FUND NEWS                               May 08, 2006

Fund reaches $35 billion

MAY 8 - On Friday, May 5 2006, the Alaska Permanent Fund closed with an unaudited value of $35.2 billion, crossing the $35 billion mark for the first time in the Fund`s history.

On Friday, May 5, 2006, the Alaska Permanent Fund closed with an unaudited value of $35.2 billion, crossing the $35 billion mark for the first time in the Fund`s history.

International stocks continue to be the strongest performers, returning 36.9% since the start of the fiscal year on July 1, 2005. The Fund’s domestic stock and real estate portfolios have also driven the Fund’s growth for the year, returning 16.0% and 17.2% respectively for the fiscal year-to-date, all contributing to a preliminary total year-to-date return of 14.8%.

“The recent growth that we’ve seen in the Permanent Fund is the result of the Trustees’ efforts over the years to modernize the Fund’s asset allocation, adding stocks, real estate and exposure to international markets when it was deemed prudent,” said Governor Frank Murkowski. “As the Trustees continue to look for ways to further diversify the Fund, I know that future generations will benefit from this ongoing process.”

The Fund reached an unaudited value of $33 billion on January 6, 2006 and an unaudited value of $34 billion on March 17, 2006.