March 11, 2005

Fidelity Permanently Cuts Fees on Five Index Funds

March 1, 2005 -- Fidelity Investments said it has permanently reduced the total expenses of five of its domestic equity index funds to 0.10%.

The five funds include four whose fees were voluntarily reduced and capped at 10 basis points in August 2004 -- the Fidelity Spartan 500 Index Fund (FSMKX), Fidelity Spartan U.S. Equity Index Fund (FUSEX), Fidelity Spartan Total Market Index Fund (FSTMX), and the Fidelity Spartan Extended Market Index (FSEMX).

In addition, the VIP Index 500 Portfolio, a fund that offers its shares only to separate accounts of insurance companies that offer variable annuity and variable life insurance products, was also contractually bound to limit expenses to 10 basis points.

Fidelity added that a similar contractual arrangement binds the expenses of Fidelity Spartan International Index Fund (FSIIX) at 20 basis points. However, expenses of the fund will continue to be voluntarily capped at 10 basis points.

Fidelity noted that by rewriting the contracts of these funds, their fees cannot be raised without a vote of the funds' shareholders.

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