In the five-years Learning Quest has been available, more than 75,000 accounts have been opened, accumulating nearly $1 billion in assets. Kansas offers a solid, reputable 529 program, but enhancements must be made to continually improve it in order to remain competitive and provide investors with the most up-to-date options available. After careful consideration, funds offered by The Vanguard Group, Inc. were chosen based on the funds' attractive low fees and strong performance, coupled with Vanguard's reputation, high standards of integrity and experience with other 529 programs.

Vanguard is the nation's second largest mutual fund firm and a leading provider of company sponsored retirement plan services. They manage more than $800 billion in U.S. mutual fund assets, in 129 funds, including over $8 billion for fourteen 529 programs.

The four new static investment options were available to investors on March 31, 2005. They are in addition to the current static options within Learning Quest - Money Market and 100% Equity - and the 22 age/risk based blended portfolio options.

Investors will be able to choose between four Vanguard portfolios. They include:

• Learning Quest 500 Index Portfolio - Invests in the Vanguard 500 Index Fund, which utilizes a "full replication" approach to track the Standard & Poor's (S&P) 500 Index.

• Learning Quest Total Growth Index Portfolio - An all stock portfolio customized for Learning Quest that seeks investment results that parallel a weighted mix of the performance of the Dow Jones Wilshire 5000 Total Market Index and the Total International Composite Index. The portfolio will allocate 85% of its assets to the Vanguard Total Stock Market Index Fund and 15% to the Vanguard Total International Stock Index Fund.

• Learning Quest Balanced Index Portfolio - Invests in the Vanguard Balanced Index Fund, which seeks investment results that parallel a 60% to 40% weighted mix of the performance of the Dow Jones Wilshire 5000 Total Market Index and the Lehman Brothers Aggregate Bond Index, respectively.

• Learning Quest Total Bond Market Index Portfolio - Invests in the Vanguard Total Bond Market Index Fund, which seeks investment results that parallel the performance of the Lehman Brothers Aggregate Bond Index.

The most significant difference Learning Quest account owners will notice between the age/risk based blended portfolios and static portfolios is management philosophy which corresponds to a difference in fee structure. Vanguard funds are passively managed, meaning they are designed to perform in a manner which tracks or parallels a specific index. All other Learning Quest funds and portfolios are actively managed. The new passively managed static portfolios offered by Vanguard have fees ranging from 0.54 to 0.57 basis points. Fees for actively managed target year investments range from 0.96 to 1.31 basis points.

For more information on the investment options currently available, to open a Learning Quest account, or to make changes to an existing account, please contact American Century Investments at 1-800-579-2203 or by visiting learningquest.com. Investment advisors interested in Learning Quest Advisor should call 1-877-882-6236 or visit www.americancentury/ipro.com.

There are no income limits for those investing, and the contribution maximum is $235,000 per beneficiary. Kansas taxpayers can receive a state adjusted gross income deduction of up to $3,000 per child for 2005 ($6,000 if married, filing jointly) on contributions to Learning Quest and the other Kansas 529 products.

I am proud to bring more investment options to Kansas families making saving for higher education a priority. It is my honor to serve as your Kansas State Treasurer, and a greater honor to provide families with the investment tools they need to plan for the future.