Corporate Governance Mutual Fund Launched; The Watchdog Fund Will Fight for Corporate Democracy.

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 17, 2003

The Watchdog Fund, a new open-end mutual fund that intends to drive corporate governance improvements in American companies, has been launched. Acting as a catalyst for change and management accountability to shareholders, the fund seeks to play a role in strengthening the corporate governance of companies in which it invests. Unlike most mutual funds, The Watchdog Fund will proactively exercise its shareholder rights, including objecting to management and the Board when necessary.

"The need for effective oversight by shareholders has never been clearer," said Nell Minow, one of the founders of the corporate governance movement, a leading shareholder activist, and Editor of The Corporate Library, an independent investment research firm specializing in corporate governance and board effectiveness. "The tools for effective oversight have never been stronger. The Watchdog Fund's arrival is well timed and I look forward to seeing them constructively engaged in protecting and enhancing management accountability and shareholder value." Ms. Minow is not associated with The Watchdog Fund.

The Watchdog Fund will pursue capital appreciation -- its primary investment objective --by identifying and investing primarily in U.S.-based small- and mid-cap companies, with market capitalizations ranging from $75 million to $5 billion. The fund may also take positions in the largest U.S. companies. Such companies will be selected on the basis of misalignment between management and shareholder interests. The Watchdog Fund may work with other shareholders or pursue legal action to improve corporate governance, or sell short the shares of companies it believes are poorly governed. In addition, the fund may also invest in companies it believes are examples of good corporate governance.

The investment strategy and process of The Watchdog Fund will be managed by its creator, portfolio manager Howard Horowitz, Chairman and CEO of H Team Capital, LLC, an investment management firm headquartered in New York City. The Fund will treat all shareholders equally and enforce prohibitions on market timing and after-hours trading. The fund imposes a 1.00% fee (short-term trading fee) on fund shares redeemed 30 days or less from the date of purchase and 0.50% for shares that are redeemed after 30 days but less than one year from the date of the purchase. The minimum investment in the fund is $2,500.

"The fund will serve as a watchdog for its shareholders, guarding their interests, defending their rights, and fighting for corporate democracy," said Mr. Horowitz. "It's an opportunity for concerned citizens to advocate for corporate accountability in a way that matters -- with their dollars -- while simultaneously seeking to profit from improvements in the stocks."

Mr. Horowitz noted that The Watchdog Fund's mission goes beyond investment management. "It's a way for people disgusted by self-dealing management and boards to rebuild a capital market where owners' interests come first."

For more complete information on The Watchdog Fund, including fees, expenses and prospectuses, call 1-866-8-WATCHDOG (1-866-892-8243) or visit www.thewatchdogfund.com.

Please read the prospectus carefully before you invest or send money.

Because the Fund is not diversified, it can take larger positions in fewer companies, increasing the overall risk profile of the Fund. Investments in small and mid capitalization companies present greater risk of loss than investments in large capitalization companies. In addition to those risks, the Watchdog Fund uses investment techniques that are different from the risks ordinarily associated with equity investments. These risks include short sale, leverage, borrowing and option risks. The investment return and principal value of the Fund may fluctuate or deviate from overall market returns to a greater degree than that of other funds that do not employ these strategies. Investors should consider the investment objectives, risks, and charges and expenses of the Fund carefully before investing.

Statements made in this release that look forward in time involve risks and uncertainties and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include, without limitation, the adverse effect from a decline in the securities markets or a decline in the Company's products' performance, a general downturn in the economy, competition from other companies, changes in government policy or regulation, inability of the Company to attract or retain key employees, inability of the Company to implement its operating strategy and acquisition strategy, inability of the Company to manage rapid expansion and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations.

For more information about the Fund, including charges and expenses, obtain a prospectus by calling 1-866-8-WATCHDOG. Read it carefully before sending money. Distributed by Ultimus Fund Distributors, LLC