ETF Advisors Launches Fixed Income Exchange-Traded Funds; Fixed Income Trust Receipts -- FITRS -- Offer Consistent Maturity, Continuous Liquidity, Cost Efficiency.

Business Editors

NEW YORK--(BUSINESS WIRE)--Nov. 1, 2002

ETF Advisors, LP today announced that its four Treasury FITR exchange-traded funds have begun trading. Treasury FITRS (pronounced "fighters") are designed to track the returns, before fees and expenses, of U.S. Treasury securities with one, two, five and 10-year maturities. At least 95% of the underlying assets of Treasury FITRS are debt obligations of the U.S. Treasury or Federal agencies. Like any other exchange-traded fund, Treasury FITRS are baskets of securities that trade like ordinary stocks. FITRS stands for Fixed Income Trust Receipts.

The four Treasury FITRS are trading on the American Stock Exchange under the following ticker symbols: Treasury 1 FITR (TFT); Treasury 2 FITR (TOU); Treasury 5 FITR (TFI) and Treasury 10 FITR (TTE).

"Treasury FITRS offer investors a low-cost, no-load approach to investing in Treasuries," said Gary L. Gastineau, managing director of ETF Advisors and author of The Exchange-Traded Funds Manual (Wiley, 2002). "We've designed each Treasury FITR portfolio to match the performance, before fees and expenses, of a consistent-maturity Ryan Treasury Index which allows investors to stay at the same point on the yield curve without having to adjust their own portfolios."

Mr. Gastineau noted that unlike mutual funds, Treasury FITRS trade continuously throughout the day, allowing investors to buy and sell at any time. FITRS can also be purchased on margin and sold short.

Mr. Gastineau believes investors will use Treasury FITRS for several different applications. "Investors may use the Treasury 1 and Treasury 2 FITRS as alternatives to cash and cash equivalents," he noted.(1) "For equity and balanced investors, U.S. Treasury securities offer effective diversification when it's most important, during times of extreme financial uncertainty. When stock prices are falling sharply, Treasury prices usually 'decouple' from the equity market and rise as investors seek safety and liquidity."(2)

Treasury FITRS may also be more cost effective for some investors. There are no front- or back-end sales loads as there are with some mutual funds, although brokerage firms will charge commissions on Treasury FITRS as they do on regular stock trades. Because Treasury FITRS are held in securities accounts like stocks, they don't create any custody challenges to increase administrative costs. For U.S. residents, the monthly income from treasury interest is exempt from state and local income taxes. Because Treasury FITRS are constructed to mirror an index, the management fees of 0.15 percent per year are lower on average than those associated with actively-managed bond funds.

Like most exchange-traded funds, FITRS shares are expected to trade at prices very close to their underlying value throughout the trading day thanks to a dual trading process. Fund shares are created or redeemed in large blocks through the deposit of securities to, or delivery of securities from, the fund's portfolio. Secondary trading, in lots as small as a single fund share, takes place on a stock exchange.

FITRS are available for purchase and sale through any full-service, discount, or online brokerage account.

About ETF Advisors

ETF Advisors (www.etfadvisors.com) is the sponsor of exchange-traded funds that add value and simplicity to the ETF landscape. ETF Advisors, LP is controlled and majority-owned by Rosenkranz Asset Managers, LLC, a wholly owned subsidiary of Rosenkranz & Company, a diversified New York investment firm.

About Ryan Treasury Indexes

The indexes underlying Treasury FITRS were created by Ronald J. Ryan and Ryan Holdings, LLC. Since 1983, Ryan has calculated and issued indexes based on the "on-the-run" (OTR) U.S. Treasury yield curve. The Ryan OTR Indexes serve as the accepted benchmarks of OTR rates. An OTR Treasury security is the most recently auctioned Treasury bill, note or bond of a stated maturity. For more information, visit www.ryanindex.com and www.ryanlabs.com.

There are risks involved with investing in ETFs including possible loss of money. Past performance is no guarantee of future results.

An investment in Treasury FITRS may lose value and is not guaranteed or insured by the Federal Deposit Insurance Corporation, another government agency or any bank. You may purchase or sell Treasury FITRS throughout the day through any brokerage account, which may result in brokerage commissions. However, only authorized participants may create or redeem Treasury FITRS directly from the Fund, in large block creation/redemption units. Treasury FITRS are obligated to distribute portfolio gains to shareholders and trading Treasury FITRS may generate tax consequences.

FITR, FITRS and Ryan Index are service marks of Ryan Holdings LLC and have been licensed for use for certain purposes by ETF Advisors, LP. Treasury FITRS are not sponsored, endorsed, sold or promoted by Ryan, and Ryan makes no representation regarding the advisability of investing in such product(s). ETF Advisors, Treasury 1, Treasury 2 and Treasury 5 are service marks of ETF Advisors, LP.

ALPS Distributors, Inc., a registered broker-dealer, is distributor of Treasury FITRS. ETF Advisors, LP serves as advisor to the Treasury FITRS ETFs.

To obtain a prospectus, which contains additional information about ETF Advisors and Treasury FITRS, logon to www.etfadvisors.com or call 1-800-THE-AMEX (800-843-2639). Please read the prospectus carefully before you invest.

(1) More information on Treasury FITRS is available at www.etfadvisors.com.

(2) See Gulko, Les, "Decoupling," The Journal of Portfolio Management, Spring 2002 and Harper, Richard B., "Asset Allocation, Decoupling and the Opportunity Cost of Cash," forthcoming in The Journal of Portfolio Management, Summer 2003, for more information on decoupling.