SEC Takes Steps to Make the First U.S.-Listed Fixed Income Exchange-Traded Funds Available to Investors

Business Wire, May 29, 2002

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--May 29, 2002

Today at an open meeting of the U.S. Securities and Exchange Commission, the Commission took action to authorize the first U.S. fixed income exchange-traded funds. The funds are scheduled to launch beginning in late July, pending completion of an approximate 30-day notice period and issuance of a final order by the SEC. Of the seven funds covered, six are designed to track Lehman Brothers Bond indexes and one is designed to track a Goldman Sachs Bond index.

1. iShares 1-3 Year Treasury Index Fund
2. iShares 7-10 Year Treasury Index Fund
3. iShares 20  Year Treasury Index Fund
4. iShares Treasury Index Fund
5. iShares Lehman Government/Credit Index Fund
6. iShares Lehman Corporate Bond Fund
7. iShares Goldman Sachs Corporate Bond Fund

The new iShares will be managed by Barclays Global Fund Advisors, a subsidiary of Barclays Global Investors, N.A. The initial fixed income iShares are expected to be listed on the American Stock Exchange.

"We're pleased that the SEC has taken action on iShares fixed income exchange-traded funds. Institutional and individual investors have been anxious to have the benefits of exchange-traded funds in their bond portfolios," said Lee Kranefuss, CEO of BGI's Individual Investor Business. "iShares fixed income funds will allow investors to purchase a basket of bonds with the ease of buying a stock, while diversifying their risks across a large group of bonds. The exchange trading feature will provide a transparent price at which everyone can buy and sell their bond portfolio."

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 the world's largest institutional investment manager, and the world's largest provider of ETFs and structured investment strategies such as indexing, tactical asset allocation, and quantitative active strategies(1). BGI managed more than $790 billion in assets as of 3/31/02. BGI is an innovator in investment management, applying science and technology to the investment process. BGI is owned by Barclays PLC.

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 (1-800-474-2737). 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. 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.

www.ishares.com

1-800-iSHARES

(1-800-474-2737)

(1) Source: Pensions & Investments, (Sept. 2001).