Alpha Hedged Strategies Fund (ALPHX) Ranked #1 out of 23 for Three Years and #8 out of 49 for One Year, Beta Hedged Strategies Fund (BETAX) Ranked #2 out of 49 for One Year, in Lipper's Equity Market Neutral Category (based on total returns) as of 6/30/07. WHITE PLAINS, N.Y., July 17 /PRNewswire/ -- AIP Mutual Funds, who's flagship Alpha Hedged Strategies Fund (Ticker: ALPHX) was launched in September 2002, recently passed the $500 Million mark in net assets. The Fund, managed by AIP Alternative Investment Partners, LLC (AIP), has been a top performer in Lipper's Equity Market Neutral Funds category. The Alpha Hedged Strategies Fund has outperformed its category average with 9.54% and 9.36% total 1-year and 3-year annualized returns; the category averages were 5.24% and 4.01%, respectively, as surveyed by Lipper Analytical Services, Inc.*, as of 6/30/07. Standardized Performance as of 6/30/07 (%) Since Incep. 1Yr 3 Yr* 9/23/02* ALPHX 9.54 9.36 7.73 Lipper EMN Category 5.24 4.01 N/A Lipper Ranking 8/49 1/23 N/A Total Annual Fund Operating Expenses 6.05% Net Fund Operating Expenses 3.99%** Since Incep. 1Yr 3 Yr* 4/28/06* BETAX 14.63 N/A 6.11 Lipper EMN Category 5.24 4.01 N/A Lipper Ranking 2/49 N/A N/A Total Annual Fund Operating Expenses 6.70% Net Fund Operating Expenses 3.99%** Performance data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the Fund may be lower or higher than the performance quoted. Most recent month-end performance is available by calling 1-877-LOW-BETA. *Average Annualized Return ** Excluding dividends on short positions and interest on borrowing. The Alpha Hedged Strategies Fund has been a pioneer in the open-end multi- strategy hedged mutual fund arena, in providing broad access to specialized hedge fund managers. Representing the next generation of products for hedged portfolio investing, the Fund is designed to minimize equity market exposure and volatility by employing a variety of absolute return oriented hedged strategies. The Alpha Hedged Strategies Fund currently manages $491 MM and has received a 4-star Overall Morningstar Rating TM among 57 funds in the Long/Short Category as of 6/30/07 (derived from a weighted average of the Fund's three-year Morningstar Ratings metrics, which are based on risk- adjusted return performance)**. "The combination of our 'real deal' hedged strategies and mutual fund structure has really resonated with advisors seeking both a conservative portfolio risk profile and strong risk-adjusted performance. We have avoided the 'hedge fund replicator' approach that has left many investors feeling short on returns and long on market correlation. We are pleased to have passed the 500 million mark," noted Lee Schultheis, Chief Investment Strategist and Founder of AIP. "We are also getting increased traction with our newer Beta Hedged Strategies Fund (BETAX), which is really just a more aggressive mix of our platform of managers and strategies, for investors seeking higher potential returns, and need a lesser degree of risk control." "We continue to attract a broader range of investors, recently including Endowments and Foundations, Defined Benefit plans and Bank Trust Departments, as well as our core channel of Financial Advisor intermediaries. Since we've been competitive with Hedge Fund Research, Inc.'s (HFRI) Conservative Fund-of- Funds index over the last 4 years, we are viewed as having 'walked the walk' by the marketplace, and are not just the latest in the recent wave of new products that claim to be able to 'mimic' hedge fund performance in some indirect manner, but where early results are not meeting market expectations." The Fund has a portfolio that operates much like a conservative hedge fund-of-funds, and is accessible to all investors. AIP currently utilizes 20 + hedge fund managers to manage the individual portfolio strategies within ALPHX. As with a traditional hedge fund structure, the Fund can sell short (up to 100% of net assets), use leverage (up to 50% of net assets), and can employ any strategy where the securities involved can be priced on a daily market value basis. However, because The Alpha Hedged Strategies Fund is structured as a mutual fund, it also offers several key features including daily liquidity, no lock-ups, no accreditation requirement, no performance fees, and 1099-tax reporting. By controlling custody of assets, valuation, and leverage on the underlying security pools, as well as having 100% transparency for all positions and trades, AIP can mitigate a number of the primary risks that lead to occasional problems with underlying hedge funds holdings, as can occur with the traditional private hedge fund-of-funds structure. "Financial intermediaries want a broad array of quality hedge-fund strategies for their clients, but they prefer the mutual fund structure and features, and are not willing to sacrifice the non-correlative, alpha-driven 'behaviors' that have made hedge funds so popular with sophisticated institutions and high net worth individuals," said Mr. Schultheis. "That is the market niche that we feel AIP Mutual Funds has effectively addressed." For more information or to speak with Lee Schultheis please contact Jennifer Connelly at (973) 625-1130 or . Financial Intermediaries can call 1-866-LOW-BETA or visit http://www.aipfunds.com/. About AIP Funds ALPHX and BETAX are open-end mutual funds that invest their portfolios in a manner similar to a conservative and more aggressive, hedge fund-of-funds, respectively. The Funds employ a multi-manager approach to a variety of hedged alternative investment styles, but each with a liquid portfolio of its own securities, using the limited amounts of leverage and short-selling allowable in open-end mutual funds. The Funds provide broad exposure to a variety of active management hedged strategies including: Distressed Securities & Special Situations, Long/Short Equity, Long/Short Market-Neutral Equity, International Long/Short Equity, Global Long/Short Equity, Specialty Sector Long/Short Equity, Equity Options Overlay, Global Hedged Income, Merger Arbitrage, Fixed-Income Arbitrage, and Convertible Bond Arbitrage. The Funds utilize the talents of highly specialized hedge fund managers as sub-advisors, in executing their alternative investment strategies. The Funds offer the portfolio diversification benefits that institutions, pension funds, endowments & foundations, and high-net worth individuals have become accustomed to in hedge funds. The Funds combine these portfolio attributes with the daily pricing, liquidity, and other shareholder features commonly associated with open-end mutual funds. As such, the Funds are uniquely positioned to provide their shareholders with additional portfolio diversification to complement the traditional asset classes of stocks, bonds and cash. Funds Disclosure The Funds' investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by calling 1-877-Low-Beta (569-2382), or visiting http://www.aipfunds.com/. Read it carefully before investing. About Risk: Certain hedging techniques and leverage employed in the management of the Funds may accelerate the velocity of possible losses. Short selling involves the risk of potentially unlimited increase in the market value of the security sold short, which could result in potentially unlimited loss for the Funds. Derivatives involve investment exposure that may exceed the original cost and a small investment in derivatives could have a large potential impact on the performance of the Funds. Options held in the Funds may be illiquid and the fund manager may have difficulty closing out a position. The Funds may also invest in: -- smaller capitalized companies -- subject to more abrupt or erratic market movements than larger, more established companies; -- foreign securities, which involve currency risk, different accounting standards and are subject to political instability; -- securities limited to resale to qualified institutional investors, which can affect their degree of liquidity; -- shares of other investment companies that invest in securities and styles similar to the Funds, resulting in a generally higher investment cost than from investing directly in the underlying shares of these funds. The Funds intend to utilize these individual securities and hedging techniques in matched combinations that are designed to neutralize or offset the individual risks of employing these techniques separately. Some of these matched strategies include: merger arbitrage, long/short equity, convertible bond arbitrage and fixed-income arbitrage. There is no assurance that these strategies will protect against losses. The Funds are non-diversified and therefore may invest in the securities of fewer issuers than diversified funds at any one time; as a result, the gains and losses of a single security may have a greater impact on each Fund's share price. Because the Funds are fund-of-funds, your cost of investing in the Funds will generally be higher than the cost of investing directly in the shares of the mutual funds in which it invests. By investing in the Funds, you will indirectly bear your share of any fees and expenses charged by the underlying funds, in addition to indirectly bearing the principal risks of the Funds. Please refer to the prospectus for more information about the Funds, including risks, fees and expenses. * Lipper Analytical Services, Inc. is an independent mutual fund research and rating service. Each Lipper average represents a universe of funds with similar investment objectives. Rankings for the periods shown are based on fund total returns with dividends and distributions reinvested and do not reflect sales charges. While the Funds are no-load, management fees and other expenses still apply. ** (C) 2007 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating(TM) metric each month by subtracting the return on a 90-day U.S. Treasury Bill from the fund's load- adjusted return for the same period, and then adjusting this excess return for risk. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating(TM) for a fund is derived from a weighted average of the performance figures associated with its three-, five-, and ten-year (if applicable) Morningstar Rating(TM) metrics. The Alpha Hedged Strategies Fund was rated against the following numbers of U.S. domiciled Long-Short funds over the following time periods: 57 funds in the last three years. With respect to these Long-Short funds, Alpha Hedged Strategies Fund received a Morningstar Rating(TM) of 4-Stars for the three-year period ending 6/30/07. Morningstar defines Long-Short as: a fund with roughly 20% their total net assets in short positions. HFRI (Hedge Funds Research, Inc.) Performance Indices are equally weighted hedge fund performance indices broken down into 37 different categories by strategy, such as "equity market neutral" investing and "conservative or market-neutral fund-of-funds" investing. Conservative Fund of Funds investing seeks to profit by investing in various absolute return hedged strategies. Alpha is an annualized return measure of how much better or worse a fund's performance is relative to an index of funds in the same category, after allowing for differences in risk. Quasar Distributors, LLC, Distributor - 7/07 DATASOURCE: AIP Mutual Funds CONTACT: Jennifer Connelly of JC Public Relations, +1-973-625-1130, or , for AIP Mutual Funds Web site: http://www.aipfunds.com/

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