AIM Advisors, Inc. (AIM), subsidiary of Amvescap, announced that the Board of Trustees of AIM Eastern Europe Fund, a closed-end fund (GTF), voted today to merge GTF's assets with the AIM Developing Markets Fund, an open-end fund. The Board of Directors of AIM Developing Markets Fund also has approved the acquisition.

GTF, which has assets of approximately $48 million, seeks long-term capital appreciation, mainly through European issuers, emphasizing those in emerging markets. AIM Developing Markets Fund, which has assets of approximately $198 million, also seeks long-term capital appreciation, but has a broader base, investing in the emerging markets of Europe, Asia, Latin America and elsewhere. The secondary objective of AIM Developing Markets Fund is income, to the extent consistent with seeking capital appreciation.

The transaction is expected to be tax-free to the funds and to their shareholders. As a result of the acquisition, shareholders of GTF will receive, in exchange for their GTF shares, Class A shares of AIM Developing Markets Fund in an amount equal to the net asset value of their GTF shares on the closing date. The shareholders then will have the ability to exchange their shares of AIM Developing Markets Fund among the other funds in the AIM family without any sales charge, but with a redemption fee during the first year following the transaction. 

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