iShares to Offer Lehman Aggregate Exchange-Traded Fund.

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--March 13, 2003

Barclays Global Investors (BGI) announced today that iShares has filed a prospectus with the U.S. Securities and Exchange Commission (SEC) to add the iShares Lehman U.S. Aggregate Bond Fund to its fixed income ETF product offerings. The fund is designed to track the Lehman Brothers U.S Aggregate Index, which represents the securities of the U.S. investment grade bond market. iShares currently offers three Treasury ETFs based on Lehman Brothers indices as well as the only U.S. corporate bond ETF. Last week, iShares filed a prospectus with the SEC for the iShares CSFB Liquid U.S. Agency Bond Fund.

"We're excited to work towards providing investors an iShares that is based on the well-known Lehman Brothers Aggregate Index," said Lee Kranefuss, CEO of BGI's Exchange-Traded Funds Business. "The iShares fund would be the first ETF to provide investors with cost-effective access to U.S. government and investment grade securities with the ease of buying a stock."

The Lehman Brothers U.S. Aggregate Bond Index includes publicly issued U.S. Treasury, agency, corporate, mortgage pass-through, asset-backed, and commercial mortgage-backed securities. To be in the index all securities must have at least one year remaining maturity, $150 million par amount outstanding, and be rated investment grade (Baa3 or better) by Moody's.

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(1), providing structured investment strategies such as indexing, tactical asset allocation, and risk-controlled active strategies. In the U.S., BGI is one of the largest active managers(2) set apart by its risk-controlled approach. BGI managed more than $745 billion in assets as of 12/31/02, and over 2,000 funds, for more than 2,200 clients in 39 countries around the world. 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.

Although a registration statement covering the securities described herein has been filed with the Securities and Exchange Commission, the securities described herein currently are not available for sale and will not be available for sale nor may offers to buy be accepted until after the Securities and Exchange Commission issues an exemptive order relating to such securities and the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.

For complete information on the iShares that are currently available for sale, including their related charges and expenses, request a prospectus by calling 1-800-iSHARES (1-800-474-2737). Read it carefully before you invest.

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.

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. iShares may be sold throughout the day at market value on stock exchanges through any brokerage account. However, iShares may only be redeemed directly from the fund by Authorized Participants, in very large Creation/Redemption Units. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

Lehman Brothers and Lehman Brothers U.S. Aggregate Bond Index are trademarks of Lehman Brothers and have been licensed for use for certain purposes by BGI. The Funds that are based on the Lehman Brothers indices are not sponsored or endorsed by Lehman Brothers, and Lehman Brothers makes no representations regarding the advisability of investing in iShares.

(1) Source: "Special Report: Global Leaders," Pensions & Investments (P&I), Sept. 2, 2002, p. 14.

(2) Source: "Special Report: Money Manager Directory," Pensions & Investments (P&I), May 27, 2002, p. 40.