NEW YORK, June 9, 2004 -- As the first wave of 76 million Baby Boomers prepares to retire, Fidelity Investments today unveiled "Fidelity Retirement Income AdvantageSM," a comprehensive new service that helps investors with the complex task of planning for, monitoring and managing their complete financial situation throughout retirement.

At the core of the new service is the "Income Management Account," an administrative engine which will help individual investors monitor investment performance and manage their Fidelity and non-Fidelity assets, multiple income sources, expenses and spending levels during retirement. Available this fall, the Income Management Account will monitor an investor's financial action plan developed using Fidelity's online "Retirement Income Planner" tool and based on investor-selected strategies for portfolio growth. The Income Advantage program also provides guidance tools for individual investors which they can use alone, or if they choose, with assistance from a Fidelity representative throughout the process - from planning to implementation and during retirement.

"Millions of Americans today face a retirement that will be riskier and much more complicated than their parents faced," said Robert L. Reynolds, vice chairman and chief operating officer, Fidelity Investments.

"When a regular paycheck goes away, so does the convenience of automatic deductions for taxes, insurance, savings and other systematic payments that American workers can take for granted. In addition, we've found that those individuals nearing retirement with more complex finances anticipate having on average nine sources of retirement income. Retirees will find themselves responsible for keeping track of myriad critical financial details - just as they're embarking on a phase of life that's supposed to be more enjoyable and relaxing.

"Our Income Advantage program, with its education, planning tools and administrative account, helps investors plan for and address a very real and complex financial concern - how to successfully make the transition from saving for retirement to actually living off those savings while managing their assets for continued growth. We've assembled Fidelity's best resources and innovative technologies to create a level of guidance tools for the broadest number of Americans preparing for or in retirement," said Reynolds.

This integrated suite of in-person, rep-assisted and online services and tools is being rolled out to millions of investors Fidelity serves directly and in workplace retirement plans.

Understanding the important role of investment professionals, Fidelity has also introduced Fidelity Advisor Retirement Income Services, a comprehensive program which financial advisors can use to help their clients through the process of structuring a portfolio to meet income needs throughout retirement.

The program includes a series of education, planning strategies and products which can be integrated with an advisor's existing retirement planning resources. In addition, Fidelity has introduced capabilities designed to help correspondent broker/dealers and registered investment advisors meet the retirement income planning needs of their clients. These programs are designed to help investment professionals strengthen relationships and grow their business.

Investors Are At Risk

"In a new survey, Fidelity has found that most investors nearing retirement with more complex finances have not developed an income plan and are at risk for outliving their savings," said Cynthia Egan, executive vice president of Fidelity Retirement Income Services. "Nearly half of these investors approaching retirement have not estimated how long they expect to live, while three quarters have not considered how much they'll need for medical expenses.

"In addition, they expect to withdraw a greater percentage of their assets annually than we suggest. Social Security and pensions each typically account for as little as 20 percent of retirement income2. That means most of a retiree's income must come from their invested assets. However, half of pre-retirees and retirees we've surveyed have not developed an investment strategy to allow their savings to grow during retirement. Fidelity's Retirement Income Advantage program also provides a process investors can use to structure a retirement portfolio to generate needed income," said Egan.

Retirement Income Planner

Fidelity's Retirement Income Planner tool helps investors develop a comprehensive plan which can be adjusted as their situations change. It guides investors through five key retirement risks - outliving assets, erosion of purchasing power, assuming too much/too little investment risk, spending assets too quickly and the rising cost of health care. It also offers a real-time analysis that can be used to predict how long assets may last, tips for closing potential gaps between income and expenses, and an action plan for immediate steps. Investors can use the Retirement Income Planner tool independently or with assistance from a Fidelity representative if they wish(3).

Investment Strategies

Investors and advisors choose a target asset mix, appropriate for their age and risk tolerance. Individual investors then select from an extensive array of investment strategies including: mutual funds, equities, fixed income investments, annuities, money market funds, and certificates of deposit. They can also access Rollover IRAs, cash management, managed portfolios and insurance offerings that may fit various lifetime income strategies. Advisors will be able to choose from a wide range of Fidelity Advisor funds to complement their portfolio construction for each individual client.

Income Management Account

The Income Management Account will present a holistic view of an investor's complete financial situation - at a glance or in-depth. Individual investors can use the account to generate a paycheck for themselves in retirement. They can also request phone or email alerts drawing attention to incoming Social Security or pension checks, dates for minimum required distributions, as well as warnings if spending cash needs replenishing or investment strategies drift off track.

Each year customers will be reminded to conduct an annual review in person or by phone to ensure they are successfully executing against their plan. Income Management Account will also feature check writing, automatic bill payment, credit cards and enhanced monthly statements, customized for retirees with more detailed asset allocation reporting across Fidelity and non-Fidelity accounts.

For more information on how to build and manage a retirement income plan, individual investors can visit Fidelity's Retirement Resource Center at www.fidelity.com/retire. Financial advisors can visit http://advisor.fidelity.com/individualretirement, correspondent broker/dealers can visit www.nationalfinancial.com, and RIAs can visit the Retirement Solutions portal on Fidelity's AdvisorChannel.com.

About Fidelity

Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $1.8 trillion, including managed assets of $1.0 trillion as of April 30, 2004. Fidelity offers investment management, retirement planning, brokerage, human resources and benefits outsourcing services to 18 million individuals and institutions as well as through 5,500 financial intermediaries. 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.

1 According to a Fidelity estimate based upon U.S. Census of adult Americans, the oldest of the 76 million Baby Boomers under the age of 65 will reach that traditional retirement age over the next 10 years.

2 Source: Social Security Administration, Office of Policy, Income of the Aged Chartbook, 2001. Key sources of retirement income for households with incomes of $40,000 or more per year.

3 Fidelity's Retirement Tools are educational and not intended to serve as the primary basis for investment or tax-planning decisions.

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Fidelity Brokerage Services LLC, Member NYSE, SIPC, 100 Summer Street, Boston, MA 02110 v Fidelity Investments Institutional Services Company, 82 Devonshire Street, Boston, MA 02109

Fidelity Investments commissioned independent research firm Richard Day Research, Inc. to field a nationwide poll of 1,410 Americans age 55-75 with household investable assets of $100,000, including workplace retirement plans. Data was collected online and by phone May 12-19, 2004 and weighted to reflect the overall population of the target group.

Fidelity Investments (617) 563-5800