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Goldman Sachs Asset Management Launches Two New Fund-of-Funds

Income Strategies and Satellite Strategies Portfolios

NEW YORK, April 26, 2007 - Goldman Sachs Asset Management (GSAM) announces the introduction of two new fund-of-funds, the Goldman Sachs Income Strategies Portfolio (A Share: GXIAX) and the Goldman Sachs Satellite Strategies Portfolio (A Share: GXSAX). Both portfolios will be managed by GSAM's Quantitative Strategies Group, the same portfolio team that oversees the four Goldman Sachs Asset Allocation Portfolios, which recently passed $6B in assets under management.

The Goldman Sachs Income Strategies Portfolio, whose primary objective is current income and secondarily capital appreciation, seeks income -producing potential by investing in a combination of 10 income-oriented Goldman Sachs funds. Using the Global Tactical Asset Allocation (GTAA) strategy, GSAM's Quantitative Strategies Group adds value by actively managing exposure to global stock, bond and currency markets, tactically shifting allocations each quarter based on the team's forward-looking global market outlook. Over the long term, the allocation mix is expected to be 40% equity/ 60% fixed income funds. Its equity benchmark is the S&P 500 Index and its fixed income benchmark is the Lehman Brothers Aggregate Bond Index. The Portfolio is principally designed to provide income for retirees, but can also be used as an investment income source for people not yet retired.

"GSAM created this new fund given the important need that individuals have for additional income; one that has been increasing as a result of sharply rising life expectancies," said Katinka Domotorffy, managing director and portfolio manager for GSAM's Quantitative Strategies Team. According to data from the U.S. Bureau of Census, today's life expectancy of a 62-year old man is 82, while a 65-year old woman is expected to live until 85. "GSAM concurs with most financial experts that, in order to maintain their lifestyles in retirement, retirees (or "investors") will need to have 70-80% of their pre-retirement income," added Ms. Domotorffy. "By investing in an incomeproducing vehicle like the Goldman Sachs Income Strategies Portfolio, investors also maintain exposure to equity investments which can help them better manage their financial need for continued growth opportunities."

The Goldman Sachs Satellite Strategies Portfolio, whose objective is long-term capital appreciation focused on the "satellite" portion of a core-satellite portfolio, offers a professionally allocated investment vehicle of low-correlated asset classes in one portfolio. Core and Satellite investing, according to GSAM research, provides more efficient portfolio construction with less volatility and higher risk-adjusted return potential. GSAM created the Satellite Strategies Portfolio to seek increased diversification and return opportunities using a combination of seven Goldman Sachs funds that invest in non-traditional asset classes. The allocation range of these satellite investments in expected to be about 35% in international and emerging market equity, 35% in high yield bonds and emerging market debt, and 30% in domestic and international real estate and commodities. At least 80% is expected to be in satellites with low correlation to traditional or "core" asset classes such as large-cap equities or investment grade fixed income. The expected allocation range is 25-75% for both equities and fixed income. The Portfolio's benchmarks are the S&P 500 Index for US equities, the MSCI EAFE Index for international equities, and the Lehman Brothers Aggregate Bond Index for fixed income.

"GSAM has been a leader in helping advisors build better portfolios using Core and Satellite investing strategies, but selecting the correct satellite asset classes to match a client's objectives is a difficult task for even the most experienced advisors," said Jim McNamara, Managing Director and head of GSAM's U.S. Third Party Distribution business. "GSAM designed its Satellite Strategies Portfolio to enable investors to tap into our active management skill and our global experience in a vast array of asset classes."

The Goldman Sachs Income Strategies Portfolio and Satellite Strategies Portfolio are available in Class A and C share classes. Each requires a minimum investment of $1,000. The Portfolios will also be offered in an Institutional Share Class.

Goldman Sachs Funds, the mutual fund family of Goldman Sachs Asset Management (GSAM), offers individual and institutional investors a wide range of long-term investment choices among 48 equity, fixed income and hybrid funds. The Family's line of global products, created by 10 independent and distinct GSAM portfolio teams and supported by over 280 GSAM research professionals around the world, provides both core and satellite investments across asset classes, investment styles, investment approaches and geographical regions.

Goldman Sachs Asset Management is the asset management arm of The Goldman Sachs Group, Inc. (NYSE: GS), which manages more than $625 billion as of December 31, 2006. Goldman Sachs Asset Management has been providing discretionary investment advisory services since 1989 and has investment professionals in all major financial centers around the world. The company offers investment strategies across a broad range of asset classes to institutional and individual clients globally. Founded in 1869, Goldman Sachs is a leading global investment banking, securities and investment management firm.

 


Media Contacts:

Christopher Williams
Goldman, Sachs & Co.
Tel: (212) 357-5296

Laura Rzasa
Donley Communications
Tel: (212) 751-6126

To learn more about Goldman Sachs Funds, visit www.goldmansachsfunds.com. Prospectuses containing more complete information are available online, and may also be obtained from your authorized dealer or from Goldman, Sachs & Co. by calling 800-526-7384. Please consider a fund's objectives, risks, and charges and expenses, and read the prospectus carefully before investing. The prospectuses contain this and other information about the Funds.

The Satellite Strategies Portfolio is expected to invest a relatively significant percentage of its assets in the Goldman Sachs Emerging Markets Equity, International Small Cap, Real Estate Securities, International Real Estate Securities, High Yield, Emerging Markets Debt and Commodity Strategy Funds. The Portfolio is subject to the risk factors of those funds. Some of those risk factors include credit and interest rate risk; the volatility in commodity prices; the volatility of high yield bonds, US equity and non-US equity investments; and the political, economic and currency risks of non-US securities, which are particularly significant regarding equities of issuers located in emerging markets. The Portfolio is subject to the underlying fund expenses as well as the expenses of the Portfolio, and the cost of this type of investment may be higher than a mutual fund that only invests in stocks and bonds.

The Income Strategies Portfolio is expected to invest a relatively significant percentage of its assets in the Goldman Sachs U.S. Mortgages, High Yield and Emerging Markets Debt Funds. Additionally, it is expected that the Portfolio will invest more than 25% of its assets in the U.S. Equity Dividend and Premium Fund. The Portfolio is subject to the risk factors of those funds. Some of those risk factors include credit and interest rate risk, the price fluctuations of U.S. government securities in response to changes in interest rates; the volatility of investments in high yield bonds and the stock market; the risks associated with writing options; and the political, economic and currency risks of non-US securities, which are particularly significant regarding issuers located in emerging markets. The Portfolio is subject to the underlying fund expenses as well as the expenses of the Portfolio, and the cost of this type of investment may be higher than a mutual fund that only invests in stocks and bonds.

The particular underlying funds in which the portfolio may invest, the equity/fixed income ranges and the investments in each underlying fund may be changed from time to time without shareholder approval.

The S&P 500 Index is the Standard & Poor's 500 Composite Index of 500 stocks, an unmanaged index of common stock prices. The unmanaged MSCI EAFE Index (unhedged) is a market capitalization-weighted composite of securities in 21 developed markets. The Indices are unmanaged and the figures for the Indices do not include any deduction for fees, expenses or taxes. It is not possible to invest directly in an unmanaged index. The Lehman Brothers Aggregate Bond Index represents an unmanaged diversified portfolio of fixed-income securities, including U.S. Treasuries, investmentgrade corporate bonds, and mortgage-backed and asset-backed securities. The Index figures do not reflect any deduction for fees, expenses or taxes. It is not possible to invest directly in an unmanaged index.

Goldman, Sachs & Co., distributor of the Funds, is not a bank, and Fund shares distributed by Goldman, Sachs & Co. are neither deposits nor obligations of, nor endorsed, nor guaranteed by any bank or other insured depository institution, nor are they insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other government agency. Investment in the Funds involves risks, including possible loss of the principal amount invested.

© 2007 Goldman, Sachs & Co. All Rights Reserved.