CDC Nvest Funds and Mercury Advisors Announce New Sub-Advisory Relationship.

Business Editors

BOSTON--(BUSINESS WIRE)--June 27, 2001

CDC Nvest Funds and Mercury Advisors, an affiliate of Merrill Lynch Investment Managers, announced today that Mercury Advisors will serve as one of the sub-advisers to CDC Nvest Star Advisers Fund.

This sub-advisory relationship, approved by the board of trustees of CDC Nvest Funds, marks a new partnership between the two firms.

Lawrence R. Fuller, senior portfolio manager of the Merrill Lynch Fundamental Growth Fund and the Mercury Growth Opportunities Fund, will assume management of the Mercury Advisors segment of CDC Nvest Star Advisers Fund effective July 1, 2001.

"With our multi-manager approach, CDC Nvest Funds has the flexibility to choose managers, both from within and outside the CDC IXIS Asset Management family, with the best ability to manage in a specific investment style," said John T. Hailer, president of CDC Nvest Funds. "The Mercury team has demonstrated expertise in managing large cap growth investments and their investment style will be an ideal complement to the other segments of Star Advisers Fund. During the past decade, the team has adhered to a classic growth management style through all types of markets, while maintaining below average relative risk, low turnover and significant tax efficiency."

CDC Nvest Funds helped to pioneer the concept of the multi-manager fund with the launch of CDC Nvest Star Advisers Fund in July 1994. Managed in four segments by teams from three investment advisory firms, CDC Nvest Star Advisers Fund was one of the first mutual funds to offer one-stop access to different investment styles and the full spectrum of market capitalizations. In addition to Mr. Fuller of Mercury Advisors, segments of the fund are currently managed by Kevin Grant and Edward Loeb, of Oakmark/Harris Associates; Joseph Gatz and Dan Thelen of Loomis, Sayles & Company; and Christopher Ely, Philip Fine and David Smith, also of Loomis, Sayles & Company.

"The formation of a new subadvisory relationship with CDC Nvest Funds is a great opportunity for Mercury Advisors," said Mike Saliba, a director for Mercury Advisors. "Larry and his team are pleased to be part of Star Advisers Fund's outstanding line-up of managers. We are pleased that Mercury Advisors' approach to large cap growth investing will now contribute to helping more investors with their long-term investment objectives."

Mr. Fuller has served as senior portfolio manager for the Merrill Lynch Fundamental Growth Fund since its inception in December 1992 and has managed the Mercury Growth Opportunities fund since its inception in 1996. His investment team includes Thomas Burke, an associate portfolio manager and Karen Uzzolino, a fund analyst. The team brings 60 years of combined experience to the Mercury Advisors segment of CDC Nvest Star Advisers Fund.

Mercury Advisors is an affiliate of Merrill Lynch Investment Managers, which manages more than $525 billion in assets as of March 31, 2001. Mercury Advisors acts as the primary U.S. sub-advisory brand of Merrill Lynch Investment Managers and is an integral part of the group's overall distribution strategy.

Merrill Lynch (NYSE: MER) is one of the world's leading financial management and advisory companies with offices in 44 countries and total client assets of about $1.6 trillion. As an investment bank, it is the top global underwriter and market maker of debt and equity securities and a leading strategic advisor to corporations, governments, institutions and individuals worldwide. Through Merrill Lynch Investment Managers, the company is one of the world's largest managers of financial assets. For more information on Merrill Lynch, please visit www.ml.com.

Based in Boston, CDC Nvest Funds is a multi-manager fund group with more than $6 billion in assets under management. With a family of 27 mutual funds spanning a wide range of investment objectives and management styles, the firm provides uncommon diversification and one point of access to a variety of investment managers. Affiliated investment management firms include: AEW Capital Management; Capital Growth Management; Harris Associates; Jurika & Voyles; Kobrick Funds LLC; Loomis, Sayles & Co.; Reich & Tang Asset Management; Vaughan, Nelson, Scarborough & McCullough; and Westpeak Investment Advisors.

CDC Nvest Funds are distributed by CDC IXIS Asset Management Distributors, L.P., an affiliate of CDC IXIS Asset Management, one of the 25 largest investment management firms in the world, with $278 billion in assets under management as of 3/31/01.

For more complete information about CDC Nvest Funds, including prospectuses, which explain charges and expenses, please contact CDC Nvest Funds at 1-800-225-5478 or visit www.cdcnvestfunds.com. Please read the prospectus carefully before investing. Other expenses apply to a continued investment in a fund and are described in the fund's current prospectus.