Little Rock, Ark. - The Arkansas 529 Plan Review Committee, sponsor of The GIFT College Investing Plan, today announced the selection of Upromise Investments as the new manager for its 529 college savings program. Upromise's selection was based on the new opportunities they bring to Arkansas residents, including a new lineup of investment options from the popular mutual fund company, The Vanguard Group.

"Reducing costs and giving families the chance to supplement their own savings efforts through Upromise will benefit GIFT Plan investors across the state," said Dr. Linda Beene, director of the Arkansas Department of Higher Education. "These improvements, along with more online account management features and investment options through Vanguard, are important steps in helping make higher education more affordable," she said.

Enhancements to The GIFT Plan now include the following:

Lower costs. In conjunction with the transition to Vanguard's investments, Arkansas is reducing the portfolio expenses of the GIFT Plan to 0.85 percent — in some cases a 50 percent reduction in plan costs.

Additional college savings. Through the free Upromise rewards service, Arkansas families have the opportunity to supplement their college savings by earning rebates through everyday purchases.

Enhanced online account access. The GIFT Plan Web site, www.thegiftplan.com, now offers greater flexibility and features for investors.

The reduction in plan costs means that more of parents' hard-earned savings go to work in their accounts. For example, the cost difference can amount to up nearly $4,000 in additional savings for some plan participants*. Also, investors will now have access to expanded investment offerings professionally managed by Vanguard, including three age-based options and six custom portfolios that allow investors to mix and match the investments based on their preference. Continuing the state's commitment to assisting Arkansas families as they save for college, the account maintenance fee will continue to be waived if the beneficiary or account owner is a resident of Arkansas.

"As the new program manager for the GIFT Plan, we are pleased to provide additional college savings opportunities to Arkansas families," said James J. Fadule, president of Upromise Investments. "Through Upromise, simply by making everyday purchases of their favorite participating products, Arkansas families now can receive college savings that can be added automatically to their GIFT Plan accounts," he said.

The Upromise rewards service is an optional, free rewards service with millions of members nationwide. Members get cash back for college on everyday purchases from hundreds of America's leading companies. Contributing companies rebate consumers a percentage of their eligible spending at participating grocery stores, retailers, gas stations and other locations. In Arkansas alone, there are over 400 participating Upromise partner locations, including supermarkets such as Brookshire's and Kroger.

As part of the new program enhancements announced today, the money that families earn through Upromise can be automatically transferred into their GIFT Plan account.

The GIFT Plan also provides tax-deferred growth of earnings and withdrawals from the plan for qualified higher education expenses.** More information on the GIFT Plan is available at www.thegiftplan.com or by calling 1-800-587-7301.

The GIFT College Investing Plan is administered by the Arkansas 529 Plan Review Committee.

*Hypothetical example of a $10,000 investment over 15 years assuming a 6 percent rate of return when comparing reduction in Expense Ratio from 2.23 percent to .85 percent. An outline of new expense ratios and analysis are available upon request. (Source: The Vanguard Group.) **Unless current law is extended, earnings withdrawn from a 529 Plan account after 2010 to pay qualified higher education expenses will be subject to federal income tax.

NOTE to Editors: Visit http://www.upromise.com/pdfs/050302-ar-charts.pdf for a table outlining new investment options.

About Upromise Upromise is the country's largest non-governmental service helping families save for college. Membership is free and allows families to automatically save money for college while making everyday purchases at more than 20,000 grocery and drug stores, 14,000 gas stations, 9,000 restaurants, 10,000 hotel locations nationwide, thousands of retail stores and over 250 online shopping sites. Upromise's partners include America Online, Citi®, Coca-Cola®, Exxon Mobil Corporation, Kellogg Company, Kimberly-Clark, McDonald's®, SBC Communications, JCPenney.com, LandsEnd.com, sears.com, and hundreds of others. Upromise also makes it easy for families to invest in tax-advantaged college savings plans and to use contributions to pay off student loans. The 529 college savings plans are offered through Upromise Investments, Inc. (member NASD/SIPC). Upromise is headquartered in Needham, Mass. For additional information, visit www.upromise.com or call 781.707.8400.

About The Vanguard Group The Vanguard Group, headquartered in Valley Forge, Pa., is the nation's second-largest mutual fund firm and a leading provider of employer-sponsored retirement plan services. Vanguard is also a leader in the 529 College Savings marketplace, offering investment options in 12 state 529 plans totaling $7.2 billion in assets. Vanguard manages nearly $830 billion in U.S. mutual fund assets, including more than $245 billion in employer-sponsored retirement plans. Vanguard offers 129 funds to U.S. investors and more than 40 additional funds in foreign markets.