February 10, 2003

Purchase Threshold Lowered for American Century Fu

Feb. 4, 2003 -- The minimum initial investment for American Century Tax Managed Value/Inv (ACTIX) will be lowered to $2,500 from $10,000, starting next month.

The move is aimed at making the fund's investment threshold "consistent" with those of American Century's other stock funds, Brian Spano, a spokesman for the fund company, said.

Tax Managed Value's minimum initial investment was set higher when the fund was introduced four years ago to discourage investors from rapidly buying and selling shares, he said. The fund also originally carried a redemption fee, which was eliminated last year, Spano added.

American Century also said the name of the fund as well as that of the American Century Small Cap Quantitative/Inv (ASQIX) will be changed next month to "better reflect their underlying investment processes and strategies."

Tax Managed Value will become the American Century Capital Value fund, and Small Cap Quantitative will become the American Century Small Company fund. The name changes will become effective on March 1.

There are no changes in the investment process and strategy of two funds as a result of the name changes, Spano said, adding that people were not investing in the funds because "they couldn't figure out what the names meant."

According to the firm's research, investors interpreted Tax-Managed Value to mean that the portfolio was a non-equity investment, or produced lower returns. The fund, which primarily seeks capital growth, will cotinue to use a tax-managed strategy as part of its approach.

Similarly, the American Century Small Company fund will continue to use a quantitative discipline as part of its investment strategy.

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