RS INVESTMENTS LAUNCHES THREE NEW FIXED INCOME FUNDS

Funds Leverage the Strengths of Experienced Fixed Income Team

SAN FRANCISCO, December 31, 2009 – RS Investments, a San Francisco-based investment management firm, today announced the launch of three new fixed income funds: RS Strategic Income Fund, RS High Yield Municipal Bond Fund, and RS Floating Rate Fund.

"The new funds address the growing appetite among advisors and their clients for sophisticated fixed income choices that provide greater diversification and potential solutions to long-term challenges," said Terry Otton, chief executive officer of RS. "Whether it is protection from the declining dollar, hedging against inflation or reducing taxes, these funds help to provide investors with greater flexibility and choices for achieving their income goals."

The new RS funds are sub-advised by Guardian Investor Services, which manages over $20 billion in institutional fixed income portfolios and serves as sub-advisor for the five fixed-income funds already offered by RS. The funds will draw on the expertise of the 36-member fixed income team whose members have an average of 18 years of investment experience.

"Our approach to fixed income investing is based on risk-adjusted value, relying on intensive fundamental research and a disciplined investment process," said Leslie Barbi, head of fixed income investments for RS. "The RS bond funds are managed with a focus on assessing returns relative to risk, which includes considering downside protection, not just income -- the way we believe bond funds should be managed."

RS Strategic Income Fund

RS Strategic Income Fund (RSIAX) provides investors with diversification across a broad set of fixed-income sectors in a single fund: investment grade, high-yield, and global bonds. The fund will draw on the vast experience and expertise of a six-member team of co-portfolio managers, each of whom manages these asset classes for institutional accounts or other single-strategy RS Funds. Ms. Barbi will collaborate closely with the team and be responsible for determining strategic and tactical allocations among the fixed income asset classes while seeking to capitalize on the most favorable reward-to-risk opportunities around the globe.

RS High Yield Municipal Bond Fund

RS High Yield Municipal Bond Fund (RSHMX) is designed for investors seeking high current income, with a secondary objective of capital appreciation. The fund is managed by the team that manages RS Tax-Exempt Fund (GUTEX): Alex Grant, portfolio manager, with more than 20 years of experience and Analyst Sylvan Feldstein, PhD, who has over 30 years of investment experience are supported by additional credit and quantitative analysts.

RS Floating Rate Fund

RS Floating Rate Fund (RSFLX) invests in bank loans, corporate bonds, and other securities with the goal of providing a moderately high level of current income and protection against rising interest rates. Veteran fixed income portfolio managers Marc Gross and Kevin Booth, who recently joined the firm from Blackrock, co-manage the fund with support from a team of senior credit analysts and quantitative analysts. Collectively the portfolio managers on the fund have an average of 20 years of investment experience.

The new funds add depth and breadth to the RS line-up by leveraging RS Investments' unique investment platform which supports four distinct and focused investment teams, according to RS Investments' Otton. "Our organization is built around delivering on our clients' needs," he said. "Based on the depth of institutional expertise reflected in these new funds, we expect them to be well received by clients," he said. RS has seen strong inflows to its fixed income funds throughout 2009, with total fixed income assets under management increasing to $2.4 billion in the past year.

The new funds open with seed money of $135 million in total, an unusually robust level that is based on the company's confidence in the products. Each fund will offer multiple share classes and expenses for the A share class have been capped at 35 basis points through April 30, 2011.

About RS Investments

RS Investments is an investment management firm offering investment solutions for institutional and individual investors and the advisors who serve them. The firm's specialized investment platform supports distinct investment teams, each utilizing disciplined and repeatable investment processes to deliver research-driven value, growth, international, and fixed income strategies. The firm was founded in 1986 and has offices in San Francisco and New York.