Income Distributions
Ariel Investments paid the per share income distributions shown in the table below on Tuesday, December 29, 2009 to shareholders of record as of Monday, December 28, 2009.

Fund	Income Distribution Per Share
Ariel Fund	$0.00634
Ariel Appreciation Fund	$0.04217
Ariel Focus Fund	$0.03562

Capital Gains Distributions

There are no 2009 capital gains distributions for our mutual funds, including Ariel Fund, Ariel Appreciation Fund and Ariel Focus Fund.

For Frequently Asked Questions about distributions, please see below:

What is a distribution?
Mutual funds periodically distribute the profits and income they earn to shareholders. Below are two of the most common types of distributions:

Capital gains: A capital gain occurs when a security is sold at a greater price than the price paid to acquire it. For example, if a stock is purchased at $10 a share and is later sold for $15 a share, the capital gain is $5.

Income: A mutual fund earns dividends, interest and other investment income on the securities it owns. After a fund subtracts its expenses from the investment income, it distributes the remainder to shareholders as an ordinary income distribution.

Both capital gains and income distributions are taxable unless the shares are held in a tax-deferred account such as a 401(k) or IRA. Please be sure to consult with a licensed tax professional for details on how a distribution will specifically affect you.

How will I receive my distribution? 
You may receive your distribution either in cash or have it reinvested in shares of the mutual fund you hold. Most Ariel Investments shareholders find it beneficial to reinvest their distributions. By reinvesting your distributions, you can benefit from the power of compounding—the concept of allowing your earnings to make additional money for you. As a convenience to our shareholders, we automatically default all accounts to reinvest distributions unless a shareholder instructs us to pay the distributions in cash.

How do I change my distribution selection?
As mentioned above, Ariel Investments automatically defaults all accounts to reinvest distributions. If you choose to change your distribution selection (e.g., from cash to reinvest or from reinvest from cash), simply contact us in one of three ways:

• Call 800-292-7435, option 3 during our normal business hours (Monday through Friday, 8am-7pm CT)
• Send a written letter which includes your account information, signature and desired distribution selection to: Ariel Investments, c/o US Bancorp Fund Services, P.O. Box 701, Milwaukee, WI 53201
• Email your distribution selection request to email@arielinvestments.com

Once we receive your request, we process the change immediately and it will be reflected in the next distribution.

What happens to my account when a distribution is paid?
When a mutual fund pays a distribution, its Net Asset Value (NAV) decreases by the dollar amount of the distribution. Your account value does not decline by the amount of the distribution because you receive more shares at a lower NAV.

For example, Mr. Tortoise holds 100 shares of the Patient Investors Fund which has a net asset value (NAV) of $50. The Patient Investors Fund declares a $10 capital gains distribution, decreasing the NAV to $40. Since Mr. Tortoise’s account is automatically set-up to reinvest distributions, his capital gains ($10 x 100 shares = $1,000) will pay for 25 additional shares of the Patient Investors Fund ($40 x 25 shares = $1,000).
           
Account balance before distribution = $5,000 (100 shares x $50 NAV)

Account balance after distribution = $5,000 (125 shares x $40 NAV)

Please note: This example does not take into account the fluctuation that your account may experience based on daily market activity.

What are the record, ex, and payable dates? 
Any investor who is a current shareholder of the Fund on the record date will be a recipient of a distribution.

The ex-date is the date the NAV decreases by the total distribution amount. Shareholders who reinvest their distributions will receive additional Fund shares at an amount that will offset the NAV decrease.

The payable date is the date shareholders who do not elect to reinvest their distributions are sent their payments.

---

If you have any questions about any of these distributions, please contact an Investment Specialist at 800-292-7435.