July 15, 2004

Longleaf Partners Fund to Close

July 13, 2004 -- The Longleaf Partners Fund (LLPFX) will close to new investors on Friday.

Southeastern Asset Management, the fund's investment advisor, said it is closing the $8.50-billion fund, which looks for undervalued stocks, because it "is having difficulty finding companies that meet its investment criteria."

Southeastern added that the fund's cash position has grown to 29% of assets because it has sold or scaled back on "several" stocks "over the last few quarters."

The company said it will reopen the fund when it "believes that additional investment opportunities exist and cash inflows would again benefit existing shareholders."

The fund, managed by Mason Hawkins, Staley Cates and John Buford, returned 3.1% this year through June, while its mid-cap value fund peers gained 6.3%.

Contact Robert F. Keane with questions or comments at:

bkeane@ia-mag.com.

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