[November 13, 1998]

Fidelity Investments is putting the final touches on enhancements to its telephone voice response units that will make investment exchanges for investors in 403(b) and 401(k) plans as easy as speaking the name of the fund option.

The automated telephone technology, which allows for natural language interaction with the system, is best suited for retirement plans that offer investors dozens of investment choices—many now offer between 50 and 100 ; but, it is efficient for all investment menus. To make an exchange within a plan, participants have had to obtain the four-digit code assigned to the fund. This can be an involved, lengthy process. Now, by selecting the help code (0000), then speaking the fund name, the process is easier, faster, and more convenient.

Fidelity said it plans to roll out the service to plans with large numbers of investment options in early 1999 and to all 403(b) and 401(k) plans by the end of next year.

"Our investment in this new phone system is yet another way technology enhances service delivery," said Ellyn McColgan, president, Fidelity Investments Tax-Exempt Services Company.

Fidelity said the technology will have broad application as about 75 percent of all exchanges over the phone are done through the automated voice response units.

"Most customers take advantage of the latest technology ," McColgan said. "Phone and Internet technology allow us to offer a variety of channels customers can use to access and manage their accounts when they want to, through the medium they prefer."

One of Fidelity's first clients to use the technology is the University of California Retirement System, in which nearly 20,000 participants may choose from more than 150 investment options. Previously, participants would have to scroll through a lengthy menu of fund options, seeking a four digit-number to be entered in over the phone to make a change. With the new system, speaking directly into the handset, they merely need to say the name of the funds being exchanged. University of California Director of Communications and Training Services, Barbara Facey, believes participants will be delighted with the convenience. "Our Plan participants who invest with Fidelity tend to be technologically savvy and always appreciate cutting-edge service enhancements such as voice recognition."

Plan participants at Allina Health System in Minneapolis are also using the speech recognition service. "We have invested considerable time and effort into educating our employees to the need for more personal involvement in the monitoring and management of their retirement accounts," said Kent Davidson, Director of Employee Financial Services at Allina.

"Allina currently has 11,000 employees investing with Fidelity. With employees on staff around the clock, this electronic access is important to helping our participants feel involved with their investments. This enhancement is one more tool to help them," added Davidson.

Fidelity Investments is the nation's largest mutual fund company and one of the leading providers of financial services. Fidelity offers investment management, retirement, brokerage and shareholder services directly to individuals and institutions, and through financial intermediaries. The firm also is the No. 1 provider of 401(k) retirement savings plans, the second largest discount brokerage firm and the third largest provider of 403(b) retirement plans for not-for-profit institutions in the United States. At September 30, 1998, Fidelity had total managed assets of $645.4 billion.

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