December 21, 2006

An Open Letter from Edward C. Johnson 3d, Chairman of the Board of Trustees of the Fidelity Mutual Funds

Dear Shareholders, Customers, Clients and Employees:

More than two years ago, the NASD brought to our attention information that a number of our equity traders and supervisors had accepted lavish travel, entertainment, gifts and gratuities (TEGG) from broker-dealers who execute trades for the Fidelity mutual funds. We investigated these violations of our policies and as a result, we took action against these individuals. Some were fined, some have left the company, none who were involved in serious misconduct are associated any longer with equity trading at Fidelity. In addition, we enhanced appropriate policies, conducted extensive training and education, and added new management oversight of the equity trading operation.

Investigations also have been conducted by the Securities and Exchange Commission and NASD, as well as by the Independent Trustees of the Fidelity Funds. We have cooperated fully with all of these investigations.

Although this matter has not yet been resolved with the SEC and the NASD, the Independent Trustees' inquiry has been completed and we have reached agreement on a settlement of this matter that is discussed in a report issued by the Independent Trustees.

The report - which can be found on this Web site - states:

"The Independent Trustees believe that, in spite of the absence of proof that the (Fidelity) Funds experienced diminished execution quality as a result of traders' improper receipt of TEGG, the conduct at issue was serious (and) is worthy of redress…" The report also states: "… inadequate supervision and other shortcomings exposed the Funds to the potential risks of adverse publicity, loss of credibility with their principal regulators, and loss of Fund shareholders."

These are serious charges. On behalf of myself and Fidelity, I extend an apology for this improper behavior. In addition, although there was an absence of proof of diminished execution quality, there is no question that the Funds were put at potential risk, as identified in the Trustees' report. Therefore, I have agreed that Fidelity should pay a penalty set by the Trustees for this misbehavior and the company's failure to stop it.

Under the terms of the settlement with the Independent Trustees, Fidelity has made arrangements to pay $42 million plus interest to the Fidelity Mutual Funds based on an allocation formula to be agreed to with the Independent Trustees. Fidelity also has committed to make comparable distributions to institutional and other accounts it advises, and to pay the costs of the Independent Trustees' investigation. Fidelity has agreed further to continue the enhanced oversight of its traders and to carry on its work aimed at reducing trading costs as much as possible consistent with overall best execution.

We are continuing to work with the SEC to resolve this matter and are hopeful that our agreement with the Independent Trustees will provide a basis for that resolution.

We believe that under the leadership of first Marvin L. Mann, then Robert M. Gates and now Ned C. Lautenbach, the Independent Trustees have reached a reasonable and just resolution of this issue. We also appreciate the SEC's wisdom in permitting the Independent Trustees to complete their work in advance of the final resolution with the Commission.

In closing, I again apologize for the misconduct that has occurred. This is not the Fidelity way, and I assure you that we have redoubled our efforts to improve all aspects of our business and to uphold our historical standards of honesty, integrity and ethical behavior.

Sincerely,

Edward C. Johnson 3d