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A Message of Reassurance - AARP Financial Continues Participation in U.S. Treasury Temporary Guarantee Program for the AARP Money Market Fund

AARP Financial understands that volatility in the financial markets continues to cause concern among investors. AARP Financial and the Board of Trustees of the AARP Funds have determined that the AARP Money Market Fund will continue to participate in the U.S. Treasury Department Temporary Guarantee Program for Money Market Funds through April 30, 2009. We want to reassure you that your investment in the AARP Money Market Fund remains a conservative, low-risk investment and that you have quick access to these assets if and when you need them.

You may recall that, in October, we determined that it was in the interest of our shareholders to participate in the program through the initial period expiring on December 18, 2008. In late November, the U.S. Treasury announced that the program will be extended until April 30, 2009; however, individual funds must elect to continue to participate in the guarantee program. Although it continues to be highly unlikely that the insurance will be needed for the AARP Money Market Fund, we expect that renewing the Fund's participation in the program will reassure our investors that their money market fund will continue to provide safety and liquidity for their cash investments. While only shareholders as of September 19, 2008 have their share values guaranteed, the program adds stability to the money market fund as a whole.

In an effort to provide you with a clear understanding of the AARP Money Market Fund, we would like to share the following key points with you:

• The AARP Money Market Fund has never fallen below $1.00 or "broken the buck" in industry jargon. In summary, you have not lost any of your initial investment while invested in the AARP Money Market Fund.
• The AARP Money Market Fund invests all of its investable assets into the State Street Money Market Portfolio. As of September 30th, 2008 the State Street Money Market Portfolio had assets totaling $7.6 billion. The State Street Money Market Portfolio is managed by State Street Global Advisors.
• According to Standard and Poor's, the AARP Money Market Fund is AAAm rated. This is the highest allowable rating within the Standard and Poor's money market fund rating system and the AARP Money Market Fund has received this rating since April 30, 2007. Because of the recent volatility in the markets, Standard and Poor's reviews daily all money market funds that they follow based on fund information provided to them.

The Treasury program is designed to address temporary dislocations in the credit markets. Under the program, the U.S. Treasury will guarantee the share price of any publicly offered eligible money market mutual fund that applies and pays a fee to participate. The program will continue only to provide coverage to shareholders for the lesser of either the number of shares held as of the close of business on April 30, 2009, or the amount held on the day that a guarantee event occurs.

Below are some additional details of the Treasury Department program:

1. The U.S. Treasury Temporary Guarantee Program provides a guarantee to participating money market mutual fund shareholders based on the number of shares invested in the fund at the close of business on September 19, 2008.
2. Any increase in the number of shares an investor holds after the close of business on September 19, 2008, will not be guaranteed.
3. If a customer closes his/her account with a fund or broker-dealer, any future investment in the fund will not be guaranteed.
4. If the number of shares an investor holds fluctuates over the period, the investor will be covered for either the number of shares held as of the close of business on September 19, 2008, or the current amount, whichever is less.
5. The Program expires on April 30, 2009, unless extended by the United States Treasury.

We want you to know that AARP Financial is closely monitoring developments in the financial markets and we are here to address your concerns. If you have any questions about your AARP Money Market Fund or other AARP Funds' investment, especially in today's volatile environment, please call a Financial Advisor at AARP Financial at 1-800-958-6457. Our Financial Advisors are non-commissioned and will take the time to help you make more sense of what is going on.

Sincerely,
Richard M. Hisey
President, AARP Financial Incorporated

An investment in the AARP Money Market Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. Current and future portfolio holdings are subject to risk.

An investor should consider the investment objectives, risks, charges and expenses of the AARP Funds carefully before investing. To get a prospectus containing this and other information, please visit www.aarpfunds.com or call 1-800-958-6457. Read it carefully before you invest.

While AARP has licensed the use of its name to AARP Funds and endorses the services provided by AARP Financial Inc., AARP does not offer financial products or services itself, and cannot recommend that you or any specific individual should purchase any particular product or service. AARP Financial Inc. is a registered investment adviser and a subsidiary of AARP.

The Financial Advisors are registered as representatives of ALPS Distributors, Inc., a registered broker-dealer, and as investment adviser representatives of AARP Financial Inc, a registered investment adviser. AARP Financial Inc. offers investment advisory services and is not affiliated with ALPS Distributors, Inc. AARP Financial Inc. is the investment adviser and administrator for AARP Funds. ALPS Distributors, Inc. is AARP Funds' distributor.