Pension Management Announces Investment Opinion.

HOUSTON--(BUSINESS WIRE)--Oct. 7, 1999--

Dow Dogs Ready for Dog Catcher

For almost four years now, the Dogs of the Dow have failed to beat the Dow Jones Industrials Average. Pension Management Company, a registered investment adviser, today released its quarterly look at the Dogs of the Dow. For nine months through September 1999, the Dogs recorded a gain of 5.87% compared with the Dow Industrials' 12.67%, both excluding dividends. By contrast, Pension Management's proprietary Blue-Chip Select(TM) program returned 25.98% for the same period.

The Dogs investment strategy is to buy the Dow Industrials' 10 highest yielding stocks at the start of the year and then to change to the subsequent 10 highest yields in each successor calendar year.

"I just wonder how long investors and their brokers will tolerate this sub-par performance," said John H. Lee, a Chartered Financial Analyst and chief investment officer at Pension Management Company. "The use of a historical coincidence to invest someone's savings is hazardous, and even more so when applied to the Dow's highest yielding stocks, which some would say are the highest risk stocks."

In contrast, Lee uses active, on-going research to select stocks from the same 30 Dow Industrials for his Blue-Chip Select(TM) managed account program. The performance for his Blue-Chip recommendations for the first nine months of 1999 doubled the Dow and was a full 20 percentage points better than the Dogs (i.e., +25.98% for Blue-Chip versus +5.87% for the Dogs).

This year's 1999 choices for the Dogs and their performance through September are:

                DOGS OF THE DOW QUARTERLY
             Nine Months Ended September 1999

                                           1999 % return (a)
                                           -----------------
Caterpillar                                       19.2%
Chevron                                            7.0
E.I. DuPont                                       14.0
Eastman Kodak                                      5.0
Exxon                                              3.9
General Motors                                     6.4
Goodyear Tire                                    - 4.6
Minnesota Mng Mfg.                                35.1
J.P. Morgan                                        8.7
Philip Morris                                   - 36.1
----------------------------------------------------------
      Dog 10 Stock Portfolio Avg.                  5.87%
      Dow Jones Industrial Avg.                   12.6%
      Blue-Chip Select(TM)                        25.98%

(a) for the nine months ended September 1999,
    excluding reinvested dividends

Source: Pension Management Company
John H. Lee, CFA; 1-800-552-6010
(c) 1999. Permission to reprint with credit to Pension Mngt

"Blue-Chip Select's big gains were in IBM, Allied Signal, Boeing and Citigroup; none were in the Dog category. I think this demonstrates that active and professional research can be a good value for investors, although past performance is not indication of future results," Lee added. "Our Blue-Chip Select(TM) program tries to chose the best performers of the 30 Dow Industrials using our proprietary research."

Founded in 1970, Pension Management Company is a registered investment adviser to individuals and institutions. The firm is headquartered at 995 Galleria Financial Center, Houston, TX 77056 and can be reached at 1-800-552-6010.