Waddell & Reed Announces Portfolio Management Changes

OVERLAND PARK, Kan., Feb. 21 /PRNewswire-FirstCall/ -- Waddell & Reed Financial, Inc. today announced several portfolio manager appointments within two of its subsidiaries, Waddell & Reed Investment Management Company and Ivy Investment Management Company.

"These managers have each shown an insight and research ability that has contributed to our solid performance in recent years, and I am pleased that they are taking on new responsibilities," said Mike Avery, chief investment officer. "These changes fit with our preference to grow and train our own talent, helping to build our collegial and interactive environment, and allowing new managers to continue to learn and work alongside our senior portfolio managers."

Chace Brundige, CFA has been named portfolio manager of the Waddell & Reed Advisors Tax-Managed Equity Fund, which has $73.4 million in net assets. Brundige has nearly 15 years experience in the investment industry. He originally joined Waddell & Reed in 1996 as an equity investment analyst. He then went on to work with Trust Company of the West/Westbridge Ventures and with Citadel Investment Group, where he oversaw the software and IT services groups. He rejoined Waddell & Reed in 2003 as an assistant portfolio manager on the large cap growth equity team. He replaces Barry Ogden on the Advisors Tax-Managed Fund, as Ogden will more fully concentrate on his management duties with the WRA Accumulative Fund and the Ivy Capital Appreciation Fund.

Erik Becker and Gus Zinn, CFA, have been named co-portfolio managers of the Ivy Core Equity Fund, which has $256.3 million in net assets. Becker joined Waddell & Reed in 1999 as an investment analyst. He became assistant portfolio manager of the Ivy Core Equity Fund, the Advisors Core Investment Fund and the W&R Target Core Equity Portfolio in 2003. Zinn joined Waddell & Reed in 1998 as an investment analyst. Since 2003, he has been an assistant portfolio manager of the Ivy, Advisors and W&R Target Science and Technology Funds. Both will retain their research responsibilities, although Zinn will no longer assist with the Science and Technology funds. They replace Jim Wineland on the Ivy Core Equity Fund, as Wineland will focus fully on managing the Advisors Core Investment Fund and the W&R Target Core Equity Portfolio.

Bryan Krug has been named portfolio manager of the Ivy High Income Fund, which has $69.7 million in net assets. Krug joined Waddell & Reed in 2001 as a high yield investment analyst. He previously was affiliated with Pacholder Associates, where he was the primary analyst for a $60 million distressed portfolio. He replaces Louise Reike on the Ivy High Income Fund. Reike will continue to concentrate on her management duties with the Advisors High Income fund.

John Maxwell, CFA will join Thomas Mengel as a co-manager of the Ivy International Value Fund, which has $69.6 million in net assets. Maxwell joined Waddell & Reed in 1998 as an investment analyst after working with Fort Washington Investment Advisors and with Procter & Gamble. In 2003 he became assistant portfolio manager on the Advisors Value Fund and, in 2004, joined the international team.

Pete Morris, CFA has been named assistant portfolio manager of the Waddell & Reed Advisors, Ivy and W&R Target Dividend Income Funds and assistant portfolio manager of the Waddell & Reed Advisors Energy Fund. He also will become assistant portfolio manager of the Ivy Energy Fund and the W&R Target Energy Fund upon their launch later this year. Morris joined Waddell & Reed in 2001 as an investment analyst. He previously worked with PricewaterhouseCoopers. In 2003, he became assistant portfolio manager on the Advisors, Ivy and W&R Target Value Funds. Morris will retain his research responsibilities, although he will no longer assist with the Value funds.

Robert Nightingale has been named an assistant portfolio manager to the international team. He retains his current research analyst responsibilities. Robert joined Waddell & Reed in 1996 as an investment analyst. He was named assistant vice president in 2000, with research responsibility for Canada and Europe.

Sarah Ross, CFA, has been named assistant portfolio manager to the large cap growth team. She retains her current research analyst responsibilities. Sarah joined Waddell & Reed in 2003 as an investment analyst, focusing on biotechnology, health care and pharmaceuticals.

The Waddell & Reed Advisors Funds and the Ivy Funds cover all major asset categories, including domestic, global and international equities; balanced funds; domestic and international fixed income funds; specialty funds and money market funds. According to a September 30, 2005, report from Financial Research Corp. (FRC), Ivy Funds ranked among the top 20 fund families nationally in terms of asset growth over the previous 12 months. Waddell & Reed was ranked second nationally in the latest Lipper/Barron's Fund Families Survey, published Feb. 6, 2006, which measures how mutual fund families have performed over the previous 12-month period.

Net asset figures cited are as of December 31, 2005.

Through its subsidiaries, Waddell & Reed Financial, Inc. provides investment management and financial planning services to clients throughout the United States. Waddell & Reed Investment Management Company serves as investment advisor to the Waddell & Reed Advisors Group of Mutual Funds, W&R Target Funds, Inc. and Waddell & Reed InvestEd Portfolios, Inc., while Ivy Investment Management Company serves as investment advisor to Ivy Funds, Inc. and the Ivy Funds portfolios. Waddell & Reed, Inc. serves as principal underwriter and distributor to the Waddell & Reed Advisors Group of Mutual Funds, W&R Target Funds, Inc. and Waddell & Reed InvestEd Portfolios, Inc., while Ivy Funds Distributor, Inc. serves as principal underwriter and distributor to Ivy Funds, Inc. and the Ivy Funds portfolios.

Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing. For a prospectus containing this and other information for any of the Waddell & Reed Advisors or Ivy Funds, call your financial advisor or visit http://www.waddell.com/ or http://www.ivyfunds.com/ . Please read the prospectus carefully before investing.

The W&R Target Funds are only available as investment options in variable life insurance and variable annuity contracts issued by life insurance companies. They are not offered or made available directly to the general public.

First Call Analyst: FCMN Contact: nmcintosh@waddell.com