Fidelity Investments Institutional Services Company and Fidelity Distributors Corporation

Seattle, WA: (May-08-07) NASD, formerly known as National Association of Securities Dealers, filed charges against two Fidelity broker-dealers, Fidelity Investments Institutional Services Company and Fidelity Distributors Corporation, alleging that they prepared and distributed misleading sales literature promoting Fidelity's Destiny I and II Systematic Investment Plans, which were sold primarily to US military personnel. The issuance and sales of new systematic investment plans (also known as periodic payment plans), which typically require investors to make a fixed number of monthly payments over a 10- to 15-year period, were prohibited by Congress last fall. In a settlement reached, the two broker dealers agreed to pay $400,000 as fines to the NASD as well as for the next five years, notify Destiny Plan holders who want to increase their investments in existing Destiny Plans that additional shares of the underlying fund can be purchased outside the Destiny Plans without paying the additional creation and sales charges of up to 50% on the first year's payments. [EARTH TIMES: PLAN FRAUD]

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Published on May-9-07