Fidelity Slashes Expenses on Equity Index Funds; Five Fidelity Index Funds Now Among Lowest Cost in Market.

BOSTON -- Fidelity Investments today announced that it has reduced the expenses on five equity index funds available to individual and group-retirement plan investors, making them now among the lowest-cost equity index funds in the mutual fund industry. The move is the latest in a series of efforts on the part of the company to provide its individual investors with the highest quality financial products and services at the most competitive prices. Over the past 18 months, Fidelity has eliminated front-end charges on dozens of mutual funds, making Fidelity's entire product line of funds sold directly to investors load-free(A); lowered commissions for certain online equity trades; and guaranteed one-second trade execution at National Best Bid or Offer(B).

Effective today, the expense ratios for Fidelity Spartan 500 Index Fund, Fidelity Spartan Total Market Index Fund, Fidelity Spartan Extended Market Index Fund, Fidelity Spartan International Index Fund, and Fidelity Spartan U.S. Equity Index Fund (offered primarily to 401(k) and 403(b) institutional retirement plans) will be voluntarily and indefinitely capped at 0.10% -- or 10 basis points(C).

"As of today, Fidelity now offers individual investors five diversified equity index funds that among are the lowest cost in the market," said Jeff Carney, president, Fidelity Personal Investments. "This action reflects Fidelity's long history of providing our customers with a broad choice of high-quality financial products coupled with great customer service - adding up to an excellent value.

"At the same time, it is the latest move in an aggressive effort over the past 18 months to scale back fees, expenses, and commissions on a number of our products in order to ensure that we are positioning ourselves at the head of the pack in a very competitive marketplace. The bottom line for investors: This is great news."

The expense ratios of Fidelity's five equity index funds impacted -- most of which already had expense ratios capped below the industry average -- will now be capped as follows(C):

Previous      New
                                                      Expense  Expense
                                                        Ratio    Ratio
Fund                             Index tracked         Cap(1)   Cap(1)
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Spartan 500 Index Fund           S&P 500 Index           0.19%   0.10%
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Spartan US Equity Index(2)       S&P 500 Index           0.19%   0.10%
----------------------------------------------------------------------
Spartan Total Market Index     DJ Wilshire 5000                  0.10%
                                 Composite Index         0.25%
----------------------------------------------------------------------
Spartan Extended Market        DJ Wilshire 4500                  0.10%
 Index                          Completion Index         0.40%
----------------------------------------------------------------------
Spartan International Index     MSCI EAFE Index          0.47%   0.10%
----------------------------------------------------------------------

(1) Expense ratios reflect voluntary and indefinite reimbursement.

(2) Spartan US Equity Index Fund offered primarily to 401(k) and
    403(b) institutional retirement plans

Fidelity offers investors a total of nine index funds with more than $40 billion in assets.

"At Fidelity, we've focused on providing investors with the finest in actively managed funds for more than 50 years, and active fund management remains our core business and our heritage," added Carney. "At the same time, we've long recognized that some of our investors want to include index funds in their broadly diversified portfolios. That's why we launched our first index fund more than 15 years ago, and are now one of the largest providers of index funds in the country.

"As index funds are designed to perform in line with their stated benchmark indexes, we believe the best way to effectively compete in this area is on cost. And that's exactly what we're doing."

As part of today's announcement, Fidelity also standardized the required minimum investments across all of its retail equity index funds at $10,000 for an initial purchase and $1,000 for subsequent purchases. This new pricing structure will result in a reduction in the initial minimum required for three of the retail equity index funds, an increase for the Spartan 500 Index Fund, and no change to the Fidelity Nasdaq Composite Index Fund.

Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $1.9 trillion, including managed assets of $1.0 trillion as of July 31, 2004. Fidelity offers investment management, retirement planning, brokerage, human resources and benefits outsourcing services to 21 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.

(A) Other fees and expenses applicable to continued investment are described in the fund's current prospectus.

(B) Fidelity will waive the commission charge on eligible stock trades not executed within one second. Offer limited to market orders between 100 and 500 shares to buy, sell or buy to cover stocks listed in the S&P 500 Index. Orders must be entered between 9:45 a.m. and 3:59 p.m. ET on a day when the equity markets are open and times will be adjusted when the markets open late/close early. Execution speed is calculated from the time Fidelity accepts the order to the time of execution reported to Fidelity by the executing market center. Eligible orders can be entered on Fidelity.com, Fidelity Active Trader Pro(R), FAST(R), wireless devices, or through a Fidelity Representative. Short sales, extended hours orders, directed trade orders, and certain other orders excluded. Certain market and systems conditions may impact qualification for this guarantee. Fidelity reserves the right to restrict or revoke this offer at any time. For complete details, visit http://personal.fidelity.com/products/stocksbonds/content/det ails.shtml (Due to the length of this URL, it may be necessary to copy and paste it into your Internet browser's URL address field. You may also need to remove an extra space in the URL if one exists.)

(C) An expense ratio represents the annual percentage of the fund's assets paid out in expenses. The expense ratios here have been capped at 10 basis points because the fund's investment advisor has agreed, voluntarily and indefinitely, to reimburse fund expenses to the extent that annual expenses exceed 10 basis points. Absent such reimbursement fund expenses could be higher. This arrangement may be discontinued at any time. All things being equal, a fund with lower expenses may offer higher returns than a fund with higher expenses.

Please carefully consider the fund's investment objectives, risks, charges and expenses before investing. For this and other information, call or write to Fidelity or visit fidelity.com for a free prospectus. Read it carefully before you invest or send money.

Fidelity Brokerage Services, Member NYSE, SIPC, 100 Summer Street, Boston, MA 02110

383026/2b