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U.S. Bancorp Asset Management Launches First American Inflation Protected Securities Fund
   New Fund Will Help Investors Protect Their Investments Against Inflation

MINNEAPOLIS, Oct. 4 /PRNewswire-FirstCall/ -- U.S. Bancorp Asset Management, Inc., announced today that it has launched Class A, C, Y, and R shares of the First American Inflation Protected Securities Fund. The Fund will invest at least 80% of its net assets in inflation-protected debt securities, according to management team leader Wan-Chong Kung. These types of securities can help investors protect against inflation by adjusting coupon payments in line with changes in inflation. In addition, they offer attractive, risk-adjusted return potential and additional portfolio diversification due to the low correlation of returns to other asset classes. The Fund also avoids the phantom income tax associated with investing in individual inflation-protected securities.

Inflation-protected securities are bonds issued by the U.S. Treasury, corporations, or foreign governments that keep pace with inflation through periodic adjustments based on changes in the Consumer Price Index(1). The most common inflation-protected securities -- Treasury-Inflation-Protected Securities (TIPS) -- carry a fixed coupon rate, and their principal value adjusts with inflation. Interest is paid on the adjusted principal value so that interest payments increase with the rate of inflation. Inflation-protected securities offer a "real" rate of return compared to traditional bonds, which maintain a fixed income stream until maturity.

"In a rising inflation-rate environment, the new Inflation Protected Securities Fund can help investors protect their investments against the damaging effects of inflation," said Tony Rodriguez, head of fixed income at U.S. Bancorp Asset Management. "Based on the Consumer Price Index, consumers would need more than $13 today to buy the same goods and services that they purchased in 1940 for only $1. If consumers are concerned about inflation outpacing their investment returns, inflation-protected securities could provide a way to protect their purchasing power while at the same time diversifying their portfolios."

Since its inception on October 1, 1997, the Lehman TIPS Index(2) has provided favorable returns with less risk than many other investment options.

The new Fund's Class A shares will have a maximum front-end load fee of 4.25%, and Class C shares will carry a maximum back-end load fee of 1%. Each class will include a 0.5% management fee.

About First American Funds

The First American Funds mutual fund family is the fifth-largest bank- proprietary fund family in the United States, with more than $55.3 billion(3) in open-end funds. The Funds are advised by U.S. Bancorp Asset Management.

About U.S. Bancorp Asset Management

U.S. Bancorp Asset Management is a national investment firm that serves as the registered investment advisor to First American Funds and provides customized portfolio management to private clients, corporations, public entities, nonprofit organizations, and other institutions. The firm is the 37th-largest asset manager(4) domiciled in the United Sates and the fourth- largest bank-proprietary asset manager(5), with more than $122 billion(3) in assets under management. It is a performance-driven, independent-style firm, backed by the sources and stability of U.S. Bancorp, the sixth-largest financial services holding company in the United States, with total assets of $190 billion(3).

     (1) The Consumer Price Index is a measurement used to monitor the change
         in prices paid by consumers. It is also used to monitor the change
         in the cost of living from one year to another. This inflation
         calculation is based on the average inflation index during the
         calendar year.
     (2) The Lehman TIPS (Treasury Inflation-Protected Securities) Index
         consists of inflation-protected securities issued by the U.S.
         Treasury that have at least one year to final maturity, at least
         $250 million par amount outstanding, and are investment-grade rated
         (Baa or better).
     (3) Figures are as of June 30, 2004, and are subject to change.
     (4) Pensions and Investments, Dec. 22, 2003
     (5) Strategic Insight, July 2004

Each Fund's investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus contains this and other important information about First American Funds, and it may be obtained by calling First American Investor Services at 800.677.FUND or visiting firstamericanfunds.com. Read the prospectus carefully before investing.

Mutual fund investing involves risk; principal loss is possible.

Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.

Treasury securities are issued by the U.S. government and are backed by its full faith and credit. The interest payments on these securities are guaranteed, while the Fund offers no such guarantee.

Investment products, including shares of mutual funds, are not obligations of, or guaranteed by, any bank, including U.S. Bank or any U.S. Bancorp (NYSE: USB) affiliate, nor are they insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency.

U.S. Bancorp Asset Management, Inc., serves as the investment advisor to First American Funds. First American Funds are distributed by Quasar Distributors, LLC, an affiliate of the investment advisor.

SOURCE  U.S. Bancorp Asset Management, Inc.
    -0-                             10/04/2004
    /CONTACT:  Cheryl B. Stone, Vice President, Public Relations of U.S.
Bancorp Asset Management, +1-612-303-5657/
    /Web site:  http://www.firstamericanfunds.com /
    (USB)

CO:  U.S. Bancorp Asset Management, Inc.; First American Funds; U.S. Bancorp
ST:  Minnesota
IN:  FIN MFD
SU:  PDT

JS-JR 
-- CGM023 --
1083 10/04/2004 09:59 EDT http://www.prnewswire.com
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding U.S. Bancorp's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year.



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