Barclays Global Investors Announces Launch of Three New iShares Goldman Sachs Technology Sector Index Funds; Demand for ETF Offerings Continues to Grow in Difficult Market.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--July 12, 2001

Barclays Global Investors (BGI) announced today that on July 13, 2001, three new exchange traded funds (ETFs) will begin trading on the American Stock Exchange. The new exchange traded funds are the iShares Goldman Sachs Networking Index Fund (ticker:IGN), iShares Goldman Sachs Semiconductor Index Fund (ticker:IGW), and iShares Goldman Sachs Software Index Fund (ticker:IGV). Each one is designed to track its corresponding Goldman Sachs index. They will be managed by Barclays Global Fund Advisors, a subsidiary of Barclays Global Investors, N.A. and manager of the largest selection of ETFs, known as iShares. Hull Trading will be the specialist firm for these products.

"iShares make it simple to get different kinds of equity exposure, both at a fundamental 'core portfolio' level and a more strategic, targeted level," said Lee Kranefuss, CEO of BGI's Individual Investor Business. "With the new iShares Goldman Sachs technology sector funds, investors can get precise technology exposure in a cost-effective manner through a single brokerage transaction. iShares also offer trading flexibility because they can be bought and sold like stocks when the markets are open."

"We are thrilled that BGI has selected Goldman Sachs Technology Indices as a basis for creating exchange traded funds," said Mark Zurack, managing director and co-head of Equity Derivatives at Goldman Sachs. "The addition of the iShares Goldman Sachs technology sector funds enables the iShares Funds to offer investors cost-effective alternatives to structure the technology exposure they desire."

iShares are index funds that are bought and sold like common stocks on national securities exchanges as well as certain foreign 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. Because iShares can be traded like stocks, they offer intraday liquidity. The liquidity of iShares is driven by the liquidity of the underlying securities, thus as long as the stocks in the portfolio can be bought and sold easily, any supply and demand requirements can be met. Similar to many index funds, iShares are designed to have relatively low portfolio turnover, which reduces transaction costs incurred by the fund and minimizes capital gains distributions to investors. For a list of currently available iShares, visit www.ishares.com.

Barclays Global Investors is the world's largest institutional investment manager, and the world's largest provider of structured investment strategies such as indexing, tactical asset allocation, and quantitative active strategies/a. BGI managed more than $800 billion in assets as of 12/31/00, and over 1,500 funds, which track over 200 global indexes, for nearly 2,000 clients in 37 countries around the world. As the creator of the first index strategy 30 years ago, BGI is an innovator in investment management, applying science and technology to the investment process. BGI has over 2,000 employees worldwide and is owned by Barclays PLC, one of the UK's largest companies, and one of the world's leading global financial services providers, with operations in over 60 countries worldwide.

Goldman Sachs is a leading global investment banking and securities firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.

iShares are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to iShares. Barclays Global Investor Services (BGIS) assists in the marketing of iShares. BGFA and BGIS are subsidiaries of Barclays Global Investors, N.A., none of which are affiliated with SEI. For complete information, including charges and expenses, request a prospectus by calling 1-800-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.

The investment return and principal value of an iShares investment will fluctuate so that an investor's shares, when sold, or Creation Unit(s) when redeemed, may be worth more or less than their original cost. In addition to the normal risks associated with equity investing, narrowly focused investments typically exhibit higher volatility. Products of companies in which technology funds invest may be subject to severe competition and rapid obsolescence. iShares may be sold throughout the day on the exchange through any brokerage account. However, iShares may only be redeemed directly from the fund by Authorized Participants, in very large creation/redemption units.

"GSTI," "GSTI Composite Index," "Goldman Sachs Technology Index," "GSSI" and "Goldman Sachs Sector Indices" are trademarks of Goldman, Sachs & Co. and have been licensed for use by Barclays Global Fund Advisors for use in connection with iShares. iShares are not sponsored, endorsed, sold or promoted by Goldman, Sachs & Co. Neither Goldman, Sachs & Co. nor any of its affiliates make any representation regarding the advisability of investing in iShares. Goldman, Sachs & Co. is not affiliated with SEI, BGI N.A. or its affiliates.

iShares is a servicemark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.

iShares are not FDIC Insured. Have No Bank Guarantee. May Lose Value.

/a Source: "Special Report: Global Leaders" Pensions & Investments, (Sept. 2000), p. 15.