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KEMPER FINANCIAL SERVICES SETTLES 1987 CASE

 CHICAGO, Oct. 20 /PRNewswire/ -- Kemper Financial Services, Inc. (KFS) announced today that it has agreed to settle a shareholders' class action suit which was filed in the Circuit Court of Cook County relating to S&P 500 futures trading which occurred primarily in 1987. KFS agreed to pay $9.75 million to shareholders of two mutual funds, Kemper Options Income Fund and the Investment Portfolios, Inc.-Option Income Portfolio.
 "Since 1948, we've worked hard to build a reputation founded on trust and integrity. Because this matter was becoming a significant diversion of resources, we decided to put it behind us and focus on our primary business of quality investment management services for which Kemper is known," said Charles M. Kierscht, chairman and chief executive officer of KFS.
 In connection with the class action settlement, KFS also reached a settlement with the SEC and CFTC resolving related administrative proceedings concerning S&P 500 futures trading which occurred in 1987. The settlement with these agencies was reached before any trial or argument of the legal or factual issues.
 The settlement will have no adverse impact on the Kemper Mutual Funds since the settlement will be paid by KFS, the investment adviser to the Kemper Mutual Funds. "We decided to settle instead of litigating in order to resolve all outstanding issues regarding this matter," said Kierscht. "By settling at this time we avoid the continued distractions and costs of litigation, while providing significant benefits to these mutual fund shareholders."
 KFS said that it had adequate reserves to provide for payment of the settlement. Kemper Financial Services, Inc. is a subsidiary of Kemper Corp. (NYSE: KEM), a non-operating holding company with subsidiaries in asset management, life insurance and securities brokerage.
 -0- 10/20/93
 /CONTACT: Steve Radis, 312-499-8393, or Ira Nathanson, 312-499-8831, both of KFS/
 (KEM)


CO: Kemper Financial Services, Inc. ST: Illinois IN: FIN SU:

CK -- NY069 -- 4611 10/20/93 13:04 EDT
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Publication:PR Newswire
Date:Oct 20, 1993
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