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Fabian Investment Resources is pleased to offer its Mutual Fund Flash--a free advisory for building wealth. You'll find Fund Flash every week at Business Financial Network. For more information on Fabian Investment Resources, visit their web site at: http://www.fabian.com/

January 23, 1999

ProFunds Ultra OTC did more than dazzle spectators and reward
shareholders with 182.30% gain in 1998; our pick to beat the Nasdaq 100
redefined index investing for the next century. Why? Because an enhanced
fund like Ultra OTC has the ability to achieve one-and-a-half to twice the
output of its benchmark in an up market.

How impressive is Ultra OTC's performance? While most of the talk focused on
the respectable 24.49% advance of the S&P 500 in 1998, this fund out-gunned
the S&P with 52% in the last seven weeks of the year. What's more, it's up
84.4% since we issued a Buy in early November.

Surprisingly, the ProFunds family did something very peculiar this past
Tuesday. They instituted a 1 for 5 reverse stock split for every vehicle in
their showroom. That means if you owned 100 shares of Ultra OTC at a price
of 30 the day before, you now have 20 shares at a price of 150.

How does this affect your invested position? It doesn't. If you purchased
100 shares at 30 for $3000, you now have 20 shares at 150 for $3000.
Financially, the song remains the same.

Psychologically, however, the tune may not bring back memories of where you
were when you purchased Ultra OTC. A typical investor instinct is to buy
when a stock price appears extremely low, hoping it will double, triple or
quadruple in value. Meanwhile, few see that possibility when the NAV is at
150.

So why did ProFunds implement this unusual step? For that answer, you have
to look at the family in its entirety. ProFunds operates a variety of
enhanced index products, including short positions like Ultra Bear and Ultra
Short OTC. The NAV's on the short positions hovered around 6, where the
price movement is more difficult to discern. Consequently, 6 became 30 to
reflect price changes more readily.

Was this necessary? Perhaps ProFunds would have been better served to enact
a reverse stock split on a fund by fund basis. Still, as long as the Nasdaq
100 catapults to record highs, Ultra OTC will achieve double the output.

If you own ProFunds Ultra OTC right now, make sure you are
comfortable with your sell discipline. You're not going to be happy making
30% on a fund that gave you 84.4% since November. I suggest a stop-loss
point that matches your risk tolerance, whether that's 10%, 12%, or 15%
below Ultra OTC's all-time high.

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© Copyright 1998, Business Financial Network. All rights reserved.  This material is for personal use only.  Republication and redissemination, including posting to news groups, is expressly prohibited without the prior written consent of Business Financial Network. The content provided within Business Financial Network's web sites is provided for informational purposes only, and should not be construed as investment advice.  At no such time should information contained on Business Financial Network be considered an offer to buy or sell securities. This analysis is based on publicly-available information, and is in no way warranted by Business Financial Network as to accuracy or completeness. Business Financial Network does not guarantee to advise you as to any change in this information. Business Financial Network owners, editors, management, and contributors may currently be stockholders in this Company as the result of purchasing its stock on the open market. Business Financial Network may from time to time purchase or sell this Company's securities on the open market. Business Financial Network otherwise has no affiliation with this Company. Business Financial Network is not compensated by the in any way whatsoever by the company for issuing or distributing this report.