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<PAGE> PAGE 2
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SIGNATURE LESLIE L. OGG
TITLE VICE PRESIDENT
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<NAME> AXP DISCOVERY FUND CLASS A
<S> <C>
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<ARTICLE> 6
<SERIES>
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<NAME> AXP DISCOVERY FUND CLASS B
<S> <C>
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<INVESTMENTS-AT-COST> 984714353
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SHAREHOLDER RESPONSE SUMMARY REPORT Page 1
IDS FUNDS
IDS DISCOVERY FUND, INC.
June 30, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
1. Election of Board members.
H. Brewster Atwater, Jr.
Affirmative 48,189,027.205 50.082% 97.746%
Withhold 1,111,079.952 1.154% 2.254%
TOTAL 49,300,107.157 51.236% 100.000%
Arne H. Carlson
Affirmative 48,061,552.506 49.949% 97.488%
Withhold 1,238,554.651 1.287% 2.512%
TOTAL 49,300,107.157 51.236% 100.000%
Lynne V. Cheney
Affirmative 48,158,533.596 50.050% 97.684%
Withhold 1,141,573.561 1.186% 2.316%
TOTAL 49,300,107.157 51.236% 100.000%
William H. Dudley
Affirmative 48,179,334.669 50.072% 97.727%
Withhold 1,120,772.488 1.164% 2.273%
TOTAL 49,300,107.157 51.236% 100.000%
David R. Hubers
Affirmative 48,197,392.976 50.090% 97.763%
Withhold 1,102,714.181 1.146% 2.237%
TOTAL 49,300,107.157 51.236% 100.000%
Heinz F. Hutter
Affirmative 48,171,027.324 50.063% 97.710%
Withhold 1,129,079.833 1.173% 2.290%
TOTAL 49,300,107.157 51.236% 100.000%
Anne P. Jones
Affirmative 48,184,872.032 50.077% 97.738%
Withhold 1,115,235.125 1.159% 2.262%
TOTAL 49,300,107.157 51.236% 100.000%
SHAREHOLDER RESPONSE SUMMARY REPORT Page 2
IDS FUNDS
IDS DISCOVERY FUND, INC.
June 30, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
William R. Pearce
Affirmative 48,171,455.256 50.064% 97.711%
Withhold 1,128,651.901 1.172% 2.289%
TOTAL 49,300,107.157 51.236% 100.000%
Alan K. Simpson
Affirmative 48,129,532.798 50.020% 97.626%
Withhold 1,170,574.359 1.216% 2.374%
TOTAL 49,300,107.157 51.236% 100.000%
John R. Thomas
Affirmative 48,197,088.168 50.090% 97.763%
Withhold 1,103,018.989 1.146% 2.237%
TOTAL 49,300,107.157 51.236% 100.000%
C. Angus Wurtele
Affirmative 48,185,666.968 50.078% 97.739%
Withhold 1,114,440.189 1.158% 2.261%
TOTAL 49,300,107.157 51.236% 100.000%
2. Ratify the selection of independent auditors
Affirmative 47,919,317.326 49.801% 97.199%
Against 588,662.086 .612% 1.194%
Abstain 792,127.745 .823% 1.607%
TOTAL 49,300,107.157 51.236% 100.000%
3. Change the Fund name from "IDS" to "AXP"
Affirmative 44,853,748.079 46.615% 90.981%
Against 3,575,043.322 3.716% 7.252%
Abstain 871,315.756 .905% 1.767%
TOTAL 49,300,107.157 51.236% 100.000%
SHAREHOLDER RESPONSE SUMMARY REPORT Page 3
IDS FUNDS
IDS DISCOVERY FUND, INC.
June 30, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
6. Changes to investment policies
6.1 Prohibited conflict of interest
Affirmative 44,834,502.446 46.595% 92.400%
Against 2,180,053.757 2.266% 4.493%
Abstain 1,507,678.954 1.567% 3.107%
TOTAL 48,522,235.157 50.428% 100.000%
Not Voting 777,872.000
SHAREHOLDER RESPONSE SUMMARY REPORT Page 4
IDS FUNDS
IDS DISCOVERY FUND, INC.
June 30, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
** FUND TOTALS: SHARES
RECORD TOTAL 96,220,694.567
VOTED SHARES 49,300,107.157
PERCENT VOTED 51.236%
SHAREHOLDER RESPONSE SUMMARY REPORT Page 1
IDS FUNDS
IDS DISCOVERY FUND CLASS B
June 30, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
4. Approve a new shareholder service and distribution plan
Affirmative 6,538,573.857 44.271% 88.434%
Against 627,414.741 4.248% 8.486%
Abstain 227,718.772 1.542% 3.080%
TOTAL 7,393,707.370 50.061% 100.000%
SHAREHOLDER RESPONSE SUMMARY REPORT Page 2
IDS FUNDS
IDS DISCOVERY FUND CLASS B
June 30, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
** FUND TOTALS: SHARES
RECORD TOTAL 14,769,517.968
VOTED SHARES 7,393,707.370
PERCENT VOTED 50.061%
SHAREHOLDER RESPONSE SUMMARY REP Page 1
IDS FUNDS
IDS DISCOVERY FUND, INC. CLASSES A & B
June 30, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
4. Approve a new shareholder service and distribution plan
Affirmative 39,864,275.630 45.082% 87.881%
Against 4,009,730.860 4.534% 8.840%
Abstain 1,487,455.428 1.682% 3.279%
TOTAL 45,361,461.918 51.298% 100.000%
Not Voting 778,028.000
SHAREHOLDER RESPONSE SUMMARY REPORT Page 2
IDS FUNDS
IDS DISCOVERY FUND, INC. CLASSES A & B
June 30, 1999
% of Outstanding % of Shares
No. of Shares Shares Voted
--------------- ---------------- ----------------
** FUND TOTALS: SHARES
RECORD TOTAL 88,426,703.651
VOTED SHARES 46,139,489.918
PERCENT VOTED 52.178%
Independent Auditors' Report on Internal Accounting Control
The Board of Directors and Shareholders
AXP Discovery Fund, Inc.:
In planning and performing our audits of the financial statements of AXP
Discovery Fund, Inc. for the year ended July 31, 1999, we considered its
internal control, including control activities for safeguarding securities, in
order to determine our auditing procedures for the purpose of expressing our
opinion on the financial statements and to comply with the requirements of Form
N-SAR, not to provide assurance on the internal control.
The management of AXP Discovery Fund, Inc. is responsible for establishing and
maintaining internal control. In fulfilling this responsibility, estimates and
judgments by management are required to assess the expected benefits and related
costs of internal controls. Generally, controls that are relevant to an audit
pertain to the entity's objective of preparing financial statement for external
purposes that are fairly presented in conformity with generally accepted
accounting principles. Those controls include the safeguarding of assets against
unauthorized acquisition, use, or disposition.
Because of inherent limitations in internal control , errors or irregularities
may occur and not be detected. Also, projection of any evaluation of internal
control to future periods is subject to the risk that it may become inadequate
because of changes in conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of the internal control would not necessarily disclose all
matters in the internal control that might be material weaknesses under
standards established by the American Institute of Certified Public Accountants.
A material weakness is a condition in which the design or operation of one or
more of the internal control components does not reduce to a relatively low
level the risk that errors or irregularities in amounts that would be material
in relation to the financial statements being audited may occur and not be
detected within a timely period by employees in the normal course of performing
their assigned functions. However, we noted no matter involving the internal
control and its operation, including controls for safeguarding securities, that
we consider to be a material weakness as defined above.
This report is intended solely for the information and use of management, the
Board of Directors of AXP Discovery Fund, Inc., and the Securities and Exchange
Commission and is not intended to be and should not be used by anyone other than
these specified parties.
KPMG LLP
Minneapolis, Minnesota
September 3, 1999
