BOSTON, August 17, 2004 - The University of California has announced that it has selected Fidelity Investments Tax-Exempt Services Company to provide consolidated plan administration and investment education for their $9.5 billion employer-sponsored defined contribution retirement plans. There are currently 260,000 employees and retirees participating in the plans throughout UC's 10 campuses, five medical centers, and three national laboratories which it manages for the US Department of Energy. The agreement marks a first-of-its-kind partnership in which a public university system will retain one provider to serve as master recordkeeper across a multi-vendor retirement program.

Through the agreement, Fidelity will take on a new role at UC and serve as master recordkeeper for UC's new 457(b) tax-deferred savings plan, which was recently approved by the UC Board of Regents to provide the faculty and staff with expanded opportunities for tax-advantaged retirement savings. Following the implementation of the 457(b) plan, UC will also transition recordkeeping responsibilities to Fidelity for their two additional defined contribution plans, which have been offered to UC employees since 1967 and 1969.

"At UC, we take great pride in our commitment to offering our employees the best benefits possible, but we were limited in our ability to satisfy members' requests for increased retirement investment services because our systems were at maximum capacity," said Judy Boyette, UC associate vice president for human resources and benefits. "This new master recordkeeper model, utilizing Fidelity's state-of-the-art systems, allows us to improve member services and helps us better position ourselves to meet future needs, while also ensuring that we continue to meet our fiduciary oversight responsibilities."

All UC plan records will be managed through Fidelity's MasterRecordkeeper^® service, a multi-vendor annuity and mutual fund recordkeeping and administrative platform designed to help tax-exempt plan sponsors manage their 403(b), 457 and 401(k) retirement programs. MasterRecordkeeper, a Fidelity service that is entirely separate and distinct from its investment products, will allow UC to consolidate account information from all vendors on Fidelity's system, streamlining administrative and regulatory tasks without compromising investment flexibility. Plan participants will be able to take advantage of a variety of benefits, including:

•		Integrated, multi-channel access to account, investment and plan information via telephone and the NetBenefitsSM Web site
•		Single source for enrollment, contribution changes and investment exchanges
•		Consolidated account statements for multi-vendor mutual funds and other investment offerings
•		Single communication and education program targeted to meet their needs
•		Increased awareness of all investment options offered in the plan
•		Comprehensive source for retirement and financial planning support

"We have seen a growing interest from educational institutions, like UC, who have multi-vendor retirement plans and are looking to simplify their plan administration, without sacrificing their investment options," said Peter J. Smail, president of Fidelity Employer Services Company, which includes Fidelity Investments Tax-Exempt Services Company. "By applying Fidelity's single vendor model, customer service and operational experience to the multi-vendor structure of UC's retirement offering, we can greatly improve each participant's experience by providing one point of contact for all of their retirement planning needs."

UC's 457(b) plan is expected to be introduced to employees in October 2004. The transition of the defined contribution and 403(b) plans onto Fidelity's platform is scheduled to be completed by July 2005.

About The University of California

In addition to being the world's leading public university, the University of California is also the employer of choice for more than 160,000 employees. With its ten campuses, five medical centers and three national laboratories, UC is the largest employer in California next to the state itself, and is proud of the many outstanding benefits that its employees enjoy. For more information about employment at UC, go to www.universityofcalifornia.com.

About Fidelity Employer Services Company

Through its Fidelity Human Resources Services Company and Fidelity Institutional Retirement Services Company units, Fidelity Employer Services Company provides benefits and human resources administration, workforce effectiveness, payroll solutions and stock plan services to over 18 million employees in the U.S. as of June 30, 2004. Additionally, through its HR Access acquisition, Fidelity provides HR and payroll applications for about 12 million employees in Europe.

About Fidelity Investments

Fidelity Investments is one of the worldʹs largest providers of financial services, with custodied assets of $1.9 trillion, including managed assets of $1.0 trillion as of June 30, 2004. Fidelity offers investment management, retirement planning, brokerage, human resources and benefits outsourcing services to 21 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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Fidelity Investments and The University of California are not affiliated.

Fidelity Employer Services Company LLC Defined contribution products and services are offered by Fidelity Investments Institutional Services Company, Inc., 82 Devonshire Street, Boston, MA 02109