PARSIPPANY, N.J., – New York Life Investment Management LLC (NYLIM) is pleased to announce two enhancements to the CollegeSense 529 Higher Education Savings Plan. CollegeSense is the multi-manager Section 529 college savings program that allows parents, grandparents, and others to save for higher education expenses on a tax-advantaged basis. 

CollegeSense investors can now set up systematic exchanges to reallocate their accounts over time, effectively dollar-cost-averaging* among investments. By law, 529 accounts may be reallocated only once per calendar year, or upon changing beneficiaries.  Recently, however, the setting up of systematic exchanges has essentially been deemed the equivalent of a once-per-year reallocation for established accounts. New accounts can set up these capabilities at the time of application without using up their annual reallocation.

CollegeSense offers highly robust systematic exchange capabilities including:

• The ability to exchange among any of the investment options, including into or out of an age-based investing strategy.
• Flexible monthly or quarterly exchange intervals
• The ability to specify stop dates, making the exchange process ongoing or finite at the investor’s choosing.

Systematic exchange capability becomes especially significant as investors seek to rebalance their accounts or gradually change their asset allocation to be more conservative or aggressive.

“We see this as especially useful to 529 account owners in several circumstances” noted Beverly Moore, Managing Director, NYLIM Retail markets. “If you have a beneficiary nearing matriculation and are concerned with preserving the value of your account, you can dollar cost average into the CollegeSense Stable Value Portfolio. Alternatively, if you want to gradually re-enter the equity markets or diversify your account, systematic exchanges are an excellent solution to handle the otherwise rigid exchange restrictions placed on 529 accounts.”

NYLIM has also enhanced its 529 rollover feature with the introduction of trustee-to-trustee transfers and a limited time sales charge waiver on qualifying rollovers. Through April 15^th, investors who would like to make a change in their 529 investment program can roll their 529 account assets into CollegeSense without paying a sales charge.

“We continue to serve the developing needs of our financial advisors and their clients by ensuring that CollegeSense is state of the art. These new features serve to improve the flexibility of the program, and flexibility is key to customizing solutions for clients’ needs,” concluded Moore.

In addition, NYLIM has unveiled a 529 education gifting program designed to make it easy for CollegeSense investors’ friends and family to make education gifts.  The centerpiece of the program is a brochure based on the 2003 NYLIM Across Generations Survey. The brochure, titled “The Perfect Gift” provides insight on education funding attitudes across the generations and provides suggestions on opening an extended family discussion on the topic. New gifting coupons and gift certificates are now also available to CollegeSense investors, their friends, and family.

CollegeSense is an IRC Section 529 qualified tuition savings plan available to all U.S. residents and is sponsored by The Education Trust Board of New Mexico. CollegeSense and securities are distributed by NYLIFE Distributors LLC, NYLIM Center, 169 Lackawanna Avenue, Parsippany, NJ 07054.

Potential investors may receive more favorable tax benefits from plans sponsored by their own states. Investors should seek the advice of their financial advisor for answers to their particular situation. Please keep in mind that with the exception of the New York Life funding agreement, the underlying investment options for this plan are subject to market risk and will fluctuate in value. There are fees and expenses as well as risks associated with investing in a 529 Plan.

Please read the Disclosure Statement and the prospectuses of the mutual funds in which CollegeSense invests, available at www.collegesense.com or by calling 1-866-529-SENSE toll free prior to investing.

*Dollar cost averaging does not assure a profit or protect against loss in a declining market.  Investors should consider their risk tolerance and willingness to continue contributions during periods of low price levels.

The NYLIM Across Generations Survey was completed in April, 2003 and polled 1,529 investors with more than 500 people in each of the survey’s three demographic segments. Qualified respondents were U.S. citizens between the ages of 22 and 70, with investable assets of at least $50,000.

Schoolhouse Capital, a division of State Street Corporation, and the program manager for CollegeSense, provides integrated financial solutions to the education marketplace including colleges and universities, parents, students and families, and endowments and foundations.

State Street Corporation (NYSE: STT) is the world's leading specialist in providing sophisticated global investors with investment servicing, investment management, investment research and trading services. With $8.8 trillion in assets under custody and $965 billion in assets under management (as of September 30, 2003), State Street is headquartered in Boston, Massachusetts and operates in 23 countries and over 100 markets worldwide. For more information, visit State Street’s web site at www.statestreet.com.

With more than $175 billion in assets under management as of October 31, 2003, New York Life Investment Management and its affiliates provide a wide range of investment services to institutional, individual, corporate, public, and Taft-Hartley clients, including institutional asset management, retail investments, retirement services, guaranteed products, real estate investments, and alternative investments. For more information, visit the New York Life Investment Management site at www.nylim.com.

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