USAA Named Best Bond Group by Lipper

SAN ANTONIO--March 22, 2004--Lipper, a leading global provider of mutual fund information and analysis, named USAA as Best Bond Group at the 2004 U.S. Lipper Fund Awards ceremony held in New York. USAA received the award because its taxable and tax-exempt bond funds achieved higher average consistent returns than any other U.S. company's bond funds during the 3-, 5-, and 10-year periods ending Dec. 31, 2003.

"We are honored to receive this prestigious award for our fixed income fund complex and believe it is a testament to the investment expertise we have at USAA," said Chris Claus, president and CEO of USAA Investment Management Company. "By focusing on the fundamentals of analysis and risk management, our team of bond fund managers, analysts, and traders have delivered 'best in class' performance on a consistent basis."

The Lipper Fund Award 2004 for Best Bond Group is awarded based on the consistent return scores of all the USAA taxable and tax-exempt bond funds. A fund group's consistent return score evaluates its risk-adjusted returns, adjusted for volatility relative to peers, for the overall period ended Dec. 31, 2003. Lipper presents the award annually to one fund group in each asset class whose funds within that asset class achieved higher average consistent return scores than competing fund groups.

USAA is a highly competitive financial services company known for financial strength and outstanding service to its members. USAA owns or manages assets of $73 billion, and provides insurance, banking, and investment products to more than 5 million members of the U.S. military and their families. Founded in 1922, USAA has 21,000 employees in its San Antonio headquarters and regional offices, and is widely recognized as on of the best places to work in America.

The Lipper Fund Award 2004 for Best Bond Group is based on the Consistent Return scores of all the USAA taxable and tax-exempt bond funds. Lipper presents the award annually to one fund group in each asset class whose funds within that asset class achieved higher average Consistent Return scores than competing fund groups. A fund group's Consistent Return score evaluates its risk-adjusted returns, adjusted for volatility, relative to peers, for the overall period ended Dec. 3, 20031, 2003. The overall time period is an equal-weighted average of the 3-year, 5-year, and 10-year periods (if applicable.) Lipper calculated Consistent Return scores for each fund group's funds within the fixed-income asset class, and the equal-weighted average score was to determine the awardee. To be eligible for an asset class award, a fund group must have five distinct fund portfolios within the asset class that are three years old or older. The fund group was chosen among 97 groups. Lipper Fund Awards are not intended to predict future results, and Lipper does not guarantee the accuracy of this information. Lipper is a leading global mutual fund research firm.

Past performance is no guarantee of future results.

Consider the investment objectives, risks, charges and expenses of the USAA mutual funds carefully before investing. Contact us for a prospectus containing this and other information from USAA Investment Management Company, Distributor. Read it carefully before investing.

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