Fidelity Fined For Misleading Troops

Week of May 14, 2007

The National Association of Security Dealers (NASD) has fined two Fidelity broker-dealers $400,000 for distributing sales literature using performance charts and data that misled military personnel on the plans' performance. This was aggravated by the fact that the plans were sold primarily to servicemembers who seldom have the time or opportunity to study marketing materials for investment products.

In addition to the fine, the settlement requires the Fidelity broker-dealers to notify Destiny Plan holders who want to increase their investments in existing Destiny Plans that additional shares can be purchased outside of the Destiny Plans without paying the additional sales charges of up to 50 percent on the first year's payments. More information about the ongoing, global campaign can be found at www.saveandinvest.org. For more detailed information, visit the NASD website at www.nasd.com/index.htm.

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