MD Funds Management Inc. announces enhancements to the MD Funds Family of Mutual Funds



    OTTAWA, June 28 /CNW Telbec/ - MD Funds Management Inc. (MDFM), the
manager of the MD Family of mutual funds, announced a number of proposed
changes to its US funds. The changes are subject to applicable unitholder and
regulatory approvals.
    The proposed changes will enhance the investment potential of the MD
Funds and streamline MD's US mutual fund lineup.

    Proposed Investment Objectives Changes and Fund Merger

    The following changes will be made subject to applicable unitholder and
regulatory approvals.

    MD US Large Cap Growth Fund

    The investment objectives of MD US Large Cap Growth Fund will be changed
to the following:

    
    - The Fund's investment objective is to achieve long-term capital growth,
      with income production as a secondary consideration;
    - The Fund invests in a diversified portfolio of primarily US equity
      securities of large, mid and small cap companies.

    Following the changes to its investment objectives the MD US Large Cap
Growth Fund will remove the large-cap investment restriction and employ a
multi-capitalization investment strategy with a growth style of investing.

    MD US Large Cap Value Fund

    The investment objectives of MD US Large Cap Value Fund will be changed to
the following:

    - The Fund's objectives are long-term capital growth with due regard for
      the conservation of capital, with income production as a secondary
      objective.
    - The Fund invests in a diversified portfolio of primarily US equity
      securities of large, mid and small cap companies.

    This investment objective change will remove the large-cap investment
restriction and allow MD US Large Cap Value Fund to also invest in small- and
mid-sized capitalized companies. Lord Abbett & Co., LLC will remain as
Investment Advisor.

    MD US Small Cap Growth Fund

    MD US Small Cap Growth Fund will merge into the MD US Large Cap Growth
Fund such that unitholders of MD US Small Cap Growth Fund will become
unitholders MD US Large Cap Growth Fund.
    If approved the proposed mergers and investment objectives changes will
take effect after the close of business on or about September 21, 2007.

    Fund Name Changes

    The following fund name changes will be made concurrent with the changes
to the investment objectives described above:

    - MD US Large Cap Growth Fund will be renamed MD American Growth Fund.
    - MD US Large Cap Value Fund will be renamed MD American Value Fund.

    Portfolio Advisor Changes

    MD US Large Cap Growth Fund

    Subject to the approval of the changes to MD US Large Cap Growth Fund's
investment objectives and the negotiation and execution of investment
management agreements, it is anticipated that the following Investment
Advisors will be retained to advise MD US Large Cap Growth Fund:

    - Goldman Sachs Asset Management, L.P. will advise the Fund primarily in
      respect of large capitalization growth securities.
    - New Amsterdam Partners, LLC will advise the Fund primarily in respect
      of large capitalization growth securities.
    - Calamos Advisors, LLC will advise the Fund primarily in respect of
      growth securities with a broad range of market capitalizations.
    - Westfield Capital Management Company LLC will advise the Fund primarily
      in respect of small capitalization growth securities.

    While it is currently anticipated that the noted Investment Advisors will
be retained, MDFM reserves the right to retain different advisers who may
employ different investment strategies consistent with the revised investment
objectives of MD US Large Cap Growth Fund. The changes to MD US Large Cap
Growth Fund's investment objectives are not contingent upon the noted
Investment Advisors being retained.

    Unitholder Approvals

    1. Merger - MD US Small Cap Growth Fund & MD US Large Cap Growth Fund

    Unitholders of MD US Small Cap Growth Fund (the "Terminating Fund") will
exchange units of their fund for units of MD US Large Cap Growth Fund, to be
renamed the MD American Growth Fund (the "Continuing Fund"), respectively, and
on a dollar for-dollar basis.
    Unitholders of MD US Small Cap Growth Fund will be asked to approve the
merger at a special meeting to be held on or about September 11, 2007 in
Ottawa, Ontario. If approved, the merger will take effect after the close of
business on or about September 21, 2007. MDFM intends to wind up MD US Small
Cap Growth Fund as soon as reasonably possible following the mergers.
    Subject to receiving unitholder approval (and, where applicable,
regulatory approval) for the Merger, purchases of units of MD US Small Cap
Growth Fund (except for purchases made under automatic purchase plans) will be
suspended at the close of business on September 14, 2007. Unitholders will
have the right to redeem units of the MD US Small Cap Growth Fund up to the
close of business on the business day immediately preceding the effective date
of the Merger. Redemption requests received after that date with respect to 
MD US Small Cap Growth Fund will be effected following the Merger with MD US
Large Cap Growth Fund.

    2. Change of Objectives - MD US Large Cap Value Fund & MD US Large Cap
       Growth Fund

    Unitholders of each of MD US Large Cap Growth Fund and the MD US Large Cap
Value Fund will be asked to approve changes to their respective fund's
investment objectives at special meeting to be held on or about September 11,
2007. Subject to such approvals, the change of investment objectives for each
of the MD US Large Cap Value Fund and MD US Large Cap Growth Fund will take
effect after the close of business on or about September 21, 2007.

    All costs associated with the above proposed changes will be assumed by MD
Funds Management Inc.
    




For further information:

For further information: Susan Murphy, Secretary, MD Funds Management
Inc., (613) 731-8610, ext 2330

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MD FUNDS MANAGEMENT INC.

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