SAN MATEO, CA - Marketocracy Funds¹ today announced that on December 14, 2004, annual gains were paid to shareholders of record as of December 13, 2004. The Marketocracy Masters 100™ Fund (Nasdaq: MOFQX) paid out short-term gains of $0.55228 per share and $0.46308 per share of long-term gains (for a total of $1.01536).

On December 14, 2004, the distribution ex-date, the Masters 100 Fund’s Net Asset Value (NAV) was reduced by $1.01536 per share from $12.19 to a NAV of $11.17.

Investors can find out about the Masters 100 Fund’s future distributions and track the performance of the Fund by subscribing to the MOFQX Performance Tracker on http://funds.marketocracy.com/mof/?MKT=PR6

Past performance is not a guarantee of future results. Current performance may be lower or higher than the past performance. 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.

For 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=PR6 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’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, and are not employees of the Fund or its advisor. 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.  Marketocracy Capital Management is a wholly owned subsidiary of Marketocracy Inc.

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