Parnassus Investments

Distribution Information

The Parnassus Fund (the "Fund") made an additional long-term capital gain distribution on December 28, 2007 in order to satisfy IRS excise tax regulations. This small distribution resulted from the timing of capital gains and losses the Fund recognized in November and December of 2007. The Fund does not anticipate paying a second long-term distribution during any calendar year and makes every attempt to avoid these distributions unless compelled by IRS regulations.

Here's information on the most recent Parnassus Funds distributions for each fund, or try searching for historical distributions.

• 2007 Supplemental Tax Information

Recent Parnassus Fund Distributions

Fund Name	Dividend Type	Record Date	Ex / Payable Date	Dividend Rate Per Share	NAV Price Per Share
Fixed-Income Fund	Income Dividend	4/29/2008	4/30/2008	$0.0408	$16.39
Equity Income Fund	Income Dividend	3/28/2008	3/31/2008	$0.0602	$23.64
Equity Income - Institutional	Income Dividend	3/28/2008	3/31/2008	$0.0709	$23.68
Workplace Fund	Income Dividend	12/27/2007	12/28/2007	$0.1657	$17.71
Small-Cap Fund	Income Dividend	12/27/2007	12/28/2007	$0.0386	$17.08
Parnassus Fund	Income Dividend	12/27/2007	12/28/2007	$0.0054	$36.91
Mid-Cap Fund	Income Dividend	12/27/2007	12/28/2007	$0.1187	$17.45
Parnassus Fund	Long-Term Capital Gain	12/27/2007	12/28/2007	$0.0619	$36.91
CA Tax-Exempt Fund	Income Dividend	11/29/2007	11/30/2007	$0.0353	$16.40
CA Tax-Exempt Fund	Long-Term Capital Gain	11/15/2007	11/16/2007	$0.0551	$16.39
Workplace Fund	Long-Term Capital Gain	11/15/2007	11/16/2007	$0.2494	$17.93
Small-Cap Fund	Long-Term Capital Gain	11/15/2007	11/16/2007	$0.3003	$17.63
Mid-Cap Fund	Long-Term Capital Gain	11/15/2007	11/16/2007	$0.1707	$18.01
Fixed-Income Fund	Long-Term Capital Gain	11/15/2007	11/16/2007	$0.0445	$16.29
Equity Income Fund	Long-Term Capital Gain	11/15/2007	11/16/2007	$1.8217	$25.91
Equity Income - Institutional	Long-Term Capital Gain	11/15/2007	11/16/2007	$1.8217	$25.95

Definitions:
Long-Term Capital Gain Dividend: All mutual funds must distribute annually the profit or gain realized from the sale of a security that was held by the mutual fund for at least 12 months.

Income Dividend: The total of the fund's net income and short-term captial gains.

Net Investment Income: Dividends and interest paid on the securities held by a mutual fund are referred to as investment income. The fund deducts its annual expenses from its investment income. Any investment income remaining after expenses are deducted is known as net investment income.

Record Date: The date established by an issuer of a security for the purpose of determining the holders who are entitled to receive a dividend or distribution.

Ex and Payable Date: The date established when dividends or capital gains are paid to shareholders or are reinvested in additional shares.

Capital gains from capital appreciation of tax-exempt bonds are not exempt from federal income tax and also may be subject to state and local taxes.