American Express Launches Two New Subadvised International Mutual Funds.

Business Editors

MINNEAPOLIS--(BUSINESS WIRE)--Oct. 3, 2002

American Express Financial Corporation, a unit of American Express Company (NYSE:AXP), launched two new international equity mutual funds. The funds are subadvised by leading international asset managers and are available through American Express financial advisors, American Express Brokerage and selected American Express retirement plans.

The funds are:

-- AXP(R) Partners International Small Cap Fund: The fund is co-subadvised by Wellington Management Company, LLP and Templeton Investment Counsel, LLC, a subsidiary of Franklin Resources Inc. (Franklin Templeton Investments). The fund utilizes a research-driven, bottom-up approach to selecting small-capitalization stocks in both the growth and value segments of the markets. Edward L. Makin of Wellington Management and Cindy L. Sweeting and Tucker Scott of Franklin Templeton Investments are the lead portfolio managers.

-- AXP(R) Partners International Core Fund: The fund is co-subadvised by Putnam Investments and The Boston Company Asset Management, LLC, an affiliate of The Dreyfus Corporation and a subsidiary of Mellon Financial Corporation (The Boston Company). Management combines fundamental stock research and a top-down approach to identify companies believed to be undervalued at the time of investment. The fund invests mainly in large- and mid-cap companies, although it can purchase small-cap companies. Omid Kamshad of Putnam Investments and D. Kirk Henry of The Boston Company are the lead portfolio managers.

Additional fund characteristics include:

AXP(R)Partners International Small Cap Fund:

-- Primary objective is long-term growth of capital.

-- Subadvisers use different asset management styles that

together provide diversification within the international

small-cap market.

-- Under normal market conditions, at least 80% of the fund's

assets will be invested in stocks of companies with market

capitalizations of $2 billion or less at the time of purchase.

-- The fund will hold both growth and value stocks.

-- Benchmark: Salomon Smith Barney Broad Market Global Equity

ex-U.S. less than $2 billion Index.

-- Available in A, B, C and Y share classes.

AXP(R)Partners International Core Fund:

-- Primary objective is long-term growth of capital.

-- Subadvisers use different asset management styles that

together provide diversification within the international

large- and mid-cap market.

-- The fund will hold both growth and value stocks.

-- Benchmark: MSCI EAFA Index.

-- Available in A, B, C and Y share classes.

The American Express(R) Partners mutual fund series consists of 10 subadvised mutual funds that offer American Express clients additional choice, access to leading investment management expertise and diversification options with the American Express Funds family.

American Express Funds consists of 61 retail mutual funds with more than $71 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 and index choices. American Express Funds can trace its history back to 1940. Today, with offices in Minneapolis, New York, Boston, San Diego, Tokyo, Singapore and London, American Express Financial Corporation, the investment manager for American Express Funds, owns, manages or administers more than $217 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.

International investing involves special risks, such as political instability and currency fluctuations.

Stocks of small-sized companies may be more subject to erratic price movements than stocks of larger companies. Some of these companies also may have fewer financial resources.

For more complete information on American Express Funds, including fees and expenses, call 1-800-AXP-FUND for a prospectus. Read it 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.