Newsroom

São Paulo– December 2, 2008 - Barclays Global Investors (BGI), one of the world’s largest asset managers and ETF providers, announced today the introduction of an innovative approach to building portfolios to Brazil. The first family of Brazilian iShares™ Exchange Traded Funds (ETFs) began trading today on BM&FBovespa. They are the first ETFs approved by the Comissão de Valores Mobiliários (CVM).

“iShares are index funds that are bought and sold like common stocks on a national securities exchange.” says Marcelo Allain, Director at Barclays, responsible for the asset management division. “They are a generally efficient investment strategy, even in turbulent markets, that provides investors with a number of benefits including competitive investment costs, instant portfolio diversification and a greater level of transparency.”

The newly listed iShares ETFs are the following:

Fund Name	Ticker Symbol	Annual Expense
iShares Ibovespa Fundo de Índice	BOVA11	0,54%
iShares BM&FBovespa Small Cap Fundo de Índice	SMAL11	0,69%
iShares BM&FBovespa MidLarge Cap Fundo de Índice	MILA11	0,54%

“With ETFs being one of the fastest growing segments of the fund industry globally, we are encouraged about the opportunities this launch offers in Brazil. At the beginning of 2008, before the current volatility in the market, ETFs represented 29 percent of trades in the New York Stock Exhange (NYSE), and now they currently represent 38 percent. ETFs are more widely accepted internationally as the preferred investment choice among funds and now available in Brazil,” says Allain.

Edemir Pinto, CEO of BM&FBovespa, says, “We are very excited about working with Barclays to bring these three iShares Funds to Brazil. Recognizing the global acceptance of ETFs, we see iShares as a great addition to our offering of financial products and expect a positive response from market participants.”

The main reasons behind the success of iShares ETFs in many markets are four key product features:

1. Diversification: iShares ETFs are comprised of a basket of more than 60 securities that provide instant diversification to the investments, thereby eliminating individual stock risk.
2. Transparency: iShares ETFs disclose on a daily basis the exact holdings of the funds, through a website, so the investor always understands precisely what comprises the iShares funds.
3. Trading Flexibility: ETF shares can be bought or sold throughout the trading hours, allowing the investor to enter—or leave—a particular investment at the time of your choosing, knowing the negotiated prices. With this, they provide the opportunity to better manage risk given the ability to fine-tune your portfolio when necessary.
4. Competitive Cost: iShares ETFs are designed to have relatively low portfolio turnover and annual expense ratio, which reduces transaction costs.

“We are delighted to have the opportunity to bring our expertise as a leading ETF provider to Brazil and provide iShares ETFs to local Brazilian investors available on the BM&FBovespa.” says Daniel Gamba, Managing Director and CEO of Latin America for BGI.

Following are the descriptions of newly listed iShares ETFs:

iShares Ibovespa Fundo de Índice

The iShares Ibovespa Fundo de Índice seeks investment results that correspond to the performance (before fees and expenses) of the Bovespa Index®. This index is a broad market index which measures the return on investment in a theoretical portfolio calculated by BM&FBovespa, that represents more than 80% of the number of trades and the financial value registered on the Brazilian cash market. 

iShares BM&FBovespa Small Cap Fundo de Índice

The iShares BM&FBovespa Small Cap Fundo de Índice seeks investment results that correspond to the performance (before fees and expenses) of the BM&FBovespa Small Cap Index ®. This index is a market index which measures the return on investment in a theoretic portfolio calculated by BM&FBovespa, that is composed by the small market capitalization companies that are most actively traded.

iShares BM&FBovespa MidLarge Cap Fundo de Índice

The iShares BM&FBovespa MidLarge Cap Fundo de Índice seeks investment results that correspond to the performance (before fees and expenses) of the BM&FBovespa MidLarge Cap Index ®. This index is a market index which measures the return on investment in a theoretic portfolio calculated by BM&FBovespa, that is composed by the large and mid market capitalization companies that are most actively traded. 

In Latin America, BGI currently manages 93 cross-listed and four locally listed iShares ETFs in Mexico, and also offers more than 100 iShares ETFs to pension plans and mutual funds in Chile and Peru.

About Barclays Global Investors -Barclays Global Investors is one of the world's largest asset managers and a leading global provider of investment management products and services. It has over 3,000 institutional clients and US$ 2 trillion of assets under management as of June 2008. It transformed the investment industry by creating the first index strategy in 1971 and the first quantitative active strategy in 1979. BGI is the global product leader in exchange traded funds (iShares) with over 330 funds for institutions and individuals globally. In Brazil, the iShares® Exchange Traded Funds are managed by Banco Barclays S.A. For further information about Barclays Global Investors, please visit our U.S. website www.barclaysglobal.com. For further information about iShares in Brazil, please visit our website www.ishares.com.br.

Contacts for Brazilian Press:

AMS&L

Cassia Schittini

(11) 3169-9311

cassia.schittini@andreolimsl.com.br

Contacts for U.S. Press:

Barclays Global Investors

Lance Berg

(1) 415-597-2045

lance.berg@barclaysglobal.com

Christine Hudacko

(1) 415-597-2687

christine.hudacko@barclaysglobal.com

All other U.S. inquiries: 1-800-iShares (1-800-474-2737)

©2008 Barclays Global Investors, N.A. 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.


Investing involves risks, including possible loss of principal

Transactions in shares of the iShares Funds will result in brokerage commissions. Risk controls, asset allocation models, and diversification do not promise any level of performance or guarantee against loss of principal.

The iShares Funds (“Funds”) are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the Funds. BGFA is a subsidiary of Barclays Global Investors, N.A., a majority-owned subsidiary of Barclays Bank PLC, none of which is affiliated with SEI.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Standard and Poor’s, nor does this company make any representation regarding the advisability of investing in the Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the company listed above.