Northwest Mutual Funds Inc. is merging its Northwest Specialty Resource Fund into
Northwest Specialty Equity Fund. The Northwest Specialty Resource Fund will stop taking purchase requests effective immediately.

Northwest expects to mail materials for the special meeting of unitholders of Northwest Specialty Resource Fund shortly and will be making application to the securities regulatory authorities for approval of the merger.

Deans Knight Capital Management manages both the Northwest Specialty Resource Fund and the Northwest Specialty Equity Fund. Each invests primarily in equity securities of small and mid-cap Canadian companies, but the Northwest Specialty Resource Fund is focused on resource sector companies.

Wayne Deans, the lead portfolio advisor for the Northwest Specialty Equity Fund is one of Canada’s premiere small/mid-cap managers with over 30 years of investment experience. The Northwest Specialty Equity Fund was recently ranked by the National Post as the top Canadian small-cap performer over 15 years.

As of January 31, 2002, Northwest Specialty Equity Fund’s one, three, five and ten year average annual returns were 28.8%, 11.2%, -3.9% and 16.0% respectively, and the Fund has a 10.6% return since inception.