Sept. 18, 2003 — Pioneer Investment Management Inc. said it will take over management of four Papp mutual funds under terms of a preliminary agreement reached with L. Roy Papp & Associates LLP.

The Papp funds — Papp Small & Mid Cap Growth Fund (PAPPX), Papp America: Pacific Rim Fund (PAPRX), Papp Stock Fund (LRPSX) and Papp America: Abroad Fund (PAAFX) — total $140 million in assets under management.

The current Phoenix-based portfolio managers, Roy Papp and Rosellen Papp, would continue to manage these funds for Pioneer on a sub-advisory basis.

According to Rosellen Papp, a fifth mutual fund, Papp Focus Fund, will not be involved in this transaction. No decision has yet been made on the future of this $1.8-million portfolio, she noted. She also indicated that the funds’ investment approaches and objectives will not change.

Tara Pescatore, a spokeswoman for Pioneer, noted that funds would each carry the “Pioneer-Papp” name.

Roy Papp founded L. Roy Papp & Associates in 1978 and has managed the four funds since their inception. Rosellen Papp joined the firm in 1981.

For the three-year period ended August, the America Abroad Fund dropped 14.95% (while the average large-cap growth fund lost 18.72%); the Stock Fund lost 11.46% (versus a 18.72% loss for the peer group); The Small & Mid Cap Growth Fund edged down 0.76% (compared with a 16.60% loss for the average mid-cap growth fund); and the Pacific Rim Fund shed 10.95% (compared with a 18.72% drop by the peer group).

All four Papp funds are ranked 3 Stars by Standard & Poor’s.