Final 403(b) Regulations Deadline Driving Plan Design Changes, Increased Sales Activity

BOSTON - December 18, 2008 - Fidelity Investments, the nation's No. 1 provider of workplace retirement plans, today reported strong growth in its tax-exempt defined contribution business with the addition of over 50 new plans in higher education this year. Fidelity now services over 1,200 plans and over 1 million participants in higher education.

Davidson College, Colgate University, Michigan Technological University, Vassar College, The University of Iowa and Utah State University are among the institutions that have selected Fidelity as a retirement plan provider in 2008. Under these agreements, Fidelity will provide administrative recordkeeping, investment management, and employee communication and education services.

"The final regulations will mean increased fiduciary responsibility and will require a more proactive management of plans by employers in the tax exempt market," said John Begley, executive vice president, Fidelity Investments. "With the significant investments we've made over the past several years to provide employers with the right mix of support, education and investment offerings to comply with the new requirements, we are well-positioned to provide tax-exempt employers with the products and services they need to navigate the new regulatory requirements and strengthen their 403(b) plan offerings."

403(b) Regulation Deadline Driving Plan Design Decisions, Increased Sales Activity

The increase in activity among higher education institutions is largely a result of employers evaluating their plan design due to final 403(b) regulatory changes due to take effect on January 1, 2009. The regulations call for a written plan document that will highlight the number of vendors allowed in the plan, the investment options available and other plan design elements, including the ability to take loans and hardship withdrawals. The IRS recently extended the deadline for sponsors to have a fully compliant written plan document in place by December 31, 2009.

"The new regulatory environment has resulted in institutions taking a closer look at their 403(b) providers and making the changes necessary to make sure they are well equipped to handle the administration of their plans," said Begley. "Generally, institutions with more than half a dozen providers are moving to reduce the number of vendors they offer to just two or three. Conversely, those that have limited investment offerings, like an annuity-only plan, are increasing the number of 403(b) providers to offer a broader set of investment options."

Fidelity Offers Educational Resources, Tools to Help Employers Navigate 403(b) Regs

Earlier this year, Fidelity unveiled a comprehensive suite of plan design resources and compliance support services to help plan sponsors create, review and update their 403(b) plans by the deadline. These include:

•		403(b) QuickSM, a Web-based plan document tool developed to help employers establish a standard recordkeeping agreement with Fidelity and create a 403(b) plan.
•		Investment education and guidance planning tools, including a reference guide to provide employers with a foundational understanding of the basic requirements of the legislation and additional white papers about specific 403(b) requirements.
•		Access to experienced professionals for investment guidance and compliance support to address any updates or plan changes.

All of Fidelity's plan tools and services are available online, by phone or by scheduling an on-site visit with a representative. Fidelity currently provides defined contribution recordkeeping services for more than 19,300 plans, representing over 14.4 million participants.

About Fidelity Investments

Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of nearly $2.7 trillion, including managed assets of over $1.2 trillion as of October 31, 2008. Fidelity offers investment management, retirement planning, brokerage, and human resources and benefits outsourcing services to 24 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, the largest mutual fund supermarket and a leading online brokerage firm. For more information about Fidelity Investments, visit www.fidelity.com.

Before investing in any mutual fund, please carefully consider the investment objectives, risks, charges and expenses. For this and other information, call or write Fidelity for a free prospectus. Read it carefully before you invest.

Fidelity Brokerage Services LLC, Member NYSE, SIPC,
300 Puritan Way, Marlborough, MA 01752

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