American Express Funds Launches AXP Portfolio Builder Series.

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--March 4, 2004

AXP(R) Real Estate Fund and AXP(R) Inflation Protected Securities

Fund also introduced today

American Express Financial Corporation, a unit of American Express Company (NYSE:AXP), today launched eight new mutual fund products: six AXP(R) Portfolio Builder Series mutual funds, a real estate mutual fund, and an inflation protected securities mutual fund. The funds are available through American Express financial advisors, American Express Brokerage and select American Express retirement plans.

The AXP Portfolio Builder Series is a collection of six strategic asset allocation funds of mutual funds that address multiple investment needs. The portfolios offer broad diversification by accessing multiple portfolio managers, investment styles and asset classes of the underlying funds.

"American Express serves a broad range of investors, and the AXP Portfolio Builder Series provides the diversification and disciplined asset allocation they need to help reach their investment goals," said Paula Meyer, president of American Express Funds. "The funds are ideal for a variety of investors at every life stage, delivering instant diversification, periodic reallocation, efficient account management, and access to the insights of our Capital Markets Committee."

Each Portfolio Builder Fund invests in several American Express Funds. The Portfolio Builder Series utilizes the full breadth of investment management offered through American Express Funds. Underlying funds are managed by American Express, and includes portfolios subadvised by other leading asset management firms through American Express(R) Partners Funds, and Threadneedle Asset Management staff. Threadneedle, a leading United Kingdom-based asset manager, is American Express' international asset management platform.

The AXP Portfolio Builder Series adheres to a disciplined investment process, which leverages the strengths of American Express' Capital Markets Committee. The Committee is comprised of the company's senior investment and economic leaders and is chaired by David Joy, vice president of capital markets strategy.

The AXP Portfolio Builder Series includes:

AXP(R) Portfolio Builder Conservative Fund:

-- Designed for investors with a conservative risk tolerance.

-- Invests primarily in fixed income securities and may be most

appropriate for investors with a shorter time horizon.

-- At launch, the Fund's assets will be in 65-75 percent fixed

income funds, 15-25 percent in equity funds, and 5-15 percent

in money market funds.

AXP(R) Portfolio Builder Moderate Conservative Fund:

-- Designed for investors with a moderate conservative risk

tolerance.

-- Invests primarily in fixed income securities with a moderate

amount in equity securities and may be most appropriate for

investors with a short-to-intermediate investment horizon.

-- At launch, the Fund's assets will be in 55-65 percent fixed

income funds, 30-40 percent in equity funds, and 0-10 percent

in money market funds.

AXP(R) Portfolio Builder Moderate Fund:

-- Designed for investors with a moderate risk tolerance.

-- Invests in a balance of fixed income and equity securities and

may be most appropriate for investors with an intermediate

investment horizon.

-- At launch, the Fund's assets will be in 45-55 percent equity

funds, 45-55 percent in fixed income funds and 0-5 percent in

money market funds.

AXP(R) Portfolio Builder Moderate Aggressive Fund:

-- Designed for investors with a moderate aggressive risk

tolerance.

-- Invests primarily in equity securities and also invests a

moderate amount in fixed income securities and may be most

appropriate for investors with an intermediate-to-long term

investment horizon.

-- At launch, the Fund's assets will be in 60-70 percent equity

funds, 30-40 percent in fixed income funds and 0-5 percent in

money market funds.

AXP(R) Portfolio Builder Aggressive Fund:

-- Designed for investors with an aggressive risk tolerance.

-- Invests primarily in equity securities and also invests a

small amount in fixed income securities and may be most

appropriate for investors with a longer investment horizon.

-- At launch, the Fund's assets will be in 75-85 percent equity

funds, 15-25 percent in fixed income funds and 0-5 percent in

money market funds.

AXP(R) Portfolio Builder Total Equity Fund:

-- Designed for investors with a very aggressive risk tolerance.

-- Invests primarily in equity securities and may be most

appropriate for investors with a long-term investment horizon.

-- At launch, the Fund's assets will be in 95-100 percent equity

funds, 0 percent in fixed income funds and 0-5 percent in

money market funds.

The Funds are subject to periodic reallocation, which may slightly alter the Fund's asset allocation and underlying funds.

In addition to the AXP Portfolio Builder Series, American Express is introducing an inflation protected securities fund and a real estate fund. The funds are:

AXP(R) Inflation Protected Securities Fund

-- Designed to provide shareholders with total return that

exceeds the rate of inflation over the long-term.

-- Invests at least 80 percent of its net assets in

inflation-protected debt securities, including

inflation-indexed bonds of varying maturities issued by the

U.S. and non-U.S. governments, their agencies and or

instrumentalities, and corporations.

-- Duration and yield curve decisions will be based on

quantitative analysis of forward-looking interest rate

determinants including inflation, real rates, risk premiums

and relative supply/demand.

-- Portfolio manager: Jamie Jackson, leader of American Express'

liquid assets sector team.

AXP(R) Real Estate Fund

-- Designed to provide shareholders with total return from both

current income and capital appreciation.

-- Focuses on companies expected to achieve sustainable growth in

cash flow and dividend paying ability.

-- Invests at least 80 percent of its net assets in securities of

companies operating in the real estate industry, including

equity securities of real estate investment trusts (REITs),

and other real estate related investments.

-- Uses fundamental analysis of each company's financial

condition and industry position to select investments.

-- Seeks to purchase securities so that its underlying portfolio

will be diversified geographically and by property type.

-- Portfolio manager: David Benz, senior securities analyst.

American Express Funds consists of 72 retail mutual funds with more than $69 billion in assets under management . 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, manages or administers approximately $300 billion in assets.

American Express Company is a diversified worldwide travel, financial and network services company founded in 1850. It is a world leader in charge and credit cards, Travelers Cheques, travel, financial planning, business services, insurance and international banking.

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 1-800-862-7919. 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.