WASHINGTON, D.C.//July 24, 2002//Month after month of market turbulence and corporate scandals has underscored the fact that Americans need to diversify their investment portfolios. Recognizing that many investors still do not understand how to put to work the concept of diversification, the nonprofit Alliance for Investor Education (AIE) issued today the "Diversification 101" tutorial, a collection of its members' best-available information on the topic.

"Investors who fail to diversify their portfolios are at serious risk of losing out on the nest egg they will need to fund a comfortable retirement," said Alliance for Investor Education President Michael D. Jones, who also serves as senior executive vice president and chief administrative officer for National Association of Securities Dealers (NASD). "The Alliance for Investor Education is making this special effort because of our strong belief that there are literally millions of consumers out there who can benefit by reviewing the contents of the 'Diversification 101' tutorial."

The Alliance for Investor Education is a 21-member organization of trade associations and governmental organizations. The following 10 resources from Alliance members are intended to give consumers a "crash course" in what they need to know about diversification of investment portfolios:

"Diversification," Securities Industry Association (SIA) Investor

"The Benefits of Diversification," Investment Company Institute

"Defining Your Investment Objectives," Association for Investment Management and Research

"Determining Your Risk Tolerance," U.S. Securities and Exchange Commission

"Investment Strategies," National Association of Securities Dealers

"How Much Diversification Does Your Portfolio Need?," American Association of Individual Investors

"What Assets 'Count' as Part of Your Total Investment Portfolio?," American Association of Individual Investors

"Asset Allocation and Retirement: Do You Need to Make a Change?," American Association of Individual Investors

"Why Invest in Bonds?," The Bond Market Association

""REITS and Diversification," National Association of Real Estate Investment Trusts

ABOUT AIE

The Alliance for Investor Education Web site at www.investoreducation.org provides investors with access to a full range of information they need to make wise investment decisions. Dedicated to facilitating a greater understanding of investment basics, the Alliance for Investor Education was established in 1996 as a coalition of leading financial services industry and investor advocacy groups.

The entire investment community is represented in AIE's membership ranks. Full members of the Alliance include: the American Association of Individual Investors, American Stock Exchange, Association for Investment Management and Research, Bond Market Association, Certified Financial Planner Board of Standards, Investment Company Institute, Investor Protection Trust, National Association of Investors Corporation, National Association of Securities Dealers, Inc., National Futures Association, National Investor Relations Institute, National Association of Real Estate Investment Trusts, New York Stock Exchange, Securities Industry Association, Securities Investor Protection Corporation, and Security Traders Association.

The SEC Office of Investor Education and Assistance, the Federal Trade Commission Bureau of Consumer Protection, the Board of Governors of the Federal Reserve System, and the North American Securities Administrators Association are among the government and quasi-governmental advisors to the Alliance.

CONTACT: Ailis Aaron Wolf, (703) 276-3265 or .