American Opportunity Income Fund, American Government Income Fund and American Government Income Portfolio to Merge into First American Fixed Income Fund.

MINNEAPOLIS--(BUSINESS WIRE)--Aug. 11, 1998--Piper Capital Management announced today that American Opportunity Income Fund (NYSE: OIF), American Government Income Fund (NYSE: AGF) and American Government Income Portfolio (NYSE: AAF) have received final shareholder approval for the reorganization of all three funds into First American Fixed Income Fund, an open-end fund advised by First American Asset Management.

Shares will continue to trade on the New York Stock Exchange through August 24, 1998. The reorganization is scheduled for August 28, 1998.

More than 50% of each fund's outstanding shares were required to vote in favor of the reorganization for the proposal to pass. As of today, the results are as follows:

Percent of Outstanding Shares

Voted

In Favor

---------

American Opportunity Income Fund 55.25% American Government Income Fund 61.76% American Government Income Portfolio 54.72%

American Opportunity Income Fund, American Government Income Fund and American Government Income Portfolio are managed by Piper Capital Management Incorporated. Piper Capital is an indirect wholly owned subsidiary of U.S. Bancorp and an affiliate of U.S. Bank. First American Funds are mananged by First American Asset Management, a division of U.S. Bank.

    CONTACT: Piper Capital Management, Minneapolis
              Susan Farrell, 612/342-1162