Citizens Funds Enhances Its Corporate Governance Research Capability; Expands criteria and formally rates companies in its proprietary database.

Business Editors

PORTSMOUTH, N.H.--(BUSINESS WIRE)--Sept. 13, 2002

Looking at business practices has long been a focus of Citizens Funds, a socially responsible fund group that has recently added more value to its research process by enhancing its corporate governance screen.

"We continue to make investment decisions based on the central belief that good corporate citizenship contributes to company performance," says Diane South, Director of Social Research at Citizens Advisers, the investment adviser to Citizens Funds. "We target companies that demonstrate good business practices, which includes criteria like independent boards and auditors, expensing of options, voting structures and reasonable CEO compensation. Events of the past year did prompt us to expand our corporate governance criteria and formally document in our proprietary database how companies rank against that criteria."

In the past, Citizens has focused heavily on board and senior management diversity, using dialogue and shareholder resolutions to successfully encourage a number of companies to add women and/or minorities to the board and senior level management. Citizens resolution asking American Power Conversion to nominate qualified women and minorities to its board was the most successful board diversity resolution in the United States in 2001, according to the Investor Responsibility Research Center in Washington. The resolution received a 28% yes vote, compared with an average 19% yes vote for board diversity proposals. More recently, Citizens filed a board inclusiveness resolution at Micron Technology, Inc. (MU), asking the company to commit to locating qualified women and minority candidates for the board

"We believe diversity at the top ranks of companies is important if they want to remain competitive in an increasingly diverse America," said Ms. South. "We seek to invest in companies that are able to attract and retain a talented, diverse workforce."

Citizens analyzes corporate governance issues from both a fundamental and social point of view. When problems are uncovered, they are flagged. In some cases, Citizens engages in activism. For example, in November 2002, Citizens' resolution on auditor independence will be on Microsoft's proxy.

"Regulators and Congress are finally taking conflict of interest seriously. We think that companies need to listen-up, and we're asking shareholders to send a message to Microsoft's management that auditor independence is essential," South said.

Citizens believes the market's decline has made risk management a bigger priority for long-term equity investors committed to a buy-and-hold strategy. In addition to reassessing their asset allocation strategies and adjusting where necessary, investors are looking for high-quality investment options -- ones that may provide an edge in the area of risk management.

"I think it's fair to say that a year ago, most people in the mainstream investment world refused to recognize the connection between social issues, including corporate governance, and performance," South said. "After witnessing the impact of corporate governance issues on company performance during the past year, people now realize that socially responsible investing provides real value. Citizens' holistic approach to analyzing companies is very timely -- and more appropriate than ever."

About Citizens Funds

Founded in 1982, Citizens Funds has been a leader in its approach to investment management, and socially responsible investing in particular. With a core focus on strong, long term performance, Citizens' mission is to generate the best possible return while managing risk for shareholders by investing in companies that are fundamentally strong and socially responsible.

Citizens' unique investment management approach revolves around its proprietary integrated research that takes into account company financials, in combination with all the variables that affect prospects for success and growth over time. Representing one of the largest families of socially responsible investments, the Citizens line-up includes equity (domestic and international), fixed income and money market funds.

Please call [phone] for a prospectus that contains complete details of fees and expenses and should be read carefully before investing. Distributed by Citizens Securities, Inc., Portsmouth, NH 03801