Fidelity Advisor Freedom Funds Use Active Allocation Process To Become More Conservative As Target Date Approaches

BOSTON, July 31, 2003 -- Fidelity Investments today announced the launch of the Fidelity Advisor Freedom Funds^SM, a series of five target-timeline funds managed to specific target dates. The new fund are available to investors through investment professionals at banks, brokerage firms and insurance companies, and are also offered to plan sponsors through Fidelity's advisor-sold retirement plans, including 401(k)s and 403(b)s.

Co-managed by Ren Cheng and Jonathan Shelon, the Fidelity Advisor Freedom Funds are "funds of funds" which invest in 13 different Fidelity Advisor Funds^® and Fidelity Cash Reserves. Four of the Fidelity Advisor Freedom Funds are managed to specific target dates: 2010, 2020, 2030, and 2040, while the fifth fund, Fidelity Advisor Freedom Income Fund^SM, is intended for those investors who have reached their target date and are seeking low risk with some growth. The funds are automatically rebalanced and are gradually adjusted through an active roll-down allocation process to become more conservative as the target date approaches.

"If there is one thing that the markets of the past few years have taught us, it's the importance of a well thought-out, diversified portfolio*. Investors want their assets to be there when they need them-no matter what the goal," said Joseph P. LoRusso, president, Fidelity Investments Institutional Services Company, Inc. "As a result, advisors are increasingly looking for a single-fund option that delivers appropriate diversification and can be managed to meet a client's specific time frame.

"Traditional asset allocation funds typically have a neutral target allocation such as 'conservative,' 'growth' or 'aggressive,' and allocation between asset classes remains static," said LoRusso. "Through the Fidelity Advisor Freedom Funds, assets are reallocated to become more conservative over time."

Fidelity Investments and its Strategic Advisers unit have more than 10 years of experience managing time targeted-asset allocation funds, including the Fidelity Freedom Funds, which were introduced in 1996. The Fidelity Freedom Funds have more than $16.8 billion in assets as of June 30, 2003.

The four Fidelity Advisor Freedom Funds managed to specific target dates - 2010, 2020, 2030 and 2040 - seek high total return with a secondary objective of principal preservation as each fund approaches its target date and beyond. Fidelity Advisor Freedom Income Fund seeks high current income with preservation of principal. The longer-term funds commenced with higher percentages of their portfolios invested in equity funds.

For example, Fidelity Advisor Freedom 2040 Fund^SM, commenced with about 75 percent of its portfolio invested in domestic equity funds, 15 percent in international equity funds, and 10 percent in high yield funds. Fidelity Advisor Freedom 2030 Fund^SM, started with about 70 percent of its portfolio invested in domestic equity funds, 13 percent in international equity funds, 10 percent in investment grade bond funds, and about 7 percent in high yield funds. Fidelity Advisor Freedom 2020 Fund^SM, commenced with about 60 percent of its portfolio invested in domestic equity funds, 22 percent in investment grade bond funds, 10 percent in international equity funds, and about 8 percent in high yield funds.

The shorter term fund - Fidelity Advisor Freedom 2010 Fund^SM, - started with about 40 percent of its portfolio invested in domestic equity funds, 40 percent in investment grade bond funds, 10 percent in money market funds, 5 percent in international equity funds, and about 5 percent in high yield funds.

Fidelity Advisor Freedom Income Fund invests about 40 percent of its portfolio in money market funds, 40 percent in investment grade bond funds, and 20 percent in domestic equity funds.

A nine-year Fidelity veteran, Cheng is portfolio manager of structured investments for the Structured Investment Group within Strategic Advisers, a subsidiary of Fidelity Investments. In his role, Cheng is responsible for managing over $17 billion in asset allocation portfolios as well as new product development for defined benefit and defined contribution clients. He was named co-manager of the Fidelity Freedom Funds in 1996 and became primary fund manager in 2001. Prior to joining Fidelity, Cheng spent nine years at Putnam Investments. He also is manager of the IRS Code 529 tax advantaged college savings plans for the states of New Hampshire, Massachusetts and Delaware.

Shelon is a portfolio assistant for the Structured Investment Group within Strategic Advisers. His responsibilities include constructing and managing risk-controlled portfolios for Fidelity's institutional clients. Shelon is also the portfolio assistant of the IRS Code 529 tax advantaged college savings plans for the states of New Hampshire, Massachusetts and Delaware. Prior to joining Fidelity in 2001, he was a quantitative consultant in the Capital Markets Research Group of Callan Associates, Inc. From 1993 to 1998, Shelon was an associate actuary with Milliman USA.

Fidelity Advisor Short-Intermediate Municipal Income Fund

In a related announcement, Fidelity also introduced Advisor share classes of Spartan^® Short-Intermediate Municipal Income Fund. Fidelity Advisor Short-Intermediate Municipal Income Fund (Classes A, T, B, C, and Institutional) seeks as high a level of current income, exempt from federal income tax, as is consistent with preservation of capital. The fund normally invests at least 80% of its assets in municipal securities whose interest is exempt from federal income tax. It is managed to have similar overall interest rate risk to the Lehman Brothers^® 1-6 Year Municipal Bond Index. The Advisor share classes are managed by Mark Sommer, who also manages Spartan Short-Intermediate Municipal Income Fund.

About Fidelity Investments Institutional Services Company

Fidelity Investments Institutional Services Company provides investment management services through investment professionals at financial institutions nationwide, including wirehouses, regional and independent broker/dealers, banks, trust companies and insurance companies. The company offers Fidelity Advisor Funds^®, Variable Insurance Product (VIP) Portfolios, systematic investment plans, institutional money market funds and a comprehensive line of retirement products and services. Fidelity Investments Institutional Services Company's total assets under management were $165.4 billion as of June 30, 2003.

About Fidelity Investments

Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $1.5 trillion, including managed assets of $880.4 billion as of June 30, 2003. Fidelity offers investment management, retirement planning, brokerage, human resources and benefits outsourcing services to 18 million individuals and institutions as well as through 5,500 financial intermediaries. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, one of the largest mutual fund supermarkets and a leading online brokerage firm. For more information about Fidelity Investments, visit www.fidelity.com.

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*Diversification does not ensure a profit or guarantee against a loss.

Foreign investments, especially those in emerging markets, involve greater risk and may offer greater potential returns than U.S. investments. The risk includes political and economic uncertainties of foreign countries, as well as the risk of currency fluctuation.

The municipal market is volatile and can be significantly affected by adverse tax, legislative, or political changes and the financial condition of the issuers of municipal securities. Interest rate increases can cause the price of a debt security to decrease. A portion of the dividends you receive may be subject to federal, state or local income tax or may be subject to the federal alternative minimum tax.

Fidelity Freedom Funds are managed by Strategic Advisers, Inc., a subsidiary of FMR Corp.

Fidelity Investments, Fidelity and Fidelity Advisor Funds are registered trademarks of FMR Corp.

For more complete information about Fidelity funds and Fidelity Advisor Funds, including charges and expenses, call 1-800-FIDELITY for a free prospectus or please call your investment professional for a free Fidelity Advisor prospectus. Read it carefully before you invest or send money.

Fidelity Investments Institutional Services Company, Inc.
82 Devonshire Street, Boston, MA 02109.