SAN MATEO, CA - Marketocracy Funds¹ today announced that at September 30, 2005, the Marketocracy Masters 100 Fund (nasdaq: MOFQX) was up 10.37% for the third quarter of 2005, outpacing all the major indices and outperforming the S&P 500 Index2 by 6.77 percentage points. During the same period, the S&P 500 Index was up 3.60%, NASDAQ was up 4.78%, and the Dow Jones Industrial Average Index was up 3.44%.

Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate. An investor's shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than performance data quoted. To obtain performance data current to the most recent month-end, call the following toll-free number: 888-884-8482 or go to the following web page: http://funds.marketocracy.com/mof/index.html?MKT=PR5.10.1

Navigating Through Choppy Waters
“Our process has been successful in both up markets and down markets but the choppy market that we’ve been in since the beginning of 2004 has proven difficult for most money managers to deliver consistent returns,” said Ken Kam, portfolio manager for the Masters 100 Fund.

“At the end of April we made adjustments to our selection and investment process, fine tuning our portfolio for a choppy market. It took us almost a year of analyzing the extensive database that we’re fortunate to have at Marketocracy, to develop an approach that is more responsive to market changes and can navigate through choppy waters,” explained Ken Kam.

As of September 30, 2005, the Masters 100 Fund had beaten the S&P 500 Index every month since April 30, 2005, generating a cumulative return of 20.95%. During the same period, the S&P 500 returned only 7.05%.

Past Performance Information and Fund Availability
The following is the past performance summary for the Fund as of 9/30/05:

QUARTERLY CUMULATIVE RETURNS (Unaudited)   May 2005 Jun 2005 Jul 2005 Aug 2005 Sep 2005 MOFQX + 4.64% + 4.72% + 6.58% + 1.27% + 2.26% S&P 500 Index2 + 3.18% + 0.14% + 3.71% - 0.91% + 0.81%

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

Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate. An investor's shares, when redeemed, may be worth more or less than their original cost.  Current performance may be lower or higher than performance data quoted. To obtain performance data current to the most recent month-end, call the following toll-free number: 888-884-8482 or go to the following web page: http://funds.marketocracy.com/mof/index.html?MKT=PR5.10.2

Investors can also find out about the Masters 100 Fund’s distributions, portfolio weightings, and track the performance of the Fund by downloading or subscribing to the MOFQX Performance Tracker on: http://funds.marketocracy.com/mof/index.html?MKT=PR5.10.3

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=PR5.10.12 or call 888-884-8482.

Investors should carefully consider the investment objectives, risks, charges, and expenses associated with the Masters 100 Fund prior to 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’s portfolio. The strategies used by the Fund’s investment adviser in selecting the 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.

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

Distributor: Rafferty Capital Markets LLC
Date of first use: 12/14/04