Donoghue's Diversified Sector Portfolio Reports Three-Year Gross Total Performance 4.09 Times Benchmark S&P 500's Total Return; Out-Performs 99% of All Equity Mutual Funds

Business Wire, June 12, 2001

Business Editors

MILFORD, Mass.--(BUSINESS WIRE)--June 12, 2001

For the past three years to 05/31/01, Donoghue's Diversified Equity Portfolio has earned an average annualized return of 25.02%(1) (95.42% total return) or 4.09 times the benchmark S&P 500's return of 6.11% (102.09% total return).

For further comparison, the Dow-Jones Industrials averaged 8.79% (28.77% total return) and the NASDAQ Composite 5.86% (18.64% total return).

For the period 6/1/98-5/31/01, the Portfolio exhibited a standard deviation of 41.45% and a beta of 0.88.

Donoghue's Diversified Sector Fund Power Portfolio is an actively-managed four-fund global portfolio chosen from Fidelity's single-industry domestic, single-country and regional international equity, bond and money market mutual funds. The Portfolio holdings are chosen based on recent profit momentum and reviewed weekly. The Diversified Sector Portfolio is an aggressive investment and contains higher than market risk.

Current Portfolio BUY recommendations as of 6/4/01 were four equal positions in Fidelity Select Biotechnology (FBIOX), Fidelity Select Software & Computers (FSCSX), Fidelity Select Electronics (FSELX) and Fidelity Japan Smaller Company (FJSCX). The average holding period is approximately two months, so these accounts are most appropriate for tax-deferred IRA Rollovers.

(1) Donoghue's Diversified Sector Portfolio performance statistics are composite returns gross of Fidelity's 3.0% one-time sales charge and gross of WEDCO's maximum annual management fee of 2.50%, 1.95% for accounts over $100,000. Individual client returns have varied. Past performance is, of course, no guarantee of future returns.

W. E. Donoghue & Co., Inc. is a registered investment advisor registered in all 50 states with over $100 million in managed portfolios of mutual funds serving individuals, trusts and institutional investors since 1986.

Source: W. E. Donoghue & Co., Incorporated

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