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Case Status:    SETTLED
On or around 07/18/2007 (Date of order of final judgment)

Filing Date: March 04, 2004

American Express Financial Advisors, Inc. ("AEFA" or the Company)

The original Complaint alleges that Defendant violated sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder by the Securities and Exchange Commission, and all amendments thereto, by issuing a series of material misrepresentations to AEFA clients during the Class Period. Specifically, the Complaint alleges that AEFA, through its financial advisors, purported to provide objective investment and financial planning advice based on each client's particular circumstances in life but, in fact, had an undisclosed interest in pushing AEC Funds and certain other preferred funds, which were among the poorest performing mutual funds on the market. The Complaint further alleges that class members were harmed by Defendants' fraudulent conduct because they paid AEFA a substantial fee and believed they were receiving objective advice when, in fact, AEFA financial advisors were strongly motivated to and did advise their clients to purchase AEC Funds and certain other preferred funds. The Complaint further alleges that because of such deception and manipulation, AEFA clients were prevented from making fully informed investment decisions and that their trust reposed in their AEFA advisors was violated.

On January 18, 2007, the parties entered into a Stipulation of Settlement. The Court granted preliminary approval of the Settlement on February 15. On July 18, 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, that may be subject to the lawsuit are as follows:
AXACX AXP Blue Chip Advantage Fund;
IBLUX AXP Blue Chip Advantage Fund;
IDBCX AXP Blue Chip Advantage Fund;
IDBYX AXP Bond Fund Inc;
INBNX AXP Bond Fund Inc;
ININX AXP Bond Fund Inc;
ACABX AXP California Tax Exempt Fund;
ICALX AXP California Tax Exempt Fund;
IDIBX AXP Discovery Fund Inc;
IDVYX AXP Discovery Fund Inc;
INDYX AXP Discovery Fund Inc;
ADECX AXP DIV EQTY C;
ACUIX AXP DIVDND OPP C;
IDEBX AXP Diversified Equity Income Fund;
IDQYX AXP Diversified Equity Income Fund;
INDZX AXP Diversified Equity Income Fund;
AXBCX AXP DIVSFD BD C;
IDEAX AXP Emerging Markets Fund;
IEMBX AXP Emerging Markets Fund;
AESCX AXP Equity Select Fund;
IDQBX AXP Equity Select Fund;
IESYX AXP Equity Select Fund;
INVPX AXP Equity Select Fund;
IEVAX AXP Equity Value Fund;
INEGX AXP Equity Value Fund (NASDAQ: AEEBX);
AXP European Equity Fund Inc;
AXEAX AXP European Equity Fund Inc (NASDAQ: APECX);
AXP Extra Income Fund Inc;
IEIBX AXP Extra Income Fund Inc;
INEAX AXP Extra Income Fund Inc;
IDFYX AXP Federal Income Fund Inc;
IFINX AXP Federal Income Fund Inc;
ISHOX AXP Federal Income Fund Inc;
AUGAX AXP Federal Income Fund Inc US Government Mortgage Fund;
AUGBX AXP Federal Income Fund Inc US Government Mortgage Fund;
AUGCX AXP Federal Income Fund Inc US Government Mortgage Fund;
AFAFX AXP Focus Growth Fund;
AFTBX AXP Focus Growth Fund;
ACBAX AXP Funds Core Bond Fund;
INUTX AXP Funds Dividend Opportunity Fund;
IUTBX AXP Funds Dividend Opportunity Fund;
AIOAX AXP Funds Income Opportunities Fund;
AIOBX AXP Funds Income Opportunities Fund;
ALDAX AXP Funds Limited Duration Bond Fund;
ALDBX AXP Funds Limited Duration Bond Fund;
AGBYX AXP Global Balanced Fund;
IDGAX AXP Global Balanced Fund;
IGBBX AXP Global Balanced Fund;
AGBCX AXP Global Bond Fund;
IGBFX AXP Global Bond Fund;
IGLOX AXP Global Bond Fund;
IDGBX AXP Global Equity Fund;
IDGYX AXP Global Equity Fund;
IGLGX AXP Global Equity Fund;
AXIAX AXP Global Technology Fund;
AXICX AXP Global Technology Fund;
INVBX AXP Global Technology Fund;
ABGDX AXP Growth Dimension Fund Inc;
AXDAX AXP Growth Dimension Fund Inc;
IGRBX AXP Growth Fund Inc;
IGRYX AXP Growth Fund Inc;
INIDX AXP Growth Fund Inc;
ALVAX AXP Growth Series Inc Large Cap Value Fund;
ALVBX AXP Growth Series Inc Large Cap Value Fund;
AXGCX AXP GRTH C;
AHECX AXP High Yield Tax Exempt Fund;
IBCYX AXP High Yield Tax Exempt Fund;
IHYBX AXP High Yield Tax Exempt Fund;
INHYX AXP High Yield Tax Exempt Fund;
IINBX AXP Insured Tax Exempt Fund;
IINSX AXP Insured Tax Exempt Fund;
INFAX AXP Intermediate Tax Exempt Fund;
INFBX AXP Intermediate Tax Exempt Fund;
IDIYX AXP International Fund Inc;
INIFX AXP International Fund Inc;
IWWGX AXP International Fund Inc;
APIBX AXP International Series Inc International Aggressive Growth Fund;
AMVAX AXP Investment Series Inc Mid Cap Value Fund;
AMVBX AXP Investment Series Inc Mid Cap Value Fund;
ALEAX AXP Large Cap Equity Fund;
ALEBX AXP Large Cap Equity Fund;
ARQCX AXP Large Cap Equity Fund;
IDRYX AXP Managed Allocation Fund Inc;
IMRBX AXP Managed Allocation Fund Inc;
IMRFX AXP Managed Allocation Fund Inc;
AMIDX AXP Market Advantage Series Inc Mid Cap Index Fund;
IDMAX AXP Massachusetts Tax Exempt Fund;
INMIX AXP Michigan Tax Exempt Fund;
IDSMX AXP Minnesota Tax Exempt Fund;
IMNTX AXP Minnesota Tax Exempt Fund;
IDMBX AXP Mutual Fund Inc;
IDMYX AXP Mutual Fund Inc;
INMUX AXP Mutual Fund Inc;
ANDCX AXP New Dimension Fund Inc;
AXGDX AXP New Dimension Fund Inc;
IDNYX AXP New Dimension Fund Inc;
INDBX AXP New Dimension Fund Inc;
INNDX AXP New Dimension Fund Inc;
INYKX AXP New York Tax Exempt Fund;
IOHIX AXP Ohio Tax Exempt Fund;
ASGBX AXP PART SMLCP B;
APIAX AXP PARTNERS A;
AISCX AXP Partners Funds International Small Cap Fund;
APNBX AXP Partners Funds International Small Cap Fund ;
AAICX AXP Partners International Series Inc International Core Fund;
APCBX AXP Partners International Series Inc International Core Fund;
APICX AXP Partners International Series Inc International Select Value Fund;
AXGAX AXP Partners International Series Inc International Select Value Fund;
AXIBX AXP Partners International Series Inc International Select Value Fund;
AFVCX AXP Partners Series Inc Fundamental Value Fund;
ACSVX AXP Partners Series Inc Select Value Fund;
AXVAX AXP Partners Series Inc Select Value Fund;
AXVBX AXP Partners Series Inc Select Value Fund;
AXSAX AXP Partners Series Inc Small Cap Core Fund;
AXSBX AXP Partners Series Inc Small Cap Core Fund;
AFVBX AXP Partners Series Inc Value Fund;
AVFBX AXP Partners Series Inc Value Fund;
AVUCX AXP Partners Series Inc Value Fund;
APVCX AXP Partners Series Small Cap Value Fund;
APRCX AXP Partners Small Cap Growth Fund;
AXSCX AXP Partners Small Cap Growth Fund;
INPBX AXP Precious Metals Fund Inc;
INPMX AXP Precious Metals Fund Inc;
INPRX AXP Progressive Fund Inc;
IPRBX AXP Progressive Fund Inc;
AFVAX AXP PRTNRS VL A;
AVLAX AXP PRTRS VAL A;
IRDAX AXP Research Opportunities Fund;
IROBX AXP Research Opportunities Fund;
ADIDX AXP S&P 500 Index Fund;
ADIEX AXP S&P 500 Index Fund (NASDAQ: ASLCX);
AXP Selective Fund Inc;
IDEYX AXP Selective Fund Inc;
INSEX AXP Selective Fund Inc;
ISEBX AXP Selective Fund Inc;
ASVAX AXP SM CAP VAL A;
ASVBX AXP SM CAP VAL B
ISCYX AXP Small Companies Index Fund;
ISIAX AXP Small Companies Index Fund;
ISIBX AXP Small Companies Index Fund;
AXFCX AXP ST US GOV C;
AXMBX AXP State Tax Exempt Massachusetts Fund;
IDSBX AXP Stock Fund Inc;
IDSYX AXP Stock Fund Inc;
INSTX AXP Stock Fund Inc;
ADVCX AXP Strategy Series Inc Small Cap Advantage Fund (NASDAQ: ASACX);
AXP Strategy Service Inc Strategy Aggressive Fund;
ASAYX AXP Strategy Service Inc Strategy Aggressive Fund;
INAGX AXP Strategy Service Inc Strategy Aggressive Fund;
ISAAX AXP Strategy Service Inc Strategy Aggressive Fund;
INTAX AXP Tax Exempt Bond Fund Inc;
ITEBX AXP Tax Exempt Bond Fund Inc;
ASAAX IDS Strategy Fund Inc AXP Small Cap Advantage Fund;
ASABX IDS Strategy Fund Inc AXP Small Cap Advantage Fund

Note: The action is brought on behalf of AEFA clients who purchased units of AEC mutual funds during the Class Period.

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