Barclays Global Investors Announces Closure of Three iShares Funds as Investors Seek Broader Exposure to Some Market Segments.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--Sept. 30, 2002

Barclays Global Investors (BGI) announced today that iShares would close the iShares Dow Jones U.S. Chemicals Index Fund (IYD), iShares Dow Jones U.S. Internet Index Fund (IYV), and iShares S&P/TSE 60 Index Fund (IKC) on December 5, 2002. The funds will be liquidated December 6 - 13. Shareholders remaining on December 13 will receive the Net Asset Value (NAV) of their shares as of December 13 and any capital gains and dividends. The iShares Board of Trustees decided to close the funds as investors seek broader exposure in the markets represented by other funds.

-- iShares Dow Jones U.S. Chemicals Index Fund - With $19 million in assets, the fund tracks an index that currently consists of 35 securities. U.S. chemicals industry exposure can be gained with the iShares fund (IYM) that tracks the Dow Jones U.S. Basic Materials Sector Index, which currently contains 64 securities.

-- iShares Dow Jones U.S. Internet Index Fund - With $8 million in assets, the fund tracks an index that consists of 40 securities. Exposure to the U.S. Internet industry can be gained with the iShares fund (IYW) that tracks the Dow Jones U.S. Technology Index, which currently has 258 component securities.

-- iShares U.S. S&P/TSE 60 Index Fund - Exposure to 60 Canadian stocks, which can currently be gained with the iShares fund ($1.7 million in assets) that tracks the S&P/TSE 60 Index, can also be achieved with the iShares fund (EWC) that tracks the MSCI Canada Index, an index that currently consists of 77 securities.

"Our clients have been pivotal in helping iShares develop and fine-tune a product line that meets their needs, making iShares one of the fastest growing equity fund complexes in the U.S.(1)," said Lee Kranefuss, CEO of BGI's Individual Investor Business. "As the iShares product line expanded and some market segments such as the Internet industry have changed, the three funds to be closed weren't providing enough exposure to be useful to investors."

Trading in the funds will halt at the close of the U.S. stock market on December 5, 2002. From December 6 - 13, the funds will be liquidated, which will result in the funds not tracking their respective indexes and their cash holdings increasing. On December 13 the final NAV of the funds' shares, any capital gains and the dividend will be calculated.

Shareholders are being notified via mail. Broker-dealers and other firms that make markets for the three funds have been notified. Shareholders may sell their holdings prior to December 5, incurring a transaction fee from their broker-dealer. From December 6 and 13, shareholders may be able to sell their shares to certain broker-dealers, but there can be no assurance that there will be a market for shares of the funds. The shareholders remaining on December 13 will receive the value of their shares as of December 13 and any capital gains and dividends into the cash portion of their brokerage account. While shareholders remaining on December 13 will not incur transaction fees, the NAV of the funds will reflect the costs of closing the fund. Shareholders can call 800/iSHARES (800/474-2737) for more information.

iShares are index funds that are bought and sold like common stocks on securities exchanges. iShares are attractive to many individual and institutional investors and financial intermediaries because of their relatively low cost, tax efficiency and trading flexibility. Investors can purchase and sell shares through any brokerage firm, financial advisor, or online broker, and hold the funds in any type of brokerage account. For a list of currently available iShares, visit www.ishares.com.

Barclays Global Investors is one of the world's largest asset managers(2), and the world's largest provider of structured investment strategies such as indexing, tactical asset allocation, and quantitative active strategies(3). BGI managed more than $761 billion in assets as of 6/30/02, and over 2,000 funds, which track over 250 global indexes, for nearly 2,000 clients in 41 countries around the world. BGI is owned by Barclays PLC.

iShares are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to iShares. Barclays Global Investors Services (BGIS) assists in the marketing of iShares. BGFA and BGIS are subsidiaries of Barclays Global Investors, N.A., none of which is affiliated with SEI.

For complete information, including charges and expenses, request a prospectus by calling 800/iSHARES (800/474-2737). Read it carefully before you invest.

iShares transactions will result in brokerage commissions and will generate tax consequences. Mutual funds and iShares are obliged to distribute portfolio gains to shareholders.

Investing involves risk, including possible loss of principal. In addition to the normal risks associated with investing, narrowly focused investments and investments in single countries typically exhibit higher volatility. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Products of companies in which technology funds invest may be subject to severe competition and rapid obsolescence. iShares may be sold throughout the day at market value on stock exchanges through any brokerage account. However, under normal circumstances iShares may only be redeemed directly from the fund by Authorized Participants, in very large Creation/Redemption Units. Past performance is no guarantee of future results.

(1) Source: Data from Financial Research Corp. (FRC) As of August

31, 2002, the 81 U.S. listed iShares gained $15.1 billion in

net new cash year-to-date.

(2) Source: "Special Report: Money Managers Directory," Pensions &

Investments, May 27, 2002, p. 22.

(3) Source: "Index Assets Grow 10% in First 6 Months of Year,"

Pensions & Investments, September 17, 2001, p. 20 and BGI

internal data.