Company Press Release

VALLEY FORGE, PA, August 5, 2008—Vanguard announced today that it has modified the investment policies of Vanguard® Total International Stock Index Fund (VGTSX) to enable the fund to invest directly in common stocks of European, Pacific, and emerging markets companies. Since its introduction in 1996, the fund, with current assets of $27 billion, has been structured as a fund-of-funds, investing in three other Vanguard international index funds—Vanguard European Stock Index Fund, Vanguard Pacific Stock Index Fund, and Vanguard Emerging Markets Stock Index Fund.

The fund’s objective and risks will not change. The fund will continue to seek to track the performance of the Total International Composite Index, which comprises the MSCI™ Europe Index, MSCI Pacific Index, and MSCI Emerging Markets Index. The change is also not expected to have any impact on the fund’s 0.27% expense ratio (as of 10/31/2007) or on those of the underlying funds, and is not expected to result in capital gains distributions to shareholders.

Investing a portion of the fund directly in stocks affords Vanguard greater portfolio management flexibility and brings several benefits to shareholders, including the potential for greater tracking precision and tax-efficiency. For example, the fund may immediately invest incoming cash flows in securities, which will enhance tracking precision over time. (Funds-of-funds typically invest in the underlying funds at the closing net asset values, generally at 4:00 p.m. Eastern Time).

Vanguard is transitioning approximately 50% of the portfolio held in mutual fund shares to stocks. As market and other conditions dictate, Vanguard may designate additional cash flows for the purchase of individual securities. In time, the fund may have the ability to pass through foreign taxes paid on the directly held securities. This would enable investors to credit these taxes against their tax liability or to take a deduction against their taxable income, which is not possible in the current fund-of-funds configuration.

This new flexibility in Vanguard Total International Stock Index Fund’s investment policies was enabled by the Securities and Exchange Commission’s adoption of Investment Company Act Rule 12d1-2, which permits funds-of-funds to own individual securities in addition to shares of other mutual funds.

About Vanguard

Vanguard, headquartered in Valley Forge, Pennsylvania, is one of the world’s largest investment management companies and a leading provider of company-sponsored retirement plan services. Vanguard manages nearly $1.25 trillion in U.S. mutual fund assets, including more than $390 billion in employer-sponsored retirement plans. Vanguard offers more than 150 funds to U.S. investors and more than 50 additional funds in non-U.S. markets.

All asset figures are as of June 30, 2008.

For more information, visit www.vanguard.com, or call 800-662-7447 to obtain a fund prospectus. Investment objectives, risks, charges, expenses, and other important information about a fund are contained in the prospectus; read and consider it carefully before investing.

Investments are subject to risk. Foreign investing involves additional risks including currency fluctuations and political uncertainty. Stocks of companies in emerging markets are generally more risky than stocks of companies in developed countries.

The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities. For any such funds or securities, the prospectus or the Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with The Vanguard Group and any related funds.

Vanguard and the ship logo are trademarks of The Vanguard Group, Inc. All other marks are the exclusive property of their respective owners.

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