Company Press Release

NEW YORK, May 15, 2012 -- The Aquila Group of Funds has announced the appointment of Randall "Randy" S. Fillmore as Chief Compliance Officer (CCO).  He will serve as new CCO for the Aquila Group of Funds, as well as CCO for Aquila Investment Management LLC and Aquila Distributors, Inc, collectively the Aquila Entities.  He is replacing the previous CCO Bob Driessen, who is retiring.

In his CCO role, Mr. Fillmore will oversee Aquila Entities' comprehensive compliance programs and will work to further enhance and develop various policies and procedures, as needed, to remain in compliance with new regulations. Mr. Fillmore will direct Aquila's continuing efforts to meet the demands of the changing regulatory environment.

"The addition of a professional of Randy's caliber to Aquila's team will further strengthen our compliance operations," said Diana Herrmann, President and CEO of Aquila Investment Management LLC. "His expertise and strong audit and compliance background will ensure that the Aquila Group of Funds and the Aquila Entities continue to be well-equipped to take on the challenges that are inherent in the current regulatory environment. His background made him the ideal candidate to provide a fresh perspective on our regulatory and compliance programs," she added.

Mr. Fillmore, who will be based in San Francisco, is a well-seasoned financial professional and investments expert with over 29 years of experience in the investment regulatory field.  Fillmore is a former fund and adviser CCO for the Schwab Funds and Charles Schwab Investment Management, Inc., respectively, where he was employed for nine years. While at Charles Schwab, he designed, developed and implemented compliance programs for Schwab's proprietary fund families and its Broker Dealer's mutual fund processing platforms. Prior to joining Schwab, he was with PriceWaterhouseCoopers for 17 years, holding senior-level positions in information systems risk management and investment management audit and business advisory services.  Most recently, Fillmore was managing director of San Francisco-based Fillmore & Associates, a comprehensive compliance and risk management consulting firm, which he founded in 2009.

The Aquila Group of Funds occupies a niche market in the fund industry, offering a selection of seven single –state municipal bond funds, along with a high yield corporate bond fund, and an equity fund.  Aquila's seven municipal bond funds serve investors in states with smaller populations, relatively high income tax rates and interesting long term economic growth potential - Arizona, Colorado, Hawaii, Kentucky, Oregon, Rhode Island, and Utah.

Before investing in any of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus.  The prospectus is available from your financial advisor, or call 800-437-1020, or visit www.aquilafunds.com .