Dow Jones and ProFunds Sign Exclusive License for Mutual Funds, Exchange-Traded Funds

Princeton, NJ and Bethesda, MD, December 13, 2000 — Dow Jones & Company and ProFunds today announced they have entered into a license agreement giving ProFunds rights to offer leveraged exchange traded and conventional mutual funds benchmarked to Dow Jones U.S. sector indexes.

The license agreement grants ProFunds certain exclusive rights to market leveraged mutual funds and leveraged exchange-traded funds (ETFs) based upon the Dow Jones sector indexes. The agreement also confers non-exclusive rights to market non-leveraged mutual funds benchmarked to these indexes.

"We are delighted to enter into this association with ProFunds, an innovator in the fund industry offering index-based investment products," said Michael Petronella, Managing Director of Dow Jones Indexes. "The agreement covers the twenty-one current ProFunds that seek leveraged returns benchmarked to specified Dow Jones U.S. sector indexes, as well as the potential to introduce leveraged funds that are listed and traded on a stock exchange, known as exchange traded funds. ProFunds is also licensed to offer non-leveraged mutual funds that seek returns approximating the returns of Dow Jones sector indexes."

"We are enthusiastic to use the Dow Jones sector indexes as the basis for our important new funds," said Michael L. Sapir, Chairman of ProFunds. "We believe that the Dow sectors indexes are the best defined and organized indexes for tracking economic sectors and do an excellent job in reflecting the state of the 'new and old' economy in the United States. Unlike some other available indexes, we view the Dow sector indexes as 'investable,' meaning their returns can be replicated by investment managers."

ProFunds currently offers 21 mutual funds each seeking daily investment results, before fees and expenses, that correspond to 150% of the performance of one of the following Dow Jones indexes: Airlines, Banking, Basic Materials, Biotechnology, Energy, Entertainment and Leisure, Financial, Healthcare, Industrial, Internet, Oilfield Equipment & Services, Pharmaceuticals, Precious Metals, Real Estate, Semiconductor, Technology, Telecommunications, Utilities and Wireless Communications.

ProFunds is an innovative family of mutual funds designed to overcome the limitations of conventional index funds. ProFunds offers 32 public index-based mutual funds, the largest number of index mutual funds of any U.S. fund family. ProFunds permit investors to react to financial or economic developments by exchanging their investments among ProFunds without restriction. ProFunds impose no transaction, entry or exit fees.

Certain ProFunds routinely employ leveraged investment techniques that should magnify gains and losses and result in greater volatility in value. There is no guarantee that any ProFund will achieve its investment objective. Investment return and principal value will vary and shares may be worth more or less at redemption than at original purchase.

For more complete information on ProFunds, including charges, expenses and ongoing fees, please call ProFunds at 1-888-776-5717 for a prospectus. Read it carefully before investing or sending money. ProFunds are distributed by Concord Financial Group.