iShares Dow Jones Funds to be Rebalanced Based on Reclassification of Underlying Dow Jones Indexes

Business Wire, Nov 23, 2004

SAN FRANCISCO -- Barclays Global Investors announces that the iShares(R) Dow Jones exchange traded funds will be managed to reflect certain index methodology and classification changes being implemented by Dow Jones Indexes. In some cases, the Funds will be renamed in line with the revised index name. The iShares Dow Jones Select Dividend Index Fund (NYSE:DVY) will be rebalanced to coincide with the Index broadening to 100 stocks from 50. The other iShares Dow Jones Funds will be rebalanced due to Dow Jones Indexes' introduction of the Industry Classification Benchmark (ICB), a joint product of Dow Jones Indexes and FTSE that is expected to become a global standard for classifying companies by industry. The ICB is a transparent universal system that will allow for more accurate sector comparison. Barclays Global Fund Advisors (BGFA) is planning to rebalance the Funds in a manner designed to minimize turnover and capital gains distributions. The changes to the Funds will be implemented on or about December 20, 2004, which is the effective date of the modifications to Dow Jones Indexes' sector indexes and the Dow Jones Select Dividend Index.

The iShares Dow Jones Select Dividend Index Fund will become more diversified and maintain its stated investment objective when the Dow Jones Select Dividend Index expands its number of holdings. The liquidity screen of the Index will also be modified so that the securities in the Index will have a minimum 3-month average trading volume of 200,000 shares a day. The impact of these changes on the funds cannot be determined at this time.

The iShares Dow Jones U.S. Consumer Non-Cyclical Sector Index Fund (AMEX:IYK) will be renamed the iSHARES DOW JONES U.S. CONSUMER GOODS SECTOR INDEX FUND. Top sectors will be personal and household goods, food and beverage, and automotive and parts.

The iShares Dow Jones U.S. Consumer Cyclical Sector Index Fund (AMEX:IYC) will be renamed the iSHARES DOW JONES U.S. CONSUMER SERVICES SECTOR INDEX FUND. The top sectors will be general retailers, media, travel and leisure, and food and drug retailers.

The iShares(R) Funds are investment company shares that 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 relative 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 managed over U.S. $1.1 trillion in assets as of 6/31/04, and over 2,300 funds for more than 2,500 clients in 47 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.

The iShares(R) 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, narrowly focused investments typically exhibit higher volatility.

iShares transactions will result in brokerage commissions and will generate tax consequences. Mutual funds and the iShares Funds are obliged to distribute portfolio gains to shareholders. Shares of each iShares Fund may only be redeemed directly from the fund by Authorized Participants, in very large creation/redemption units.

(C) 2004 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 Mega Managers," Pensions & Investments, September 01, 2003.

(2)Source: "Special Report: Money Manager Directory," Pensions & Investments, May 26, 2003.