First Funds waives all portfolio operating expenses on its Tennessee Tax-Free Portfolio

Business Wire, Sept 24, 1996

MEMPHIS, Tenn.--(BUSINESS WIRE)--Sept. 24, 1996--First Tennessee Bank National Association (First Tennessee), investment adviser to First Funds, announces today that First Funds has completely eliminated through Dec. 31, 1996, all portfolio operating expenses associated with the First Funds Tennessee Tax-Free Portfolio.

All management fees, shareholder servicing fees, and other operating expenses will be waived for this period. "What this means to current and potential shareholders in the Fund is that now less of their principal is used to support the Fund's daily activities, and more of their assets are available to earn dividends," explained Ralph Herbert, Portfolio Manager for the Fund and a Vice President with First Tennessee.

"By restructuring the Portfolio's operating expenses for this period of time, we hope to attract more investors seeking income which is exempt from both federal and Tennessee personal income tax(a)," said Doug Kelso, Senior Vice President and Manager of Product Development at First Tennessee.

Total combined assets among the three classes of shares available in the Portfolio were $10.1 million on Aug. 31, 1996. First Funds also includes four money market funds, an equity fund, and a taxable bond fund with combined assets of $600 million on Aug. 30, 1996.

For more information about this or any other of the First Funds, please contact ALPS Mutual Funds Services, Inc., member NASD, at 1-800-442-1941 or at 370 17th St., Suite 2700, Denver, CO 80202.

First Funds are NOT insured by the FDIC or any other governmental agency, nor are they bank deposits or other obligations of or guaranteed by First Tennessee Bank National Association or any of its affiliates, and involve investment risks, including the possible loss of the principal amount invested.

(a) A portion of income may be subject to Federal Alternative Minimum Tax.

CONTACT: First Tennessee Bank, Memphis

Doug Kelso, 901/537-2652