Moves Include Additional Fund Offering for Individual Investors, Standardized Minimum Investments, and New Branding; Follow Recent Expense Reductions

BOSTON, August 15, 2005 -- Fidelity Investments today announced a series of enhancements to its bond and money market mutual fund product lines that will streamline and make them more accessible to individual investors. The moves follow the firm's lowering of expenses on its taxable investment grade bond funds in June, and its announcement in January 2004 that all five of its municipal money market funds are managed with the goal of investing only in securities paying interest that is exempt from the federal Alternative Minimum Tax (AMT).

Effective September 1, 2005, Fidelity will make its U.S. Bond Index Fund available to greater numbers of individual investors by lowering the fund's minimum initial investment from $100,000 to $10,000. In addition, the fund's current expense cap of 0.32% will be fixed at that level contractually, meaning that expenses cannot be raised without a vote of the fund's Board of Trustees.

"This fund has been used primarily by 401(k) and other retirement plans, and has been very popular in the institutional arena," said John F. Sweeney, senior vice president of mutual fund product management for Fidelity Personal Investments. "We believe that dramatically lowering the minimum investment and contractually locking in the fund's expenses will provide our retail investors with yet another attractive option in what is already a successful bond fund product line."

In addition, effective today, the firm is re-branding a number of "Spartan" money market and bond funds with the "Fidelity" name and standardizing minimum investments on the money market funds at $25,000.

"Historically, the Spartan funds were designed to offer investors lower expenses in return for higher minimum investments," said Sweeney. "However, over time, expenses on our other retail Fidelity bond and money market funds have been reduced to levels that in some cases meet or fall below those of the Spartan funds. We believe it will make these products generally more accessible and simpler to understand to replace the Spartan name with Fidelity branding and standardize minimum investment levels."

AMT Tax-Free Money Market Funds

The following five Spartan municipal¹ money market funds will adopt new names, effective today:

Former Name New Name Spartan Municipal Money Fund Fidelity AMT Tax-Free Money Fund Spartan California Municipal Money Market Fund Fidelity California AMT Tax-Free Money Market Fund Spartan Massachusetts Municipal Money Market Fund Fidelity Massachusetts AMT Tax-Free Money Market Fund Spartan New Jersey Municipal Money Market Fund Fidelity New Jersey AMT Tax-Free Money Market Fund Spartan New York Municipal Money Market Fund Fidelity New York AMT Tax-Free Money Market Fund

Fidelity also has lowered the minimum investments for each of these money market funds from $100,000 to $25,000.

"Last year, we announced that all five of these funds would be managed with the goal of investing only in securities paying interest that is exempt from the federal Alternative Minimum Tax (AMT)," said Sweeney.

"Now, in addition to adding the Fidelity branding, we believe that adding 'AMT Tax-Free' to their names will better reflect their investment approach. At the same time, significantly lowering the minimum investments will ensure that these funds are accessible to more of the growing number of Americans who are -- and will be -- susceptible to the AMT. All indications are that this number may rise quickly, and we want to be at the forefront of offering effective product solutions to our tax-sensitive investors."

Taxable Money Market Funds

The following three Spartan taxable money market funds will adopt new names, effective today:

Former Name New Name Spartan Money Market Fund Fidelity Money Market Fund Spartan U.S. Treasury Money Market Fund Fidelity U.S. Treasury Money Market Fund Spartan U.S. Government Money Market Fund Fidelity Government Money Market Fund

The minimum investments for these taxable money market funds have been adjusted from $20,000 to $25,000 in order to standardize them with the former Spartan municipal money market funds (listed above).

"Our other money market funds not affected by these changes generally have lower minimum investments and often are used as core positions in brokerage accounts," said Sweeney. "The AMT tax-free and taxable money market funds that we've re-branded today more typically are used by investors who wish to establish longer-term positions in money markets as part of a diversified portfolio strategy."

Municipal/Tax-Free Bond Funds

The following 16 municipal and tax-free bond funds will adopt new names, effective today:

Former Name New Name Spartan Arizona Municipal Income Fund Fidelity Arizona Municipal Income Fund Spartan California Municipal Income Fund Fidelity California Municipal Income Fund Spartan Connecticut Municipal Income Fund Fidelity Connecticut Municipal Income Fund Spartan Florida Municipal Income Fund Fidelity Florida Municipal Income Fund Spartan Maryland Municipal Income Fund Fidelity Maryland Municipal Income Fund Spartan Massachusetts Municipal Income Fund Fidelity Massachusetts Municipal Income Fund Spartan Michigan Municipal Income Fund Fidelity Michigan Municipal Income Fund Spartan Minnesota Municipal Income Fund Fidelity Minnesota Municipal Income Fund Spartan New Jersey Municipal Income Fund Fidelity New Jersey Municipal Income Fund Spartan New York Municipal Income Fund Fidelity New York Municipal Income Fund Spartan Ohio Municipal Income Fund Fidelity Ohio Municipal Income Fund Spartan Pennsylvania Municipal Income Fund Fidelity Pennsylvania Municipal Income Fund Spartan Short-Intermediate Municipal Income Fund Fidelity Short-Intermediate Municipal Income Fund Spartan Intermediate Municipal Income Fund Fidelity Intermediate Municipal Income Fund Spartan Municipal Income Fund Fidelity Municipal Income Fund Spartan Tax-Free Bond Fund Fidelity Tax-Free Bond Fund

Minimum investments on these funds will not change. All have minimum investments of $10,000, with the exception of Fidelity Tax-Free Bond Fund, which has a minimum investment of $25,000.

These moves follow Fidelity's announcement on June 1 that it was lowering expenses on its 12 taxable, investment-grade bond funds available directly to investors to 0.45 percent, representing reductions of up to 31 percent. Expenses are now fixed at this level contractually, meaning that expenses cannot be raised without a vote of the funds' Board of Trustees. These funds previously had expenses that ranged from 0.50 percent to 0.65 percent.

"Recognizing that fixed-income investments are critical to helping investors achieve their long-term financial goals, we continue to improve our product offerings," said Sweeney. "The investment performance of our bond and money market funds has been consistently strong; of course, past performance is no guarantee of future results. At the same time, we want to make sure that our product line is as easy for investors to understand and use as possible².

"This is particularly important now as investors are giving money market funds a fresh look. Yields on these funds have risen in tandem with short-term interest rates, and the average money market fund yield now exceeds those of the average bank account and three-month certificate of deposit (CD)."

Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $2.2 trillion, including managed assets of $1.1 trillion as of June 30, 2005. Fidelity offers investment management, retirement planning, brokerage, and human resources and benefits outsourcing services to more than 20 million individuals and institutions as well as through 5,500 financial intermediary firms. 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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Before investing, consider the funds' investment objectives, risks, charges and expenses before investing. Contact Fidelity for a prospectus containing this information. Read it carefully.

Fidelity Distributors Corporation, 82 Devonshire Street, Boston, MA 02109

¹The municipal market is volatile and can be significantly affected by adverse tax, legislative or political changes and the financial condition of 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.

²In general, the bond market is volatile; bond prices rise when interest rates fall and vice versa. This effect is usually pronounced for longer-term securities. Any fixed-income security sold or redeemed prior to maturity may be subject to a substantial gain or loss.