Fidelity Adds Tax Managed Fund to Its Advisor Family of Funds; Fidelity Advisor Tax Managed Stock Fund Designed to Offset Income Tax Impact on Investment Returns

Business Wire, Sept 26, 2001

Business Editors

BOSTON--(BUSINESS WIRE)--Sept. 26, 2001

To help financial advisors meet the after-tax needs of their clients, Fidelity Investments Institutional Services Company, Inc. (FIIS) today launched its 50th Fidelity Advisor fund -- Fidelity Advisor Tax Managed Stock Fund.

Available exclusively through financial advisors, Fidelity Advisor Tax Managed Stock Fund will be actively managed using an investment strategy that is sensitive to the potential impact of federal income tax on shareholders' investment returns. The portfolio manager will seek long-term growth of capital by investing in securities that offer strong long-term growth potential offered at attractive valuations. The manager also will seek to diversify(1) the portfolio across many sectors. The fund's tax-sensitive strategy is designed to lead to lower distributions of realized capital gains than funds managed without regard to federal income tax consequences. Tax sensitive investing may not provide as high a return as other funds before consideration of federal income tax consequences. The fund may realize capital gains from time to time.

"Interest in tax managed investing continues to increase among advisors and their clients, especially in the wake of last year's record fund distributions," said Mike Kellogg, executive vice president, Fidelity Investments Institutional Services Company. "As a result, advisors are looking for funds that can help minimize the impact of taxes on their clients' portfolios. With Fidelity Advisor Tax Managed Stock Fund, advisors can align the fund's goal of maximizing after-tax returns with the long-term financial objectives of their clients."

Fidelity Advisor Tax Managed Stock Fund will be managed by 17-year Fidelity veteran Timothy E. Heffernan. Heffernan, 40, also manages Fidelity Tax Managed Stock Fund and tax-sensitive Fidelity Congress Street Fund and Fidelity Exchange Fund(2) and has managed separate accounts for tax-sensitive institutional investors for seven years, as well as two limited partnerships -- Fidelity Congress Exchange 1992 and Fidelity Exchange 1988.

Heffernan joined Fidelity Management Trust Company (FMTC) in 1984. He spent 12 years with FMTC in various positions, including senior analyst and treasurer. In 1988, Heffernan became a manager of FMTC's quantitative analysis group. From 1990 to 1992, he developed investment products for the institutional marketplace. In 1992, he became a portfolio manager with FMTC's Structured Investment Group.

About FIIS

FIIS provides investment management services to more than 4,200 financial institutions, including wirehouses, regional and independent broker/dealers, banks, trust companies and insurance companies. The company offers Fidelity Advisor Funds(R), Variable Insurance Product (VIP) Funds, Fidelity Advisor Generations Annuity(R), systematic investment plans, institutional money market funds, and a comprehensive line of retirement products and services, exclusively through financial advisors. FIIS' total assets under management were $192.6 billion as of July 31, 2001. For more information about FIIS, financial advisors should visit www.advisorxpress.com.

About Fidelity

Fidelity Investments is one of the world's largest providers of financial services with custodied assets of $1.5 trillion, including managed assets of $896.2 billion Fidelity offers investment management, retirement, brokerage and shareholder services to 17 million individuals and institutions as well as through 5,500 financial intermediaries. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, one of the largest mutual fund supermarkets and a leading online brokerage firm. Fidelity Investments' Web site is at www.fidelity.com.

Fidelity Advisor Funds and Fidelity Advisor Generations Annuity are registered trademarks of FMR Corp.

For more complete information about the Fidelity Advisor Funds, including fees and expenses, please call or write your investment professional for a free prospectus. Read it carefully before you invest or send money.

Fidelity Investments Institutional Services Company, Inc. 82 Devonshire Street, Boston, MA 02109.

(1) Diversification does not guarantee against a loss.

(2) Fidelity Congress Street Fund was closed to new investors on February 15, 1961 and Fidelity Exchange Fund was closed to new investors on October 31, 1976.