BANK POLSKA KASA OPIEKI S.A. AND ALLIANCE CAPITAL MANAGEMENT L.P. SIGN LETTER OF UNDERSTANDING.

Warsaw, Poland and New York, NY--(BUSINESS WIRE)--July 19, 1995--Bank Polska Kasa Opieki S.A. (Bank Pekao S.A.) and Alliance Capital Management L.P. announced that they have signed a Letter of Understanding to form a jointly owned Trust Fund Company (TFC). The objective of the TFC is to establish a family of open and closed-end mutual funds, and to effectively market and distribute these funds to Polish investors. TFC will employ licensed investment advisers, and work in cooperation with Alliance Capital's worldwide research and investment management teams to achieve this objective. The company will be managed by a board composed of the Chief Executive Officer, Chief Financial Officer, and Chief Investment Officer, and is being created as a joint stock company according to the Act of 22 March 1991 on public trading in securities and trust funds.

Bank Pekao S.A. is one of Poland's leading full service commercial and savings banks, with 100 branches throughout the country. With shareholders equity amounting to PLN 684 million at the end of 1994 and total assets of PLN 17.1 billion, Bank Pekao S.A. is among the biggest Polish banks.

Bank Pekao S.A., an active participant in international capital markets, was the first bank in Poland to create the Central Brokerage Office in 1991, establishing itself as the leading institution on the Polish Securities market.

After four years of activity and despite the increasing competition in the Polish capital market, Central Brokerage Office has kept its leading position, running over 20% of all brokerage accounts in Poland and safekeeping on these accounts stocks equal to 25% of the value of the Warsaw Stock Exchange.

The position and experience of Bank Pekao S.A. in the capital markets has been highlighted by the decision of the Minister of Finance, who chose Bank Pekao S.A. as the sole agent organizing the consortium for the distribution of treasury bonds.

Bank Pekao S.A. is also the leading custodian bank in Poland, ranked twice by Global Custodian Publisher as the best subcustodian in Poland. The Bank is so far the only custodian bank providing services for Polish open-ended mutual funds (Pioneer funds).

Headquartered in New York, Alliance Capital Management's global presence extends to Bahrain, Bombay, Luxembourg, Istanbul, London, Singapore, Sydney, Tokyo, cities in the United States, and now Poland. Alliance manages public pension funds in more than 30 states, and provides investment services to 30 of the Fortune 100 Companies.

Alliance also distributes a diverse family of over 100 mutual fund portfolios, including open and closed-end funds, variable annuities and cash management products, through broker/dealers, banks and insurance agents.

Alliance Capital Management L.P. is a leading international investment adviser, with approximately US$ 136 billion in assets under management , providing investment management services to institutions, primarily pension funds and endowments, and to individual investors through a broad line of mutual funds and cash management products.

CONTACT: Linda Finnerty

ALLIANCE CAPITAL

212-969-1316