Vanguard has filed with the SEC for exemptions for three new index funds. The new funds will track the MSCI US Large Cap 300 Index, MSCI US Large Cap Growth Index, and MSCI US Large Cap Value Index. The funds plan to offer ETF, Institutional, and Investor shares.

Building on its strength as a leading index fund provider, Vanguard today filed with the Securities and Exchange Commission to offer three new index funds: Vanguard� Mega Cap 300 Index Fund, Vanguard Mega Cap 300 Growth Index Fund, and Vanguard Mega Cap 300 Value Index Fund. The new funds will track the MSCI US Large Cap 300 Index, MSCI US Large Cap Growth Index, and MSCI US Large Cap Value Index.

The mega-cap funds will offer exposure to the largest stocks in the U.S. investable market, as defined by MSCI, and enable investors to construct equity portfolios by combining funds with exposure to discrete segments of the market.

The new funds will be managed by Vanguard Quantitative Equity Group, which oversees more than $575 billion in indexed assets. The funds plan to offer ETF, Institutional, and Investor shares with expected expense ratios of 0.13%, 0.08%, and 0.20%, respectively.

Vanguard offers 66 index-oriented funds and annuity portfolios and 33 exchange-traded funds. The firm�s all-market stock and bond funds, Vanguard Total Stock Market Index Fund and Vanguard Total Bond Market Index Fund, recently reached asset milestones of $100 billion and $50 billion, respectively. Furthermore, assets in the firm�s ETFs have increased to $35 billion, more than double the previous year.

The Vanguard Group, headquartered in Valley Forge, Pennsylvania, is one of the nation�s largest mutual fund firms and a leading provider of company-sponsored retirement plan services. Vanguard manages more than $1.2 trillion in U.S. mutual fund assets, including more than $325 billion in employer-sponsored retirement plans. Vanguard offers more than 140 funds to U.S. investors and more than 40 additional funds in foreign markets.

All asset figures are as of August 31, 2007, unless otherwise noted.

A registration statement relating to these securities has been filed with the U.S. Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of, these securities in any state in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Copies of the Vanguard Mega Cap Funds' prospectus can be obtained by calling 800-523-1036. Visit www.vanguard.com or call to obtain fund and variable annuity contract prospectuses, as well as Vanguard ETF product descriptions and prospectuses. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in these documents; read and consider them carefully before investing. Please note that a preliminary prospectus is subject to change.

Investments are subject to risk, which may result in the loss of principal. Investments in bond funds are subject to interest rate, credit, and inflation risk.

Vanguard ETF Shares can be bought and sold only through a broker (who will charge a commission) and cannot be redeemed with the issuing fund. The market price of Vanguard ETF Shares may be more or less than net asset value.

Vanguard and Vanguard ETFs are trademarks of The Vanguard Group, Inc. All other marks are the exclusive property of their respective owners.

The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities. For any such funds or securities, the prospectus or the Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with The Vanguard Group and any related funds.

Edited by: Erin Kello

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