Electronic Proxies Present Opportunity to Reduce Fund Expenses KANSAS CITY, Mo., May 9 /PRNewswire-FirstCall/ -- Mutual fund companies can now maximize the cost-saving advantages of a recent SEC rule that allows for the electronic delivery of proxy materials. DST Output and its parent company, DST Systems, Inc., have partnered to provide an integrated solution designed to help fund companies reduce costs associated with traditional print-and-mail proxy campaigns. The DST solution includes electronic materials delivery and voting support, as well as cost-effective, on-demand production and delivery of printed materials per shareholder request. The solution also includes consent adoption (securing shareholder consent for electronic proxy delivery) and consent management (providing electronic or printed materials accordingly). The SEC's recently adopted Internet Availability of Proxy Materials Rule (known informally as the "Notice and Access" rule), gives fund companies the option of replacing their standard print-and-mail delivery of proxy voting materials with a less costly notification directing shareholders to the availability of materials online. The SEC has proposed that the electronic availability of proxy materials be made mandatory for registered investment companies in 2009. "Investment companies have an opportunity to improve service by tailoring communications to the stated preferences of investors while at the same time dramatically reducing delivery costs," said Elizabeth Gooding, president of Art Plus Technology, Inc. and sponsor of the Notice and Access Symposium held in February of this year. "Due to the multi-level requirements of the Notice and Access provisions, the fastest path to realize these benefits for most firms will be through outsourcing." DST's proxy delivery solution leverages DST Systems' experience in providing electronic proxy materials and voting technology in the equities market, as well as DST Output's nearly 35-year history of supporting the printing and mailing of proxy materials in the mutual fund market. Further, DST Output's recent investment in its Digital Press Technology (DPT) platform enables the company to print proxy materials on demand more cost effectively than relying on traditional off-set printing technology. "The SEC Notice and Access rule presents a great opportunity for funds to utilize the latest in electronic delivery and print-on-demand technology-and potentially realize significant cost savings," said Dana Johnston, vice president, strategic business solutions, DST Output. "With its integrated, single-source solution, the DST enterprise is uniquely positioned to help fund clients determine how best to take advantage of the SEC ruling." DST Output, a subsidiary of DST Systems Inc., provides integrated print and electronic statement and billing output solutions to many of the country's largest financial services, communications, insurance, healthcare, and utilities companies. In 2006, DST Output and its affiliates produced more than 2.6 billion customer communications, delivered throughout the United States, Canada and the U.K. via postal service, express delivery and over the Internet. We are the largest third-party First-Class(TM) mailer in the United States. DST Systems, Inc. provides sophisticated information processing and computer software products and services to support the mutual fund, investment management, insurance and healthcare industries. In addition to technology products and services, DST provides integrated print and electronic statement and billing output solutions through a wholly owned subsidiary. DST's world-class data centers provide technology infrastructure support for mutual fund companies, healthcare providers, banks, mortgage bankers and insurance companies around the globe. DST is headquartered in Kansas City, Mo., and is a publicly traded company on the New York Stock Exchange. The information and comments above may include forward-looking statements respecting DST and its businesses. Such information and comments are based on DST's views as of today, and actual actions or results could differ. There could be a number of factors affecting future actions or results, including those set forth in DST's latest periodic financial report (Form 10-K or 10-Q) filed with the Securities and Exchange Commission. All such factors should be considered in evaluating any forward-looking comment. The Company will not update any forward-looking statements in this press release to reflect future events. DATASOURCE: DST Output CONTACT: Jill Patton, Media Relations of DST Output, +1-816-843-9087

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