DST, Boston Financial Launch
Compliance Program for Mutual Funds

Compliance+ sets the industry standard for providing mutual fund compliance support

KANSAS CITY, MO., July 26, 2004 – Mutual fund clients of DST Systems and Boston Financial Data Services required to comply with SEC Rule 38a-1 now have free access to Compliance+™, a comprehensive, enterprise-wide compliance program.

Rule 38a-1 of the Investment Company Act of 1940 requires investment companies to adopt and implement written policies and procedures to ensure compliance with certain federal securities laws; review them annually for adequacy and effectiveness; and designate a chief compliance officer (CCO). The rule affects functions performed by the fund’s service providers, and includes provisions to promote the independence of the CCO from the fund’s management and its service providers.

CCOs of all U.S. mutual fund companies are expected to have policies and procedures in place by October 5, 2004. Their policies and procedures must be reviewed by an independent third party within 18 months of implementation.

Compliance+ provides fund companies a specific methodology for meeting the requirements of this rule. With Compliance+, newly appointed CCOs have a resource to address, document and measure compliance for transfer agent regulatory requirements.

Compliance+ consists of three key components. It features a federal securities law matrix that identifies federal statutes that are generally applicable to mutual fund transfer agents. It maps these laws to key business processes and workflows such as anti-money laundering programs and transaction processing. Finally, Compliance+ provides a “measurement dashboard” that connects the business processes to key compliance measures; these will be reported to clients on a periodic basis.

“Compliance+ addresses the requirements of this new rule from a holistic compliance infrastructure,” said Jeff Cook, director of regulatory compliance for DST Systems. “It will supplement the efforts of those clients who have been working on their programs for awhile. For those who are in the early stages of drafting their policies and procedures – and those who have yet to start – Compliance+ can be the template from which they model and document their own procedures and process flows.”

DST Systems, Inc. (NYSE: DST) provides sophisticated information processing and computer software services and products that help clients improve productivity, increase efficiencies, and provide higher levels of customer service. DST is organized domestically and internationally into three operating segments: Financial Services, Customer Management, and Output Solutions. DST operates one of the most advanced data centers in the world, which provides information-processing services to support the products within each operating segment. These products are further enhanced through the integration of DST’s advanced technology and e-commerce solutions.

Boston Financial Data Services is one of the industry’s premier third-party transfer agents and has been servicing the back-office mutual fund industry since 1973. Boston Financial is a partnership between DST Systems, Inc. of Kansas City, Mo., and State Street Bank & Trust Co. of Boston, Mass. This partnership has enabled Boston Financial’s clients to utilize DST’s industry-leading software and technology while benefiting from the institutional support and global reach of State Street.

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The information and comments above may include forward-looking statements respecting DST and its businesses. Such information and comments are based on DST's views as of today, and actual results could differ. There could be a number of factors affecting future results, including those set forth in Form 8-K/A dated March 17, 2003 filed by DST with the Securities and Exchange Commission. All such factors should be considered in evaluating any forward-looking comment. The Company will not update any forward-looking statements in this press release to reflect future events.

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