August 27, 2004

Vanguard Closes International Explorer Fund

Aug. 19, 2004 -- Vanguard Group closed its $1.4-billion Vanguard International Explorer Fund (VINEX), effective immediately.

The company said the portfolio has received approximately $500 million in additional cash flow since January 15, when the fund's minimum investment requirement was raised to $25,000 from $10,000 in response to strong and rapid cash inflows.

Vanguard noted that this is the fifth fund -- and second international-oriented fund -- it has closed in the past eight months.

Vanguard said the fund's advisor, Schroder Investment Management North America Inc., is "comfortable with the current size of the fund" and that this pre-emptive action will "reduce potentially speculative, short-term cash flow."

Ranked 4 Stars by Standard & Poor's, the fund gained 34.3% versus 22.2% for the average international growth fund in the 12-month period ended July.

Contact Bob Keane with questions or comments at: bkeane@investmentadvisor.com.

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