FUND NEWS                               Oct 22, 2007

Fund returns positive for first quarter of FY08

OCTOBER 22 - After a turbulent start to the quarter, the Alaska Permanent Fund`s investments ended on an upswing, returning 2.7% and reaching $38.9 billion for the period ending September 30. Most of the gains came in the last month, when the Fund saw a 3.2% return that offset earlier losses.

After a turbulent start to the quarter, the Alaska Permanent Fund’s investments ended on an upswing, returning 2.7% and reaching $38.9 billion for the period ending September 30. Most of the gains came in the last month, when the Fund saw a 3.2% return that offset earlier losses.

U.S. and global stock markets reached record highs in July before investors` concerns over problems in the subprime mortgage market caused them to turn sharply downward. The Federal Reserve Board took action in August and September, lowering the primary credit rate and the federal funds rate respectively, and stock markets started to turn upward again. By September 30, the Dow Jones Industrial Average had increased by more than 8% from the quarter`s low on August 16.

For the quarter, the Fund`s stock portfolios had positive returns, 1.8% for U.S. stocks and 2.2% for the global stock portfolio. Emerging market stocks continued their incredible growth, with the Fund`s three emerging market portfolios returning between 8% and 14%, and contributing to the Non-U.S. portfolio`s 4.4% return.

U.S. and non-U.S. fixed income did well for the quarter. The U.S. portfolio returned 2.8% and the non-U.S. portfolio returned 5.1%. Real estate also had positive returns of 1.7%, while the Fund`s absolute return investments were flat at 0.2%.

The Permanent Fund received $157 million in mineral royalties for the quarter, and $1.1 billion in statutory net income, the value used to calculate dividends.