In One Year, iShares Exchange-Traded Fund Family is a Success.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--May 30, 2001

A year ago, Barclays Global Investors (BGI), the world's largest manager of index funds, began its aggressive launch of iShares exchange-traded funds for individuals, financial intermediaries and institutions. From May 2000 through March 2001, iShares ranked fourth in net asset gathering among the 25 largest fund companies based on data from Financial Research Corporation (FRC). Today, the company is the global product leader in the ETF market with a total of 78 funds globally. There are 61 iShares in the U.S., four of which are in the Top 10 ETFs(1), with assets of $10.3 billion as of May 25, 2001. In a study by FRC, respondents estimated that the ETF market would grow to $201 billion in assets by 2005(2).

"Our goal was to meet the needs of multiple constituencies and to fill in investment offering gaps," said Lee Kranefuss, CEO of BGI's Individual Investor Business. "This meant providing a broad asset allocation portfolio toolkit, which is not available with traditional mutual funds. The launch of iShares doubled the ETF product offering in the U.S. and significantly expanded investors' selection of broad based benchmarks, sector index funds, style specific ETFs, and country and regional funds based on the most recognized indexes."

"We're very pleased with the results thus far," said Kranefuss. "All types of investors find iShares appealing as indicated by the significant assets gathered to date. We think iShares ranking as fourth in net asset gathering among the top 25 fund complexes is incredible considering that this occurred in iShares' first year and during a very difficult equity market."

iShares is a recognized leader in ETF education for individuals, institutions and financial intermediaries. iShares has a dedicated sales force that has made direct contact with over 25,000 intermediaries in the past year. The iShares.com Web site and 1-800-iSHARES are easy-to-use, convenient resources for individuals. And an extensive advertising campaign targeted to retail investors was recently awarded two Financial Communications Society Portfolio Awards in the consumer retail print campaign and single print ad categories.

iShares are index funds that are bought and sold like common stocks on national securities exchanges. iShares are attractive to individual and institutional investors and financial intermediaries because of their 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 an 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, the specialist can meet any supply and demand requirements. 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 Fund Advisors began managing exchange traded funds in 1996, with the introduction of WEBS (World Equity Benchmark Shares), providing investors with 17 foreign country index portfolios tracking the indexes of Morgan Stanley Capital Management (MSCI). The WEBS funds were renamed "iShares MSCI" funds to reflect the consistent brand name for exchanged traded funds managed by Barclays Global Fund Advisors.

BGI 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(3). 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.

iShares are distributed by SEI Investments Distribution Co. Barclays Global Fund Advisors 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 are affiliated with SEI. For complete information, including charges and expenses, request a prospectus by calling 1-800-iSHARES (1-800/474-2737). Read it carefully before you invest.

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. Although iShares may be bought or sold through any brokerage account, iShares are not individually redeemable from the Funds. Investors may acquire iShares and tender iShares for redemption through the Fund in Creation Unit aggregations only.

iShares are obliged to distribute portfolio gains to shareholders by year-end. iShares trading, too, will generate tax consequences. Certain traditional mutual funds can also be tax efficient. iShares transactions will result in brokerage commissions, but the annual management fees of iShares may be less than those of mutual funds. 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.

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

(1) "Top 10 Index Shares By Assets," American Stock Exchange, May 18, 2001.

(2) "The Future of Exchange Traded Funds, An Emerging Alternative to Mutual Funds," Financial Research Corporation, (May 31, 2000).

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