Aquila and Former Janus Manager Launch a High-Yield Fund.

NEW YORK -- The Aquila(SM) Group of Funds, known for its strategic investment opportunities, has partnered with Three Peaks Capital Management, LLC and its well-known high-yield bond fund manager Sandy Rufenacht to launch Aquila Three Peaks High Income Fund. Three Peaks Capital Management, LLC has been named as sub-advisor to the fund. Mr. Rufenacht made a name for himself managing the Janus High-Yield Fund until July 2003, when he and the Janus high-yield team set out to launch Three Peaks Capital Management, LLC. With the new venture successfully underway, Mr. Rufenacht is again making his extensive high-yield investment experience available to mutual fund investors.

"This fund is a strategic addition to our existing product line, and we are very excited to have someone of Sandy Rufenacht's expertise, and industry-wide reputation, managing the portfolio. Sandy possesses the formula for success through his unique blend of investment skills, tenacity and integrity. He has a passion for the high-yield asset class," says Diana Herrmann, President and CEO of Aquila Management Corporation, Founder of the Aquila(SM) Group of Funds and parent of Aquila Investment Management LLC, manager of the fund. "The majority of our shareholder assets are in municipal bond funds. The high-income fund is intended to fill a space on the risk-return spectrum between our municipal bond and equity fund offerings, and provides an important asset allocation category for all investors."

Mr. Rufenacht, chief executive and chief investment officer and portfolio manager at Three Peaks, states "We are enthusiastic to have partnered with the high caliber people at the Aquila(SM) Group of Funds and most importantly to offer our high yield discipline to mutual fund investors. We believe that our time-tested discipline can provide low volatility and competitive returns relative to both equity and investment-grade debt in a variety of market conditions."

Three Peaks Capital Management, LLC is an employee-owned registered investment advisor located in Greenwood Village, CO. The firm manages fixed income assets, with a specific focus on the high-yield sector. Clients include institutions and individuals, with a minimum account requirement of $2.5 million for separately managed accounts.

The Aquila(SM) Group of Funds has made its mark as a niche player in the mutual fund industry, with seven single-state municipal bond funds, a regional equity fund and money market funds, in addition to the new high-yield fund. Shares of the funds may be purchased through brokers, financial planners, and other registered securities dealers and advisers. Before investing in a Fund, please carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available from your financial professional, or call 800-437-1020, or visit www.aquilafunds.com.