Fidelity Reports More Than Half of Eligible 401k Participants-1- Took Advantage of `Catch-Up' Opportunity in First Year.

Business Editors

MARLBOROUGH, Mass.--(BUSINESS WIRE)--Dec. 19, 2002

93% of Fidelity Employer-Sponsored Retirement Plans Offered "Catch-Up"

Despite a difficult year in the stock market, Fidelity Investments(R) today reported that preliminary data from its base of more than 10 million workers in employer-sponsored retirement plans showed that the majority of eligible 401(k) participants took advantage of the new retirement savings opportunities that became available in 2002.

According to Fidelity's data, 93 percent(2) of the more than 26,000 employer-sponsored retirement plans recordkept by Fidelity are offering the new "catch-up" provision, made possible by the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). The "catch-up" provision allows workers age 50 and older who are making the maximum plan or IRS pre-tax contribution to invest an additional $1,000 in their workplace retirement plan in 2002. In an analysis of 1,043 large and mid-sized 401(k) plans offering "catch-up," Fidelity found that 56 percent(1) of eligible 401(k) participants age 50 and older have elected the "catch-up" provision.

"By allowing American workers to save more for retirement and giving older workers the ability to catch up on retirement savings, EGTRRA is already helping millions of Americans plan for retirement more confidently," said Kathryn Hopkins, executive vice president, Fidelity Institutional Retirement Services Company, the nation's largest provider of 401(k) plans. "Americans clearly recognize the tremendous opportunity to accumulate more for their retirement years. By visualizing the life they want in retirement and maximizing the new savings opportunities with some budgeting and discipline, investors can potentially build substantial retirement portfolios."

Increased Retirement Savings Opportunities in 2003

Beginning January 1, 2003, EGTRRA will offer Americans expanded retirement savings opportunities. The annual pre-tax contribution limit for employer-sponsored plans will increase to $12,000, up from $11,000. This pre-tax limit will continue to increase by $1,000 per year until it reaches $15,000 in 2006. For workers age 50 and older, the catch-up contribution will be $2,000, increasing by $1,000 a year until $5,000 is reached in 2006.

Retirement savers also have until April 15, 2003 to take advantage of increased maximum and catch-up contribution limits for Individual Retirement Accounts for the 2002 tax year, currently set at $3,000 and $500, respectively. However, IRA investors may want to consider funding their accounts before the end of the year, as their assets will have an additional three months to grow tax-deferred.

Maximum annual and catch-up contributions for IRAs will remain at $3,000 and $500 through tax year 2004, respectively. Annual IRA contribution limits will increase to $4,000 for tax year 2005, while the IRA catch-up limit will increase to $1,000 for tax year 2006.

To learn more about the new savings opportunities investors can call 1-800-FIDELITY, click on www.fidelity.com or go into one of Fidelity's 87 investor centers located nationwide. They also can contact their employer or speak with an investment professional.

Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $1.4 trillion, including managed assets of $797.0 billion as of November 30, 2002. Fidelity offers investment management, retirement planning, brokerage, human resources and benefits outsourcing services to 18 million individuals and institutions as well as through 5,500 financial intermediaries. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, one of the largest mutual fund supermarkets and a leading online brokerage firm. For more information about Fidelity Investments, visit www.fidelity.com.

            Fidelity Brokerage Services, Member NYSE, SIPC
                  100 Summer Street, Boston, MA 02110
       Fidelity Investments Institutional Services Company, Inc.
                82 Devonshire Street, Boston, MA 02109

The information provided by Fidelity is general in nature and should not be considered legal or tax advice. Fidelity does not provide legal or tax advice. Consult with an attorney or tax professional regarding your specific legal or tax situation.

The provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001 will expire on December 31, 2010 and revert to their status prior to January 1, 2002unless the law is extended by Congress and the President.

(1) Large and mid-sized 401(k) plans recordkept by Fidelity

Institutional Retirement Services Company, as of November 30,

2002. Actual catch-up contributions are not determined until after

the close of the plan year as part of the non-discrimination

testing process. (2) 26,369 employer-sponsored retirement plans, including 401(k),

403(b) and 457 Plans, recordkept by Fidelity Institutional

Retirement Services Company and Fidelity Investments Tax-Exempt

Services Company, as of November 30, 2002.