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Case Status:    SETTLED
On or around 10/25/2010 (Date of order of final judgment)

Filing Date: October 31, 2003

As summarized by the Company’s FORM 10-Q for the quarterly period ended September 30, 2007, following the industry-wide investigation by the SEC, the New York Attorney General’s Office and other regulators, into potential market timing activity in mutual funds, multiple lawsuits based on market timing allegations were filed against various parties affiliated with Invesco. These lawsuits were consolidated in the United States District Court for the District of Maryland, together with market timing lawsuits brought against affiliates of other mutual fund companies, and three amended complaints were filed against company-affiliated parties: (1) a putative shareholder class action complaint brought on behalf of shareholders of AIM funds formerly advised by Invesco Funds Group, Inc.; (2) a derivative complaint purportedly brought on behalf of certain AIM funds (including certain funds formerly advised by Invesco Funds Group, Inc.) and such fund registrants; and (3) an ERISA complaint purportedly brought on behalf of participants in the company’s 401(k) plan. On March 1, 2006, the court entered orders dismissing certain claims asserted against company-related defendants in the shareholder class action and derivative lawsuits but preserving claims under Section 10(b) of the Exchange Act and Section 36(b) of the Investment Company Act of 1940, as amended. On September 15, 2006, the court dismissed the ERISA lawsuit with prejudice. The plaintiff has appealed that dismissal to the United States Court of Appeals for the Fourth Circuit.

In March 2004, the case was transferred from the U.S. District Court for the District of Colorado to the U.S. District Court for the District of Maryland. The case is being handled in Multidistrict Litigation under, In re Mutual Funds Investment Litigation, case number 04-MD-15864. On September 30, 2004, a Consolidated Amended Class Action Complaint was filed.

The complaint alleges violations of the Securities Act of 1933, the Securities Exchange Act of 1934, among other claims, and for common law breach of fiduciary duties. The Complaint alleges that during the Class Period the defendants engaged in illegal and improper trading practices, in concert with certain institutional traders, which caused financial injury to the shareholders of the INVESCO Mutual Funds. According to the Complaint, the Defendants surreptitiously permitted certain favored investors, including Canary and the Doe Defendants, to illegally engage in 'timing' of the INVESCO Mutual Funds whereby these favored investors were permitted to conduct short-term, 'in and out' trading of mutual fund shares, despite explicit restrictions on such activity in the INVESCO Mutual Funds' prospectuses. Specifically, the Complaint alleges that defendants violated Sections 11 and 15 of the Securities Act of 1933; Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder; and Section 206 of the Investment Advisers Act of 1940. The Complaint alleges that late trading and timing practices injure ordinary mutual fund investors, who are not allowed to engage in such practices, and are acknowledged as improper practices by the Funds. The Complaint alleges that these practices were undisclosed in the prospectuses of the Funds, which falsely represented that the Funds actively police against timing and represented that post 4 P.M. EST trades will be priced based on the next day's net asset value and that premature redemptions will be assessed a charge.

On January 15, 2010, the parties entered into a Stipulation and Agreement of Settlement. On October 25, the Court granted final approval of the Settlement, including an award of Attorneys’ Fees and Expenses, and entered Final Judgment.

The Funds, and the symbols for the respective Funds named in the complaint, are as follows:

INVESCO Advantage Health Sciences Fund (Sym: IAGHX, IGHBX, IGHCX);
INVESCO Advantage Fund (Sym: IADAX, IADBX, IADCX);
INVESCO Latin American Growth Fund (Sym: IVSLX);
INVESCO Core Equity Fund (Sym: ICEAX, ICEBX, IINCX, FIIIX, IEIKX);
INVESCO Dynamics Fund (Sym: IDYAX, IDYBX, IFDCX, FIDYX, IDYKX);
INVESCO Energy Fund (Sym: IENAX, IENBX, IEFCX, FSTEX, IENKX);
INVESCO Financial Services Fund (Sym: IFSAX, IFSBX, IFSCX, FSFSX, FSFKX);
INVESCO Gold & Precious Metals Fund (Sym: IGDAX, IGDBX, IGDCX, FGLDX);
INVESCO Health Sciences Fund (Sym: IAHSX, IBHSX, IHSCX, FHLSX, IHSKX);
INVESCO International Core Equity Fund (formerly known as International Blue Chip Value Fund)
(Sym: IBVAX, IBVBX, IBVCX, IIBCX);
INVESCO Leisure Fund (Sym: ILSAX, LSBX, IVLCX, FLISX, ILEKX);
INVESCO Mid-Cap Growth Fund (Sym: IMGAX, IMGBX, IMGCX, IVMIX);
INVESCO Multi-Sector Fund (Sym: IAMSX, IBMSX, ICMSX, ICMSX);
AIM INVESCO S&P Index Fund (Sym: ISPIX);
INVESCO Small Company Growth Fund(Sym: ISGAX, ISGBX, ISGCX FIEGX ISCKX);
INVESCO Technology Fund (Sym: ITYAX, ITYBX, ITHCX, FTCHX, ITHKX);
INVESCO Total Return Fund(Sym: IATRX, IBTRX, ITRCX, FSFLX);
INVESCO Utilities Fund(Sym: IAUTX, IBUTX, IUTCX, ISTUX);
AIM INVESCO Cash Reserves Fund (currently known as AIM Money Market Fund)
(New symbol: AIMXX);
AIM INVESCO Tax-Free Money Fund (Sym: FFRXX);
AIM INVESCO Treasurers Money Market Reserve Fund (Sym: IMRXX);
AIM INVESCO Treasurers Tax-Exempt Reserve Fund (Sym: ITTXX);
AIM INVESCO US Government Money Fund (Sym: FUGXX);
INVESCO Advantage Fund (Sym: IADAX, IADBX, IADCX);
INVESCO Balanced Fund (Sym: IBLAX, IBLBX, IBNCX, IBFIX, IMABX, IBLKX);
INVESCO European Fund (Sym: IEUAX, IEUBX, FEURX, IEUKX);
INVESCO Growth Fund (Sym: IAGWX, IBGWX, IBGCX, FLRFX, IGWKX);
INVESCO High-Yield Fund (Sym: IAHYX, IBHYX, IHYCX FHYPX., IHYKX);
INVESCO Growth & Income Fund, (Sym: IGIAX, IGIBX, IGRCX, IVGIX, IGIKX);
INVESCO Real Estate Opportunity Fund (Sym: IAREX, IBREX, IRECX, IVSRX);
INVESCO Select Income Fund (Sym: IASIX, IBSIX, ISICX, FBDSX);
INVESCO Tax-Free Bond Fund (Sym: IXBAX, IXBBX, ITFCX, FTIFX);
INVESCO Telecommunications Fund (Sym: ITLAX, ITLBX, INTCX, ISWCX, ITEKX);
INVESCO U.S. Government Securities Fund (Sym :IGVAX, IGVBX, IUGCX, FBDGX);
INVESCO Value Fund (Sym: IAVEX, IBVEX, IVACX, FSEQX)

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