BOSTON, August 17, 2005 -- Fidelity Investments today reported more than $100 billion in assets under management in its Fidelity Management Trust Company (FMTC) for the first half of 2005, a 12 percent increase over the last 12 months, largely driven by a record increase in assets from international equity mandates for corporate and tax-exempt pension plans.

FMTC's total assets under management increased to $101.2 billion on June 30, 2005, up $10.9 billion from $90.3 billion in June of 2004. FMTC also reported that it won 47 new corporate and tax-exempt mandates during the last six months.

"Continued demand for Fidelity's international equity and fixed income products, as well as our defined benefit outsourcing solution, DB Solution^SM, drove much of our growth during the first half of 2005," said Drew E. Lawton, president and chief executive officer, Fidelity Management Trust Company.

According to Lawton, 13 new corporate and tax-exempt clients selected Fidelity to manage a total of $2.1 billion in its International Growth¹ product during the first half of 2005, increasing product assets under management to more than $17.1 billion, a 37.3 percent increase year over year.² This is the second straight year of significant growth for Fidelity's active international securities, which attracted more than $6.4 billion in additional assets during the last 24 months.

Fidelity also reported increasing interest in its Select International³ product, with seven new client mandates totaling $620 million⁴, and a significant amount of proposal activity, which may indicate that institutional investors are looking to further diversify international holdings during the second half of 2005.

"As plan sponsors continue to structure their investment portfolios to be reflective of the global capital markets, we expect to see continued interest in our international disciplines, which have been providing consistent performance, portfolio manager continuity, a strong information ratio relative to the benchmark and competitive fees for the last several years," said Lawton.

While the overall bond market remained soft during the first six months of 2005, Fidelity reported increased interest in its fixed income investment, Core Plus⁵, which helps institutional investors mitigate interest rate risk by diversifying bond holdings in both investment grade and non-investment grade sectors.

Although interest rates remain near an all-time low, the specter of rising interest rates also prompted Fidelity to launch a new Long Duration⁶ product in March of 2005. Benchmarked against the Lehman Brothers Long Government/Credit Index, this product was launched to meet the demand for long duration management in the institutional marketplace.

"As a plan's liabilities grow in size, interest rate risk takes on greater importance, and higher allocations to bonds allow plan sponsors to reduce their cash flow and balance sheet volatility by better aligning their asset and liability risk," said Lawton. "An investment strategy that includes long bonds may also provide plan sponsors with greater reporting transparency about risk management actions, while lowering transaction costs and fees, and providing tax-advantaged investment returns."

The increasing cost, complexity and risks associated with managing defined benefit plan administration and investing, meanwhile, is driving an increasing number of companies to outsource their defined benefit plan management responsibilities.

"Defined benefit outsourcing is one of the fastest growing parts of our business, and with good reason," said Lawton. "Outsourcing allows plan sponsors to optimize plan funding and minimize funding risk by leveraging Fidelity's proven money management capabilities and methodologies, while also simplifying successful defined benefit plan administration. Fidelity's defined benefit outsourcing solution, DB Solution^SM, provides plan sponsors with a full suite of pension management services, including asset and liability analysis, investment management, defined benefit administrative services, trust and custody services and actuarial consulting."

According to Lawton, seven new corporate clients selected Fidelity to provide full service benefits administration during the first half, increasing the company's defined benefit outsourcing business assets under management to a record high of $4.6 billion, a 33.1 percent increase year over year.⁷

New client relationships include Holcim (US) Inc., which selected Fidelity to provide full service benefits administration, investment management, and trust and custody on behalf of its defined benefit pension plans, which cover 5,500 participants and $200 million in assets.

"Holcim is in the business of making cement, not managing pension plans, so we decided to outsource this critical business function to the experts," said Thomas Aebischer, senior vice president, treasurer and CFO, Holcim, Inc. "As a plan sponsor, we were looking for a single provider capable of handling our overall retirement plan management, including administration, investments, reporting and liability management, while also taking steps to improve the longterm retirement security of our employees. Fidelity's outsourced DB Solution^SM offering not only met our needs, but also provided our employees with access to fully-integrated retirement information and retirement planning tools."

About Fidelity Management Trust Company
Fidelity Management Trust Company manages over $101.2 billion for more than 530 institutional clients worldwide, including corporate and public retirement funds, endowments, foundations and other institutional investors. The company offers institutional asset management for active and risk-controlled equity, fixed-income, international equity, real estate and alternative disciplines such as market neutral. The company is affiliated with Fidelity Employer Services Company, which provides benefits and human resources administration, workforce effectiveness, payroll solutions and stock plan services to over 19 million employees in the U.S. as of June 30, 2005.

About Fidelity Investments
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 approximately 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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The International Growth Discipline is not a mutual fund and is managed by Fidelity Management Trust Company.

The Select International Discipline is not a mutual fund and is managed by Fidelity Management Trust Company.

The Core Plus Discipline is not a mutual fund and is managed by Fidelity Management Trust Company.

The Long Duration Discipline is not a mutual fund and is managed by Fidelity Management Trust Company.

The Morgan Stanley Capital International Europe, Australasia and Far East (MSCI EAFE) Index is a market capitalization-weighted index of equity securities of companies domiciled in various countries. The Index is designed to represent the performance of developed stock markets outside the United States and Canada and excludes certain market segments unavailable to U.S. based investors.

Fidelity Management Trust Company⁸
82 Devonshire Street, Boston, MA 02109

¹ Fidelity's International Growth product seeks to provide long-term capital growth via a diversified portfolio of large-, medium-, and small-cap companies in Europe, Japan, and the Pacific Basin. The International Growth strategy seeks to provide excess returns relative to the Morgan Stanley Capital International Europe, Australia and Far East (MSCI EAFE) Index over a full market cycle.
² For the period June 30, 2004 to June 30, 2005.
³ Fidelity's Select International product seeks long-term growth of capital primarily through investments in foreign securities.
⁴ For the period January 1, 2005 to June 30, 2005.
⁵ Fidelity's Core Plus product seeks to achieve absolute and risk-adjusted returns in excess of the Lehman Brothers Aggregate Bond Index by investing in both investment grade and non-investment grade sectors, including high yield, emerging market debt and high yield CMBS securities.
⁶ Fidelity's Long Duration product seeks to outperform the Lehman Brothers Long Government/Credit Index by investing in a full spectrum of investment grade assets while maintaining interest rate duration in line with the Long Government/Credit index or client liability.
⁷ For the period June 30, 2004 to June 30, 2005.
⁸ Fidelity Management Trust Company is a Massachusetts state-chartered trust company primarily engaged in providing investment management, fiduciary and related services for corporate and public retirement funds, endowments, foundations and other major institutions worldwide.