American Express Financial Advisors First to Earn DALBAR Recognition Three Consecutive Years.

MINNEAPOLIS -- American Express Financial Advisors (AEFA), a unit of American Express Company (NYSE:AXP), received the DALBAR Communications Seal for its American Express Funds shareholder reports. The seal is awarded to financial services communications that display excellence in meeting customers' needs. AEFA is the first and only investment firm to earn the seal three consecutive years in the annual report category.

"Mutual fund shareholders deserve clear, insightful and easy-to-understand communications. We are pleased that DALBAR recognizes our efforts in this area," said Paula Meyer, president, American Express Funds.

DALBAR rates American Express Funds shareholder reports highly in a number of areas including:

--Clearly stating the options for purchasing, exchanging and redeeming shares.

--Using language and explanations that are appropriate for the average investor.

--Highlighting important performance results.

--Discussing actions taken in response to market conditions.

--Presenting data in a consistent, logical sequence.

--Avoiding excessive length.

Communications were evaluated according to five primary criteria:

--Calculated to be understood

--Primary content

--Secondary content

--Desirable design features

--Undesirable design features

With this recognition, AEFA retains the right to continue to use the DALBAR Communications Seal in American Express Funds' annual and semi-annual reports.

American Express Funds includes more than 60 US-distributed mutual funds with more than $64 billion in assets under management(a). The funds provide investors with a wide spectrum of investment options, including growth, growth and income, income, international, tax-free income, sector and index choices. American Express Funds can trace its history back to 1940. Today, with offices in Boston, Cambridge, New York, Minneapolis, Los Angeles, San Diego, London and Geneva, American Express Financial Corporation and affiliates, the investment manager for American Express Funds, owns or manages more than $350 billion in assets(a).

American Express Financial Advisors (AEFA) is one of the nation's leading financial planning, asset management and insurance companies. Through its nationwide network of more than 12,000 financial advisors, AEFA helps clients achieve their financial goals by building long term relationships based on trusted, knowledgeable advice. The company specializes in meeting the retirement-related financial needs of the mass affluent. AEFA provides retail and institutional asset management products and services in the U.S. through American Express Financial Corporation, and in Europe through Threadneedle Asset Management Limited. Insurance products are issued by IDS Life Insurance Company, IDS Property Casualty Company and their subsidiaries. American Express Retirement Services provides investment management and recordkeeping services to large and mid-size company 401(k) plans, as well as workplace financial education programs.

On Feb. 1, 2005, American Express Company announced plans to pursue a spin-off to shareholders of the American Express Financial Advisors unit. The transaction is expected to be completed in the third quarter of 2005, subject to certain conditions.

You should consider the investment objectives, risks, and charges and expenses of the fund carefully before investing. For a free copy of the fund's prospectus, which contains this and other information, call 1-800-AXP-FUND. Read the prospectus carefully before you invest.

American Express Financial Advisors Inc., Member NASD. American Express Company is separate from American Express Financial Advisors Inc. and is not a broker-dealer.

DALBAR, Inc., the nation's leading financial-services market research firm, continues its nearly three-decade commitment to raising the standards of excellence in the industry. With offices in the US and Canada, DALBAR develops standards for, and provides research, ratings, and rankings of intangible factors that influence the overall customer-service experience in the mutual fund, broker/dealer, managed account, retirement plan, life insurance and property and casualty insurance industries. Such factors include print communications, Internet, interactive voice response, call center, and financial-professional touch points. www.dalbar.com

(a) Asset data as of 12-31-04