MFS® Investment Management and the Oregon 529 College Savings Network Remind Residents That September is College Savings Month; 529 College Savings Plans Help Parents Prepare for the Growing Cost of Higher Education

Business Wire, August 31, 2005

SALEM, Ore. -- September is back-to-school time, but more importantly, it is College Savings Month, sponsored nationwide by the National Association of State Treasurers and designed to educate people on college cost issues. MFS Investment Management and the Oregon 529 College Savings Network urge parents and other investors to explore the benefits of opening a 529 college savings plan for their child or relative, and review their current college savings strategy to effectively prepare for the ever-growing cost of higher education.

"Oregon has tailored its 529 program to meet the varied needs of our residents by providing a diverse mix of investment options and channels to buy these plans," said Randall Edwards, Oregon State Treasurer and Board Chair of the Oregon 529 College Savings Network. "College Savings Month is an important avenue for us to educate Oregon residents about the benefits associated with 529s, especially how these plans allow education savings to accumulate tax-free and be withdrawn free from federal and Oregon income taxes when used for college tuition."

For the 2005-2006 academic year, college expenses for Oregon residents to attend Oregon State University for the full year is $15,978, and $16,302 to study at the University of Oregon. Experts estimate that in 16 years, the average cost of a four-year private college could surpass a quarter of a million dollars.

"Residents should understand the favorable tax treatments they receive if they invest in their state's own 529 college savings plan," states Bruce Harrington, vice president and product manager of MFS Investment Management's 529 plans. "Oregon residents that invest in an in-state 529 plan may deduct up to $2,000 in annual contributions from Oregon state taxable income."

For parents who want to research future college costs and required investment levels to pay for college, MFS provides a sophisticated financial calculator on its Web site at www.mfs.com. The calculator can compute specific school costs, taking the guesswork out of rising tuition costs and helping parents create smart plans for college investing.

The MFS Oregon 529 Savings Plan is designed to offer a wide range of investment choices, gifting and estate tax benefits, and MFS investment management expertise. The MFS 529 Savings Plan makes it easy and affordable to invest for college due to its flexible features such as low minimum initial and subsequent investments, high maximum contribution and a systematic investment program. The MFS 529 Savings Plan offers investors more than 20 investment choices plus three investment paths to take, including:

--Age-based investment option

--Built-in allocation approach

--Customized approach

Keep in mind, there are fees associated with 529 savings plans. Investments in 529 plans involve investment risks. You should consider your financial needs, goals, and risk tolerance prior to investing.

Under current law, withdrawals for qualified higher education expenses are not subject to federal or Oregon income taxes. If nonqualified withdrawals for other purposes are made, the account earnings generally are subject to income tax and generally a 10% additional tax. The current tax provisions for qualified withdrawals are scheduled to expire after December 31, 2010. If Congress does not extend these provisions, 529 account earnings would be deferred until withdrawn, but upon withdrawal they would be taxed at the beneficiary's income tax rate.

This material is not intended to be legal or tax advice or to replace the advice of a qualified attorney, tax adviser, investment professional or insurance agent. Before making any financial commitment regarding the issues discussed here, consult with the appropriate professional adviser.

Nonqualified withdrawals are subject to both income taxes and a 10% federal tax penalty. Qualified withdrawals are tax free as long as they are used for higher education expenses.

About MFS Investment Management

MFS is a premier global money management firm with investment offices in Boston, London, Mexico City, Tokyo and Singapore. The firm's history dates back to March 21, 1924, and the establishment of America's first "open-end" mutual fund. Today, MFS manages $150 billion in assets on behalf of 5 million investors worldwide (as of June 30, 2005). MFS is a majority-owned subsidiary of Sun Life Financial Inc. (NYSE, TSX: SLF).

About the Oregon 529 College Savings Network

The Oregon 529 College Savings Network is a set of qualified college savings plans established and administered by the State of Oregon to help families and individuals save for higher education expenses. The Network offers unique investment vehicles and program features that provide significant state and federal tax advantages and more flexibility than many other college savings tools. Families can use their savings at any eligible institution of higher education in the United States for a wide range of educational expenses, including tuition, fees, books, and room and board expenses. The Network currently offers three college savings plans. For more information on any one of the plans, please follow the links below or visit the network web site at www.oregon529network.com.