Auction Rate Security Pricing Change At Fidelity to Affect 1,100 Securities

Fidelity Investments has been notified by its third-party pricing vendor, Interactive Data, that effective Monday, May 5, 2008, they will discontinue evaluating approximately 1,100 Student Loan Auction Rate Securities (ARS) and 26 Asset Backed ARS.

Below is an excerpt from Interactive Data announcement dated May 1, 2008:

As part of our on-going review of the ARS markets, Interactive Data has learned of recent failed auctions for Student Loan Auction Rate Securities that may result in the resetting of the coupons to zero. These conditions are causing changes within the market, making it increasingly difficult to access information that will enable us to determine on a consistent basis which ARS have reset to a zero coupon or which may be reset to zero or other "failed" rates in upcoming auctions. At the same time, we are continuing to observe some par level trades for Student Loan ARS that have had failed auctions. However, as a result of the increasing uncertainties in the coupon levels and the varying deal structures that impact the failed coupon rates, we will no longer be evaluating Student Loans ARS effective Monday, May 5, 2008.

We anticipate recommencing coverage of any discontinued evaluations when the market resumes its normal auction practices or if the issuers commence tender offers to purchase any and all of the outstanding ARS. We continue to monitor the remaining ARS evaluations for ratings changes, available trade information, issuer support, market color, and other pertinent information.

Client Impact

Advisors who have clients that hold these securities will continue to receive the fail rate set by the prospectus for their security; however, until market conditions sufficiently improve, Interactive Data will not be able to provide a price for these securities. Though customers will continue to receive the fail rate, the security price will be displayed on statements as Unavailable, reflecting the fact that pricing data is not currently available. The net worth of the customer accounts will be reduced by the amount of the unpriced positions.