SSgA Launches IAM SHARES Fund.

BOSTON--(BUSINESS WIRE)--March 16, 1999--

The First Mutual Fund Designed to Support Union Members

SSgA(R) Funds, distributed by Russell Fund Distributors and managed by State Street Global Advisors, one of the largest money managers in the industry, has introduced the IAM SHARES Fund, one of the first mutual funds in the nation to invest primarily in publicly-traded shares of International Association of Machinists (IAM)-represented companies. The IAM has hundreds of thousands of working and retired members throughout North America.

The SSgA IAM SHARES Fund will invest approximately two thirds of its assets in IAM-represented companies. Currently, 232 companies meet the IAM's qualifications of being publicly traded, sufficiently capitalized, and within the acceptable limits of market volatility. Generally, no single company will represent more than 5% of the entire portfolio.

"More than 5,000 companies in North America today employee IAM members," said Gus Fish, Principal, State Street Global Advisors. "In conjunction with the Union leadership, we have created an innovative investment designed to empower union members by giving them an opportunity to invest in companies that employ IAM members. This mutual fund, which we believe is the first and only one of its kind, is another investment created by SSGA designed to meet the savings needs of a specific segment of the nation*s working population -- union members."

The IAM represents 734,000 working and retired members and is the AFL-CIO's largest union representing workers in the air transportation, aerospace and defense industries. The IAM has collective bargaining agreements with 5,000 employers, including well-known corporations like Boeing and United Airlines, as well as hundreds of small and medium sized companies.

"The IAM is proud to take a leadership role in creating investment vehicles that support companies that employ our members," said R. Thomas Buffenbarger, President of IAM. "And as a diversified portfolio, the SSgA IAM SHARES Fund should provide our members with an excellent investment. The initiation of the Fund is compatible with our goal of harnessing the power of our members' investments to better serve them and strengthen and encourage the growth of our union."

"We believe that the choice of SSGA to manage the SSgA IAM SHARES Fund is a good one," continued Buffenbarger. "SSGA has tremendous experience in the area of mutual fund management, as well as institutional money management for pensions. This is a good, mutually beneficial partnership.

IAM institutional investors are expected to be the first investors in the SSgA IAM SHARES Fund. A minimum of $25 million is required to successfully launch the fund, and both SSGA and IAM believe than an investment goal of $100 million for the launch is realistic.

The SSgA IAM SHARES Fund will be offered first as a savings plan option to all the employees of IAM-represented companies that contributed to jointly trusteed pension plans. Later in the year, IAM-represented companies that have defined benefit pension plans will be offered the SSgA IAM SHARES Fund as an option to their savings plan.

After 15 years of membership decline, the IAM has grown each of the last three years. Under the leadership of R. Thomas Buffenbarger, the IAM has earned a reputation of being technologically advanced and strategically sophisticated. For North American workers and their families, the IAM is the union for the 2lst Century.

Headquartered in Boston, The SSgA Funds, a group of 22 mutual funds with current assets of more than $19 billion, is managed by SSgA, State Street Global Advisors, one of the largest institutional investment managers in the world, with more than $485 billion under management. SSgA has been in the mutual fund management business since 1988. The funds are distributed by Russell Fund Distributors, Inc. Investors can call 1-800-997-7327 for further information.

Shares of the SSgA Funds are not insured by the FDIC or by any other governmental agency; they are not obligations of the FDIC nor are they deposits or obligations of or guaranteed by State Street Bank and Trust Company. SSgA Funds pay State Street Bank and Trust Company for its services as investment adviser, custodian, transfer agent, and shareholder servicing agent. Investment in the Funds poses investment risks, including the possible loss of principal. The investment return and principal value will fluctuate so that when shares are redeemed they may be worth more or less than when they were purchased.

Russell Fund Distributors, Inc. -- Distributor

For more complete information, including charges and expenses, please call 1-800-997-7327 for a prospectus. Please read the prospectus carefully before you invest or send money. Date of first use: March 1999