Company Press Release

CHICAGO, Sept 02, 2008 /PRNewswire via COMTEX/ -- Harbor Funds today announced the addition of the Harbor Commodity Real Return Strategy Fund to its lineup of no-load mutual funds. This new fund, which commences operations today, is managed by Pacific Investment Management Company LLC (PIMCO), the same subadviser that manages the Harbor Bond Fund and the Harbor Real Return Fund.

The Harbor Commodity Real Return Strategy Fund seeks to provide maximum real return (total return minus the cost of inflation), consistent with prudent investment management, by investing in commodity-linked derivative instruments backed by a portfolio of inflation-indexed securities and other fixed income instruments. The Harbor Commodity Real Return Strategy Fund has an investment minimum of $1,000. The Fund will be managed by Mihir Worah, an executive vice president of PIMCO. Mr. Worah also serves as portfolio manager of the Harbor Real Return Fund. With $829.5 billion in fixed-income assets under management, as of June 30, 2008, PIMCO, based in Newport Beach, Calif., is one of the world's leading fixed-income fund management companies. The Harbor Commodity Real Return Strategy Fund invests in commodity-linked investments, which may be significantly more volatile than other securities. The use of derivative instruments may add additional risk. It also invests in fixed income securities, which fluctuate in price in response to various factors, including changes in interest rates, changes in market conditions, and issuer-specific events. The Fund is non-diversified, which means that it may concentrate its assets in a smaller number of issuers, making it more susceptible to risks associated with a single economic, political, or regulatory occurrence than a more diversified portfolio. Since the Fund may hold foreign securities, it may be subject to greater risks than funds invested only in the U.S. These risks are more severe for securities of issuers in emerging market regions. The Fund will seek to gain exposure to the commodity markets primarily through investments in leveraged or unleveraged commodity index-linked notes and through investments in the Harbor Cayman Commodity Fund Ltd., a wholly-owned subsidiary of the Fund.

The Harbor Funds lineup of actively managed no-load mutual funds had combined net assets of $48.3 billion as of June 30, 2008. Each Harbor fund is managed by an institutional investment firm chosen by Harbor Capital Advisors, Inc. because of its experience in a specific asset class. Investors should consider the investment objectives, risks, fees and expenses carefully before investing. Visit the Harbor Funds web site at www.harborfunds.com or call 1-800-422-1050 for a prospectus which contains this and other information about the Fund. Read the prospectus carefully before investing. SOURCE Harbor Funds