- --------------------------------------------------------------------------------
                           INTRODUCING VANGUARD'S NEW
                               EZVOTE PROXY CARD
- --------------------------------------------------------------------------------

NOW, IT'S FASTER AND EASIER THAN                               VOTE BY INTERNET
EVER TO VOTE!                                                  [COMPUTER]
                                                               WWW.VANGUARD.COM

IT'S WHAT YOU ASKED FOR!

We used to send clients a separate
proxy card for each Vanguard(R) account
owned. Many clients have asked for a
faster, easier way to vote proxies on their
Vanguard accounts. Our new ExVote Proxy
Card provides the answer. It lets you vote
just once for all of your accounts registered
to the same address and Taxpayer Identification
Number. Or you can continue to vote each of these
accounts separately. The choice is yours.


VOTE BY PHONE
[PHONE]
1-888-221-0689


IT'S MORE COST-EFFECTIVE!

Our new ExVote Proxy Card greatly reduces the
number of proxy cards the funds print and mail.
The funds pass these cost savings along to you
through lower fund expenses.


                                                                      [MAIL BOX]
                                                                    VOTE BY MAIL

We hope that you're as pleased with this
innovation as we are.



THANK YOU IN ADVANCE FOR
VOTING PROMPTLY!



(C)2002 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporation, Distributor.
IPROXC 092002

                                                       [THE VANGUARD GROUP LOGO]



YOUR PROXY VOTE IS IMPORTANT!

TWO LOW-COST WAYS TO VOTE YOUR PROXY

Vote--it's fast and convenient.

The accompanying  Proxy Statement  oulines  important  proposals  affecting your
Vanguard(R)  fund.  Help us save on  costs--savings  we pass along to you in the
form of lower fund  expenses--by  voting online or by telephone.  Each method is
available  24 hours a day,  and each  ensures  that your vote is  confirmed  and
posted immediately.

You only need to return the Voting Instruction Form if you choose to submit your
instructions by paper ballot.

                                                                VOTE BY INTERNET
                                                                      [COMPUTER]
                                                                WWW.VANGUARD.COM

TO VOTE ONLINE:

1.   Read the Proxy Statement.
2.   Go to WWW.VANGUARD.COM and
     click on "Vote My Proxy."
3.   Enter the MASTER CONTROL NUMBER
     found on your Proxy Card.


VOTE BY PHONE
[TELEPHONE]
1-888-221-0689


TO VOTE BY TELEPHONE:

1. Read the Proxy Statement.
2. Call 1-888-221-0689.
3. Enter the MASTER CONTROL NUMBER
   found on your Proxy Card.


(C)2002 The Vanguard Group, Inc. All rights reserved.
Vanguard Marketing Corporationg, Distributor.
IPROXS 092002

                                                       [THE VANGUARD GROUP LOGO]



                            INSTRUCTIONS FOR VOTING
                            BY INTERNET OR TELEPHONE



[COMPUTER]
WWW.PROXYVOTE.COM

Because  your  shares  are held by a  financial  intermediary,  please use these
instructions  for voting by Internet or telephone  rather than those provided in
the proxy statement.

TO VOTE VIA THE INTERNET: Log on to WWW.PROXYVOTE.COM,  enter the control number
indicated  on  your  voting   instructions   form,   and  follow  the  on-screen
instructions.

TO  VOTE  BY  TELEPHONE:   Dial  the  TOLL-FREE  NUMBER  shown  on  your  voting
instructions form, enter your control number, and follow the voice prompts.


YOUR VOTE IS IMPORTANT.

PLEASE VOTE TODAY!                                                   [TELEPHONE]


VGDBEN2002





VOTE YOUR PROXY ONLINE

- --------------------------
Vote your proxy now

Proxy statement
- --------------------------

We need your vote!

Vanguard seeks  approval for several  proposals that we believe will benefit you
as a fund  shareholder.  The  proxy  statement  lists  full  details  about  the
proposals, which include:

o    Allowing  trustees of certain  stock index funds to change a fund's  target
     index if the change is in shareholders' best interest.
o    Changing the objective  and industry  concentration  policy of  Vanguard(R)
     Utilities Income Fund.
o    Making minor adjustments to investment policies for some Vanguard(R) funds.

Vanguard is also asking  shareholders of each fund to elect a board of trustees.
The nominees  include  Vanguard  Chairman  John J.  Brennan and six  independent
trustees:  Charles D. Ellis, Rajiv L. Gupta,  JoAnn Heffernan Heisen,  Burton G.
Malkiel,  Alfred M. Rankin Jr., and J. Lawrence  Wilson,  all of whom  currently
serve on the board.

You are  eligible to vote if you owned  Vanguard  fund shares on the record date
(September  6,  2002),  even if you later  sold  those  shares.  You have  until
December 3, 2002,  to vote,  but we encourage you to vote as soon as possible to
make sure that we receive  enough votes.  If we don't get enought  votes,  we'll
need to send additional  mailings to shareholders--a  process that is costly for
the funds and consequently for you, as a fund shareholder.

There are several ways to vote your proxy,  including by telephone,  mail, or in
person,  but  the  fastest  and  easient  way  to do so is  online.  Just  visit
Vanguard's Electronic Proxy Voting Site and follow the simple instructions.  You
will need the Master  Control  Number  located on your proxy card or within your
e-delivery  notification.  Voting  online or by telephone  saves the funds money
because there is no return postage to pay.

For added  convenience,  we've  introduced the ExVote Card, which enables you to
vote just once on behalf of multiple accounts  registered under the same address
and Tax ID Number. You can still vote each account separately, if you prefer.

If you would rather not vote online, here are the other ways to vote your proxy:

o    BY TELEPHONE. You can call 1-888-221-0689 toll free.
o    BY MAIL. Simply return the proxy card you received in the mail.
o    IN PERSON.  You can attend the  shareholder  meeting  scheduled on Tuesday,
     December 3, 2002, at Vanguard's Charlotte, North Carolina, offices.

For more details on the proposed changes, please see the proxy statement.

Posted: September 23, 2002.




                                     [SHIP]
                              [THE VANGUARD GROUP]

September 23, 2002

      PROXY STATEMENTS BEING SENT TODAY TO ALL VANGUARD(R)FUND SHAREHOLDERS

Dear Investment Adviser:

Today Vanguard(R) began sending proxy statements to its mutual fund shareholders
to seek approval for several  proposals  that we believe will benefit all of our
shareholders.   A  complete  copy  of  the  proxy  statement  can  be  found  at
http://www.vanguard.com/pdf/proxy2002.pdf.  Within the proposals,  we are asking
permission to:
|X|  Allow trustees of certain stock index funds to change a fund's target index
     if the change is in our shareholders' best interest.
|X|  Change the  objective  and  industry  concentration  policy of  Vanguard(R)
     Utilities Income Fund.
|X|  Make minor adjustments to investment policies for some Vanguard(R) funds.

Vanguard is also asking  shareholders of each fund to elect a board of trustees.
The nominees  include  Vanguard  Chairman  John J.  Brennan and six  independent
trustees:  Charles D. Ellis, Rajiv L. Gupta,  JoAnn Heffernan Heisen,  Burton G.
Malkiel,  Alfred M. Rankin Jr., and J. Lawrence  Wilson,  all of whom  currently
serve on the board.

Your  clients  are  eligible to vote if they owned  Vanguard  fund shares on the
record   date--September   6,  2002--even  if  they  later  sold  those  shares.
Shareholders  have until December 3, 2002, to vote, but we are  encouraging  all
fund  shareholders  to vote as soon as  possible  to make sure  that we  receive
enough  votes.  If we don't get  enough  votes,  we'll  need to send  additional
mailings  to   shareholders--a   process  that  is  costly  for  the  funds  and
consequently for all fund shareholders.

There    are    several    ways   to   vote   a    proxy,    including    online
(http://www.vanguard.com/), by telephone (1-888-221-0689), by mail, or in person
(a shareholder meeting is scheduled for Tuesday, December 3, 2002, at Vanguard's
Charlotte,  North  Carolina,  offices).  If voting by telephone or online,  your
clients will need their Master Control  Numbers  located on their proxy cards or
within their e-delivery  notifications.  Voting online or by telephone saves the
funds money  because there is no return  postage to pay. For added  convenience,
we've introduced the EzVote Card,  which enables  shareholders to vote just once
on behalf of multiple  accounts  registered  under the same address and taxpayer
identification number.  (Shareholders can still vote each account separately, if
they prefer.)

If you have any questions about the proposals or the voting process, please call
us at 1-800-984-5792  any business day between 8 a.m. and 5 p.m.,  Eastern time.
And as always, thank you for entrusting your clients' assets to Vanguard.

Sincerely,


Karin A. Risi
Senior Manager

This  material  may be used in  conjunction  with the  offering of shares of any
member funds of The Vanguard  Group only if preceded or accompanied by a current
prospectus of each fund whose shares are being offered.

(C)2002  The  Vanguard  Group,  Inc.  All rights  reserved.  Vanguard  Marketing
Corporation, Distributor.

                     VANGUARD INVESTMENT ADVISER SERVICES(R)
                Post Office Box 1107, Valley Forge, PA 19482-1107
                        1-800-992-2911 o www.vanguard.com