Barclays Global Investors Announces the Launch of the First Style-Based International Exchange Traded Funds for U.S. Investors.

SAN FRANCISCO -- Barclays Global Investors announced today that the iShares(R) MSCI EAFE Value Index Fund (NYSE:EFV) and the iShares(R) MSCI EAFE Growth Index Fund (NYSE:EFG) began trading on the New York Stock Exchange. Each fund's expense ratio is 0.40%. These exchange traded funds (ETFs) are the newest additions to the largest international ETF product line in the U.S. As of August 1, international iShares funds comprised 35 funds with total assets of over $43 billion, covering regions, single countries, broad market, and global sectors.

"Investors appear to be increasingly looking to iShares ETFs to fulfill their international diversification needs. For instance, from January through July of this year, the iShares MSCI EAFE Index Fund alone has brought in $3.77 billion net new asset flows," said Lisa Chen, senior international portfolio manager at Barclays Global Investors. "With the addition of EFV and EFG, investors now have even greater flexibility when investing internationally combined with the asset allocation precision and cost efficiency of iShares ETFs."

The MSCI EAFE Value and Growth Indices are subsets of the MSCI EAFE Index and constituents include securities from Europe, Australasia and the Far East. The indexes each generally represent approximately 50% of the free float-adjusted market capitalization of the MSCI EAFE Index. MSCI uses a specialized framework to attribute both value and growth style factors to the MSCI EAFE Index constituents, which are then used to calculate a value score and growth score. Based upon these two scores, MSCI determines the extent to which each security is assigned to the value or growth style. It is possible for a single security to have representation in both the value and growth style indexes, however no more than 100% of a security's float-adjusted market capitalization will be included within the value and growth style indexes.

The iShares(R) Funds are index funds whose shares are bought and sold like common stocks on securities exchanges. The iShares Funds 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. To determine if the fund(s) are an appropriate investment for you, carefully consider the funds' investment objectives, risk factors and charges and expenses before investing. This and other information can be found in the funds' prospectuses, which may be obtained by calling 1-800-iShares or by visiting www.ishares.com. Read the prospectus carefully before investing.

Barclays Global Investors is one of the world's largest asset managers(1) providing structured investment strategies such as risk-controlled active strategies and indexing. In the U.S., BGI is one of the largest active managers(2), set apart by its risk-controlled approach. BGI manages 65% of the world's 100 largest pension plans(3) and is the global leader in assets and products in the exchange traded funds through its iShares(R) brand with more than 120 ETFs. The firm managed over $1.4 trillion in assets as of 6/30/05, for more than 2,600 clients in 48 countries around the world. BGI is an innovator in investment management, applying science and technology to the investment process. BGI is owned by Barclays PLC, one of the world's leading global financial services providers.

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

Investing involves risk, including possible loss of principal. In addition to the normal risks associated with investing, 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.

Transactions in shares of the iShares Funds will result in brokerage commissions.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Morgan Stanley Capital International, nor does this company make any representation regarding the advisability of investing in the Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with MSCI.

(C) 2005 Barclays Global Investors. All rights reserved. iShares is a registered trademark of Barclays Global Investors, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners.

(1) Source: "P&I/Watson Wyatt World 500," Pensions & Investments, September 6, 2004.

(2) Source: "Special Reports: Money Manager Directory," Pensions & Investments, May 31, 2004.

(3) Source: "P&I/Watson Wyatt World's 250 Largest Retirement Plans," Pensions & Investments, December 27, 2004.