Calvert Launches Government Fund.

Adding to Fixed Income Line-Up, Broadening Sector Exposure to Investors

BETHESDA, Md. -- Calvert, an investment management firm, today announced the launch of the Calvert Government Fund (CGVAX). The new fund adds to Calvert's taxable fixed income line-up for a total of 9 funds, broadening investors' options across a broader range of sectors. It is managed by Calvert's taxable fixed income team led by Greg Habeeb. Mr. Habeeb has extensive experience and a strong track record in effectively managing a variety of bond portfolios. He and his team have demonstrated a proven ability to monitor yield curves, select optimum credits, and to opportunistically move in and out of sectors.

The Calvert Government Fund seeks to provide a high level of current income while preserving capital, primarily through investment in debt securities issued or guaranteed by the U.S. government or its agencies or instrumentalities. The Fund may also invest in futures contracts related to U.S. Government securities.

"We will apply a relative value strategy, which involves constantly comparing the appreciation potential and attractiveness of the securities held in the Fund's portfolio against those available in the marketplace and will employ an active trading strategy," said Greg Habeeb, SVP and head of the taxable bond division at Calvert. "The Fund will provide a low credit risk alternative for fixed income investors," he added.

"The portfolio team will manage the Fund's duration and position its exposure along the yield curve to take advantage of market volatility and return opportunities. The portfolio management team applies multiple strategies to adjust the interest-rate sensitivity of the portfolio as market conditions fluctuate," said Cathy Roy, Chief Investment Officer of Fixed Income at Calvert. "The addition of the Fund allows shareholders and their advisors an opportunity to diversify their portfolios for the right mix of income, stability and growth potential," she added.

The Fund is subject to interest rate risk, the risk that changes in interest rates will adversely affect the value of an investor's securities. When interest rates rise, the value of fixed-income securities will generally fall. Conversely, a drop in interest rates will generally cause an increase in the value of fixed-income securities. The Fund may also be subject to prepayment risk, which is the risk that, during periods of declining interest rates, the principal of mortgage-backed securities will be repaid earlier than scheduled, resulting in reinvestment of the unanticipated repayments at generally lower interest rates.

The credit risk to the Fund should be low. The value of a futures contract tends to increase and decrease in tandem with the value of the underlying instrument. The price of futures can be highly volatile; using them could lower total return, and the potential loss from futures can exceed the Fund's initial investment in such contracts.

For more information on any Calvert mutual fund, please call Calvert at 800.818.8397 for a free prospectus. An investor should consider the investment objectives, risks, charges, and expenses of an investment carefully before investing. The prospectus contains this and other information. Read it carefully before you invest or send money.

Calvert mutual funds are underwritten and distributed by Calvert Distributors, Inc., member FINRA, a subsidiary of Calvert Group, Ltd. (12/08, 8632)