Colonial and Newport introduce two new Asian funds.

BOSTON--(BUSINESS WIRE)--June 25, 1996 -- Colonial Mutual Funds and Newport Pacific Management have teamed up once again to offer investors two new opportunities for investing in the stock markets of Asia -- Colonial Newport Japan Fund and Colonial Newport Tiger Cub Fund.

"These funds represent an outstanding opportunity for us to draw on our expertise finding quality growth stocks in Asia," said Jack Mussey, Chief Investment Officer and President of Newport Pacific. "The two fund managers, David Smith and Robert Cameron, bring a total of more than 35 years experience in Asian markets. I look forward to working closely with both these talented individuals."

The new funds are part of the Colonial family of funds and are available through investment professionals nationwide. Colonial and Newport's first joint effort, the $1.4 billion Colonial Newport Tiger Fund, successfully combined Colonial's marketing and service capabilities with Newport's investment experience. While Newport intends to follow the same long-term, low turnover strategy for the new funds that it applies to Colonial Newport Tiger Fund, each fund has its own distinct characteristics.

Colonial Newport Japan Fund

Colonial Newport Japan Fund, managed by David Smith, will seek capital appreciation by investing primarily in the stocks of well established Japanese companies. The fund will focus on industries with attractive or improving prospects and will purchase securities of companies with consistent growth records.

"Japan is going through a major turnaround and restructuring of its economy after several years of little or no growth," said Mr. Smith. "The prolonged downturn in economic activity has forced Japanese businesses to begin focusing on profitability and shareholder returns in order to become more competitive. And, with the world's second-largest economy, second-largest stock market, and leadership in many industries, Japan has been an economic success story during the past 30 years. We believe the Japanese economy is now set to benefit from the economic boom taking place across Asia."

Mr. Smith, who joined Newport in 1994, has 28 years of investment experience. Mr. Smith began his career as a money manager for Industrial Indemnity Financial Corp., where he pioneered its involvement in the Japanese market. After working for Nikko Securities, he established a brokerage firm focused on international investments. A graduate of San Francisco State University, he has a degree in finance and economics.

Colonial Newport Tiger Cub Fund

Colonial Newport Tiger Cub Fund, managed by Robert Cameron, will seek capital appreciation by investing primarily in small cap equities in the "Tiger" countries of Asia. The Tiger countries include Hong Kong, China, Singapore, Malaysia, Thailand, Indonesia, the Philippines, South Korea and Taiwan. The fund will invest in companies with what Newport Pacific Management believes are above-average growth prospects and a market capitalization of up to $1 billion (U.S.).

"As the economic expansion of Asia's Tiger countries continues, we expect smaller companies -- the Tiger Cubs -- to respond to rising consumer demand," Mr. Cameron said. "Rising levels of disposable income are creating a new consumer society in Asia. Small companies are expanding to meet the needs of these new consumers."

Mr. Cameron joined Newport this year. He has 13 years of experience in the investment business. For the past eight years, he has concentrated on the Asian equities market, most recently as the manager of CS First Boston's Asian equity office in San Francisco. In that role, he has worked closely with Jack Mussey for years, traveling extensively throughout Asia visiting and analyzing a variety of companies. He also has a degree in economics and international relations from the University of Toronto.

Company backgrounds

Newport Pacific Management is a San Francisco-based investment management firm that focuses exclusively on the Asian equity markets. Begun in 1983, it manages more than $1.7 billion in assets for both retail and institutional investors.

Colonial was founded in 1931 and is one of the nation's oldest mutual fund firms. The Colonial family of funds includes 33 open-end and five closed-end funds with more than $16.5 billion in assets under management, serving more than 800,000 investors worldwide. Both Colonial and Newport are operating units of Liberty Financial Companies (NYSE:L).

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This press release must be preceded or accompanied by current prospectuses for the Colonial Newport Japan Fund and Colonial Newport Tiger Cub Fund. Colonial Investment Services, Distributor.

CONTACT: Colonial Mutual Funds, Boston

William Rice 617-371-2357

Tom Nutile 617-371-2263