Barclays Global Investors Continues Expansion of theLargest Worldwide Marketplace of Exchange...

Business Editors

SAN FRANCISCO--(BUSINESS WIRE)--July 27, 2000

Barclays Global Investors (BGI), manager of the most exchange traded funds in the world, and one of the world's largest investment managers, announced today the continued expansion of iShares exchange traded funds

iShares launching tommorrow are:

Fund                                      Ticker        Expense Ratio

iShares S&P Europe 350                      IEV              0.60%
iShares S&P Small Cap 600/BARRA Value       IJS              0.25%
iShares S&P Small Cap 600/BARRA Growth       IJT              0.25%
iShares S&P Mid Cap 400/BARRA Value         IJJ              0.25%
iShares S&P Mid Cap 400/BARRA Growth        IJK              0.25%
iShares Russell 3000 Value                  IWW              0.25%
iShares Russell 3000 Growth                 IWZ              0.25%
iShares Russell 2000 Value                  IWN              0.25%
iShares Russell 2000 Growth                 IWO              0.25%
iShares MSCI EMU                            EZU              0.84%

For a full list of the 56 currently available iShares exchange traded funds, visit www.ishares.com.

"We introduced iShares as a comprehensive offering of asset allocation tools, providing investors the largest marketplace of exchange traded funds in the world. BGI now offers a greater selection of exchange traded funds tracking popular indexes, many not currently available in the entire universe of traditional mutual funds," said Lee Kranefuss, CEO of BGI's Individual Investor business. "This is the first opportunity for investors to buy an exchange traded fund based on all of the largest companies of Europe, with both the iShares S&P Europe 350 and the iShares MSCI EMU Index Fund."

iShares (www.ishares.com) are 40 Act funds that are bought and sold like common stocks on a national securities exchange. This flexibility enables investors to purchase and sell shares through any brokerage firm, financial advisor, or online broker, and hold the funds in any type of brokerage account. 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. iShares also offer the broad diversification of index investing, and institutional-quality investment management from the world's largest manager of index funds(1). Similar to common stocks, iShares can be traded anytime during normal market hours, and priced intra-day so investors know the value of their investments.

iShares are managed by Barclays Global Fund Advisors ("BGFA"), a subsidiary of Barclays Global Investors. BGFA has been managing exchange traded funds since 1996, with the introduction of WEBS (World Equity Benchmark Shares), and now provides investors with 20 foreign country index portfolios tracking the indexes of Morgan Stanley Capital International (MSCI). The WEBS funds have been re-named "iShares MSCI Index Funds". The "iShares MSCI Index Funds" reflect the indexes tracked and the consistent brand name for all exchange traded funds managed by BGI. The iShares MSCI Index funds may provide a cost-effective way for U.S. investors to gain exposure to foreign countries and regions not served by most closed-end funds or traditional mutual funds. Even though closed end funds and traditional mutual funds offer opportunities to invest in international markets, the iShares MSCI advantage is a much broader offering of country specific and international composite index investment opportunities.

Barclays Global Investors is the world's largest institutional investment manager(2), and the world's largest provider of structured investment strategies such as indexing, tactical asset allocation, and quantitative active strategies(1). BGI managed more than $825 billion in assets as of 3/31/00, and over 1,500 funds, which track over 200 global indexes, for over 1,600 clients in 34 countries around the world as of 3/31/00. As the creator of the first index strategy more than 26 years ago, BGI is truly an innovator in investment management, applying science and technology to the investment process. BGI has over 1,800 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 about 70 countries worldwide.

MSCI is a leading provider of global indices and benchmark related products and services to investors worldwide. MSCI's products are used by investment managers, consultants, academics, broker-dealers and other investment professionals worldwide. Morgan Stanley Dean Witter & Co. is the majority shareholder in MSCI and The Capital Group Companies Inc. is the minority shareholder.

MSCI, Morgan Stanley Capital International, and MSCI Index are service marks of Morgan Stanley Capital International Inc. and have been licensed for use by Barclays Global Investors, N.A. The Funds are not sponsored, endorsed, sold or promoted by Morgan Stanley Capital International. Nor does Morgan Stanley Capital International make any representation regarding the advisability of investing in any of the Funds.

iShares are distributed by SEI Investments Distribution Company and are listed on the American Stock Exchange. Barclays Global Fund Advisors serves as the investment adviser to iShares and is a subsidiary of Barclays Global Investors N.A., neither of which are affiliated with SEI. For more complete information, including charges and expenses, request a prospectus by calling your financial advisor or 1-800-iSHARES (1-800-474-2737). Please read it carefully before you invest or send money.

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.

All regulated investment companies, including iShares, are obliged to distribute portfolio gains to shareholders at year's end. Trading iShares will also generate tax consequences and transaction expenses.

In addition to the normal risks associated with equity investing and international investing, investments in emerging markets or concentrated in a single country are subject to greater risk of loss and volatility. International investments may involve risk of capital loss from unfavorable fluctuations 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 Guarantee. May Lose Value.

1 Source: By AUM, "Largest Index Fund Managers survey," Pensions &

Investments, February 2000 2 Source: BY AUM, "Money Manager's Survey," Pensions & Investments,

July 2000