LOS ALTOS, CA - Marketocracy Funds¹ today announced that at June 30, 2003, the Marketocracy Masters 100 Fund (Symbol: MOFQX) was up 22.78% for the second quarter of 2003 and outperformed the S&P 500 Index² by 7.39%. During the same period, the S&P 500 Index returned 15.39%, its best quarter in several years.

"The second quarter was a great time to be in the market," said Ken Kam, portfolio manager for the Masters 100 Fund. Throughout 2002, the Fund demonstrated it could outperform the market in a down period. Last year when the S&P 500 Index was down 21.97%, the Fund held losses to 6.38% and beat the Index by 15.59%. "An unanswered question was how the Fund would perform in an up period," acknowledged Kam. "Q2 2003 was the strongest quarter for the market since the Fund's inception and the Fund outpaced the S&P 500 Index by over 7% during the quarter."

Diversified Portfolio Delivered Higher Returns with Less Risk
Above-market returns are usually accompanied by above-market risks. The Masters 100 Fund, however, delivered its returns while maintaining a beta³ of 0.45 since inception⁴ compared to the S&P 500 Index's beta of 1.00 for the same period. At quarter-end, the Fund held more than 1000 stocks and no single stock accounted for more than 6.00% of the Fund's assets.

Finding Pockets of Strength
"The economy is almost never uniformly strong or weak," explained Kam. "We believe our investment process is leading us to find pockets of strength in the economy where investments can still be made at reasonable prices. This 'value' tilt may provide some cushion against a market downturn while preserving the potential to outperform if the market continues upwards." The companies in the Fund's portfolio are generally selling at lower market premiums with higher revenue and earnings growth rates than the S&P 500 Index average.

As of June 30, 2003, the Fund's portfolio was more heavily weighted in Consumer Discretionary, Financials, and Materials stocks than the S&P 500 Index. The Fund made major shifts out of stocks in the Materials sector (from 32.6% down to 7.50%) and into Information Technology stocks (from 4.7% up to 14.99%) during the quarter. As of June 30, 2003, the Fund was substantially weighted in Small Cap issues, with 56.4% of total assets invested in companies with market-caps of $500M or less.

Performance Information and Fund Availability
The following is the three month, one-year and inception to date performance summary for the Fund as of 6/30/03:

Dow Jones Industrial Average is a price-weighted average of 30 blue-chip stocks.
Standard & Poors 500 Index is comprised of 500 selected common stocks most of which are listed on the NYSE.
NASDAQ Composite Index is a broad-based capitalization-weighted index of all NASDAQ (National Market & Small-Cap) stocks.
Returns assume reinvestment of dividends and distributions.

All Marketocracy Funds are available through most major brokerages, including Charles Schwab, Fidelity, TD Waterhouse, and E*TRADE.

To obtain a prospectus containing more complete information about the Fund, including fees and expenses, please call 888-884-8482, or visit: http://funds.marketocracy.com/mof/prospectus.html
Please read the prospectus carefully before you invest.

Past performance is not a guarantee of future results. 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.

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'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.

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: June 8, 2003