Public Company Information:

SAN FRANCISCO—(BUSINESS WIRE )—Charles Schwab Investment Management, the asset management arm of the Charles Schwab Corporation, today announced strategic changes to its target-date mutual funds to enhance the portfolios and reduce expenses. The aim of these enhancements is to help investors more effectively achieve their long-term retirement savings goals.

The changes include reducing expenses charged to investors by roughly 13 to 23 basis points, adjusting the asset allocation glide path to be more conservative as investors approach retirement while adding equity exposure in the early years, and adding index strategies and third-party investment adviser funds to the selection of underlying funds invested in by each of the seven target-date portfolios.

We conducted a strategic review of our Schwab Target Date mutual fund lineup to evaluate the best investment approach given market conditions and investors changing long-term expectations and current interest in more conservative investment options, said Peter Crawford, senior vice president for investment management services. We emerged from the review confident that our funds remain strong and competitive, but we also identified several changes we could make to improve them and help investors meet their goals in various market environments.

The specific enhancements announced today by Schwab in its Target Funds include:

Reducing expense ratios by an estimated 13 to 23 basis points Higher fixed income exposure beginning ten years from target date, to help increase protection of principal and generate periodic income approaching and during retirement Adding third-party funds managed by third party investment managers for improved style diversification and enable access to additional asset classes Higher equity exposure in early years of funds, with the goal of building wealth before target date. Extending the glide path for an additional five years to continue 20 years after target retirement date

Jeff Mortimer, senior vice president and chief investment officer for Charles Schwab Management, noted that the Schwab Target 2040 Fund (SWERX) was recently honored by Lipper 1 for best consistent performance over three years in its category, and that both the Target 2030 and Target 2040 funds earned an overall rating of five-stars by Morningstar 2. With these changes we believe we can be even better across all seven portfolios, providing investors with continuing opportunities to achieve returns suited to their financial goals.

www.schwab.com/target or call 1-877-682-6461.

Performance quoted is past performance and is no guarantee of future results. Current performance may be negative. Visit schwab.com for more recent performance data.

Before investing, please read carefully and consider information contained in the prospectus, including investment objectives, risks, charges and expenses. Request a prospectus at schwabfunds.com or by calling 1-800-435-4000. Please read the prospectus carefully before investing.

1 Lipper, Inc. a subsidiary of Reuters, is a global mutual fund research company. The Lipper Fund Awards program highlights funds that have excelled in delivering consistently strong total return performance, relative to peers. Lipper designates award-winning funds in most individual classifications for the three-, five-, and ten-year periods. Open-end funds, closed-end funds and variable insurance products are considered for awards.

2 The Overall Morningstar Rating is a weighted average of the funds’ three-, five-, and 10-year (if applicable) Morningstar rating metrics. Morningstar Overall and 3-year ratings for Schwab Target 2030 and 2040 Funds are 5 and 5 stars, respectively. As of 03/31/2009 there were 87 funds in the Target Date 2026-2030 category and 78 funds in the Target Date 2036-2040 category for the overall rating and 3-year period. Morningstar proprietary ratings reflect historical risk-adjusted performance as of 03/31/2009. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund’s monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in the distribution percentages.) The top 10% of the funds in an investment category receive 5 stars.

The Funds are subject to market volatility and risks associated with the underlying investments. Risks include exposure to international and emerging markets, small company and sector equity securities, and fixed income securities subject to changes in inflation, market valuations, liquidity, prepayments, and early redemption.

Diversification does not eliminate the risk of investment losses.

Schwab Affiliate Funds include Schwab Funds and Laudus Funds. Schwab Funds and Laudus Funds are advised by Charles Schwab Investment Management, Inc. an affiliate of Charles Schwab & Co. Inc. The Laudus Group of Funds includes the Laudus Rosenberg Funds and Laudus Mondrian Funds, which are part of the Laudus Trust and distributed by ALPS Distributors, Inc. and the Laudus MarketMasters Funds, which are part of Schwab Capital Trust and distributed by Charles Schwab & Co. Inc. Charles Schwab & Co. Inc. and ALPS Distributors, Inc. are unaffiliated entities. The aggregate fees Schwab or its affiliates receive from Schwab Affiliate Funds are greater than the remuneration Schwab receives from other fund companies participating in the Mutual Fund OneSource Service.

Fund Management

Daniel Kern, CFA, is a managing director and portfolio manager of the Schwab Target Funds, Schwab MarketTrack Portfolios, and the Schwab Monthly Income Funds. He is responsible for the day-to-day management of the asset allocation funds. He was appointed portfolio manager in 2008. Prior to joining the firm in 2003, he worked for more than 13 years in the investment management industry. Dan received an M.B.A. in Finance from the University of California, Berkeley and a B.A in Economics from Brandeis University.

About Charles Schwab Investment Management

Founded in 1989, Charles Schwab Investment Management, Inc. a subsidiary of the Charles Schwab Corporation, is one of the nation’s largest asset management companies with more than $236 billion in assets under management as of December 31, 2008. It is among the country’s largest money market fund managers and is the third-largest provider of retail index funds. In addition to managing Schwab proprietary funds, CSIM provides oversight for the institutional-style, sub-advised Laudus Fund family. CSIM currently manages 84 mutual funds.

About Charles Schwab

The Charles Schwab Corporation (Nasdaq:SCHW) is a leading provider of financial services, with more than 300 offices and 7.5 million client brokerage accounts, 1.5 million corporate retirement plan participants, 508,000 banking accounts, and $1.1 trillion in client assets. Through its operating subsidiaries, the company provides a full range of securities brokerage, banking, money management and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co. Inc. (member SIPC. www.sipc.org ), and affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through its Advisor Services division. The Charles Schwab Bank (member FDIC) provides banking and mortgage services and products. More information is available at www.schwab.com. (0409-8648)