Strong Proposes Fund Changes

Apr 11, 2001, 01:00 ET from Strong Capital Management, Inc.

    MILWAUKEE, April 11 /PRNewswire/ -- The Board of Directors of the Strong
 Family of Funds approved submitting for shareholder vote a new advisory
 agreement between each fund and Strong Capital Management, Inc.  The new
 advisory agreement will reflect, for most funds, adding breakpoints to the
 management fee, unbundling the management fee from the administration fee, and
 eliminating an outdated expense cap.
     Additionally, Shareholders of the Strong Discovery Fund will vote on a
 fund reorganization (merger) with the Strong Enterprise Fund.  The Board of
 Directors also approved the closing of several small funds and share classes
 of funds.
     Strong also will make changes to its administrative fees.  In the past,
 Strong performed certain accounting and other services at no additional cost
 to the funds.  To remain competitive in the marketplace, Strong can no longer
 provide no-cost services for the funds.  Therefore, it is anticipated the
 administration fee for Investor Class, Advisor Class, and Class Z shares will
 increase.  Strong also intends to make changes to its transfer agent fees.
     "These changes ensure we continue delivering the best in premium
 investment services for our customers while remaining competitive in our
 industry," said Thomas M. Zoeller, Chief Financial Officer.
     Regarding the proposed reorganization and fund and share class closings,
 Mr. Zoeller added, "By eliminating small-asset-size funds and consolidating
 funds with similar investment objectives, we streamline and economize our
 operations, producing better value for our customers."
     Specifically, the proposed changes to the funds' advisory agreements
 include the following:
     -- Adding breakpoints, under which the management fee will decrease on
        fund net assets above certain asset levels.  The breakpoints will
        reduce fees on certain stock and bond funds by 2.5 basis points at
        breakpoints of $4 billion and $6 billion.  All but 10 of the stock and
        bond funds will institute the breakpoints.
     -- Unbundling management fees and administration fees.  While some
        Funds now charge only a management fee, the management fee will be
        separated from the administration fee.  Management fees will decline,
        and new administration fees will be introduced.  If shareholders of the
        funds being unbundled approve the new advisory agreement, the amount of
        the new administration fee will be greater than the reduction in the
        management fee by 5 basis points for stock funds, 3 basis points for
        bond funds, and 2 basis points for money market funds.  Strong
        anticipates this change will provide greater consumer clarity about
        fund fees.
     -- For most funds, removal of a 2% expense cap.  This cap had been
        included in the current advisory agreement under a state law
        requirement that has since been repealed.  No immediate impact on Fund
        expenses is anticipated.
 
     Shareholders of the Strong Discovery Fund will be asked to vote on a
 reorganization into the Strong Enterprise Fund.  About this development, Mr.
 Zoeller said, "The funds have similar investment objectives and policies, and
 the Strong Enterprise Fund offers a lower expense ratio than the Strong
 Discovery Fund.  This is a sound management move in the best interest of our
 investors."
     Shareholders also will be asked to ratify the appointment of auditors and
 reelect directors.  In addition, Strong Value Fund shareholders will vote on a
 subadvisory agreement, which is required by the terms of the agreement.
     Proxy mailings will begin in late May 2001.  The shareholder meetings are
 currently scheduled for late July 2001.
     Other changes to the funds that are not subject to shareholder
 approval include:
     -- The closing of the Strong International Bond Fund, Strong International
        Stock Fund II (a variable annuity), Strong Discovery Fund II (a
        variable annuity), and the Advisor and Institutional Classes of the
        municipal income funds (this excludes the Strong Municipal Advantage
        Fund).
     -- An increase in the per account transfer agent fee for Investor Class
        and Class Z shares of equity funds to $27.00.  The Funds have not
        increased this fee since 1988.
 
     One of the nation's leading investment management firms, Strong
 Capital Management, Inc. is a privately-held, registered investment advisor
 serving individuals, retirement plans, financial advisors, institutions, and
 foundations.  Securities are offered through Strong Investments, Inc., an
 affiliated company.  Founded in 1974, the firm is headquartered in Menomonee
 Falls, Wis., and manages over $43 billion.
 
     The Enterprise Fund generally invests in stocks of small- and
 medium-capitalization companies, though it may invest in companies of any
 size.  Because smaller companies often have narrower markets and limited
 financial resources, investments in these stocks present more risk than
 investments in those of larger, more established companies.  For more complete
 information, including management fees and expenses, please call for a free
 prospectus.  Please read it carefully before you invest or send money.
 PR12520-0401
 
 

SOURCE Strong Capital Management, Inc.
    MILWAUKEE, April 11 /PRNewswire/ -- The Board of Directors of the Strong
 Family of Funds approved submitting for shareholder vote a new advisory
 agreement between each fund and Strong Capital Management, Inc.  The new
 advisory agreement will reflect, for most funds, adding breakpoints to the
 management fee, unbundling the management fee from the administration fee, and
 eliminating an outdated expense cap.
     Additionally, Shareholders of the Strong Discovery Fund will vote on a
 fund reorganization (merger) with the Strong Enterprise Fund.  The Board of
 Directors also approved the closing of several small funds and share classes
 of funds.
     Strong also will make changes to its administrative fees.  In the past,
 Strong performed certain accounting and other services at no additional cost
 to the funds.  To remain competitive in the marketplace, Strong can no longer
 provide no-cost services for the funds.  Therefore, it is anticipated the
 administration fee for Investor Class, Advisor Class, and Class Z shares will
 increase.  Strong also intends to make changes to its transfer agent fees.
     "These changes ensure we continue delivering the best in premium
 investment services for our customers while remaining competitive in our
 industry," said Thomas M. Zoeller, Chief Financial Officer.
     Regarding the proposed reorganization and fund and share class closings,
 Mr. Zoeller added, "By eliminating small-asset-size funds and consolidating
 funds with similar investment objectives, we streamline and economize our
 operations, producing better value for our customers."
     Specifically, the proposed changes to the funds' advisory agreements
 include the following:
     -- Adding breakpoints, under which the management fee will decrease on
        fund net assets above certain asset levels.  The breakpoints will
        reduce fees on certain stock and bond funds by 2.5 basis points at
        breakpoints of $4 billion and $6 billion.  All but 10 of the stock and
        bond funds will institute the breakpoints.
     -- Unbundling management fees and administration fees.  While some
        Funds now charge only a management fee, the management fee will be
        separated from the administration fee.  Management fees will decline,
        and new administration fees will be introduced.  If shareholders of the
        funds being unbundled approve the new advisory agreement, the amount of
        the new administration fee will be greater than the reduction in the
        management fee by 5 basis points for stock funds, 3 basis points for
        bond funds, and 2 basis points for money market funds.  Strong
        anticipates this change will provide greater consumer clarity about
        fund fees.
     -- For most funds, removal of a 2% expense cap.  This cap had been
        included in the current advisory agreement under a state law
        requirement that has since been repealed.  No immediate impact on Fund
        expenses is anticipated.
 
     Shareholders of the Strong Discovery Fund will be asked to vote on a
 reorganization into the Strong Enterprise Fund.  About this development, Mr.
 Zoeller said, "The funds have similar investment objectives and policies, and
 the Strong Enterprise Fund offers a lower expense ratio than the Strong
 Discovery Fund.  This is a sound management move in the best interest of our
 investors."
     Shareholders also will be asked to ratify the appointment of auditors and
 reelect directors.  In addition, Strong Value Fund shareholders will vote on a
 subadvisory agreement, which is required by the terms of the agreement.
     Proxy mailings will begin in late May 2001.  The shareholder meetings are
 currently scheduled for late July 2001.
     Other changes to the funds that are not subject to shareholder
 approval include:
     -- The closing of the Strong International Bond Fund, Strong International
        Stock Fund II (a variable annuity), Strong Discovery Fund II (a
        variable annuity), and the Advisor and Institutional Classes of the
        municipal income funds (this excludes the Strong Municipal Advantage
        Fund).
     -- An increase in the per account transfer agent fee for Investor Class
        and Class Z shares of equity funds to $27.00.  The Funds have not
        increased this fee since 1988.
 
     One of the nation's leading investment management firms, Strong
 Capital Management, Inc. is a privately-held, registered investment advisor
 serving individuals, retirement plans, financial advisors, institutions, and
 foundations.  Securities are offered through Strong Investments, Inc., an
 affiliated company.  Founded in 1974, the firm is headquartered in Menomonee
 Falls, Wis., and manages over $43 billion.
 
     The Enterprise Fund generally invests in stocks of small- and
 medium-capitalization companies, though it may invest in companies of any
 size.  Because smaller companies often have narrower markets and limited
 financial resources, investments in these stocks present more risk than
 investments in those of larger, more established companies.  For more complete
 information, including management fees and expenses, please call for a free
 prospectus.  Please read it carefully before you invest or send money.
 PR12520-0401
 
 SOURCE  Strong Capital Management, Inc.