LOS ALTOS, CA - Marketocracy Funds¹ today announced that at September 30, 2003, the Marketocracy Masters 100 Fund (Symbol: MOFQX) was up 12.22% for the third quarter of 2003, outpacing all the major indices and outperforming the S&P 500 Index² by 9.57 percentage points. During the same period, the S&P 500 Index was up 2.65%. The Masters 100 Fund has now beaten the S&P 500 Index in 6 out of 7 full quarters since inception³.

"We seek to consistently deliver better than average performance in any kind of market environment," said Ken Kam, portfolio manager for the Masters 100 Fund. "During a relatively flat Q3, we gained over 9 percentage points against the S&P 500 Index." In Q2, during the strongest quarter for the market in several years, the Fund outperformed the S&P 500 Index by over 7 percentage points. And, during 2002, the Fund demonstrated it could outperform the market in a down market period; while the S&P 500 Index was down 21.97% in 2002, the Fund held losses to 6.38%, beating the Index by 15.61 percentage points.

Highly 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 beta⁴ of 0.46 since inception, compared to the S&P 500 Index's beta of 1.00 for the same period. At quarter's end, the Fund held over 1,100 individual stocks. Few funds hold as many positions. At September 30, 2003, with only one exception, no single stock accounted for more than 1.38% of total net assets.

Finding Pockets of Strength
"The economy is almost never uniformly strong or weak," explained Kam. "We believe our investment process provides us with an information advantage in finding pockets of strength in the economy where investments can be made at reasonable prices." 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 September 30, 2003, the Fund's portfolio was more heavily weighted in Health Care, Information Technology, Materials, and Consumer Discretionary stocks than the S&P 500 Index. The Fund made major shifts during the quarter, out of stocks in the Financials sector (from 23.90% of total net assets down to 13.47%) and Consumer Discretionary sector (from 17.50% down to 12.33%) and into Information Technology stocks (from 14.00% up to 22.52%) and Health Care stocks (from 11.60% to 17.17%).

As of September 30, 2003, the Fund was substantially weighted in Small Cap issues, with 58.6% of total assets invested in companies with market-caps of $500M or less. The Fund made a major shift during the quarter, out of Value stocks (from 50.0% of assets in equities down to 32.5%) and into Growth stocks (from 35.8% of assets in equities up to 52.8%

Performance Information and Fund Availability
The following is the performance summary for the Fund as of 9/30/03:

CUMULATIVE RETURNS   Q1-2002 Q2-2002 Q3-2002 Q4-2002 Q1-2003 Q2-2003 Q3-2003 Masters 100 Fund + 5.18% - 3.10% - 15.52% + 8.74% - 7.79% + 22.78% + 12.22% S&P 500 Index + 0.28% - 13.39% - 17.27% + 8.44% - 3.15% + 15.39% + 2.65%

• The above indices are unmanaged and cannot be invested in directly.
• Dow Jones Industrial Average (DJIA) Index is a price-weighted average of 30 blue-chip stocks.
• Standard & Poors 500 (S&P 500) Index is comprised of 500 selected common stocks most of which are listed on the NYSE.
• NASDAQ Composite (NASDAQ) 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.

For a prospectus & application containing more complete information about the Fund, including fees and expenses, please visit this link: http://funds.marketocracy.com/mof/prospectus.html or call 888-884-8482.
Please read it 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. 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: October 2, 2003