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VANGUARD OFFERS FIRST NO-LOAD, INSURED TAX-FREE FUND FOR FLORIDA RESIDENTS

 VANGUARD OFFERS FIRST NO-LOAD, INSURED
 TAX-FREE FUND FOR FLORIDA RESIDENTS


New No-Load Fund Provides Income Free of Federal Income Taxes and Shares
 Exempt from Florida's Intangible Personal Property Tax
 VALLEY FORGE, Pa., Sept. 3 /PRNewswire/ -- The Vanguard Group of Investment Companies announced today the introduction of the Florida Insured Tax-Free Fund.
 The new fund -- the first no-load to offer an insurance feature -- is designed to offer Florida residents a high level of current income that is exempt from federal income taxes. The fund's shares are also free of Florida's intangible personal property tax.
 The Vanguard Florida Insured Tax-Free Fund invests primarily in municipal securities issued by Florida state and local governments and public financing authorities that are insured by top-rated insurance companies. In the event of a default, the insured bond's remaining interest payments and principal value would be fully covered by the issue's insurer. The fund may also purchase insurance for high-quality bonds that have not been previously insured, which has the effect of making an A-rated bond equivalent in quality to an AAA-rated bond.
 "The option to purchase insurance helps to assure that Vanguard will have access to both an ample supply as well as a much wider universe of municipal bonds for the fund," said Vanguard Chairman John C. Bogle. "The insurance feature also serves to protect investors from the significantly greater credit risk typically associated with a geographically concentrated portfolio."
 While credit risk is expected to be minimal, the fund will maintain an average weighted maturity between 15 and 25 years and is subject to interest rate risk, meaning its share price will change with movements in interest rates. The fund, therefore, is intended for income-oriented investors who can tolerate potentially sharp share price fluctuations.
 Vanguard's distinctive, low-cost corporate structure is expected to provide the Florida Insured Tax-Free Fund with an important long-term expense ratio advantage over comparable funds. The Vanguard Funds, managed by their own directors, officers, and staff, jointly own The Vanguard Group, Inc., which provides management, administrative, and marketing services to the funds on an "at-cost" basis. As a result, the fund's expense ratio (operating expenses as an annual percentage of total net assets) is expected to be 0.27 percent or $27 per $10,000 of net assets. The average expense ratio for other Florida municipal bond funds, not including two funds currently waiving management fees and operating expenses, is 0.42 percent, or $42 per $10,000 of net assets (according to data provided by Lipper Analytical Services, Inc.).
 Unlike its competitors, Vanguard will not absorb management or operating expenses to promote an unsustainable yield advantage. "Investors should not be misled by advertisements touting high yields, which some funds are achieving by temporarily waiving expenses," said Bogle. "My advice: read the fine print."
 The minimum initial investment for the fund is $3,000, and shares are offered without sales commissions, redemption fees, or 12b-1 plan fees. Shareholders may make withdraws and exchanges -- at no charge -- from the fund at any time by mail or telephone. The fund also offers free, unlimited checkwriting privileges (minimum check amount: $250).
 Investment advisory services for the Florida Insured Tax-Free Fund are provided by the Vanguard Fixed Income Group, which presently manages more than $40 billion in municipal, corporate, and government securities. Vanguard also offers single state insured municipal funds in California, New Jersey, New York, Ohio and Pennsylvania.
 The new fund brings to 67 the number of investment portfolios managed by The Vanguard Group of Investment Companies. Headquartered in Valley Forge, Vanguard has assets of more than $90 billion and serves some four million individual and institutional shareholder accounts.
 This communication is neither an offer to sell nor a solicitation of an offer to buy fund shares. Such an offer is made by prospectus only, copies of which may be obtained from The Vanguard Group. The prospectus should be read carefully by individuals before they invest or send money. The prospectus contains more complete information on advisory fees, distribution charges and other expense.
 -0- 9/3/92
 /CONTACT: Jeffrey S. Molitor, assistant vp of The Vanguard Group, 215-669-6303/ CO: The Vanguard Group ST: Pennsylvania; Florida IN: FIN SU:


CC-JS -- PH029 -- 6693 09/03/92 17:40 EDT
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Date:Sep 3, 1992
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A less taxing way to invest: the yields on municipal bond funds are tempting--and tax exempt, too.

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