (0.0092) (0.0273)
--------- --------- --------- --------- ---------
Net asset value at end of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
========= ========= ========= ========= =========
Total Return 0.68% 0.06% 0.25% 0.92% 2.75%
RATIOS/SUPPLEMENTAL DATA
Net assets end of year (millions) $ 23.4 $ 21.5 $ 36.4 $ 41.2 $ 40.2
Ratio of expenses to average net assets 1.00% 1.00% 1.00% 1.01% 1.01%
Ratio of expenses to average net assets net of fee
waivers 1.00% 0.86% 0.98% 1.01% 1.01%
Ratio of net investment income to average net assets 0.68% 0.06% 0.25% 0.92% 2.73%
</Table>
43
<Page>
<Table>
<Caption>
YEARS ENDED MAY 31,
---------------------------------------------------------
2005 2004 2003 2002 2001
--------- --------- --------- --------- ---------
FLORIDA TAX-EXEMPT FUND
Net asset value at beginning of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
--------- --------- --------- --------- ---------
Net investment income 0.0072 0.0006 0.0036 0.0105 0.0294
Dividends from net investment income (0.0072) (0.0006) (0.0036) (0.0105) (0.0294)
--------- --------- --------- --------- ---------
Net asset value at end of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
========= ========= ========= ========= =========
Total Return 0.73% 0.06% 0.36% 1.05% 2.98%
RATIOS/SUPPLEMENTAL DATA
Net assets end of year (millions) $ 43.1 $ 39.5 $ 45.9 $ 32.1 $ 28.9
Ratio of expenses to average net assets 1.00% 1.00% 1.00% 1.00% 1.01%
Ratio of expenses to average net assets net of fee
waivers 1.00% 0.91% 0.99% 1.00% 1.01%
Ratio of net investment income to average net assets 0.74% 0.06% 0.35% 0.99% 2.94%
<Caption>
YEARS ENDED MAY 31,
---------------------------------------------------------
2005 2004 2003 2002 2001
--------- --------- --------- --------- ---------
MASSACHUSETTS TAX-EXEMPT FUND
Net asset value at beginning of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
--------- --------- --------- --------- ---------
Net investment income 0.0068 0.0006 0.0030 0.0099 0.0279
Dividends from net investment income (0.0068) (0.0006) (0.0030) (0.0099) (0.0279)
--------- --------- --------- --------- ---------
Net asset value at end of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
========= ========= ========= ========= =========
Total Return 0.68% 0.06% 0.30% 0.99% 2.85%
RATIOS/SUPPLEMENTAL DATA
Net assets end of year (millions) $ 22.2 $ 17.8 $ 20.8 $ 21.0 $ 18.8
Ratio of expenses to average net assets 1.01% 1.01% 1.00% 1.00% 1.00%
Ratio of expenses to average net assets net of fee
waivers 1.00% 0.88% 0.98% 1.00% 1.00%
Ratio of net investment income to average net assets 0.69% 0.06% 0.30% 0.99% 2.79%
</Table>
44
<Page>
<Table>
<Caption>
YEARS ENDED MAY 31,
---------------------------------------------------------
2005 2004 2003 2002 2001
--------- --------- --------- --------- ---------
MICHIGAN TAX-EXEMPT FUND
Net asset value at beginning of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
--------- --------- --------- --------- ---------
Net investment income 0.0069 0.0006 0.0029 0.0080 0.0276
Dividends from net investment income (0.0069) (0.0006) (0.0029) (0.0080) (0.0276)
--------- --------- --------- --------- ---------
Net asset value at end of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
========= ========= ========= ========= =========
Total Return 0.70% 0.06% 0.29% 0.81% 2.83%
RATIOS/SUPPLEMENTAL DATA
Net assets end of year (millions) $ 16.6 $ 12.1 $ 7.9 $ 8.5 $ 4.8
Ratio of expenses to average net assets 1.01% 1.00% 1.00% 1.01% 1.00%
Ratio of expenses to average net assets net of fee
waivers 1.00% 0.91% 0.98% 1.00% 1.00%
Ratio of net investment income to average net assets 0.77% 0.06% 0.29% 0.64% 2.76%
<Caption>
YEARS ENDED MAY 31,
---------------------------------------------------------
2005 2004 2003 2002 2001
--------- --------- --------- --------- ---------
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 0.0068 0.0006 0.0029 0.0101 0.0277
Dividends from net investment income (0.0068) (0.0006) (0.0029) (0.0101) (0.0277)
--------- --------- --------- --------- ---------
Net asset value at end of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
========= ========= ========= ========= =========
Total Return 0.68% 0.06% 0.29% 1.01% 2.83%
RATIOS/SUPPLEMENTAL DATA
Net assets end of year (millions) $ 45.0 $ 50.2 $ 56.0 $ 57.5 $ 52.9
Ratio of expenses to average net assets 1.00% 1.00% 1.00% 1.01% 1.01%
Ratio of expenses to average net assets net of fee
waivers 0.99% 0.87% 0.97% 1.01% 1.01%
Ratio of net investment income to average net assets 0.66% 0.06% 0.28% 0.94% 2.77%
</Table>
45
<Page>
<Table>
<Caption>
YEARS ENDED MAY 31,
---------------------------------------------------------
2005 2004 2003 2002 2001
--------- --------- --------- --------- ---------
OHIO TAX-EXEMPT FUND
Net asset value at beginning of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
--------- --------- --------- --------- ---------
Net investment income 0.0071 0.0006 0.0030 0.0082 0.0281
Dividends from net investment income (0.0071) (0.0006) (0.0030) (0.0082) (0.0281)
--------- --------- --------- --------- ---------
Net asset value at end of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
========= ========= ========= ========= =========
Total Return 0.71% 0.06% 0.30% 0.83% 2.88%
RATIOS/SUPPLEMENTAL DATA
Net assets end of year (millions) $ 19.0 $ 10.9 $ 10.4 $ 5.7 $ 8.1
Ratio of expenses to average net assets 1.00% 1.01% 1.00% 1.01% 1.00%
Ratio of expenses to average net assets net of fee
waivers 1.00% 0.92% 0.99% 1.01% 1.00%
Ratio of net investment income to average net assets 0.79% 0.06% 0.29% 0.81% 2.81%
<Caption>
YEARS ENDED MAY 31,
---------------------------------------------------------
2005 2004 2003 2002 2001
--------- --------- --------- --------- ---------
PENNSYLVANIA TAX-EXEMPT FUND
Net asset value at beginning of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
--------- --------- --------- --------- ---------
Net investment income 0.0070 0.0007 0.0036 0.0097 0.0287
Dividends from net investment income (0.0070) (0.0007) (0.0036) (0.0097) (0.0287)
--------- --------- --------- --------- ---------
Net asset value at end of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
========= ========= ========= ========= =========
Total Return 0.70% 0.07% 0.36% 0.97% 2.97%
RATIOS/SUPPLEMENTAL DATA
Net assets end of year (millions) $ 44.7 $ 46.1 $ 40.6 $ 51.5 $ 34.1
Ratio of expenses to average net assets 1.00% 1.00% 1.00% 1.01% 1.00%
Ratio of expenses to average net assets net of fee
waivers 1.00% 0.93% 1.00% 1.01% 1.00%
Ratio of net investment income to average net assets 0.70% 0.07% 0.34% 0.89% 2.87%
</Table>
46
<Page>
<Table>
<Caption>
YEARS ENDED MAY 31,
---------------------------------------------------------
2005 2004 2003 2002 2001
--------- --------- --------- --------- ---------
VIRGINIA TAX-EXEMPT FUND
Net asset value at beginning of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
--------- --------- --------- --------- ---------
Net investment income 0.0067 0.0006 0.0025 0.0069 0.0253
Dividends from net investment income (0.0067) (0.0006) (0.0025) (0.0069) (0.0253)
--------- --------- --------- --------- ---------
Net asset value at end of year $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
========= ========= ========= ========= =========
Total Return 0.67% 0.06% 0.25% 0.69% 2.77%
RATIOS/SUPPLEMENTAL DATA
Net assets end of year (millions) $ 13.7 $ 11.0 $ 11.3 $ 13.0 $ 6.7
Ratio of expenses to average net assets 1.00% 1.00% 1.00% 1.01% 1.00%
Ratio of expenses to average net assets net of fee
waivers 1.00% 0.90% 0.95% 0.99% 1.00%
Ratio of net investment income to average net assets 0.70% 0.06% 0.24% 0.60% 2.53%
<Caption>
APRIL 17
YEARS ENDED MAY 31, 2002* TO
--------------------------------- MAY 31,
2005 2004 2003 2002
--------- --------- --------- ---------
LOUISIANA MUNICIPAL MONEY-MARKET FUND
Net asset value at beginning of period $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
--------- --------- --------- ---------
Net investment income 0.0065 0.0007 0.0032 0.0014
Dividends from net investment income (0.0065) (0.0007) (0.0032) (0.0014)
--------- --------- --------- ---------
Net asset value at end of period $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
========= ========= ========= =========
Total Return 0.66% 0.07% 0.32% 0.14%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (millions) $ 0.3 $ 0.2 $ 0.1 $ 0.1
Ratio of expenses to average net assets 1.01% 1.00% 1.00% 1.04%(a)
Ratio of expenses to average net assets net of fee waivers 1.00% 0.64% 0.57% 0.00%(a)
Ratio of net investment income to average net assets 0.74% 0.06% 0.32% 1.15%(a)
</Table>
47
<Page>
<Table>
<Caption>
APRIL 17
YEARS ENDED MAY 31, 2002* TO
--------------------------------- MAY 31,
2005 2004 2003 2002
--------- --------- --------- ---------
MINNESOTA MUNICIPAL MONEY-MARKET FUND
Net asset value at beginning of period $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
--------- --------- --------- ---------
Net investment income 0.0066 0.0006 0.0044 0.0017
Dividends from net investment income (0.0066) (0.0006) (0.0044) (0.0017)
--------- --------- --------- ---------
Net asset value at end of period $ 1.0000 $ 1.0000 $ 1.0000 $ 1.0000
========= ========= ========= =========
Total Return 0.66% 0.06% 0.44% 0.17%
RATIOS/SUPPLEMENTAL DATA
Net assets end of period (millions) $ 1.4 $ 0.6 $ 0.2 $ 0.1
Ratio of expenses to average net assets 1.00% 1.01% 1.00% 1.04%(a)
Ratio of expenses to average net assets net of fee waivers 0.99% 0.78% 0.69% 0.00%(a)
Ratio of net investment income to average net assets 0.78% 0.06% 0.43% 1.40%(a)
</Table>
- ----------
* Inception of Class Operations.
(a) Annualized.
^ Amount is less than $50,000.
(8) OTHER MATTERS
Management has determined that certain of the Funds' service contracts and
distribution plans have lapsed due to an administrative error. RMCI is
taking all necessary steps to remedy this, including obtaining Board and
shareholder approval of the retention of fees paid and the approval of new
service contracts and distribution plans.
(9) COMMITMENTS AND CONTINGENCIES:
In the normal course of business, the Funds enter into contracts that
contain a variety of representations and warranties and provide general
indemnifications. The Funds' general exposure under these arrangements is
unknown, as this would involve future claims that may be made against the
Funds that have not yet occurred. However, based on experience, the Funds
expect the risk of loss to be remote.
48
<Page>
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Trustees and the Shareholders of Reserve Tax-Exempt Trust,
Reserve New York Tax-Exempt Trust and Reserve Municipal Money-Market Trust:
In our opinion, the accompanying statements of net assets (for Connecticut
Tax-Exempt Fund, Michigan Tax-Exempt Fund, Virginia Tax-Exempt Fund, Louisiana
Municipal Money-Market Fund and Minnesota Municipal Money-Market Fund, the
statements of assets and liabilities, including the schedules of investments)
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 Interstate Tax-Exempt Fund, California 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 (ten of the portfolios
constituting Reserve Tax-Exempt Trust), New York Tax-Exempt Fund (constituting
Reserve New York Tax-Exempt Trust), and Louisiana Municipal Money-Market Fund
and Minnesota Municipal Money-Market Fund (constituting Reserve Municipal
Money-Market Trust) (collectively, the "Funds") at May 31, 2005, the results of
each of their operations for the year then ended, the changes in each of their
net assets for each of the two years in the period then ended and the financial
highlights for each of the periods presented, 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 the
standards of the Public Company Accounting Oversight Board (United States).
Those standards 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, 2005 by
correspondence with the custodian, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
New York, New York
September 26, 2005
49
<Page>
THE JOINT BOARD OF TRUSTEES AND EXECUTIVE OFFICERS OF THE FUNDS (UNAUDITED)
The Board of Trustees is responsible for the management and supervision of the
Funds. The Trustees approve all material agreements between the Funds and the
Funds' service providers. Biographical information relating to the Trustees and
the Executive Officers of the Funds is set forth below, including their ages,
their principal occupations for at least the last five years, their positions
with the Funds and the length of time served. The Trustees and the Executive
Officers of the Funds oversee 30 portfolios in the Reserve fund complex. Except
as otherwise described below, none of the Trustees or Executive Officers hold
public directorships outside of the Reserve fund complex.
INTERESTED TRUSTEE
<Table>
<Caption>
POSITIONS TERM OF OFFICE ** PRINCIPAL OCCUPATIONS DURING
NAME, ADDRESS, AGE WITH THE FUNDS AND LENGTH OF SERVICE THE LAST FIVE YEARS
- ---------------------------- ---------------------- ----------------------- -----------------------------------------------------
BRUCE R. BENT+* Chairman, President, Trustee since inception President of Reserve Management Company, Inc.
Age: 68 Treasurer and Chief ("RMCI"), Director and Chairman/Chief Executive
The Reserve Funds Financial Officer Chairman since 2000 Officer of Reserve Management Corporation
1250 Broadway ("RMC") and Chairman and Director of Resrv
New York, NY 10001 President, Treasurer Partners, Inc. ("RESRV") since 2000; Chairman and
and Chief Financial Director of Reserve International Liquidity Fund Ltd.
Officer since 2005 since 1990. Co-founder of The Reserve Fund ("RF")
in 1970; officer thereof since 1970.
</Table>
INDEPENDENT TRUSTEES
<Table>
<Caption>
POSITIONS TERM OF OFFICE ** PRINCIPAL OCCUPATIONS DURING
NAME, ADDRESS, AGE WITH THE FUNDS AND LENGTH OF SERVICE THE LAST FIVE YEARS
- ---------------------------- ---------------------- ----------------------- -----------------------------------------------------
EDWIN EHLERT, JR. Trustee Trustee since inception Retired. President, Premier Resources, Inc. (meeting
Age: 74 management firm) since 1987.
2517 Highway #35, Bldg. J
Manasquan, NJ 08736
WILLIAM J. MONTGORIS Trustee Trustee since 1999 Retired since 1999. Chief Operating Officer of The
Age: 57 Bear Stearns Companies, Inc. from 1979 to 1999,
286 Gregory Road Director of Stage Stores, Inc. (retailing) since
Franklin Lakes, NJ 07417 2004.
</Table>
OFFICERS WHO ARE NOT TRUSTEES
<Table>
<Caption>
POSITIONS TERM OF OFFICE ** PRINCIPAL OCCUPATIONS DURING
NAME, ADDRESS, AGE WITH THE FUNDS AND LENGTH OF SERVICE THE LAST FIVE YEARS
- ---------------------------- ---------------------- ----------------------- -----------------------------------------------------
BRUCE R. BENT II+ Co-Chief Executive Since 2005 Senior Vice President, Secretary and Assistant
Age: 39 Officer, Senior Vice Treasurer of RMCI, Senior Vice President, Secretary
Hallmark Funds President and Assistant Treasurer and Assistant Treasurer of RMC, and Secretary and
1250 Broadway Assistant Treasurer since 2000 Director of RESRV since 2000; Vice President of
New York, NY 10001 RMC, RMCI and RESRV from 1992 to 2000;
Co-Chief Executive Former Trustee of Trusts in the Reserve/Hallmark
Officer and Senior fund complex.
Vice President since
2005
ARTHUR T. BENT III+ Co-Chief Executive Senior Vice President Chief Operating Officer/Treasurer, Senior Vice
Age: 37 Officer, Senior Vice And Assistant President and Assistant Secretary of RMCI;
Hallmark Funds President and Secretary since 2000 President, Treasurer and Assistant Secretary of RMC;
1250 Broadway Assistant Secretary Treasurer, Assistant Secretary and Director of
New York, NY 10001 Co-Chief Executive RESRV since 2000; Vice President RMC, RMCI and
Officer since 2005 RESRV from 1997 to 2000.
DANIEL F. BARRY Controller Since 2004 Vice President, Fund Acccounting and
Age: 58 Administration Services, The Bank of New York,
Hallmark Funds from 2000 to 2004; Senior Vice President and
1250 Broadway member of the Board of Trustees, Daiwa Securities
New York, NY 10001 Trust Company from 1990 to 2000.
</Table>
50
<Page>
<Table>
<Caption>
POSITIONS TERM OF OFFICE ** PRINCIPAL OCCUPATIONS DURING
NAME, ADDRESS, AGE WITH THE FUNDS AND LENGTH OF SERVICE THE LAST FIVE YEARS
- ---------------------------- ---------------------- ----------------------- -----------------------------------------------------
AMY W. BIZAR Secretary Since 2003 Vice President and Senior Counsel, Banking and
Age: 59 Regulatory Affairs, GE Consumer Finance - Americas,
Hallmark Funds from 1998 to 2003.
1250 Broadway
New York, NY 10001
</Table>
* MR. BRUCE BENT IS AN "INTERESTED PERSON" OF THE FUNDS AS DEFINED IN SECTION
2(a) (19) OF THE INVESTMENT COMPANY ACT DUE TO HIS POSITIONS WITH RMC, RMCI
AND RESRV.
** 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, UNLESS EXTENDED BY A VOTE OF
THE TRUSTEES. TRUSTEES NEED NOT BE SHAREHOLDERS.
+ MR. BRUCE R. BENT IS THE FATHER OF MR. BRUCE R. BENT II AND MR. ARTHUR T.
BENT III.
The Trust's Statement of Additional Information includes additional information
about Trust Trustees and is available free of charge, upon request, for
Shareholders by calling toll free: 1-800-637-1700.
FEDERAL TAX INFORMATION (UNAUDITED)
We are required by the Internal Revenue Code to advise you within 60 days of
year-end as to the Federal Tax Status of dividends paid during the year.
Accordingly, all dividends were federally tax-exempt dividends.
51
<Page>
EXPENSE EXAMPLE (UNAUDITED)
As a shareholder of a Fund, you incur two types of costs:
(1) transaction/redemption fees; and (2) ongoing costs, including management
fees; distribution and/or service (12b-1) fees; and other Fund expenses. This
Example is intended to help you understand your ongoing costs (in dollars) of
investing in a Fund and to compare these costs with the ongoing costs of
investing in other mutual funds.
The Example is based on an investment of $1,000 invested at December 1, 2004 and
held for the entire period ending ending May 31, 2005.
ACTUAL EXPENSES
The first line of the table below provides information about actual account
values and actual expenses. You may use the information in this line, together
with the amount you invested, to estimate the expenses that you paid over the
period. Simply divide your account value by $1,000 (for example, an $8,600
account value divided by $1,000 = 8.6), then multiply the result by the number
in the first line under the heading entitled "Expenses Paid During Period" to
estimate the expenses you paid on your account during this period.
HYPOTHETICAL EXAMPLE FOR COMPARISON PURPOSES
The second line of the table below provides information about hypothetical
account values and hypothetical expenses based on each Fund's actual expense
ratio and an assumed rate of return of 5% per year before expenses, which is not
the actual return for any of the Funds. The hypothetical account values and
expenses may not be used to estimate the actual ending account balance or
expenses you paid for the period. You may use this information to compare the
ongoing costs of investing in each Fund with those of other funds. To do so,
compare this 5% hypothetical example with the 5% hypothetical examples that
appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your
ongoing costs only and do not reflect any transactional costs, such as sales
charges (loads), redemption fees, or exchange fees. Therefore, the second line
of the table is useful in comparing ongoing costs only, but will not help you
determine the relative total costs of owning different funds. In addition, if
these transactional costs were included, your costs would have been higher.
<Table>
<Caption>
BEGINNING ACCOUNT VALUE ENDING ACCOUNT VALUE
DECEMBER 1, 2004 MAY 31, 2005 EXPENSES PAID DURING PERIOD*
----------------------- -------------------- ----------------------------
INTERSTATE TAX-EXEMPT CLASS R
Actual $ 1,000.00 $ 1,004.09 $ 4.99
Hypothetical $ 1,000.00 $ 1,019.69 $ 5.24
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 1.00%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
<Table>
INTERSTATE TAX-EXEMPT TREASURER'S TRUST
Actual $ 1,000.00 $ 1,006.03 $ 3.04
Hypothetical $ 1,000.00 $ 1,021.74 $ 3.19
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 0.60%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
<Table>
INTERSTATE TAX-EXEMPT CLASS 75
Actual $ 1,000.00 $ 1,009.47 $ 3.74
Hypothetical $ 1,000.00 $ 1,021.00 $ 3.93
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 0.75%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
<Table>
INTERSTATE TAX-EXEMPT CLASS 70
Actual $ 1,000.00 $ 1,007.98 $ 3.54
Hypothetical $ 1,000.00 $ 1,021.21 $ 3.72
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 0.71%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
52
<Page>
<Table>
<Caption>
BEGINNING ACCOUNT VALUE ENDING ACCOUNT VALUE
DECEMBER 1, 2004 MAY 31, 2005 EXPENSES PAID DURING PERIOD*
----------------------- -------------------- ----------------------------
INTERSTATE TAX-EXEMPT CLASS 45
Actual $ 1,000.00 $ 1,006.78 $ 2.29
Hypothetical $ 1,000.00 $ 1,022.52 $ 2.41
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 0.46%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
<Table>
INTERSTATE TAX-EXEMPT CLASS 25
Actual $ 1,000.00 $ 1,007.83 $ 1.25
Hypothetical $ 1,000.00 $ 1,023.62 $ 1.31
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 0.25%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
<Table>
INTERSTATE TAX-EXEMPT CLASS 15
Actual $ 1,000.00 $ 1,008.28 $ 0.80
Hypothetical $ 1,000.00 $ 1,024.09 $ 0.84
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 0.16%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
<Table>
INTERSTATE TAX-EXEMPT CLASS 12
Actual $ 1,000.00 $ 1,002.24 $ 0.60
Hypothetical $ 1,000.00 $ 1,024.30 $ 0.63
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 0.12%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
<Table>
INTERSTATE TAX-EXEMPT CLASS 8
Actual $ 1,000.00 $ 1,008.68 $ 0.40
Hypothetical $ 1,000.00 $ 1,024.51 $ 0.42
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 0.08%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
<Table>
CALIFORNIA TAX-EXEMPT
Actual $ 1,000.00 $ 1,003.44 $ 4.99
Hypothetical $ 1,000.00 $ 1,019.69 $ 5.24
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 1.00%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
<Table>
CONNECTICUT TAX-EXEMPT
Actual $ 1,000.00 $ 1,003.89 $ 4.99
Hypothetical $ 1,000.00 $ 1,019.69 $ 5.24
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 1.00%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
<Table>
FLORIDA TAX-EXEMPT
Actual $ 1,000.00 $ 1,003.59 $ 4.99
Hypothetical $ 1,000.00 $ 1,019.69 $ 5.24
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 1.00%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
<Table>
MASSACHUSETTS TAX-EXEMPT
Actual $ 1,000.00 $ 1,003.39 $ 4.99
Hypothetical $ 1,000.00 $ 1,019.69 $ 5.24
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 1.00%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
53
<Page>
<Table>
<Caption>
BEGINNING ACCOUNT VALUE ENDING ACCOUNT VALUE
DECEMBER 1, 2004 MAY 31, 2005 EXPENSES PAID DURING PERIOD*
----------------------- -------------------- ----------------------------
MICHIGAN TAX-EXEMPT
Actual $ 1,000.00 $ 1,003.49 $ 4.99
Hypothetical $ 1,000.00 $ 1,019.69 $ 5.24
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 1.00%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
<Table>
NEW JERSEY TAX-EXEMPT
Actual $ 1,000.00 $ 1,003.49 $ 4.94
Hypothetical $ 1,000.00 $ 1,019.75 $ 5.18
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 0.99%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
<Table>
OHIO TAX-EXEMPT
Actual $ 1,000.00 $ 1,003.54 $ 4.99
Hypothetical $ 1,000.00 $ 1,019.69 $ 5.24
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 1.00%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
<Table>
PENNSYLVANIA TAX-EXEMPT
Actual $ 1,000.00 $ 1,003.49 $ 4.99
Hypothetical $ 1,000.00 $ 1,019.69 $ 5.24
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 1.00%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
<Table>
VIRGINIA TAX-EXEMPT
Actual $ 1,000.00 $ 1,003.34 $ 4.99
Hypothetical $ 1,000.00 $ 1,019.69 $ 5.24
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 1.00%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
<Table>
NEW YORK TAX-EXEMPT
Actual $ 1,000.00 $ 1,003.34 $ 5.04
Hypothetical $ 1,000.00 $ 1,019.64 $ 5.29
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 1.01%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
<Table>
LOUISIANA MUNICIPAL MONEY-MARKET FUND
Actual $ 1,000.00 $ 1,003.24 $ 5.04
Hypothetical $ 1,000.00 $ 1,019.64 $ 5.29
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 1.00%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
<Table>
MINNESOTA MUNICIPAL MONEY-MARKET FUND
Actual $ 1,000.00 $ 1,003.34 $ 4.94
Hypothetical $ 1,000.00 $ 1,019.75 $ 5.18
</Table>
* Expenses are equal to the Fund's annualized expense ratio of 0.99%,
multiplied by the average account value over the period, multiplied by
182/365 (to reflect the one-half year period).
54
<Page>
AVAILABILITY OF PROXY VOTING INFORMATION
The day-to-day investment management decisions of each Fund are the
responsibility of that Fund's investment adviser, RMCI. RMCI is primarily
responsible for determining how to vote proxies with respect to companies in
which the respective Fund invests and for the ongoing review and evaluation of
its own proxy voting policies and corresponding compliance with applicable law.
RMCI's proxy voting policies and procedures, as well as information about how a
particular proxy was voted, may be obtained without charge by calling
800-637-1700 to request a copy or by visiting the SEC's website at www.sec.gov.
Information regarding how each Fund voted proxies relating to portfolio
securities during the 12-month period ended June 30, 2004 is available on the
SEC's website or by calling the toll-free number listed above.
AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULE
The Funds file a complete schedule of portfolio holdings with the SEC for the
first and third quarters of each fiscal year on Form N-Q. The Forms N-Q are
available on the SEC's website at www.sec.gov and may be reviewed and copied at
the SEC's Public Reference Room in Washington, DC. Information on the operation
of the Public Reference Room may be obtained by calling 1-800-SEC-0330.
55
<Page>
(This page has been left blank intentionally.)
<Page>
(This page has been left blank intentionally.)
<Page>
[THE RESERVE FUNDS(R) LOGO]
"The World's First Money-Market Fund"(SM)
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 05/05
<Page>
ITEM 2. CODE OF ETHICS.
The registrant has adopted a code of ethics that applies to the registrant's
principal executive officer and principal financial officer. The registrant has
not made any amendments to its code of ethics during the covered period. The
registrant has not granted any waivers from any provisions of the code of ethics
during the covered period. A copy of the registrant's code of ethics is filed
herewith.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
The registrant's board of trustees has determined that there is at least one
audit committee financial expert serving on its audit committee. William
Montgoris is the audit committee financial expert and is considered to be
independent.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
(a) Audit Fees. The registrant paid the following amounts to
PricewaterhouseCoopers, LLP, the registrant's principal accountant, for the
audit of the registrant's annual financial statements and services in connection
therewith for the last two fiscal years:
<Table>
2005 2004
---- ----
26 12
</Table>
* These amounts are included as part of the comprehensive management fees paid
by the registrant and are not separate expenses.
(b) Not applicable.
(c) Tax Fees. The registrant paid the following amounts to
PricewaterhouseCoopers, LLP, the registrant's principal accountant, for the
preparation of tax returns, tax consultation, research and related items for the
last two fiscal years:
<Table>
2005 2004
---- ----
0 0
</Table>
* These amounts are included as part of the comprehensive management fees paid
by the registrant and are not separate expenses.
(d) Not applicable.
(e) Before PricewaterhouseCoopers, LLP, the registrant's principal accountant,
is engaged to render audit or non-audit services by the registrant, the
registrant's investment adviser, or any entity controlling, controlled by, or
under common control with the registrant's investment adviser that provides
ongoing services to the registrant, the engagement is approved by the
registrant's Audit Committee. Due to potential time constraints between
meetings, the Audit Committee has delegated the authority to pre-approve
non-audit services to the Chairman of the Audit Committee, currently William
Montgoris, subject to subsequent ratification by the Audit Committee.
(f) Not applicable.
<Page>
(g) The following table indicates the aggregate non-audit fees billed by the
registrant's accountant for services rendered to the registrant, and rendered to
the registrant's investment adviser (not including any sub-adviser whose role is
primarily portfolio management and is subcontracted with or overseen by another
investment adviser), and any entity controlling, controlled by, or under common
control with the adviser that provides ongoing services to the registrant for
each of the last two fiscal years of the registrant.
<Table>
2005 2004
---- ----
0 0
</Table>
* These amounts are included as part of the comprehensive management fees paid
by the registrant and are not separate expenses.
(h) Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Not applicable, as the schedule of investments in securities of unaffiliated
issuers as of the close of the reporting period is included as part of the
report to shareholders filed under Item 1 of this Form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATES.
Not applicable.
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
Not applicable.
ITEM 11. CONTROLS AND PROCEDURES.
(a) The Chief Executive and Financial Officers concluded that the
Registrant's Disclosure Controls and Procedures are effective based on the
evaluation of the Disclosure Controls and Procedures as of a date within 90 days
of the filing date of this report.
(b) During the fiscal period ended May 31, 2005, Fund management identified
deficiencies in internal controls related to reconciling bank statements,
monitoring compliance with certain Internal Revenue Code requirements and
identifying and collecting amounts due the Registrant. Fund management discussed
this matter with the Registrant's Audit Committee and independent auditors, and
has instituted additional procedures to enhance its internal controls for the
Registrant and will continue to strengthen the Registrant's overall control
environment. There was no material impact to shareholders, fund net asset value
or fund performance. These changes in internal controls over financial reporting
have or are reasonably likely to have a material effect on such controls.
<Page>
ITEM 12. EXHIBITS.
(a) (1) Any code of ethics, or amendment thereto, that is the subject of the
disclosure required by Item 2 requirements through filing of an exhibit: Filed
herewith.
(a) (2) Certification of chief executive officer and chief financial officer
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002: Filed herewith
(b) Certification of chief executive officer and chief financial officer
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002: Furnished herewith
<Page>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, as amended, the registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.
Reserve Municipal Money Market Trust
By: /s/ Bruce R. Bent II
--------------------
Name: Bruce R. Bent II
Title: Co-Chief Executive Officer
Date: September 28, 2005
By: /s/ Arthur T. Bent III
----------------------
Name: Arthur T. Bent III
Title: Co-Chief Executive Officer
Date: September 28, 2005
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, as amended, this report has been signed by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By: /s/ Bruce R. Bent II
--------------------
Name: Bruce R. Bent II
Title: Co-Chief Executive Officer
Date: September 28, 2005
By: /s/ Arthur T. Bent III
----------------------
Name: Arthur T. Bent III
Title: Co-Chief Executive Officer
Date: September 28, 2005
By: /s/ Bruce R. Bent
-----------------
Name: Bruce R. Bent
Title: Treasurer and Chief Financial Officer
Date: September 28, 2005