American Century Investments Launches New Tax-Managed Value Fund; Subscription Period for New Fund Begins March 1.

KANSAS CITY, Mo.--(BUSINESS WIRE)--March 1, 1999--American Century Investments is adding a new portfolio to its lineup of moderate risk funds: American Century Tax-Managed Value Fund.

The portfolio has an inception date of March 31 and is initially available through a one-month subscription period beginning March 1. The addition of Tax-Managed Value expands American Century's investment options to nearly 70 mutual funds.

American Century Tax-Managed Value seeks long-term capital growth by investing in stocks that the fund advisor believes are undervalued at the time of purchase. The fund seeks to minimize the impact of federal income taxes on returns. It is benchmarked against the Standard & Poor's Barra Value Index, which is a capitalization-weighted index consisting of S&P 500 stocks that have lower price-to-book ratios, and in general, share other characteristics associated with value-style stocks.

Tax-Managed Value differs from other American Century funds in three ways:

o Portfolio turnover will be kept relatively low by holding investments for longer periods;

o Securities will be sold, when appropriate, to realize capital losses in order to offset gains; and

o Taxable income will be minimized when possible by investing in low dividend-yielding stocks.

Portfolio managers Mark Mallon and Chuck Ritter, both based in Kansas City, Mo., head up the management team for the Tax-Managed Value Fund. Mallon is a senior vice president and chief investment officer of value and quantitative products and has been with American Century since 1997. Ritter, who joined the company in 1998 as vice president and portfolio manager, has 12 years experience in value-related investment products.

"For long-term equity investors seeking to minimize taxes on their investment returns, the Tax-Managed Value Fund provides the return potential investors have come to expect from American Century's active investment management heritage," said Mallon.

The minimum investment for the Tax-Managed Value Fund is $10,000 ($5,000 during the subscription period), and money must be received by March 29 to be eligible for the initial net asset value of $5 per share. An automatic monthly investment of $50 may be established from a checking or savings account after the subscription period has ended and at the point when the $10,000 initial investment has been met.

The annual management fee for retail investors (Investor Class shares) is 1.10 percent for the first $500 million in net assets under management, 1.00 percent for the next $500 million and 0.90 percent for net assets under management greater than $1 billion. A redemption fee of two percent will be applied to shares redeemed which have been held less than one year. The fund is also available in multiple share classes to accommodate financial intermediaries and large institutional purchasers.

Monies designated for the Tax-Managed Value Fund will initially be invested in the American Century Prime Money Market Fund during the subscription period of March 1 through March 29. On March 31, that money will then roll over into Tax-Managed Value.

"One benefit of Tax-Managed Value is the potential for minimal taxes on returns and that translates into greater real household wealth over time," Ritter said. "If someone has assets for equity investments over and above those in a tax-exempt retirement vehicle, then a fund like this really makes sense."

More information on the Tax-Managed Value Fund can be found by logging on to American Century's Web site on the Internet at www.americancentury.com.

American Century Investments is a mutual fund company serving nearly two million individual and institutional investors. Through its broad selection of nearly 70 mutual funds, the Kansas City-based company manages approximately $80 billion in assets. James E. Stowers Jr. founded the company in 1958 and serves as chairman. His son, James E. Stowers III, is chief executive officer and William M. Lyons is president and chief operating officer. For more information on company products and services, visit its Web site at www.americancentury.com.

For more information, including charges and expenses, call an Investor Services Representative at [phone] from 7 a.m. to 7 p.m. Central Time for prospectuses, which should be read carefully before investing or sending money.