LOS ALTOS, CA - Marketocracy Funds¹ today announced that at March 31, 2004, the Marketocracy Masters 100 Fund (Nasdaq: MOFQX) was up 4.68% for the first quarter of 2004, outpacing all the major indices and outperforming the S&P 500 Index² by 2.99 percentage points. During the same period, the S&P 500 Index was up 1.69%. The Masters 100 Fund has now beaten the S&P 500 Index in 8 out of 9 full quarters since inception³.

Highly Diversified Portfolio Delivered Higher Returns
"Many investors believe in the importance of diversification," said Ken Kam, portfolio manager for the Masters 100 Fund. The Fund held over 1,200 individual stocks at March 31, 2004 with the top 10 holdings equal to 9.39% of total net assets. In comparison, the S&P 500 Index has only 500 individual stocks and the top 10 holdings of the S&P 500 Index equals more than 22% of total net assets⁴.

Past Performance Information and Fund Availability
The following is the past performance summary for the Fund as of 3/31/04:

QUARTERLY CUMULATIVE RETURNS   Q1-2002 Q2-2002 Q3-2002 Q4-2002 Q1-2003 Q2-2003 Q3-2003 Q4-2003 MOFQX + 5.18% - 3.10% - 15.52% + 8.74% - 7.79% + 22.78% + 12.22% + 12.41% S&P 500 Index2 + 0.28% - 13.39% - 17.27% + 8.44% - 3.15% + 15.39% + 2.65% + 12.17%   Q1-2004               MOFQX + 5.18%               S&P 500 Index2 + 0.28%

• The above indices are unmanaged and cannot be invested in directly.
• Returns assume reinvestment of dividends and distributions.

Past performance is not a guarantee of future results. Current performance may be lower or higher than the past performance quoted above. Investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost.

All Marketocracy Funds are available direct, or indirectly through most major brokerages, including Charles Schwab, Fidelity, and TD Waterhouse.

For an application to open a direct account and/or a prospectus containing more complete information about the Fund, including the Fund’s investment objective, risks, fees and expenses, please visit: http://funds.marketocracy.com/mof/prospectus.html?MKT=PR5.1
or call 888-884-8482.

Investors should consider the investment objectives, risks, charges, and expenses of the Masters 100 Fund carefully before investing. The Fund's prospectus contains this and other important information about the Masters 100 Fund. Please read the prospectus carefully before investing

Principal risks associated with an investment in the Fund include Stock Selection risk, Small and Medium Companies risk, Foreign Investment risk, and Internet Reliance risk. The Fund can invest in small and medium sized companies, which are often more volatile and less liquid than larger, more established companies and therefore increase the volatility of the Fund'sFund’s portfolio. The strategies used by the Fund’s investment adviser in selecting Fund’s portfolio may not always be successful. The investments may decline in value or not increase in value when the stock market in general is rising. Investments in foreign securities entail risks not present in domestic investments including, among others, risks related to political or economic instability, currency exchange, and taxation. Operation of Marketocracy.com’s website depends on the continued availability of the Internet, both short- and long-term. Significant failures of the Internet could lead to interruptions or delays in the Fund’s investment adviser’s ability to manage the Fund’s portfolio. Additionally, the m100 group, upon which the Masters 100 Fund's portfolio manager relies in managing the Fund, is comprised of individuals who may be amateur investors, not investment professionals. Their track records are based on the performance of a simulated stock portfolio on the website www.marketocracy.com. Members of the m100 group are neither employees of the Fund or its adviser, Marketocracy Capital Management, LLC.

About Marketocracy Capital Management, LLC
Marketocracy Capital Management is the investment adviser to the Masters 100™ Fund and the Technology Plus Fund.  Marketocracy Capital Management is a wholly owned subsidiary of Marketocracy Inc.

Distributor: Rafferty Capital Markets LLC
Date of First Use: May 19, 2004