The SEC just finished giving money back to investors in Pilgrim Baxter funds. On Wednesday the regulatory agency revealed that it sent $69 million back "to investors harmed by fraudulent market timing in the PBHG Funds between June 1998 and December 2001." The first two payments were distributed on April 23 and June 13 of this year, and the grand total now comes to $267 million.

SEC Announces Final Disbursement to Investors From $267 Million Pilgrim Baxter Fair Fund

FOR IMMEDIATE RELEASE
2007-181

Washington, D.C., Sept. 12, 2007 - The Securities and Exchange Commission today announced the completion of the distribution of $267 million to investors harmed by fraudulent market timing in the PBHG Funds between June 1998 and December 2001. Pilgrim Baxter & Associates, Ltd. was the investment adviser to the PBHG Funds during this period.

Today's $69 million distribution is the third and final in a series of Fair Fund disbursements to more than 384,000 account holders in the affected PBHG Funds. Previous disbursements occurred on April 23, and June 13, 2007.

The Sarbanes-Oxley Act of 2002 gave the SEC authority to increase the amount of money distributed to harmed investors by allowing civil penalties to be included in Fair Fund distributions. Prior to SOX, only disgorgement could be returned to investors. To date, the SEC has distributed more than $2.5 billion through Fair Fund distributions.

Investors can obtain additional information about the distribution process, including a copy of the Distribution Plan, by visiting http://www.pbafairfundsettlements.com or by calling the Administrator of the Distribution Plan at (800) 920-5408.

# # #

For further information contact:

Daniel M. Hawke, Regional Director
Elaine C. Greenberg, Associate Regional Director
Amy J. Greer, Regional Trial Counsel
Catherine E. Pappas, Senior Trial Counsel
SEC Philadelphia Regional Office
(215) 597-3100

Distribution Plan:
http://www.sec.gov/litigation/admin/2006/34-54812-dp.pdf

Order Approving the Distribution Plan:
http://www.sec.gov/litigation/admin/2006/34-54812.pdf

Orders Instituting Proceedings against PBA, Pilgrim and Baxter:
http://www.sec.gov/litigation/admin/33-8506.htm
http://www.sec.gov/litigation/admin/33-8505.htm
http://www.sec.gov/litigation/admin/ia-2251.htm

Additional Documents and Background:
http://www.sec.gov/divisions/enforce/claims/pilgrimbaxter.htm

http://www.sec.gov/news/press/2007/2007-181.htm

Edited by: Neil Anderson, Managing Editor

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