SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 16938 / March 22, 2001

   , Civil Action No. 01 C 1984, Judge Joan H. Lefkow (Northern District
   of Illinois)

   The Securities and Exchange Commission filed a Complaint in the United
   States District Court for the Northern District of Illinois and
   obtained an Order of Permanent Injunction (Order) against Heartland
   Group, Inc. (Heartland Group) enjoining Heartland Group from further
   violations of Sections 30(b), (e) and (g) of the Investment Company
   Act and Rules 30b2-1, 30d-1(a) and 30d-1(c) promulgated thereunder.
   The Order also freezes the assets held in Heartland Group, Inc.'s
   High-Yield Municipal Bond Fund, Short Duration High-Yield Municipal
   Fund and Taxable Short Duration Municipal Fund (collectively the
   Funds) and provides for the appointment of a receiver to take control
   of the assets of the Funds, manage the funds, suspend redemptions in
   the Funds and, if appropriate, liquidate the Funds. Heartland Group
   consented to entry of the Order without admitting or denying any of
   the allegations the Commission's Complaint.

   Specifically, the Commission's Complaint alleges that Heartland Group
   has failed to send an annual report for Heartland Group's High-Yield
   Municipal Bond Fund, Short Duration High-Yield Municipal Fund and
   Taxable Short Duration Municipal Fund to the Funds' shareholders, and
   failed to file the report with the Commission in the time allotted
   under the federal securities laws. The Commission's Complaint further
   alleges that this failure is due to Heartland Group's inability to
   obtain audited financial results for the three funds for fiscal year
   2000, due to Heartland Group's independent public accountant's
   concerns regarding the underlying valuations of the securities held in
   the Funds. The complaint further alleges that while the auditors have
   commenced an audit of the Funds, they have stated that they will
   disclaim any opinion as to the value of the securities held by the
   Funds during Heartland Group's fiscal year 2000. As a result,
   shareholders of the Funds are being deprived of statutorily required
   fundamental financial information upon which they can base a decision
   to remain invested, or to redeem shares in the Funds. This action does
   not involve Heartland's Select Value Fund, Value Plus Fund, Value Fund
   or Wisconsin Tax Free Fund.

   The Commission's investigation continues in this matter.
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Modified 03/22/2001