FUND NEWS                               Apr 17, 2007

Fund holds value in volatile third quarter

APRIL 17 - Despite a correction in late February that sent world markets into a downward slide, the Permanent Fund returned 1.9% for the quarter and 11.8% for the fiscal year-to-date according to unaudited results released today. On March 30 the unaudited closing value was $37.3 billion.

Despite a correction in late February that sent world markets into a downward slide, the Permanent Fund returned 1.9% for the quarter and 11.8% for the fiscal year-to-date according to unaudited results released today. On March 30 the unaudited closing value was $37.3 billion.

"This market correction wasn`t wholly unexpected - it came after a strong period of growth in the stock market that carried the Fund to a 9.6% return in only six months," said Michael Burns, Chief Executive Officer of the Alaska Permanent Fund Corporation. "I think what was unexpected was the magnitude and swiftness of the correction. Even for long term investors, February 27 was an unusually long day."

Burns noted that a significant market event may get headlines, but it won`t change the Board`s investment strategy. "Our Board invests for the long term, and manages risk by diversifying into a number of different asset types. Our bond portfolio actually made $42 million that day."

Stock markets turned up in late March, and the Permanent Fund regained ground to end the quarter at about the same place it started on February 26. The Fund`s U.S. stock portfolio returned 1.3% for the quarter while non-U.S. stocks returned 4.2%, producing a year-to-date return of 20.9%. Real estate returned 2.2% for the quarter.

The Fund`s U.S. bond portfolio returned 1.6% for the quarter, and 6.7% year-to-date, performing ahead of its benchmark. The non-U.S. portfolio returned 0.8% for the quarter and 3.9% for the fiscal year.

The stock rally that ended the third quarter continued into April, and the Permanent Fund reached an unaudited value of $38 billion for the first time on April 4.

Statutory net income was $2.7 billion year-to-date on March 30. The dividend is calculated using a five-year average of the Permanent Fund`s statutory net income, and the year-to-date total is significantly larger than the $257 million from fiscal 2002 that will drop out of the averaging equation. As a result, dividends are expected to be higher this year than last year.