Settlement Summary

On October 8, 2004 the Securities and Exchange Commission (the “SEC”) instituted administrative and cease-and-desist proceedings against Invesco Funds Group (the “Order”). Pursuant to the Order, and as part of the related settlement of that proceeding, Invesco was required to pay $215 million in disgorgement and a $110 million civil penalty, for a total of $325 million (the “Fair Fund”).

During the time period relevant to this Order, IFG served as an investment adviser to eight registered open-ended investment companies, consisting of over 45 series or mutual funds known as Invesco Funds. AIM Advisors began assuming responsibility for serving as investment adviser to the Invesco Funds in 2003. IFG intends to voluntarily withdraw its registration with the Commission as an investment adviser as soon as it is practicable.

The allegations on the Order involved IFG entering into an agreement that allowed certain individuals and entities to make frequent trades in IFG funds that were inconsistent with the fund prospectuses. The time period concerned is from January 1, 2000 through July 31, 2003.

The Order also provided for the appointment of an Independent Distribution Consultant (the “IDC”) who was required to develop a plan (the “Distribution Plan”) to distribute the Fair Fund to the eligible shareholders of the IFG mutual funds fairly and proportionately, according to a methodology developed in consultation with Invesco Funds Group and the independent trustees and directors of the affected AIM funds and acceptable to the staff of the SEC.

The IDC retained by Invesco Funds Group was Professor Gordon J. Alexander, who holds the John Spooner Chair in Investment Management at the Carlson School of Management at the University of Minnesota. He is also a former Academic Fellow at the SEC and has co-authored an investments textbook with William Sharpe, a Nobel Prize winner in economics.

The role of the IDC is to develop a plan for the distribution of the settlement funds, and any interest accrued, according to a method developed in consultation with Invesco Funds Group and acceptable to the SEC and the independent Trustees of the IFG Funds. The Distribution Plan required SEC approval.

The recipients of the settlement are eligible shareholders who held their shares in any of the funds listed below between January 1, 2000 through July 31, 2003 and who were determined by the IDC to have been adversely affected by the alleged actions of the market timers. The methodology utilized is based upon specific criteria stipulated by the IDC and approved by the SEC.

Invesco Advantage Global Health Sciences Fund	Invesco Leisure Fund
Invesco Balanced Fund	Invesco Mid-Cap Growth Fund
Invesco Core Equity Fund	Invesco Real Estate Opportunity Fund
Invesco Dynamics Fund	Invesco S&P 500 Index Fund
Invesco Endeavor Fund	Invesco Select Income Fund
Invesco Energy Fund	Invesco Small Company Growth Fund
Invesco European Fund	Invesco Tax-Free Bond Fund
Invesco Financial Services Fund	Invesco Technology Fund
Invesco Gold & Precious Metals Fund	Invesco Telecommunications Fund
Invesco Growth & Income Fund	Invesco Total Return Fund
Invesco Growth Fund	Invesco U.S. Government Securities Fund
Invesco Health Sciences Fund	Invesco Utilities Fund
Invesco High Yield Fund	Invesco Value Equity Fund
Invesco International Blue Chip Value Fund

If you have any questions regarding the IFG settlement or the Distribution Plan, please refer to the Frequently Asked Questions section of the website for additional information, or refer to the Contact Information section of this website for details on how to contact the Fund Administrator.