2007-03-15 20:11:52 -

JEFFERSON CITY, Mo., March 15 /PRNewswire/ -- Missouri State Treasurer Sarah Steelman today announced that MOST - Missouri's 529 College Savings Plan, a direct-sold 529 college savings plan, has reached $1 billion in assets under management. The Plan was originally launched in November 1999 to provide a tax-advantaged way for families to save for higher education expenses.

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"In 2006, we made several significant changes to MOST's direct plan, adding new investment choices from Vanguard and American Century, lowering costs, and linking to the free Upromise(R) rewards service*,"

Steelman said. "All of these enhancements, combined with federal legislation passed last summer that protects the tax benefits of 529 plans, have given families in Missouri a wonderful way to save for their children's education."

Since the plan's investment management and program management were converted to Vanguard, Missouri-based American Century Investments and Upromise Investments, Inc., in June 2006, assets have increased by 15 percent.

"I want every child in this state to have the opportunity to go to college," Steelman said. "Through MOST, we are providing families in Missouri a great way to help their children realize their potential through higher education and are enabling them to save with low minimum contributions, easy- to-use age-based investment options, and online account access."

Recent enhancements to the MOST direct plan include: - Expanded the number of investment options from 3 to 18, including three aged-based options, and 15 individual portfolios. - Lowered expenses - the expense ratio for the majority of investment options is now just 0.62% - making it one of the lowest cost direct sold 529 plans in the country.

James J. Fadule, president of Upromise Investments, Inc., said, "Currently, more than 84,000 families have recognized the benefits of saving for college through the MOST plan. Working with Treasurer Steelman, we designed MOST to try to meet the needs of Missouri citizens, with low minimum contributions, easy-to-use age-based investment options, and online account access."

Missouri has one of the most generous in-state tax deductions for 529 plan contributions. Account owners who are Missouri taxpayers can individually deduct up to $8,000 per year, and married couples filing jointly who are each account owners can deduct up to $16,000 for contributions to a MOST account. Plus, accounts can be established with as little as $25 per month. There is no income limit for participation, and anyone can contribute to a MOST account, including parents, grandparents, friends and other family members**.

Recently, Steelman created some added benefits associated with the MOST program, including scholarships for eligible individuals from the University of Missouri and Missouri State University school systems

About Upromise

Upromise Investments, Inc., which serves as the Program Manager for MOST - Missouri's 529 College Savings Plan, provides plan administration services to nine states and more than one million account owners. Upromise Investments' affiliate, Upromise, Inc., provides a free loyalty marketing service, allowing more than seven million members nationwide to accumulate college savings when making everyday purchases.

About Vanguard

Vanguard is one of the nation's most respected investment management firms and a leader in the 529 College Savings marketplace. Vanguard manages more than $1.1 trillion in U.S. mutual fund assets, including offering investment options in 18 state 529 plans totaling over $17 billion in assets.

About American Century

American Century Investments is a full-service investment management firm that has been helping investors achieve their financial goals for nearly 50 years.

The firm is guided by the belief that the ultimate measure of performance is investor success. Using highly defined, disciplined, and repeatable investment processes, American Century(R) seeks to deliver consistent, successful performance across all asset classes.

Working with the values and ideals on which the company was founded, American Century conducts business embracing the highest ethical standards. And using a relationship-driven approach, American Century is committed to nothing less than the highest level of client service.

American Century and American Century Investments are service marks of American Century Proprietary Holdings, Inc. All rights reserved.

* Upromise rewards is an optional online service offered by Upromise, Inc. and is separate from the MOST program. Specific terms and conditions apply. Participating companies, contribution levels, terms and conditions subject to change without notice.

** Only the account owner is eligible for Missouri state income tax benefits. The availability of tax or other benefits may be contingent on meeting certain requirements.

For more information about MOST -- Missouri's 529 College Savings Plan, call 1-888-414-MOST or visit http://www.missourimost.org/ to obtain a Program Description. Investment objectives, risks, charges, expenses, and other important information are included in the Program Description; read and consider it carefully before investing. Vanguard Marketing Corporation, Distributor and Underwriter.

If you are not a Missouri taxpayer, consider before investing whether your or the designated beneficiary's home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program.

The Missouri Higher Education Savings Program (the "Program Trust") is a trust created by the State of Missouri. When you invest in MOST -- Missouri's 529 College Savings Plan (the "Plan"), you are purchasing portfolio units issued by the Program Trust. Portfolio units are municipal securities. The Plan has been implemented and is administered by the Missouri Higher Education Savings Program Board (the "Board"). Upromise Investments, Inc., and Upromise Investment Advisors, LLC, serve as the Program Manager and Recordkeeping and Servicing Agent, respectively, with overall responsibility for the day-to-day operations, including effecting transactions. The Vanguard Group, Inc., and American Century Investments serve as Investment Managers for the Plan. Vanguard Marketing Corporation, an affiliate of The Vanguard Group, Inc., markets and distributes the Plan. The Plan's portfolios, although they invest in mutual funds, are not mutual funds.

Investment returns are not guaranteed, and you could lose money by investing in the Plan.

Contact: Mark D. Hughes

(573) 751-7595

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Source: The Missouri Higher Education Savings Program