Integrity Growth & Income Fund Differentiates with Unique Research For Animal Rights Issues

Business Wire, June 3, 2008

Hands-on approach leads Fund Group to connect with PETA on various holdings

MINOT, N.D. -- Integrity Mutual Funds, Inc. (IMFD.OB), a mutual fund and financial services company, employs various organizations for research on a broad range of ethical issues for the Integrity Growth & Income Fund (IGIAX). One of those organizations is People for the Ethical Treatment of Animals (PETA), the largest animal rights group in the world, which advises on issues with potential and current fund holdings. The Integrity Growth & Income Fund in recent years has outpaced its SRI peer group of diversified US stock funds.

"We address a broad range of ethical and social concerns in the management of this fund, and animal rights issues are a key consideration. We value our relationship with PETA, which provides considerable and important input on this issue," said Dr. Robert Loest, manager of the Integrity Growth & Income Fund (IGIAX). "There are many SRI Funds, but few take animal rights into consideration. We take a multi-dimensional ethical approach to our research for this fund, and working with PETA is an important input in our process."

The Integrity Growth and Income Fund is managed by Robert Loest. Loest has a Ph.D. in biology, is a Financial Analyst Charterholder (CFA), and a former Naval Officer. He has managed money for institutions and individuals since 1987. Dr. Loest employs a disciplined bottom-up approach to stock selection and risk management. The fund focuses on undervalued companies that consistently generate high free cash flows, high returns on invested capital, and sell at a discount to estimated fair value. Fair value is defined as the discounted present value of future cash flows.

"While PETA may not consider every company in the IGIAX to be 'animal-friendly,' we are happy to review the holdings in the Fund for Dr. Loest, and are pleased to see a Fund Manager doing proactive research in regards to animal rights issues," said Jennifer L. Adams, Special Projects Coordinator, PETA Corporate Affairs.

With an inception date of January 3, 1995, Dr. Loest has managed the Fund for over 13 years. Through May 31, 2008 IGIAX has outperformed its benchmark (the S&P 500) for 3-Months, 1-Yr, 3-Yrs, 5-Yrs, and 10-Yrs. Below is a performance chart.

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IGIAX performance does not reflect the deduction of the Fund's 5.75% maximum sales load. The Fund's total annual operating expense ratio, gross of any fee waivers or expense reimbursements is 2.33%. The Investment Adviser has contractually agreed to maintain expense levels of the Growth & Income Fund at an annual rate of 1.60% of average daily net assets through March 31, 2009. The foregoing contractual commitments do not include extraordinary or non-recurring expenses or Acquired Fund Fees and Expenses. In addition to the contractual commitments to maintain Fund expense levels, the Investment Adviser may also voluntarily waive or reimburse additional fees and expenses.

People for the Ethical Treatment of Animals (PETA), has more than 2 million members and supporters, making it the largest animal rights organization in the world. PETA focuses its attention on the four areas in which the largest numbers of animals suffer the most intensely for the longest periods of time: on factory farms, in laboratories, in the clothing trade, and in the entertainment industry. PETA also works on a variety of other issues, including the cruel killing of beavers, birds, and other "pests," and the abuse of backyard dogs. PETA works through public education, cruelty investigations and research, animal rescue, legislation, celebrity involvement, shareholder advocacy, cooperative cooperate dialogue and protest campaigns.

Integrity Mutual Funds, Inc. is publicly traded over the OTC Bulletin Board under the symbol IMFD.OB. With its subsidiaries, Integrity Money Management, Inc., Integrity Fund Services, Inc., and Integrity Funds Distributor, Inc., the firm sponsors, manages, and advises mutual funds. IMFD also owns Capital Financial Services, Inc., a full-service brokerage firm that specializes in providing investment products and services to independent investment representatives, financial planners, and investment advisors throughout the United States. More information is available at http://corp.integrityfunds.com or by calling (800) 276-1262.

Please consider carefully the fund's investment objectives, risks, charges and expenses. For this and other important information, obtain a fund prospectus by visiting www.integrityfunds.com or by calling (800) 276-1262. Read it carefully before investing. Distributed by Integrity Funds Distributor, Inc.

Performance data quoted above is historical. Past performance is no guarantee of future results. Current performance may be higher or lower than the performance data quoted. The principal value and investment return of an investment will fluctuate so that your shares, when redeemed, may be worth more or less than their original cost. You may obtain performance data current to the most recent month end by calling (800) 276-1262. All returns assume reinvestment of dividends and capital gains prior to the close of the fiscal year.