Company Press Release

NEW YORK - (Business Wire) Baron Funds today announced the launch of Baron Real Estate Fund. Jeffrey Kolitch, who has served as Baron's real estate analyst since 2005, will manage the fund. The fund seeks capital appreciation by investing primarily in stocks of U.S. and non-U.S. real estate and real estate-related companies. The Fund may invest up to 25% in securities of foreign issuers not publicly traded in the U.S.

"Real estate investing has always been important element of what we do at Baron Funds. The Baron Real Estate Fund has a larger investment universe than many similar funds, and given the softening of real estate markets, we see excellent opportunities in both commercial and residential real estate stocks and bonds," says Ron Baron, CEO and Chief Investment Officer of Baron Funds. "Jeffrey's considerable experience in real estate investing, coupled with his grasp of the Baron investing philosophy, make him the ideal choice to manage this important new addition to our mutual fund lineup."

Baron Real Estate Fund focuses on investments in a wide range of real estate-related companies, including real estate operation companies and real estate investment trusts (REITs); healthcare facilities, hotels, hotel management companies and gaming companies; real estate brokerage services and management companies; manufacturers and distributors of building products and supplies; retailers of home furnishings and improvement products; construction and engineering companies; companies with significant real estate holdings such as supermarkets, restaurant chains and retail chains; and companies with infrastructure-related assets such as toll roads, bridges, tunnels, parking facilities, railroads, airports, broadcast and wireless towers, electric transmission and distribution lines, power generation facilities, hospitals and correctional facilities.

Jeffrey Kolitch joined BAMCO, the advisor to Baron Funds, in 2005 from Goldman Sachs, where worked in various capacities over 10 years, and was most recently managing director in its Equity Capital Markets group in New York. He earned a BS in economics from the Wharton School at the University of Pennsylvania and a Masters of Management from the Kellogg Graduate School of Management at Northwestern University.

Baron Real Estate Fund will require a minimum initial investment of $2,000 for retail shares and a $1 million minimum initial investment for institutional shares.

*About Baron Real Estate Fund*

Baron Real Estate Fund is a no-load, open-end, non-diversified mutual fund that invests for the long term primarily in U.S. and non-U.S. real estate and real estate-related companies. The Fund's total exposure to securities of foreign issuers not publicly traded in the U.S. may not exceed 25%.

*About Baron Funds and Baron Capital Group*

Baron Funds include nine no-load mutual funds: Baron Asset Fund (BARAX), Baron Growth Fund (BGRFX), Baron Small Cap Fund (BSCFX), Baron /i/Opportunity Fund (BIOPX), Baron Fifth Avenue Growth Fund (BFTHX), Baron Partners Fund (BPTRX), Baron Retirement Income Fund (BRIFX) Baron International Growth Fund (BIGFX), and Baron Real Estate Fund. More information about Baron Funds is available by calling (800) 99-BARON or by visiting www.baronfunds.com . The advisor to Baron Funds is BAMCO, Inc. a subsidiary of Baron Capital Group, Inc.

Investors should consider the investment objectives, risks, and charges and expenses of the investment carefully before investing. Baron Real Estate Fund is described in a prospectus that contains this and other information about the Fund. You should carefully read the prospectus before investing. You can read, print, or download a prospectus at www.BaronFunds.com/prospectus . Or call (800) 99-BARON to receive a prospectus in the mail. Baron Capital, Inc. is the distributor of the Baron Funds.