Aquila Investment Management LLC is the lead organization of several affiliated companies which manage, market and administer mutual funds. Aquila Investment Management LLC is a wholly-owned subsidiary of Aquila Management Corporation, founder of the Aquila Group of Funds. Aquila Distributors, Inc., an affiliate, distributes shares for each of the Aquila-sponsored funds.

The Aquila Group of Funds has combined assets of approximately $5 billion. The Aquila Group of Funds primarily specializes in fixed income investments. It currently consists of 12 funds: 7 single state municipal bond funds, 3 money-market funds, a high yield corporate bond fund and a regionally oriented equity fund.

Aquila's 7 municipal bond funds* serve investors in states with smaller populations, relatively high income tax rates and interesting long term economic growth potential - Hawaii, Arizona, Oregon, Kentucky, Colorado, Utah, and Rhode Island. Aquila is unique in four local aspects of these funds:

* locally-based portfolio management

* locally-based Trustees

* locally-based Officers who provide dedicated in-state service to the brokerage community and individual investors and

* locally-based shareholder meetings.

Aquila's niche marketing and localized approach has gained a prominent position for each of the 7 municipal bond funds in their respective states.

A commitment to extensive fundamental research and a detailed knowledge of corporate issuers and credits are hallmarks of the high yield corporate bond fund, Aquila Three Peaks High Income Fund.

Aquila's equity fund is also regionally oriented and managed. Aquila Rocky Mountain Equity Fund focuses on companies based or doing a major amount of business in the 8 Rocky Mountain states, spanning from Arizona to Montana.

Aquila's 3 money-market funds are designed to provide investors with various options for their short-term investment needs through a general purpose money-market fund, a tax-free fund and a U.S. government securities fund.

Aquila's money-market funds are oriented to both retail and institutional investors, while the bond and equity funds are primarily sold through brokerage firms, investment advisors and banking investment representatives.

Lacy B. Herrmann is Chairman of Aquila Investment Management LLC and the Founder and Trustee Emeritus of each of the funds in the Aquila Group of Funds. Diana P. Herrmann, his daughter, is Vice Chair, President, and Chief Executive Officer of Aquila Investment Management LLC and is President and Trustee of each of the funds.

Before investing in one of the Aquila Group of Funds, carefully read about and consider the investment objectives, risks, charges, expenses, and other information found in the Fund prospectus. The prospectus is available from your financial advisor, by clicking here or by calling 1-800-437-1020. Risk Factors: Municipal Bond Funds: An investment involves certain risks including potential loss of value, market risk, interest rate risk, credit risk, and geographic concentration. Insurance on an obligation is intended to mitigate credit risk; it does not insure the market price of the obligation. For certain investors, some dividends may be subject to Federal and state taxes, including Alternative Minimum Tax (AMT). Corporate Bond Fund: This Fund may invest up to 100% of its assets in high-yield bonds that are rated below investment grade. Lower rated bonds generally offer higher yields, but also involve a greater degree of credit risk and default risk than higher rated bonds. The return of principal for the bond holdings in this fund is not guaranteed. Equity Fund: An investment in the Fund involves certain risks, including possible loss of value, market and financial risk, volatility and trading volume of small companies, interest & credit risks of convertible fixed-income investments, economic and diversification risks of geographic concentration. Money Market Funds: An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.                                    Aquila Distributors, Inc. - 2008