American Century Names CIOs & President for Investment Management Company.

Business Editors

KANSAS CITY, Mo.--(BUSINESS WIRE)--Sept. 24, 2002

American Century announced today senior executive appointments at its investment management subsidiary, American Century Investment Management, Inc. (ACIM). According to the company, the appointments install top investment professionals in key leadership positions and create organizational alignment that reinforces American Century's commitment to providing superior investment returns.

Effective immediately, Mark Mallon becomes the company's chief investment officer (CIO) and James Stowers III reassumes his role of CIO for the U.S. growth equities discipline. Also, William Lyons becomes president of the investment management company while retaining the role of president of ACIM's parent holding company American Century Companies, Inc.

"Investment management is our core business, the foundation on which American Century's current and future success is based," said Lyons. "These appointments underscore our commitment to keeping a sharp focus on investment management excellence. Mark and Jim will ensure our continued strong performance in existing products and will use their considerable experience and creativity to develop complementary investment approaches."

As the company's top investment professional, Mallon, 54, is responsible for the CIOs and teams managing approximately $75 billion in investor assets across various disciplines: international, U.S. growth, value/quantitative equity and fixed income. He oversees more than 160 investment professionals, including portfolio management teams, analysts and traders. Mallon joins the company's executive committee, a senior leadership group responsible for strategic business decisions. He previously served as the value/quantitative CIO, a position expected to be filled in the coming weeks.

After spending the past two years researching and developing sophisticated investment management technologies, James Stowers III moves back into the position of CIO for U.S. growth equities, the aggressive growth style of investing he's been associated with for more than 20 years. Some of the more prominent portfolios within the growth discipline are the large-cap mutual funds American Century Ultra (TWCUX), Growth (TWCGX) and Select (TWCIX), as well as mid- and small-cap funds such as Vista (TWCVX), Heritage (TWHIX) and New Opportunities (TWNOX). He also oversees the corresponding growth investing strategies utilized by institutional clients.

"I am particularly pleased to have Jim Stowers III back leading the seasoned group of investment professionals in the U.S. growth equities area," Lyons said. "Growth investing is the heritage of this company and no one has more passion for it -- or experience with it -- than Jim. We also will leverage Jim's recent R&D work to create investment products that will complement our current offerings."

According to the company, the assumption of the investment area's executive management by Lyons creates a structural alignment that supports American Century's mandate to provide investors with superior, long-term performance.

"This move aligns overall company operations more closely with our investment management business," said Lyons. "Mark will make sure our investment professionals keep delivering superior performance to our investors, and I will make sure that our investment management operation works in an integrated fashion with the other very important parts of our business such as sales and marketing, investor servicing and supporting functions. This new structure will help as we grow the business by identifying ways to leverage our investment management expertise across a broader array of investment products and expanding our presence in the institutional marketplace."

American Century CIO Mark Mallon

Mallon, a 28-year veteran of the investment management business, joined American Century in 1997 and has worked as both a hands-on portfolio manager and discipline CIO within the value/quantitative equities group. He also serves on the company's investment oversight committee.

Mallon plans a continued role on the management team for American Century's Large Company Value (ALVIX) and Tax-Managed Value (ACTIX), two five-star rated(a) funds, according to Morningstar. In addition to Mallon, the team consists of current co-manager Charles Ritter with the support of investment analysts.

Prior to joining American Century, Mallon served in several senior leadership positions with Federated Investors over an 18-year period. He holds a bachelor's degree in economics business administration from Westminster College and a master's degree in finance from Cornell University. Mallon is a Chartered Financial Analyst.

American Century CIO for U.S. Growth Equities James Stowers III

James Stowers III, 43, oversees the domestic equity teams following the earnings-acceleration-based investment approach that has been the hallmark of American Century growth portfolios for decades. In addition to his CIO responsibilities, Stowers III remains on the investment management teams for American Century Ultra and American Century Veedot (AMVIX) and will continue to play a lead role in new product development.

Son of the company's founder, Stowers III has been with American Century since 1981, making him the firm's longest-tenured investment professional. Over the years he has served in a variety of senior leadership positions at the company. Stowers III and his father are co-chairmen of the American Century Companies, Inc. board of directors. He also serves on the firm's investment oversight and executive committees. A Kansas City native, Stowers holds a bachelor's of science degree in finance from Arizona State University.

American Century Investment Management President William Lyons

William Lyons, 46, joined American Century in 1987 as assistant general counsel. He was named general counsel in 1989 and promoted to executive vice president in 1994. In 1997 he became president of American Century Companies, Inc. and two years later assumed the additional role of CEO. Lyons holds a bachelor's degree in history from Yale University and a law degree from Northwestern University School of Law. He serves on the company's board of directors and chairs its executive committee. He also is a member of the Investment Company Institute's board of governors and serves on its executive committee.

American Century is a leading investment manager with more than 40 years of experience helping investors achieve their financial goals. Serving investment professionals, institutions, corporations and nearly two million individual investors, American Century offers a broad array of products across a variety of investment disciplines.

Based in Kansas City, Mo., the company manages approximately $75 billion in assets through mutual funds, separate accounts, commingled trusts, subadvisory accounts and institutional class funds. James E. Stowers Jr. founded the company in 1958 and serves as chairman. His son, James E. Stowers III, is co-chairman and William M. Lyons is president and chief executive officer of American Century Companies, Inc., and president of the investment management subsidiary. For the past three years, American Century, which employs approximately 2,700 people, has been selected as one of FORTUNE Magazine's 100 Best Companies to Work for in America. For more information about the company, visit www.americancentury.com.

(a)Overall Morningstar Ratings(TM) as of 8/31/02. Large Company Value and Tax-Managed Value Funds rated for overall period among 627 Large Value funds. Past performance is no guarantee of future results. Investment returns and principal values may fluctuate and redemption value may be more or less than original cost.

For each fund with at least a 3-year history, Morningstar calculates a Morningstar Rating(TM) based on a Morningstar Risk-Adjusted Return measure that accounts for variations in a fund's monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics. The funds had the following ratings for the 3-, 5- and 10-year periods, respectively. Large Company Value 5, NA, NA; Tax-Managed Value 5, NA, NA out of 627 U.S.-domiciled Large Value funds.

Morningstar Rating is for the investor share class only; other classes may have different performance characteristics.

To request a prospectus for an American Century fund, call 1-[phone]. The prospectus contains important information, including charges and expenses, and should be read carefully before investing or sending money.