Vanguard International Growth Fund Manager Richard Foulkes To Retire; Experienced Schroders Tandem to Assume Portfolio Manager Responsibilities

Business Wire, July 26, 2005

VALLEY FORGE, Pa. -- The Vanguard Group announced today that Richard R. Foulkes, the lead portfolio manager of the $9.8 billion Vanguard(R) International Growth Fund and the $610 million Vanguard(R) Variable Insurance Fund (VVIF)--International Portfolio, will retire on October 31, 2005.

Mr. Foulkes, 59, is Vice Chairman, Schroder Investment Management North America Inc. (Schroders), which provides investment advisory services for the majority of the assets in Vanguard International Growth Fund and VVIF--International Portfolio. Mr. Foulkes has managed the International Growth Fund since its inception in 1981. He has served as manager of VVIF--International Portfolio since its inception in 1994.

"During his 24 years of distinguished service to Vanguard, Richard Foulkes has provided fund shareholders a disciplined, diversified approach to overseas investing and rewarded them with excellent performance," said Vanguard Chairman and Chief Executive Officer Jack Brennan. "Furthermore, he has cultivated a skilled, experienced investment team that will serve as highly capable stewards of the fund and the portfolio going forward."

Effective November 1, 2005, Virginie Maisonneuve and Matthew Dobbs of Schroders will assume Mr. Foulkes' responsibilities for Vanguard International Growth Fund and VVIF--International Portfolio. As head of the firm's Europe, Australasia, Far East (EAFE) Equity team, Ms. Maisonneuve will be responsible for overall portfolio management. Ms. Maisonneuve and Mr. Dobbs will share responsibility for stock selection, with Ms. Maisonneuve covering European companies and Mr. Dobbs covering Pacific and Emerging markets.

Ms. Maisonneuve joined Schroders in November 2004 as head of the firm's EAFE Equity team, bringing with her nearly two decades of portfolio management experience. In addition to serving as manager of Vanguard International Explorer Fund since 2000, Mr. Dobbs has worked closely with Mr. Foulkes on the Pacific Rim and emerging-markets segments of Vanguard International Growth Fund since 1999.

Vanguard International Growth Fund and VVIF--International Portfolio seek long-term capital appreciation by investing in high-quality, non-U.S. growth stocks, and emphasize blue-chip companies diversified across countries in the MSCI EAFE Index. Schroders currently manages 75% of the Vanguard International Growth Fund's assets and 55% of VVIF--International Portfolio's assets, while Baillie Gifford Overseas Ltd. manages the remaining portion of each portfolio. These allocations are not expected to change.

Schroder Investment Management North America Inc. is a subsidiary of Schroders PLC, of London, England. Founded in 1804, Schroders PLC is a global asset management company that offers a comprehensive range of products and services to its clients worldwide. The firm oversees $204 billion in assets (as of December 31, 2004).

The Vanguard Group, headquartered in Valley Forge, Pennsylvania, is the nation's second-largest mutual fund firm and a leading provider of company-sponsored retirement plan services. Vanguard manages more than $850 billion in U.S. mutual fund assets, including more than $245 billion in employer-sponsored retirement plans. Vanguard offers 130 funds to U.S. investors and more than 40 additional funds in foreign markets.

All Vanguard asset figures are as of June 30, 2005, unless otherwise noted.

For more information about Vanguard funds, visit www.vanguard.com, or call 800-662-7447, to obtain a prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.

Vanguard Marketing Corporation, Distributor.