FROM THE OFFICE OF PUBLIC AFFAIRS

The Treasury Department announced today that all marketable Treasury bills, notes and bonds will now be available to the public in minimum amounts of $1,000. The move puts Treasury bills and short-term notes within the reach of small investors. The changes are effective immediately for tenders submitted in the regular 13 and 26 week Treasury bill auction to be held Monday, Aug. 10, 1998.

All Treasury bills, notes and bonds will now be sold and transferable in increments of $1,000. The new minimums will also apply to outstanding Treasury bills and notes effective Monday, Aug. 10, 1998. Previously, Treasury bills were available in minimum purchase amounts of $10,000 and notes with maturities of four years or less required a minimum purchase of $5,000. Notes with longer maturities and 30-year bonds are already available in $1,000 amounts.

"These steps, once again, demonstrate the Administration's commitment to seek innovative ways to encourage all Americans to save and invest," Treasury Secretary Robert E. Rubin said. "We are also making it convenient for all investors to add Treasury securities to their portfolios. Our Treasury Direct program lets investors hold their bills, notes and bonds in safe, easy to manage accounts."

Treasury is also making it easier for investors to buy its securities with its new Buy Direct service for Treasury Direct customers. Beginning Sept. 16, 1998, in time for the regular weekly bill auction on Monday, Sept. 21, current Treasury Direct customers will be able to purchase securities over the Internet at the Bureau of the Public Debt's website at www.publicdebt.treas.gov.

To Buy Direct over the Internet, investors with established Treasury Direct accounts visit Public Debt's "virtual lobby," indicate which security they wish to purchase and authorize Public Debt to charge their bank account of record for the purchase price. Investors will receive a confirmation number and the Bureau will charge their bank account on the day the security is issued.

Buy Direct transactions use the web browser's Secure Sockets Layer, meaning that information sent to Public Debt is encrypted to protect investor privacy. Buy Direct was designed to require very little personal information from the investor as most of the information needed to complete the transaction is already on record.

In late October, current investors will be able to Buy Direct using a touch-tone phone. To use this new telephone feature, investors will dial 1-800-943-6834 and follow a simple interactive menu that will tell them which securities are available and instruct them on how to complete the transaction. As with Internet sales, investors will pay for their purchases by authorizing Public Debt to charge their bank account on issue day.

Buy Direct services will be available from 8:00 a.m. to 8:00 p.m., Eastern time, Monday through Friday except on Federal holidays.

The new services are for investors who submit non-competitive tenders only. Most Treasury Direct customers use non-competitive bidding to buy bills, notes and bonds. On auction days the regular Noon, Eastern time deadline for non-competitive tenders applies to Internet and telephone purchases.

These new services join the Bureau of the Public Debt's growing list of Treasury Direct customer conveniences available over the Internet or by phone. Treasury Direct customers can reinvest their securities, check account balances, and order statements of account or tax information from their home using a personal computer or touch-tone phone.

Treasury Direct customers who purchase securities by mail can also use another option called Pay Direct, which authorizes Public Debt to charge their bank account for the purchase price the bills, notes or bonds they buy.