Stewart R. Horejsi

                               September 22, 2000



Dear Fellow USLIFE Income Fund Shareholder:

     Having recently received management's latest communication to shareholders,
we were stunned to read the following statement, "...it stands to reason that as
buyers of the Fund's shares,  the Horejsi group would oppose anything that could
result in an increased share price."

     As the  Fund's  largest  shareholder,  owning  more than 14% of the  Fund's
shares,  we can assure you that nothing  could be further from the truth.  As is
the case for you,  increasing the share price,  or, perhaps more appropriate for
this  Fund,  preventing  a further  decrease  in share  price,  is of  paramount
importance to us.

     It is for this  reason  that we have  reached  out to  fellow  shareholders
urging a vote  against  management's  proposals  to turn USLIFE into a leveraged
junk bond fund. We are convinced that management's proposals, if approved, could
seriously  undermine  the value of your  investment in the Fund while serving to
increase the advisory fees payable to  management by as much as 60%.  Remember-
unlike  you,  not one member of the Board and  management  of USLIFE owns even a
single share of stock. They are not even entitled to vote at the annual meeting.

o        Vote AGAINST turning your fund into a leveraged junk bond fund.
o        Vote AGAINST increasing the risk of your investment.
o        Vote AGAINST increasing unwarranted advisory fees to management.
o        Vote AGAINST management proposals 2, 3 and 4

     Management  wasted  $628,000 of our Fund's  money last year to keep us from
having any say in our Fund. They appear to be willing to spend another large sum
now to adopt a junk bond  proposal  that the Fund did without for 30 years.  The
way  management  is wasting our Fund's  money on a proposal  that will  increase
their fees  suggests to us that  management  does not have  enough  focus on the
Fund's bottom line.

     Vote AGAINST management's  leveraged junk bond proposals that will increase
fees you pay.

     We are most  encouraged  by the level of  shareholder  support  received to
date. Thank you for your continued interest.

                                            Sincerely,

                                            /s/ Stewart R. Horejsi
                                            Stewart R. Horejsi



                                  - IMPORTANT -

Please  sign,  date and  return  your WHITE  proxy  card today in the  enclosed,
postage paid  envelope.  If you have any questions or need  assistance in voting
your  shares,  please  contact  our  proxy  solicitor,  D.F.  King & Co.,  Inc.,
toll-free at 1(800) 488-8035.