Weathering the Credit Crunch

Thompson Plumb Bond Fund (THOPX) Receives Morningstar 5-Star Rating for Overall, 3yr, 5yr and 10yr Periods


MADISON, Wis., May 28 /PRNewswire/ — The Thompson Plumb Funds, Inc. (http://www.thompsonplumb.com/) is pleased to announce that the Thompson Plumb Bond Fund (THOPX) received a Morningstar Rating(TM) of 5-stars in the Short Term Bond Category for each individual time period — Overall, 3yr, 5yr and 10yr periods as of April 30, 2008.



The Morningstar Overall Rating(TM) for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Ratings metrics, which are based on risk-adjusted performance. Based on total return, Morningstar ranked the Fund #39 out of 457 Short Term Bond Funds for the 1yr period, #7 out of 388 Short Term Bond Funds for the 3yr period, #1 out of 290 Short Term Bond Funds for the 5yr period and #2 out of 165 Short Term Bond Funds for the 10yr period ending April 30, 2008. (There were 388 funds in the Short Term Bond Category for the overall period.)



“Our strategy of drastically reducing our exposure to credit risk in the 2006-2007 period has allowed the Fund to weather the credit crunch relatively unscathed,” says John C. Thompson, Co-Portfolio Manager of the Thompson Plumb Bond Fund. “We have now begun investing a portion of our ‘dry powder’ at what we believe are extremely attractive yields while still maintaining a cautious stance in the event that credit conditions worsen in the current recession.”



“We believe that by taking credit risk when spreads are wide and attempting to remove risk when spreads are narrow we can produce competitive returns for our shareholders.”



Thompson Plumb Funds, Inc. currently has three mutual funds in its stable, the Thompson Plumb Growth Fund (THPGX), the Thompson Plumb MidCap Fund (THPMX) and the Thompson Plumb Bond Fund (THOPX). The company was formed in 1987 and is based in Madison, Wisconsin. The Thompson Plumb Bond Fund is managed by father and son, John W. Thompson and John C. Thompson.



For questions or to arrange an interview with the portfolio managers, please contact Alex Colbert at 608-827-5700 or 877-886-5777.



The fund’s investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by calling 800-999-0887 or visiting www.thompsonplumb.com. Read it carefully before investing.



Mutual fund investing involves risk, principal loss is possible. Investment in debt securities typically decrease in value when interest rates rise. The risk is usually greater for longer-term debt securities. Investments in Asset Backed and Mortgage Backed Securities include additional risks that investors should be aware of such as credit risk, prepayment risk, possible illiquidity and default, as well as increased susceptibility to adverse economic developments. Results include the reinvestment of all dividends and capital gains distributions.



For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating(TM) (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. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (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.)



(C)2008 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.



Morningstar Rankings represent a fund’s total-return numeric rank relative to all funds that have the same Morningstar Category. It is based on Morningstar total return, which includes both income and capital gains or losses and is not adjusted for sales charges or redemption fees.



Quasar Distributors, LLC, Distributor.



First Call Analyst:
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Source: Thompson Plumb Funds, Inc.


CONTACT: Alex Colbert of Thompson Plumb Funds, Inc., +1-608-827-5700, or
1-877-886-5777



Web site: http://www.thompsonplumb.com/