Pioneer Investments and Bulbank introduce 4 new Sub-Funds to the market and widens its product offer to 13 Sub-Funds in total.

Bulgarian investors have unique possibility newly invest in equities of Eastern European companies (Pioneer Funds – Eastern European Equity), participate on returns and growth potential of American mid and small companies and the relative stability of larger ones (Pioneer Funds – U.S. Mid Cap Value), invest in bonds issued by Emerging Markets’ governments, including Bulgarian (Pioneer Funds – Emerging Markets Bond), eventually, for conservative investors, there’s an opportunity to invest in new absolute return fund (Pioneer Funds – Total Return Dynamic).

In January 2005 it has been two years since Pioneer Investments entered the Bulgarian market and started active offering of the new products in cooperation with Bulbank AD. Pioneer Investments was the first foreign asset manager to offer investment products in Bulgaria and thereby opened for Bulgarian investors investment avenues to the markets worldwide.

The mutual activity of both parties, Pioneer Investments and Bulbank, resulted in 21.2 mil EUR total assets under management (12.3 mln EUR from direct investments and 8.9 mil EUR assets under management from a product linked structured deposit). These assets under management were obtained by over 2000 customers of both products (data as of August 31, 2005, source – Pioneer Investments). With these results Pioneer Investments remains the market leader and is currently possessing 37% of Bulgarian mutual fund market.

Pioneer Funds – Eastern European Equity

The portfolio of the Sub-Fund invests in equities issued by companies established or operating in Central and Eastern Europe as well as in selected countries in the Middle East. The Sub-Fund is suitable for investors who wish to participate in specialised equity markets anticipating high growth potential. Investments in rapidly growing Eastern European economies with very positive growth prospects can be a solution.

Pioneer Funds – U.S. Mid Cap Value

Pioneer Funds – U.S. Mid Cap Value invests in medium sized U.S. companies offering the growth potential of small companies and the relative stability of larger ones. Portfolio uses a “value” style of management, i.e. portfolio manager seeks well-managed mid-sized corporates producing perspective products. Criteria such as high profitability, growth potential and financial strength are the critical ones for successful equity selection. Pioneer Funds – U.S. Mid Cap Value received an excellent AA Fund Management rating from Standard & Poor’s in 2004.

Pioneer Funds – Emerging Markets Bond

Pioneer Funds – Emerging Markets Bond, a diversified, multi-sector portfolio, offers investors access to compelling investment opportunities in emerging markets debt. The objective of the Sub-Fund is to achieve capital appreciation and income over the medium to long term by investing its assets in diversified portfolio of debt securities issued by countries generally considered to be emerging markets. Also bonds issued by Bulgarian government represent a part of the diversified portfolio of more than 110 holdings.

Pioneer Funds – Total Return Dynamic

Pioneer Funds – Total Return Dynamic aims to achieve absolute performance and capital preservation over the medium to long-term horizon. Focus on absolute, resp. total return means that the performance of the Sub-Fund is not compared with the performance of the benchmark as no benchmark is set for this Sub-Fund, but the performance target has been determined – Euribor plus 150 bp. Balanced Pioneer Funds – Total Return Dynamic may invest up to 75% of its net assets in equities and up to 25% in convertible bonds. To limit the negative impact of the markets’ declines, the Sub-Fund is authorised to invest in financial derivative instruments or engage in certain techniques for hedging.

***

Investors’ information

Past performance does not guarantee future results. There can be no assurances that countries, markets or sectors will perform as expected. The information herein is an illustration and does not constitute an offering of investment fund shares. We strongly recommend to request free Pioneer Funds Prospectus and to read it carefully about conditions and risks before investing. The Prospectus is available at all Bulbank branches. We recommend discussing the risk tolerance with your investment professional. Pioneer Funds (the “Fund”) is a fonds commun de placement with several separate Sub-Funds established under the laws of the Grand Duchy of Luxembourg. The Luxembourg domiciled Sub-Funds may not be publicly offered for sale in the United States of America, or in any of its territories or possessions subject to its jurisdiction or to/for benefit of a United States Person. The Bulgarian National Securities Commission (NSC), succeeded by the Financial Supervision Commission (FSC) with effect from March 1, 2003, issued on 26 August 2002, under # 137 – E the decision to confirm the Prospectus and Management Regulations dated February 11, 2002, as lastly amended in April 2005, for public offering of units of Pioneer Funds in the Republic of Bulgaria.