Fred Alger Management Reaches Agreement in Principle With Staff of SEC and New York AG Resolving All Issues Related to Allegations of Mutual Fund Mark

12 June 2006

Fred Alger Management, Inc. announced today that it has reached an agreement in principle with the staff of the New York Regional Office of the Securities & Exchange Commission and with the staff of the New York Attorney General's office resolving all issues related to allegations of mutual fund market timing and late trading. The firm is working with the staff of the SEC and the staff of the NYAG to finalize the agreement. The agreement is subject to the approval of the Securities & Exchange Commission and the New York Attorney General. In the proposed settlement agreement, without admitting or denying liability, the firm will consent to the payment of $30 million to reimburse fund shareholders; a fine of $10 million; and certain other remedial measures including a reduction in management fees of $1 million per year for five years. The entire $40 million and fee reduction will be for the benefit of investors.

The firm said it will have no further comment until a final agreement has been consummated and approved by both the SEC and the NYAG.

Founded in 1964, Fred Alger Management, Inc. is a leading asset management firm employing a bottom-up approach in its attempt to identify the fastest growing companies in their respective sectors. Over four decades, Alger has continued its tradition of independent research and style purity. Fred Alger Management, Inc. offers investment advisory services to separately managed, sub-advised and wrap accounts. Fred Alger & Company, Incorporated offers mutual funds as well as institutional funds for defined benefit and defined contribution plans. For more information, please visit http://www.alger.com .

Before investing in any of the Alger funds, you should carefully consider the funds' investment objectives, risks, charges and expenses which are contained in the funds' prospectuses. For more information about any Alger fund, send for a prospectus from the Fund's distributor, Fred Alger & Company, Incorporated, 30 Montgomery Street, Jersey City, New Jersey 07302, or call (800) 992-3863 or visit http://www.alger.com . Please read the prospectus carefully before investing.

CONTACT: Jeffrey Taufield

Kekst and Company

(212) 521-4800

Source: prnewswire

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