AIM Investments Announces Launch of Allocation Solutions; AIM Short Term Bond Fund Adds A Shares; R & I Shares Expanded

Business Wire, April 30, 2004

Business Editors

HOUSTON--(BUSINESS WIRE)--April 30, 2004

AIM Investments announced today the launch of AIM Allocation Solutions(SM), a group of three funds that offers a simplified approach to achieving asset allocation and diversification.

The three multi-fund portfolios -- AIM Conservative Allocation Fund, AIM Moderate Allocation Fund, and AIM Aggressive Allocation Fund -- will provide wide diversification by investing in nine to 11 professionally managed AIM, AIM Trimark and INVESCO Funds. The portfolios are automatically rebalanced on an annual basis to maintain target asset class allocations.

"AIM strongly encourages investors to build a well-diversified portfolio with the help of a financial advisor, and this new series of investment solutions helps investors diversify across asset classes, investment styles and market capitalizations," said Gene Needles, president and chief executive officer of A I M Distributors, Inc.

AIM researched its broad range of mutual funds to determine which funds would best represent each asset class within the three portfolios, which are designed to meet the investor's tolerance to risk.

AIM Conservative Allocation Fund, designed for investors with a low to moderate risk tolerance, will be comprised of a strategic blend of AIM Large Cap Basic Value Fund, AIM Large Cap Growth Fund, AIM Charter Fund, AIM Trimark Endeavor Fund, INVESCO International Core Equity Fund, INVESCO Multi-Sector Fund, AIM Total Return Bond Fund, AIM Short Term Bond Fund, and AIM Limited Maturity Treasury Fund.

AIM Moderate Allocation Fund will be made up of AIM Large Cap Basic Value Fund, AIM Large Cap Growth Fund, AIM Mid Cap Basic Value Fund, INVESCO Mid Cap Growth Fund, AIM Trimark Small Companies Fund, AIM International Growth Fund, INVESCO International Core Equity Fund, INVESCO Multi-Sector Fund, AIM Total Return Bond Fund, AIM Short Term Bond Fund, and AIM High Yield Fund.

AIM Aggressive Allocation Fund, designed for investors with moderate to high tolerance for risk, will use AIM Large Cap Basic Value Fund, AIM Large Cap Growth Fund, INVESCO Dynamics Fund, AIM Small Cap Growth Fund, AIM International Growth Fund, INVESCO International Core Equity Fund, INVESCO Multi-Sector Fund, AIM Real Estate Fund, and AIM High Yield Fund.

AIM's three new Allocation Solutions products are fund of funds, which means they invest their assets in other underlying mutual funds advised by A I M Advisors, Inc. The advisor may change a fund's asset class allocations, the underlying funds or the target weightings in the underlying funds at its discretion. Each of the funds invests internationally, which presents certain risks not associated with investing solely in the United States. These include, for instance, risks relating to fluctuations in the value of the U.S. dollar relative to the value of other currencies, the custody arrangements made for the fund's foreign holdings, political and economic risks, differences in accounting procedures, the lesser degree of public information required to be provided by non-U.S. companies, and relatively low market liquidity.

New Share Class Offerings

Also effective today, AIM Investments is adding Class A Shares to AIM Short Term Bond Fund, as well as providing Class R shares for eight existing AIM funds and Class I Shares for 15 existing AIM and INVESCO funds. The three AIM Allocation funds will also be offered in R and I share classes.

Both moves will help AIM Investments broaden its product line. Adding Class A Shares to AIM Short Term Bond Fund also will give investors a share class with a lower expense ratio than the existing Class C Shares and, consequently, seek to provide higher yield.

Investors should be aware of the risks involved with investing in AIM Short Term Bond Fund. The fund invests in securities issued or backed by the U.S. government, its agencies or instrumentalities. They offer a high degree of safety and, in the case of government securities, are guaranteed as to the timely payment of principal and interest if held to maturity. Fund shares are not insured, and their value and yield will vary with market conditions. The fund also invests in mortgage-backed securities, which may lose value if mortgages are prepaid in response to falling interest rates.

The additional R and I shares help AIM Investments offer better support to large institutional investors and to financial advisors focused on providing competitively-priced investment solutions to the small-plan retirement marketplace.

Class R shares will be added to AIM Basic Balanced Fund, AIM Mid Cap Basic Value Fund, AIM Real Estate Fund, AIM Short Term Bond Fund, AIM Total Return Bond Fund, AIM Trimark Endeavor Fund, AIM Trimark Fund, and AIM Trimark Small Companies Fund.

Adding Class I Shares will be AIM Basic Balanced Fund, AIM Global Equity Fund, AIM High Yield Fund, AIM Large Cap Basic Value Fund, AIM Large Cap Growth Fund, AIM Mid Cap Basic Value Fund, AIM Mid Cap Growth Fund, AIM Real Estate Fund, AIM Short Term Bond Fund, AIM Total Return Bond Fund, AIM Trimark Endeavor Fund, AIM Trimark Fund, AIM Trimark Small Companies Fund, INVESCO International Core Equity Fund, and INVESCO Multi-Sector Fund.