DTCC Reduces Fee for Core Service for Mutual Fund Industry.

NEW YORK -- The Depository Trust & Clearing Corporation (DTCC) announced today a significant reduction in the fee for using Networking, one of its primary services used by the mutual fund industry. Effective January 2, the fee was reduced 40%, decreasing the cost of using the service to 15 cents for every 100 records ($0.0015 per record) from 25 cents.

Networking allows fund companies and broker/dealers and other distributors to balance their books and records with the same accurate, up-to-date information on customer activity at the shareholder level. That information, in turn, allows distributors to provide their customers with statements that fully show the status of their investment activities, such as purchases and exchanges, dividends, positions (closing share balances), as well as broker and fund conversions, and account maintenance.

Networking currently supports more than 82 million customer and omnibus accounts - a pool of individual accounts combined into one account, usually in the name of an intermediary firm. Provided by DTCC's National Securities Clearing Corporation, Networking also offers centralized settlement of cash dividends and capital gains distributions.

"The new fee reflects DTCC's commitment to continually reassess and "right-size" fees, returning excess revenues to customers while pricing each product line to ensure full cost recovery," explained Ann Bergin, DTCC's managing director and general manager, Distribution Services. "Lower processing costs also contribute to keeping U.S. capital markets cost-efficient and attractive to investors around the world, which is a significant advantage in today's increasingly competitive global securities marketplace."

Fee Cuts Across DTCC Complex to Yield Savings of $81 million

The change in Networking's fee is part of a larger reduction that is projected to result in approximately $81 million in savings for customers of DTCC's subsidiaries in 2007. DTCC and its subsidiaries operate on an "at cost" basis, and profits are returned to participant user firms in the forms of discounts, rebates and, when appropriate, permanent fee reductions. In addition to Networking, the fee changes encompass clearance, settlement and asset services.

Networking Becoming More Important as Compliance Solution

In recent years, Networking has played an increasingly important role in helping the industry meet new compliance requirements. In 2006, the service was enhanced to accommodate the impending compliance requirements of the Securities and Exchange Commission (SEC Rule 22c-2) related to monitoring frequent trading and market timing, and the application of short-term redemption fees. In 2005, the service was expanded to allow fund companies to provide distributors with information on customers' accounts held at directly at fund companies so they can be linked with their other fund accounts. This enhancement is helping to ensure that full breakpoint discounts are applied by fund companies.

About Mutual Fund Services

Networking, launched in 1988, is part of a suite of automated, standardized and centralized Mutual Fund Services offered by NSCC that serve the broad fund industry with capabilities that range from processing transactions through the flagship Fund/SERV[R] standard, to communicating customer account- and fund-related information. By linking fund companies to an expanding network of distribution firms, the services have helped support the industry through decades of market growth.

About DTCC

The Depository Trust & Clearing Corporation (DTCC), through its subsidiaries, provides clearance, settlement and information services for equities, corporate and municipal bonds, government and mortgage-backed securities, money market instruments and over-the-counter derivatives. In addition, DTCC is a leading processor of mutual funds and insurance transactions, linking funds and carriers with their distribution networks. DTCC's depository provides custody and asset servicing for more than 2.5 million securities issues from the United States and 100 other countries and territories, valued at $31.2 trillion. In 2005, DTCC settled more than $1.4 quadrillion in securities transactions. DTCC has operating facilities in multiple locations in the United States and overseas. For more information on DTCC, visit www.dtcc.com.