Analysis by Lipper Shows Marketocracy Masters 100 Fund Has Beaten S&P 500 Index 98% of Time; Fund's ''Batting Average'' for 12-Month Holding Periods is 0.983.

Business Editors

LOS ALTOS, Calif.--(BUSINESS WIRE)--Jan. 8, 2004

Marketocracy Funds(1) today announced that a Lipper report commissioned by Marketocracy shows that at December 31, 2003, the Marketocracy Masters 100 Fund (Nasdaq:MOFQX) had a 98.28% Success Ratio(2) of beating the S&P 500 Index(3). Similar to a batting average, the Lipper Success Ratio looks at every trading day since the fund inception(4) and calculates how often an investor in the Masters 100 Fund, holding the Fund for one year, would have beaten the S&P 500 Index. Out of 291 available trading days, the Fund beat the S&P 500 Index 286 times.

Additionally, the Fund was up 12.41% for the fourth quarter of 2003, outpacing the S&P 500 Index. During the same period, the S&P 500 Index was up 12.17%. The Masters 100 Fund has now beaten the S&P 500 Index in 7 out of 8 full quarters since inception(4).

"We think the Lipper Success Ratio, or what we call the Fund's 'Batting Average,' is one of the most important indicators of how well we are doing for our investors," explained Ken Kam, portfolio manager for the Masters 100 Fund. "Very few people invest only on the last day of the year or on a fund's inception date. We believe that looking at returns for every day an investor could have invested in the fund is a better indicator of how well a fund has performed."

Investment Objective: Consistently Deliver Higher Returns with

Less Risk

"Our investment objective is to consistently deliver better than average performance in any kind of market environment with less risk," said Ken Kam, portfolio manager for the Masters 100 Fund. "The Lipper Success Ratio is the best measure of performance consistency that we've seen."

Performance Information and Fund Availability

The following is the performance summary for the Fund as of 12/31/03:

                                  RETURNS: (Unaudited)
                 ----------------------------------------------------
                           Cumulative                 Annualized
                        (as of 12/31/03)            (as of 12/31/03)
                 ------------------------------- --------------------
                                                             Average
                                                             Annual
                                         Since                Since
                                       Inception  Average   Inception
                   Q4-2003   YTD-2003  (11/5/01)  One Year  (11/5/01)
---------------- ---------- --------- ---------- --------- ----------
MOFQX               +12.41%   +42.82%    +39.46%   +42.82%    +16.70%
---------------- ---------- --------- ---------- --------- ----------
S&P 500 Index(3)    +12.17%   +28.67%     +4.66%   +28.67%     +2.13%
---------------- ---------- --------- ---------- --------- ----------
DJIA Index(5)       +13.39%   +28.26%    +16.17%   +28.26%     +7.20%
---------------- ---------- --------- ---------- --------- ----------
NASDAQ Index(6)     +12.29%   +50.77%    +12.76%   +50.77%     +5.73%
---------------- ---------- --------- ---------- --------- ----------

                          Cumulative Returns
----------------------------------------------------------------------
       Q1-2002 Q2-2002 Q3-2002 Q4-2002 Q1-2003 Q2-2003 Q3-2003 Q4-2003
------ ------- ------- ------- ------- ------- ------- ------- -------
MOFQX   +5.18%  -3.10% -15.52%  +8.74%  -7.79% +22.78% +12.22% +12.41%
------ ------- ------- ------- ------- ------- ------- ------- -------
S&P
 500
 Index  +0.28% -13.39% -17.27%  +8.44%  -3.15% +15.39%  +2.65% +12.17%
------ ------- ------- ------- ------- ------- ------- ------- -------

    --  Returns are after all fees for the Masters 100 Fund and are
        unaudited.

    --  The above indices are unmanaged and cannot be invested in
        directly.

    --  Returns assume reinvestment of dividends and distributions.

    1. Rafferty Capital Markets, LLC White Plains, New York, serves as
    Marketocracy Funds' principal underwriter and distributor of
    shares.

    2. Lipper Success Ratio is the percentage of all trading days that
    an investor could have invested in a fund, and held for one year,
    beat the S&P 500 Index after all fees and with dividends
    reinvested. To download the study go to:
    http://funds.marketocracy.com/MOFLipper.

    3. Standard & Poors 500 Index is comprised of 500 selected common
    stocks most of which are listed on the NYSE and cannot be invested
    in directly.

    4. The Inception date of the Masters 100 Fund is 11/05/01.

    5. Dow Jones Industrial Average (DJIA) Index is a price-weighted
    average of 30 blue-chip stocks.

    6. NASDAQ Composite (NASDAQ) Index is a broad-based
    capitalization-weighted index of all NASDAQ (National Market &
    Small-Cap) stocks.

All Marketocracy Funds are available through most major brokerages, including Charles Schwab, Fidelity, TD Waterhouse, and E*TRADE.

For a prospectus & application containing more complete information about the Fund, including fees and expenses, please visit this link: http://funds.marketocracy.com/mof/prospectus.html/?MKT=PR3 or call 888-884-8482. Please read it carefully before you invest.

Past performance is not a guarantee of future results. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost.

The Fund can invest in small and medium sized companies, which are often more volatile and less liquid than larger, more established companies and therefore increase the volatility of the Fund's portfolio. Additionally, the m100 group, upon which the Masters 100 Fund's portfolio manager relies in managing the Fund, is comprised of individuals who may be amateur investors, not investment professionals. Their track records are based on the performance of a simulated stock portfolio on the website www.marketocracy.com. Members of the m100 group are neither employees of the Fund or its adviser, Marketocracy Capital Management, LLC.

About Marketocracy Capital Management, LLC

Marketocracy Capital Management is the investment adviser to the Masters 100(TM) Fund and the Technology Plus Fund. Marketocracy Capital Management is a wholly owned subsidiary of Marketocracy Inc.

Distributor: Rafferty Capital Markets LLC

Date of First Use: January 8, 2004