Vanguard to Cut Balance Requirements for Admiral Shares Class

April 21, 2005 — The Vanguard Group said it will make it easier for shareholders to quality for its lower-cost Admiral Shares by reducing their fund account balance requirements, effective May 10.

Specifically, a Vanguard shareholder owning a regular or IRA account will be eligible for Admiral Shares if the fund account balance totals $100,000 or more (previously, a balance of $250,000 was required, or a $150,000 balance in a fund account established for at least three years); or if the fund account balance totals $50,000 or more and the fund account has been established for at least ten years.

For example, the expense ratio for the Investor Share class of Vanguard Total Stock Market Index Fund (VTSAX) is 0.19%; while the Admiral Shares version features a 0.09% expense ratio.

Vanguard will automatically convert accounts of $100,000 or more to Admiral Shares, beginning in July. Shareholders may convert prior to July by contacting the company beginning May 10. Share conversions within the same fund will be tax-free.