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[FUND LOGO]
PEGASUS FUNDS
PO Box 5142
Westborough, Massachusetts 01581
**IMPORTANT REMINDER**
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SPECIAL MEETING OF SHAREHOLDERS
TO BE HELD WEDNESDAY, MARCH 17, 1999
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March 4, 1999
Dear Shareholder:
Recently we distributed proxy material regarding the Special Meeting of
Shareholders scheduled to take place on Wednesday, March 17, 1999. The Fund's
records indicate that as of December 18, 1998, ("Record Date") you were holding
shares in the Pegasus Funds. As of now, the Fund's records indicate that we have
not yet received voting instructions from you. All votes are vital no matter how
many shares you hold and your shares cannot be voted unless we receive your
executed ballot or you are present at the meeting! We urge you to act promptly
in order to allow us to obtain a sufficient number of votes and avoid the
possibility of a meeting adjournment. Unless you attend the meeting and vote in
person, we must receive your vote no later than Wednesday, March 17, 1999.
The purpose of the Special Meeting is to approve a proposed Agreement and Plan
of Reorganization. The Reorganization Agreement provides that each of the
Pegasus Portfolios will transfer all of its assets and liabilities to a
corresponding One Group portfolio. Based upon their evaluation, Pegasus' and One
Group's Board, have unanimously determined that the proposed Reorganization is
in the best interests of the Funds' respective shareholders and that the
interests of such shareholders will not be diluted as a result of the
Reorganization.
For your convenience, we have established three methods by which to register
your vote:
1. By Phone: Please call 1-800-848-1134. Representatives are
available to take your vote Monday through Friday
between the hours of 9:00 a.m. and 11:00 p.m. and
Saturday from 12:00 p.m. to 6:00 p.m. est.
2. By Fax: Fax your proxy to us toll free at 1-800-733-1885,
anytime.
3. By Mail: Return your executed proxy in the enclosed postage
paid envelope.
If you have any questions regarding the meeting agenda or the execution of your
proxy, please call Shareholder Communications Corporation at the above mentioned
number.
Thank you for your prompt attention.
