Pax World High Yield Bond Fund Ranks in Top 1 Percent for Performance in 2007 According to Lipper

PORTSMOUTH, N.H. – January 11, 2008 – Pax World Management Corp., investment adviser to Pax World Funds ("Pax"), which launched the nation's first socially responsible mutual fund in 1971, today announced that the Pax World High Yield Bond Fund's return for 2007 outperformed 99 percent of the high current yield bond funds tracked by Lipper, ranking sixth out of 455 total high current yield bond funds for the one-year period ended December 31, 2007.1

The Pax World High Yield Fund (the "Fund"), managed by portfolio manager Mary Austin, is the first high yield bond fund to apply a broad range of environmental, social and governance (ESG) screens to its investments. As of December 31, 2007, the Fund posted a one-year total return of 5.80 percent for individual investor class shares, compared to the Merrill Lynch High Yield Master I Index return of 2.17 percent for the same period.2

The Fund received a 5-star and 3-star Overall Morningstar Rating™ for institutional and individual investor class shares, respectively.3

"We are thrilled with the performance of the fund, especially during one of the most historically turbulent years in the credit markets" said Ms. Austin. "By maintaining our conservative strategy, we avoided many of the higher leveraged and riskier deals that priced at the peak of the market. These bonds suffered the worst in the downturn."

Other factors that contributed to the Fund's 2007 performance were international investments and overweighting single-B bonds, which outperformed BB and CCC bonds. The Fund was also underweighted in financials and avoided US homebuilders, limiting its exposure to the subprime mortgage collapse and downturn in the housing market. Austin has been with the Fund since its inception in 1999 and became the sole portfolio manager in 2006.

"We are very pleased with the excellent job Mary Austin has done managing the High Yield Bond Fund," said Joe Keefe, CEO of Pax World Management Corp. "Since taking over the Fund last year, she has outperformed her peers, while demonstrating the advantages of a sustainable investing approach that incorporates ESG criteria into financial decision making."

For more information, contact Brendon Buckley 617.933.5021 or Cosabeth Bullock 617.933.5277.

1The Pax World High Yield Fund ranked in the top 1 percentile, top 11 percentile and top 62 percentile for the 1-, 3- and 5-year periods, respectively, ended December 31, 2007 according to Lipper. Lipper rankings are based on average annual total returns (not including sales charges) for the periods indicated and compare total return performance with that of other funds in the category.

2The Pax World High Yield Fund posted 1-, 3- and 5-year returns of 5.80%, 6.03% and 8.91% respectively as of December 31, 2007 as compared to the Merrill Lynch High Yield Master I Index 1-, 3- and 5-year returns of 2.17%, 5.46% and 10.57% respectively for the same period.

3As of December 31, 2007, the Pax World High Yield Fund had an Overall Morningstar Rating™ of 3 stars and 5 stars out of 466 high yield bond funds tracked by Morningstar for the Individual and Institutional Classes respectively. For the 3- and 5-year periods as of December 31, 2007, the Pax World High Yield Fund-Individual Class received 4 stars and 3 stars out of 466 and 398 high yield bond funds respectively. The Pax World High Yield Fund-Institutional Class received 5 stars for the 3-year period ended December 31, 2007 out of 466 high yield bond funds (the inception date for the Institutional Class is June 1, 2004). Morningstar Ratings™ are based on risk-adjusted 3-, 5- and 10-year (if applicable) returns and past performance is no guarantee of future results. Ratings are subject to change every month. For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. (Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variation in the distribution percentages.)

Performance quoted represents past performance and does not guarantee future results. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than that shown here. Performance data current to the most recent month-end is available at here.