New First American Income Builder Fund Offers Potential for Retirement Income and Growth; The New Fund Combines a Diversified Blend of Asset Classes Designed to Provide Retirees with Monthly Income and the Potential for Growth.

MINNEAPOLIS -- First American Funds announced today that it is launching the First American Income Builder Fund to address the needs of Americans who are concerned about having enough retirement income. Life expectancies in the United States are on the rise, and retirees may need their money to last 20 years or more. In fact, for couples who are both 65, there is a 50% chance that one will reach 92 and a 25% chance he or she will reach 97.(1) What's more, prescriptions, medical insurance premiums, doctor's office visits, and hospital costs are all increasing more rapidly than inflation.(2) Today's experts estimate that retirees will need roughly 70% or more of their preretirement income to maintain their standard of living when they're no longer working.

The First American Income Builder Fund addresses these key
    retirement concerns in five ways:

    1) Opportunity for monthly dividends can provide retirement
       income - The fund's primary goal is to provide investors with
       current income. Investors receive monthly dividends that may be
       used for specific needs or reinvested.

    2) Growth potential may help preserve the value of an investment
       in the fund - The fund includes both fixed-income and equity
       assets, thus offering greater opportunity for growth than a
       fixed-income-only fund.

    3) A unique mix of funds may help balance market risks and
       rewards - Investors near or in retirement generally want to
       reduce their exposure to risk while protecting their buying
       power. The fund's diversified mix of high-yield bonds, U.S.
       government mortgage-backed securities, real estate securities,
       and large-cap value stocks allows investors to participate in
       the market and potentially earn more than bonds alone but at
       less risk than holding stocks. The Income Builder Fund is
       comprised of four funds that represent these asset classes -
       the First American High Income Bond Fund, U.S. Government
       Mortgage Fund, Real Estate Securities Fund, and Large Cap Value
       Fund.

    4) Flexibility may help capture market opportunities - Although
       the fund targets an equal mix of four First American Funds, the
       managers have the flexibility to place greater emphasis on one
       or more asset classes to take advantage of market opportunities
       while managing risk. As the fund's managers make tactical
       moves, they provide an opportunity to enhance returns while
       ensuring the fund's potential to deliver monthly income.

    5) Experienced fund managers oversee the fund - Members of the
       First American Funds' senior leadership team - including Chief
       Investment Officer Mark Jordahl, Head of Equities David
       Chalupnik, Head of Fixed Income Tony Rodriguez, and Chief
       Economist Keith Hembre - as well as David Cline, First American
       Funds' most experienced fund-of-funds manager, oversee the
       Income Builder Fund. Based on continuous monitoring of the
       markets, this team determines how to manage the fund's asset
       allocation to generate income and potentially enhance returns.

"The Income Builder Fund is designed to meet the unique retirement needs of today's baby boomers," Jordahl said. "Our professionally managed fund-of-funds is designed to provide boomers with monthly income while offering the opportunity to take advantage of the market's growth potential."

About First American Funds

The First American Funds mutual fund group had more than $56 billion in open-end funds as of March 31, 2006. The funds are advised by FAF Advisors, Inc.

The fund's investment objectives, risks, charges, and expenses should be considered carefully before investing. The prospectus contains this and other information; call 800.677.FUND or visit firstamericanfunds.com for a copy. Read the prospectus carefully before investing.

Mutual fund investing involves risk; principal loss is possible.

The First American Income Builder Fund is a fund-of-funds comprised of holdings in the First American High Income Bond Fund, U.S. Government Mortgage Fund, Real Estate Securities Fund, and Large Cap Value Fund. The investment advisor expects that, on a long-term basis, it will have approximately 25% of the fund's assets allocated to each of the underlying funds, although the percentage allocated to a particular underlying fund at any point in time may range from 10% to 40%. See the prospectus for a discussion of the specific risks associated with the underlying funds.

Quasar Distributors, LLC, distributor.

NOT FDIC INSURED NO BANK GUARANTEE MAY LOSE VALUE

(1)Source: Annuity 2000 Mortality Table; Society of Actuaries

(2)"Don't Let Health Care Costs Hijack Your Retirement," Feb. 20, 2005, www.whyinsure.com/news-number-2883.html

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