FPA Capital Fund, Inc. to Close to New Investors.

LOS ANGELES -- FPA Capital Fund, Inc. (FPPTX), a mutual fund with total net assets of approximately $1.5 billion, will discontinue sales of its shares to new investors, effective the close of business on July 9, 2004, the 20th anniversary of First Pacific Advisors, Inc.'s management of the Fund. The Fund and its Adviser have had a history of controlling growth as evidenced by the prior closing of FPA Capital Fund from May 1995 through December 2000. FPA Capital Fund will continue to accept additional investments from existing shareholders, to reinvest dividends and capital gain distributions with respect to shareholders who select such options, and to redeem shares at net asset value when requested by any shareholder.

The policy to limit sales to new investors reflects the belief of Robert L. Rodriguez, FPA Capital Fund's President and Chief Investment Officer, that unrestrained growth in the Fund's assets might impair investment flexibility, which would not be in the best interests of Fund shareholders. In addition, Mr. Rodriguez and his investment team have allowed short-term liquidity to rise above 35% because they believe there are very few new investment opportunities that meet the Fund's strict value requirements. Mr. Rodriguez is also Principal and Chief Executive Officer of First Pacific Advisors, Inc., the Fund's investment adviser.

FPA Capital Fund seeks long-term capital growth. Current income is a factor, but a secondary consideration. The Fund commenced operations in 1968 and First Pacific Advisors became its investment adviser in July 1984.

The four other FPA Funds are FPA Crescent Fund, FPA New Income, FPA Paramount Fund and FPA Perennial Fund. Each of these Funds is currently open for new sales; however, exchanges from any of these four Funds into FPA Capital Fund will only be allowed for existing shareholders of FPA Capital Fund.