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ProFunds Launches UltraShort Dow 30 ProFund

New ProFund creates largest lineup of Inverse funds in the industry

Bethesda, MD, August 11, 2004 -- ProFund Advisors LLC, investment adviser to the innovative ProFunds family of index-based mutual funds, today announced the launch of the UltraShort Dow 30 ProFund, a new Inverse ProFund. The new fund seeks to move in the opposite direction of the Dow Jones Industrial AverageSM (DJIA), its benchmark index.

"We continue to respond to the needs of financial professionalisors and individual investors by introducing new ProFunds to help implement their investment strategies," said Michael L. Sapir, Chairman and CEO of ProFund Advisors. "With the DJIA recently dropping to a new low for 2004, we received numerous requests for an Inverse ProFund pegged to the Dow. We expect that this ProFund will be used to hedge portfolios or seek profit during an anticipated downturn in the DJIA," Sapir said.

Since ProFunds does not impose redemption fees or limitations on exchanges among ProFunds, investors can move in and out of Inverse ProFunds as market conditions change.

The UltraShort Dow 30 ProFund seeks daily investment results, before fees and expenses, corresponding to twice the inverse of the daily performance of the DJIA. That means when the DJIA goes down by 1% on a particular day, the UltraShort Dow 30 ProFund should increase by 2%, before fees and expenses. Conversely, when the DJIA goes up by 1%, the UltraShort Dow 30 ProFund should decline by 2%.

ProFunds now offers eight inverse mutual funds, the largest number in the industry.1 Inverse ProFunds seek to increase in value when their benchmark indexes decline, and decrease in value when the indexes rise. Inverse ProFunds include:

Inverse ProFund Benchmark Index Daily Objective
Bear S&P 500® Index Inverse
Short Small-Cap Russell 2000® Index Inverse
Short OTC NASDAQ 100® Index Inverse
UltraBear S&P 500® Index Double the Inverse
UltraShort Mid-Cap S&P MidCap 400® Index Double the Inverse
UltraShort Small-Cap Russell 2000® Index Double the Inverse
UltraShort OTC NASDAQ-100® Index Double the Inverse
UltraShort Dow 30 Dow Jones Industrial AverageSM Double the Inverse

About the Dow 30 Index

The DJIA is a price-weighted index that is calculated as a simple average. The Index includes 30 large-cap, blue-chip U.S. stocks, excluding utility and transportation companies. They represent the leading U.S. companies in the industries driving the U.S. stock market, are widely held by investors, and have long records of sustained growth. It is not possible to invest directly in an index.

About ProFunds

ProFunds offers more than 40 benchmarked mutual funds. Its innovative offerings include Classic ProFunds designed to match the return of an index, Ultra ProFunds that seek to magnify an index's daily performance, Inverse ProFunds that seek to increase in value when markets decline, and a comprehensive lineup of UltraSector ProFunds that track sector and industry indexes. ProFunds does not restrict investors' abilities to react to financial or economic changes and shift their investments from one ProFund to another, although exchanges may have tax consequences.

Investing in Inverse ProFunds can involve certain risks, including in all or some cases, leverage, liquidity, short sale, small-cap company and repurchase agreement risks. These risks can increase volatility and decrease performance. Please see the prospectus for a more complete description of these risks. All ProFunds permit active investment strategies that can decrease performance and increase expenses.

An investor should consider the investment objectives, risks, and charges and expenses of ProFunds carefully before investing or sending money. The prospectus contains this and other information about ProFunds. To obtain a prospectus, please call 888-PRO-FNDS or visit www.profunds.com. Financial Professionals should call 888-PRO-5717. The prospectus should be read carefully before investing. ProFunds are distributed by ProFunds Distributors, Inc.

"S&P 500®" Index and S&P MidCap 400 Index are trademarks of The McGraw-Hill Companies, Inc. and have been licensed for use by ProFunds. The NASDAQ-100 Index® and the Russell 2000® Index are trademarks or service marks of, respectively, the NASDAQ Stock Market (NSM) and Frank Russell Company. ProFunds are not sponsored, endorsed, sold or promoted by these organizations and the organizations make no representation regarding the advisability of investing in ProFunds.

1 Source: Lipper

Media contact

Tucker Hewes, Hewes Communications, Inc., (212) 207-9451, tucker@hewescomm.com