American Century to Launch Three New Funds On June 1.

Business Editors

KANSAS CITY, Mo.--(BUSINESS WIRE)--May 30, 2001

American Century Investments is adding three new mutual funds to its stable of funds this Friday.

Two of the new funds -- American Century New Opportunities II and American Century International Opportunities -- launch June 1 following a 30-day subscription period. The subscription period, which through Tuesday, May 29, has raised about $7 million for New Opportunities II and more than $2.2 million for International Opportunities, allows investors to place orders to purchase fund shares prior to the fund's launch. Friday also marks the launch of the American Century Target 2030 Fund, the sixth in a series of zero-coupon bond funds with targeted maturities occurring every five years from 2005 to 2030.

"The new funds highlight American Century's active investment management," said incoming Chief Investment Officer Randall Merk. "These three funds represent unique opportunities for investors to access some of our most aggressive funds across the broad spectrum of American Century's investment disciplines -- domestic equity, international equity and fixed income."

American Century New Opportunities II

American Century New Opportunities II is an aggressive growth fund for investors seeking maximum capital appreciation. The fund will seek to invest in the stocks of smaller companies whose earnings and revenues are growing at an accelerating rate. New Opportunities II has three portfolio managers -- Chris Boyd, John Seitzer and Tom Telford -- whose combined tenure at American Century spans more than 25 years. The team will construct a portfolio using American Century's proprietary earnings acceleration database and fundamental research.

"We see significant growth potential in the stocks of smaller companies and have a time-tested process to help identify these opportunities," said Boyd, who's been with American Century since 1988. "Currently the valuations of small company stocks are well below historical norms. In an environment of sustainable earnings improvement, small companies could be poised for a period of outperformance."

The annual management fee for retail investors (Investor Class) is 1.5 percent, and the fund has a minimum investment of $10,000. Investments made during the subscription period will receive a beginning net asset value (NAV) of $5 a share. In order for the fund to better control the size of the companies in which it invests, American Century will close the portfolio when it reaches $500 million in assets. Historically, the stocks of smaller companies have been more volatile than the stocks of larger, more established companies.

American Century International Opportunities

American Century International Opportunities -- an aggressive growth international fund focusing on small companies -- is managed by Lynn Schroeder and Trevor Gurwich. Schroeder joined American Century in 2000 after managing international portfolios at Driehaus Capital Management. Gurwich, previously an analyst on American Century International Discovery and International Growth, has been with the company since 1998.

The International Opportunities team explores foreign markets to try to find undiscovered investment "gems" and strives to invest in these stocks early in order to capture their exceptional growth potential, according to Lynn Schroeder. "Through our earnings acceleration approach, we have the ability to invest in companies that may be overlooked," Lynn Schroeder said. The portfolio will be constructed using American Century's accelerating earnings growth process focused on fundamental research. The fund will close when it reaches $500 million in assets.

The annual management fee for retail investors (Investor Class) is 2 percent, and the fund has a minimum investment of $10,000. Investments made during the subscription period will receive a beginning NAV of $5 a share.

International investing involves special risks such as political instability and currency fluctuations. Investing in emerging markets may accentuate these risks. Historically, the stocks of smaller companies have been more volatile than the stocks of larger, more established companies.

It is important to note that an investment in new funds such as these is not the same as an initial public offering (IPO) for stock. The value of the new funds' shares will be based solely on the value of their underlying investments, which may vary according to market fluctuations.

American Century Target 2030

American Century Target 2030 is part of the series of American Century Target Funds, which provide investors easy access to the performance of zero-coupon bonds without brokerage commissions. Target 2030 has two portfolio managers, David Schroeder and Jeremy Fletcher, who manage the entire Target series, and have combined financial services experience of more than 30 years.

"Target 2030 may be ideal for an investor with a specific long-term investment goal around the year 2030, such as savings for retirement or a child's education," said David Schroeder, who has managed American Century Target funds since 1990. "These funds may also be appropriate for an investor who wants the assurance that the underlying securities are backed by the full faith and credit pledge of the U.S. Government," he adds.

The annual management fee for retail investors (Investor Class) is 0.59 percent, and the fund has a minimum investment of $2,500. American Century is one of the pioneers and the industry leader in zero-coupon bond funds with approximately $1.3 billion in assets in zero-coupon bond funds as of May 25, 2001. The first three American Century Targets (Target 1990, 1995 and 2000) have successfully reached maturity and met the objective of zero-coupon performance for a specific timeframe. Held to maturity date, zero-coupon bonds earn a dependable return; however, investors should be prepared for dramatic price fluctuations, which may result in significant gains or losses if sold prior to maturity.

American Century is a premier investment manager serving nearly two million individual and institutional investors. Through its broad selection of 81 mutual funds and other investments, the Kansas City, Mo.-based company manages more than $95 billion in assets. 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. For the past two years, American Century has been selected as one of FORTUNE Magazine's 100 Best Companies to Work for in America. Visit www.americancentury.com for additional company information.

For more complete information on New Opportunities II, International Opportunities and Target 2030, including fees, charges and expenses, call an Investor Relations Representative at 1-800-345-2021 from 7 a.m. to 7 p.m. Central Time for prospectuses, which should be read carefully before investing or sending money. Or visit our Web site to download an application form and a complete prospectus: www.americancentury.com.