BOSTON, October 2, 2006 - Just six weeks after the Pension Protection Act was signed into law, a new poll¹ by Fidelity Investments reveals that more than half (54 percent) of parents with children age 10 or younger, who do not currently own a 529 plan, are now more likely to open a 529 account for the first time due to the legislation.

Among its many provisions, the Pension Protection Act makes permanent the ability of 529 account holders to take federal income tax-free distributions for qualified education expenses. This benefit was previously scheduled to expire in 2010.

More than one-third of parents (36 percent) polled who already own a 529 plan also report that they are now more likely to increase the amount they contribute to existing 529s. Nearly one out of 10 (9 percent) indicate that they recently opened a new 529 as a direct result of the permanency provision.

"529 plans have always provided tax-deferred growth on earnings, but now that investors are assured of federal income tax-free qualified distributions², 529s are one of the best investment vehicles available to help parents save for escalating college costs," said Joe Ciccariello, vice president of college planning, Fidelity Personal Investments.

529 plans may be currently underutilized

Despite their distinct advantages, less than one-quarter of parents polled, who are currently saving for college, take advantage of a 529 plan. Instead, the Fidelity poll found that bank savings accounts (52 percent) and U.S. savings bonds (29 percent), generally more conservative investment vehicles, are the most widely-used for college savings. These findings further suggest that some parents may not understand the added value of saving for college in a 529 college savings account, may not be aware of the tax-free compounding for qualified distributions offered by a 529 plan and ultimately, may not be able to achieve their college savings goals.

nterestingly, while 89 percent of parents surveyed expect to pay for at least some of their children's college expenses, 44 percent of parents with children age 10 or younger have not yet started a college savings account. Of those, 70 percent reported that high living expenses and lack of extra income prevented them from saving for college.

Lack of awareness was also cited as a major barrier to 529 plan savings, with 21 percent of parents saving for college without a 529 stating that they had never even heard of a 529 plan. An additional 21 percent reported an interest in 529 plans, but indicated that they didn't know where to start. Conversely, one quarter (24 percent) of parents who have not yet started saving for college reported that they have resigned themselves to having to rely on financial aid or loans in order to pay for their children's higher education.

"With the new permanence of federal income tax-free qualified distributions³, there really is no better time to open a 529 account, whether you invest through a financial advisor or on your own" said Jeff Troutman, vice president, Fidelity Investments Institutional Services Company. "By enrolling now in a 529 college savings plan, parents can give their children a head start in life through the gift of a higher education, while alleviating the potential burden of substantial student loan debt."

Fidelity manages more than $8.1 billion in college savings dollars in 600,000 accounts for families across the country in plans including the Fidelity Advisor 529 Plan and UNIQUE College Investing Plan for the State of New Hampshire, the U.Fund College Investing Plan for the Commonwealth of Massachusetts, the Delaware College Investment Plan, and the Fidelity Arizona College Savings Plan as of June 30, 2006.

For more information on Fidelity-managed 529 Plans, direct investors may visit Fidelity's Web site at www.fidelity.com/college or call 1-800-544-1914. Advisors can find out more by visiting https://advisor.fidelity.comor calling Fidelity at 1-800-544-9999.

About Fidelity Investments

Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of more than $2.7 trillion, including managed assets of $1.3 trillion as of August 31, 2006. Fidelity offers investment management, retirement planning, brokerage, and human resources and benefits outsourcing services to more than 22 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.

¹Fidelity Investments online survey of 1,032 parents with children 10 years or younger, conducted by Synovate Research from August 29 to September 11, 2006. The survey included over samples of parents in Arizona, California, Delaware, Massachusetts and New Hampshire whose responses were then weighted to reflect national demographics.

²Distributions from 529 plans are federal income tax-free when used for qualified higher education expenses.

³Distributions from 529 plans are federal income tax-free when used for qualified higher education expenses.

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The UNIQUE College Investing Plan, U.Fund College Investing Plan, Delaware College Investment Plan, and Fidelity Arizona College Savings Plan, are offered by the State of New Hampshire, the Massachusetts Educational Financing Authority (MEFA), the State of Delaware, and the Arizona Commission for Postsecondary Education, respectively, and managed by Fidelity Investments.

If you or the designated beneficiary are not a New Hampshire, Massachusetts, Delaware, or Arizona resident, you may want to consider, before investing, whether your or the designated beneficiary's home state offers its residents a plan with alternate state tax advantages or other benefits.

Units of the Portfolios are municipal securities and may be subject to market volatility and fluctuation.

Before investing, consider each Plan's investment objectives, risks, charges, and expenses. Contact Fidelity for a Fact Kit containing this information. Read it carefully.

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