In the past, index results have often outperformed many money managers. As a consequence, many investors have recognized the benefits of indexing - investing in a broad representation of stocks structured to mirror, as closely as possible, the price and yield performance of a market index.

For years, the S&P 500 Index* has been used by
professional money managers to measure the performance
of a broad portion of the stock market. As interest in
medium-capitalization (mid-cap) companies grew, in
1991 Standard & Poor's created the S&P MidCap 400
Index* to serve as a benchmark for mid-cap stocks.

Diversification
There's no need for multiple security purchases. The Trust offers diversification, with one price you can track weekly in Barron's or daily on the Web site address listed on the back panel.

Low Cost May Increase Total Return
The Trust has no management fees, only a small annual supervisory fee and operating expenses. Low costs are essential in an index fund, since an index is a benchmark without expenses. Low costs mean more of your money is invested and working for you.

Monthly Income or Reinvestment
The Trust pays income monthly, or you can elect to have dividend income and capital gains automatically reinvested into additional units of the Trust at the then-current market value. By reinvesting your income, you increase your holdings and gain the important benefits that monthly compounding can have on total return.

Liquidity
Your investment may be sold at any time at the units' then-current market value, which may be more or less than your original cost.

At Defined Asset Funds, we believe that knowledge and discipline are essential to sound investment planning. For this reason, our unit investment trusts provide the information to help you invest appropriately, and the discipline to help you stay on course. 

We've found that diversity and drive can be key to uncovering compelling investments. To this end, our experienced team of research analysts and securities traders searches Wall Street and beyond, creating portfolios for strong potential. Our equity funds seek to capitalize on vibrant economic sectors, innovative quantitative strategies and thorough fundamental analysis. Our fixed-income funds offer the regular income and stability to help balance and diversify your investment assets. 

At Defined Asset Funds, we set the foundation for each of our portfolios in this way, because we have a very important goal in mind — yours.

• Standard & Poor's MidCap 400 Index was created on June 5, 1991. 
• The Index measures the performance of 400 mid-sized companies (capitalization as of September 30, 2000 ranging from about $137 million to over $15 billion).^||
• It represents 279 companies traded on the New York Stock Exchange, 115 over the Nasdaq National Market System and 6 on the American Stock Exchange. The market sectors included are basic materials, capital goods, communications services, consumer cyclicals, consumer staples, energy, financials, health care, technology, transportation and utilities.^||

As with any equity investment, the value of your investment will fluctuate with the value of the underlying stocks. The Trust may not be appropriate for investors. seeking capital preservation or high-current income. There can be no assurance that the Trust will meet its objective.

Because of sales charges, expenses and commissions, as well as the fact that the Trust may not own all of the stocks in the Index or in the same proportions, or be fully invested at all times,Trust performance will vary somewhat from the performance of the Index. Dividends and any net capital gains distributed will be subject to tax each year, whether or not reinvested. Consult your tax advisor concerning state and local taxation.

You will pay an up-front sales charge up to 2.25% and estimated annual operating expenses of $2.28 per 1,000 units
as described in the prospectus.

For larger purchases, the overall sales charges are reduced to put more of your investment dollars to work for you.