FUNDS TO ACQUIRE LINDNER FUNDS
CA - October 14, 2003 - Hennessy Advisors, Inc. (OTCB:HNNA), based
in Novato, California, announced today that it has signed a definitive
agreement with Lindner Asset Management, Inc., based in Deerfield,
Illinois, for Hennessy to purchase assets related to the investment
advisory agreements for the following five Lindner Funds:
Lindner Communications Fund
· Lindner Growth & Income Fund
· Lindner Large-Cap Growth Fund
· Lindner Market Neutral Fund
· Lindner Small-Cap Growth Fund
closing, these five Lindner Funds will be reorganized into four
of the Hennessy Funds, for which Hennessy serves as investment adviser.
A proxy statement/prospectus describing the proposed reorganization
of each Lindner Fund in greater detail and seeking shareholder approval
of each proposed reorganization at a special shareholder meeting
will be sent to Lindner Fund shareholders. Shareholders should read
the proxy statement/prospectus carefully before determining whether
to approve the proposed reorganization of their Lindner Fund. These
proposed reorganizations are expected to close in early 2004, if
approved by shareholders. If approved, all shareholders of each
Lindner Fund on the reorganization date will become shareholders
of the acquiring Hennessy Fund. Shareholders will not be subject
to any sales charges as a result of the reorganization and should
not experience any adverse tax consequences. Shareholders may continue
to redeem their shares of Lindner Funds up to the date of the reorganization
for their particular Lindner Fund.
on the current combined net asset value of these five Lindner Funds,
which exceeds $300 million, total assets managed by Hennessy Advisors,
Inc. after the acquisition are expected to top $1.2 billion. The
total cash purchase price for the acquisition will be 2.625% of
the aggregate net asset value of the acquired Lindner Funds as of
the close of the business day prior to closing. Closing is conditioned
on, among other things, approval by the shareholders of each Lindner
Advisors, Inc. is the advisor to five no-load mutual funds, satisfying
a variety of investment horizons and risk tolerance levels for equity
investors. Each of the Hennessy Funds employs a unique mutual fund
money management approach combining superior, time-tested stock
selection formulas with unwavering discipline and consistency. Hennessy
Advisors, Inc. serves clients with integrity, honesty and candor.
The Hennessy Funds' strategies and performance are fully disclosed.
Statements in this press release regarding Hennessy Advisors, Inc.'s
business that are not historical facts, are "forward-looking
statements" within the meaning of the Private Securities Litigation
Reform Act of 1995. These forward-looking statements involve a number
of risks, uncertainties and other important factors that could cause
the actual results and outcomes to differ materially from any future
results or outcomes expressed or implied by such forward-looking
statements. These risks, uncertainties and other important factors
are described in more detail in the "Risk Factors" section
of the company's annual report on Form 10-KSB for the fiscal year
ended September 30, 2002, filed with the U.S. Securities and Exchange
Commission, including, without limitation, the "Risk Factors"
section of Management's Discussion and Analysis and Results of Operations.
The following factors could affect the actual results of the company:
Lindner acquisition is subject to numerous conditions, including
financing, and closing therefore is not assured.
company's current managerial resources may not be adequate to
handle the growth resulting from its acquisition of the Lindner
shareholders may increase redemptions as a result of the change
in investment advisors.
volatility in the equity markets may cause the levels of assets
under management to fluctuate significantly.
weak market conditions may lower assets under management and reduce
the company's revenues and income.
in this press release shall be considered a solicitation to buy
or an offer to sell a security to any person in any jurisdiction
where such offer, solicitation, purchase or sale would be unlawful
under the securities laws of such jurisdiction.