Fund family provides underlying investments in variable annuity, variable life policies OVERLAND PARK, Kan., Sept. 10 /PRNewswire-FirstCall/ -- The Board of Directors of W&R Target Funds, Inc. has approved a name change by which the W&R Target Portfolios become the Ivy Funds Variable Insurance Portfolios. The fund family, with approximately $6.5 billion in assets, includes 25 portfolios that are offered as the underlying investment options in variable life and variable annuity contracts, made available to clients through partnerships with insurance firms. This change is designed to align the funds with the well-recognized Ivy Funds brand. It does not change the management or investment strategy of any of the individual portfolios, nor does it change the specifics of any variable annuity or variable life contract held by clients. According to company executives, the change is designed to tie the fund family to a well recognized product brand in a competitive marketplace. At the same time, it further facilitates the broader distribution of the Ivy Funds Variable Insurance Portfolios through the company's wholesale distribution channel. "The Ivy Funds brand has been extremely well received by advisors, both at Waddell & Reed and industry-wide," said Thomas W. Butch, president and CEO of Ivy Funds Distributor, Inc. and president of Waddell & Reed, Inc. "This change allows us to expand its reach." The W&R Target fund family was launched in 1987, and today includes 20 individual portfolios and five managed fund-of-funds portfolios covering most major asset classes. While the umbrella family name is Ivy Funds Variable Insurance Portfolios, each fund is now known as Ivy Funds VIP, followed by the specific fund name (i.e., Ivy Funds VIP Asset Strategy) and will be listed this way on statements. The Ivy Funds were among the fastest growing mutual fund families in 2007, according to a recent study released by Financial Research Corporation (FRC), ranking second in terms of asset growth over the year among all firms with assets of $5 billion or greater. The Ivy Funds cover all major asset categories, including domestic, global and international equities; international and domestic balanced funds; domestic and international fixed income funds; specialty funds and a money market fund. 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, Ivy Funds Variable Insurance Portfolios, 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. The Ivy Funds Variable Insurance Portfolios are only available as investment options in variable life and variable annuity contracts issued by life insurance companies with which Waddell & Reed has sales arrangements. They are not offered directly to the public. 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. DATASOURCE: Waddell & Reed Financial, Inc. CONTACT: Investors, Nicole McIntosh, Director of Investor Relations, +1-913-236-1880, or Media, Roger Hoadley, Director of Communications, +1-913-236-1993, both of Waddell & Reed Financial, Inc. Web site: http://www.ivyfunds.com/ http://www.waddell.com/

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