Firm To Help Cover Additional Tax Burden When Payments Received In Lieu Of Qualified Dividends

BOSTON, MA, February 25, 2004 - Fidelity Investments today announced that it intends to provide eligible margin customers with an annual credit adjustment to help offset the additional tax burden associated with substitute dividends received in lieu of qualified dividends¹ . Fidelity expects to provide the adjustment related to payments beginning in calendar year 2004 to its eligible retail investors, as well as to eligible customers of the company's correspondent broker/dealer and registered investment advisor clients.

Many investors who have margin accounts with debit balances at brokerage firms, like Fidelity, agree to have securities from their margin accounts loaned to third parties (for example, to other customers who may wish to sell them short). If a security is lent to a third-party over a dividend record date, the investor who lent the security will receive a substitute payment in lieu of the dividend.

Previously, dividends and substitute payments received by individual tax payers were taxed at the same federal income tax rate. The Jobs and Growth Tax Relief Reconciliation Act of 2003 (JGTRRA) lowered the top, federal individual tax rate on qualified dividend income to 15 percent. However, this new lower rate does not apply to substitute payments, which are still taxable at federal rates as high as 35 percent.

In an effort to minimize the impact of higher tax rates on substitute payments, Fidelity intends to provide affected eligible customers with an annual credit adjustment to compensate for the additional federal income tax burden² .

"Fidelity is committed to providing the best service to all of its customers, including those with margin accounts who allow us to loan their securities," said Sanjiv Mirchandani, executive vice president, Fidelity Brokerage and Asset Management Products. "We're intending to make it possible for these customers to continue leveraging margin accounts as part of their overall trading strategy and yet still receive the economic benefit of a tax break they might otherwise be denied."

In addition, Fidelity intends to take steps to reduce the number of instances when customers may receive substitute payments by not loaning certain securities over the record date, as well as by recalling certain dividend-paying securities that had been loaned prior to record date.

For more information on JGTRRA and other tax-related issues, investors can log on to Fidelity's Online Tax Center at Fidelity.com, visit one of the company's 92 investor centers, call 1-800-FIDELITY or speak with their broker or financial advisor.

Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $1.8 trillion, including managed assets of $1,004.7 billion as of January 31, 2004. 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.

¹ The annual credit adjustment program is not guaranteed to remain in effect indefinitely, and Fidelity reserves the right to amend or terminate this program.
² The account receiving the substitute payment or an eligible successor account must be open at the time that adjustments are scheduled to be made.

# # #

National Financial Services, Member NYSE, SIPC.
Fidelity Brokerage Services, Member NYSE, SIPC.
100 Summer Street, Boston, MA 02110