Shareholders of the Pioneer Interest Shares closed end-fund have approved a reorganization that will combine the fund with the Pioneer Bond Fund, an open-ended fund. Trading of the fund's shares on the NYSE was suspended yesterday at the close of the market through October 19, when the reorg is expected to be completed.

Pioneer Investments today announced that shareholders of Pioneer Interest Shares (NYSE: MUO) approved the reorganization of the fund, a closed-end fund, into Pioneer Bond Fund, an open-end fund. The reorganization is expected to be completed as of the close of business on October 19, 2007. In order to allow the reorganization to proceed in an organized and efficient manner, the fund�s shares will cease to be traded on the New York Stock Exchange as of the close of trading on October 16, 2007. Thus, during the period from October 17, 2007 through the closing of the reorganization, there will be no market for selling and purchasing shares of the fund.

As previously announced on October 2, 2007, the fund declared a special distribution in anticipation of the reorganization in accordance with the following schedule: Ex Date of October 5, 2007; Record Date of October 10, 2007; and Payable Date of October 17, 2007. The special distribution will be payable solely in cash. Participants in the fund�s dividend reinvestment plan will receive cash and not additional shares.

Under the terms of the reorganization, the assets of the fund will be transferred to, and its liabilities will be assumed by, Pioneer Bond Fund in exchange for Class Y shares of Pioneer Bond Fund. Class Y shares of Pioneer Bond Fund then will be distributed to the shareholders of the fund and the fund will be terminated. Shares certificates for the fund will be cancelled. Pioneer Bond Fund will not issue share certificates in connection with the reorganization.

Information on Pioneer Bond Fund Class Y Shares can be found on www.pioneerinvestments.com or by calling Shareholder Services at 1-800-225-6292. The ticker symbol of Pioneer Bond Fund Class Y Shares is PICYX and its cusip is 723622403.

Pioneer Interest Shares is a diversified closed-end management investment company. The fund�s investment objective is to seek interest income by investing in a diversified portfolio of debt obligations, primarily investment grade, with the objective of obtaining as high a yield as possible consistent with this type of investment.

Pioneer Bond Fund is a diversified open-end management investment company. The fund�s investment objective is to provide current income from an investment grade portfolio with due regard to preservation of capital and prudent investment risk. The fund also seeks a relatively stable level of dividends; however, the level of dividends will be maintained only if consistent with preserving the investment grade quality of the fund�s portfolio.

Pioneer Investment Management, Inc. is each fund�s investment adviser.

About Pioneer Investments

Pioneer Investments is the trade name for Pioneer Global Asset Management S.p.A. and its subsidiaries, a global investment firm with offices in 22 countries and approximately $313.0 billion in assets under management as of August 31, 2007, of which approximately $80.9 billion was managed in the U.S. Founded in 1928, our flagship mutual fund, Pioneer Fund, is the third-oldest mutual fund in the U.S. Pioneer Investment Management, Inc. is the investment advisory subsidiary of Pioneer Investment Management USA Inc., which is the North American operating subsidiary of Pioneer Global Asset Management S.p.A., a wholly-owned subsidiary of UniCredito Italiano S.p.A.

Closed-end funds, unlike open-end funds, are not continuously offered. There is a one time public offering and once issued, shares of closed-end funds are sold in the open market through a stock exchange. Shares of closed-end funds frequently trade at a discount to net asset value. The price of the fund�s shares is determined by a number of factors, several of which are beyond the control of the fund. Therefore, the fund cannot predict whether its shares will trade at, below or above net asset value.

Pioneer Funds Distributor, Inc. is the Underwriter and Distributor for Pioneer mutual funds.

�Pioneer Investment Management, Inc. 60 State Street Boston, MA 02109

Member of the UniCredito Italiano Banking Group, Register of Banking Groups

Edited by: Erin Kello

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE