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Goldman Sachs Asset Management Launches Strategic Income Fund

Global Fixed Income Team Takes Dynamic Approach to Creating Value in Volatile Market Environment

New York, June 30, 2010 – Goldman Sachs Asset Management, L.P. (GSAM) today announced the launch of the Goldman Sachs Strategic Income Fund (Class A Shares: GSZAX) (the Fund), which seeks to provide investors income and total return opportunities through a broadly diversified portfolio of US and foreign fixed income securities. Employing a benchmark-unconstrained approach, the Fund’s portfolio managers have flexibility to invest in their best ideas across all fixed income sectors - helping investors navigate today’s increasingly complex economic environment.

“Today’s fixed income investment landscape is defined by uncertainty surrounding interest rates, inflation and fiscal imbalance. This makes credit selection more important than ever, and creates new opportunities,” said Jonathan Beinner, Chief Investment Officer and Co-Head of Global Fixed Income and Liquidity Management at GSAM. “To help investors achieve potentially stronger total returns in this environment, the Goldman Sachs Strategic Income Fund can provide access to a broad set of investment options across global fixed income markets irrespective of country, currency, quality or duration.”

“The Goldman Sachs Strategic Income Fund seeks to uncover global investment opportunities through a balanced approach to current yield and total return potential without being tethered to a benchmark or a style box,’’ added Michael Swell, Co-Head of Global Lead Portfolio Management at GSAM and Co-Lead Portfolio Manager of the Fund. “The Fund’s dynamic nature should enable it to adapt to rapidly changing market conditions and proactively manage risks such as those posed by ballooning sovereign debt or a volatile interest rate environment.”

GSAM’s Global Fixed Income team, which oversees $283.7 billion in assets as of March 31, 2010, will manage the Fund, incorporating the best investment ideas generated by its portfolio managers and nine strategy teams. Because the Fund is not tied to a benchmark, the portfolio managers have more flexibility to adjust sector allocations to provide attractive return potential and better manage overall portfolio risk.

GSAM believes the addition of the Fund to an existing portfolio can enhance total return performance through a dynamic approach to today’s complex fixed income markets.

The Fund is offered in A and C shares, both with $1,000 minimum initial investments. The Fund also offers Institutional and R & IR Class Shares.

Goldman Sachs Asset Management is the asset management arm of The Goldman Sachs Group, Inc. (NYSE: GS), which manages $841 billion as of March 31, 2010. Goldman Sachs Asset Management has been providing discretionary investment advisory services since 1988 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 global leading investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals.

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Goldman Sachs Strategic Income Fund Risk Considerations
The Goldman Sachs Strategic Income Fund is not a money market fund. Investors in this Fund should understand that the net asset value of the Fund will fluctuate, which may result in a loss of the principal amount invested. Investments in fixed income securities are subject to the risks associated with debt securities including credit, liquidity and interest rate risk. The Fund may make substantial investments in securities rated below investment grade. Non-investment grade securities (commonly known as “junk bonds”) are considered speculative and generally involve greater price volatility and greater credit and interest rate risk than higher rated securities. A number of instruments and strategies used by the Fund may involve non-investment grade securities, including without limitation distressed securities, special situations investments and collateralized loan obligations. The Fund may purchase the securities of issuers that are in default. The Fund may also make substantial investments in derivative instruments. Derivative instruments may involve a high degree of financial risk. These risks include the risk that a small movement in the price of the underlying security or benchmark may result in a disproportionately large movement, unfavorable or favorable, in the price of the derivative instrument (i.e., market risk); risks of default by a counterparty, and the risks that transactions may not be liquid. Similarly, securities and other instruments in which the Fund invests are also subject to market risk.

The Fund may invest in and actively trade, securities, derivatives, and other financial instruments using strategies and investment techniques with significant risk characteristics, including, without limitation, risks arising from the volatility of commodity, equity, fixed income, currency and other financial markets, risks arising from the potential illiquidity of securities, derivative and other instruments, the risk of loss from counterparty defaults and the risks of borrowing, including for purpose of making investments, risks associated with originating or participating in loans and risks associated with making investments outside the U.S. No guarantee or representation is made that the investment program of the Fund will be successful, that the various trading strategies utilized or investments made by the Fund will have low correlation with each other or with the financial markets in which the Fund invest.

To learn more about Goldman Sachs Funds, visit www.goldmansachsfunds.com. Prospectuses containing more 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.

Goldman, Sachs & Co. is distributor of the Goldman Sachs Funds.

Opinions expressed are current opinions as of the date appearing in this material only. No part of this material may, without GSAM’s prior written consent, be (i) copied, photocopied or duplicated in any form, by any means, or (ii) distributed to any person that is not an employee, officer, director, or authorized agent of the recipient.

Copyright © 2010 Goldman, Sachs & Co. All Rights Reserved. Date of First Use: June 30, 2010 37462.MF.TMPL

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