AAL Capital Management Corp. Introduces Five New Mutual Funds.

Business Editors

APPLETON, Wis.--(BUSINESS WIRE)--July 3, 2000

AAL Capital Management Corp. has added five new mutual funds to the family of 10 funds available to retail shareholders.

AAL Capital Management Corp. is a wholly owned subsidiary of Aid Association for Lutherans (AAL), Appleton, Wis., a Fortune 500 organization and fraternal benefit society of 1.7 million members who are joined together for insurance, investment, education and volunteer opportunities.

The additions, introduced July 1, broaden the range of alternatives within the fund family, said Woody Eno, chairman, AAL Capital Management Corp. "Our goal is to provide our members with competitive investment returns in today's volatile markets. This requires more options and specialized investment management."

"Four of the five new funds will be managed in-house, and we have developed an alliance with Janus Funds to help manage one fund that requires added expertise," said James Abitz, AAL senior vice president and chief investment officer.

The new funds include:

- The AAL Technology Stock Fund: Seeks to provide long-term

capital appreciation by investing primarily in a diversified 

portfolio of common stocks and securities convertible into

common stocks. The fund will focus on equity securities of

companies engaged in offering, having or developing products,

processes or services that benefit significantly from

technological advances and improvements. Technology stocks are

subject to extreme volatility and speculative trading. The

portfolio managers are Brian Flanagan and James Grossman.

- The AAL Aggressive Growth Fund: Seeks long-term capital

appreciation by investing primarily in a diversified portfolio

of common stocks and securities convertible into common

stocks. The fund will invest in companies that offer the

potential for accelerated earnings or revenue growth. Stocks

of these companies are generally referred to as "growth"

stocks. The fund invests in companies of any size: from small,

emerging growth companies to large, well-established

companies. Janus, one of the largest and most successful fund

managers in the industry, will be the sub-adviser on this fund

for AAL Capital Management Corp.

- The AAL Small Cap Index Fund II: Seeks total returns that

track the performance of the Standard & Poor's SmallCap 600

Index by investing primarily in common stocks comprising the

Index. Flanagan is the portfolio manager.

- The AAL Mid Cap Index Fund II: Seeks total returns that track

the performance of the Standard & Poor's MidCap 400 Index by

investing primarily in common stocks comprising the Index.

Michael Hochholzer is the portfolio manager.

- The AAL Large Company Index Fund II: Seeks total returns that

track the performance of the Standard & Poor's 500 Index,

investing primarily in common stocks comprising the Index.

Dave Schnarsky is the portfolio manager.

In 14 years, offerings in The AAL Mutual Funds have grown to 15 retail funds from three funds in 1987. "Our tremendous growth has been greater than most of us dreamed," Eno said. "It is a reflection of the commitment that AAL representatives have made to help members navigate through complex investment decisions."

Bob Same, president of AAL Capital Management Corp., attributed the growth to several factors, including an excellent market environment and the popularity of mutual funds among AAL membership. "AAL Capital Management Corp. continues to recognize the need to help members tailor their individual asset portfolio to their risk tolerance and their long-term goals. This has led to the development of a diverse product line of mutual funds."

AAL Capital Management Corp., with $7.5 billion in mutual funds assets under management, had 606,469 shareholder accounts at the end of March 2000. AAL Capital Management Corp. is the investment adviser and distributor for The AAL Mutual Funds, two AAL variable annuities and an AAL variable universal life product.

For more information or to receive prospectuses, contact AAL Capital Management Corp., 222 W. College Ave., Appleton, WI 54919-0007. The prospectuses contain more complete information about The AAL Mutual Funds, including charges and expenses. Please read the prospectuses carefully before investing or sending money.

"Standard & Poor's(R)," "S&P(R)," "Standard & Poor's 500," "S&P 500(R)," "500," "Standard & Poor's MidCap 400 Index," "S&P MidCap 400 Index," "Standard & Poor's SmallCap 600 Index" and "S&P SmallCap 600 Index" are trademarks of The McGraw-Hill Companies Inc. and have been licensed for use by AAL. The funds and certificates are not sponsored, endorsed or sold or promoted by Standard & Poor's. Standard & Poor's makes no representation regarding the advisability of investing in the funds.