CBOE Announces Launch Of EFA Options Based On iSshares MSCI EAFE Exchange Traded Fund

The Chicago Board Options Exchange (CBOE), the world's largest options exchange, today announced that on September 25, 2002, it will list options on iShares MSCI EAFE Exchange Traded Fund (ticker symbol EFA). The MSCI EAFE Index, created in 1969, is widely recognized as the preeminent benchmark in the United States to measure international stock market performance(1). It comprises 21 MSCI country indices, representing the developed markets outside of North America: Europe, Australasia and the Far East. The iShares MSCI EAFE Exchange Traded Fund is one of the fastest growing exchange traded funds (ETF) since its introduction in August 2001 by Barclays Global Investors (BGI), and has by far the most assets under management of any internationally-focused ETF.

"It is only fitting that the premier benchmark for international equities trade at CBOE, the world's largest index options marketplace," said CBOE Chairman and CEO William J. Brodsky. "We are especially pleased to team up with MSCI and BGI, to offer investors the tool they need to effectively manage international portfolios and enhance yields on those investments. EFA options will bring the world closer to home."

Henry Fernandez, President and CEO of MSCI, said, "We are delighted to have licensed our MSCI EAFE Index to the CBOE in connection with the listing of options on the iShares MSCI EAFE Exchange Traded Fund. Since its launch by BGI, the iShares MSCI EAFE Exchange Traded Fund has been an outstanding success. The options offer another investment tool for US equity investors who overwhelmingly use the MSCI EAFE Index as their international equity benchmark."

Steven Schoenfeld, Head of International Product Strategy at BGI, said, "We are confident that CBOE EFA Options will further solidify iShares MSCI EAFE's position as the dominant international equity ETF, and advance its role as a capital market instrument. The combination of the EFA Exchange Traded Fund and EFA Options will provide investors with unparalleled flexibility to precisely manage their international equity exposure."

EFA Options are American-style exercise and physical delivery. The underlying security is 100 shares of the iShares MSCI EAFE Exchange Traded Fund. The iShares MSCI EAFE Exchange Traded Fund seeks investment results which correspond, generally, to the price and performance, before fees and expenses, of the MSCI EAFE Index.

Susquehanna Investment Group has been appointed the Designated Primary Market Maker (DPM) in the options.

MSCI is a leading provider of global indices and benchmark related products and services to investors worldwide. Morgan Stanley, a global financial services firm and a market leader in securities, asset management, and credit services, is the majority shareholder of MSCI, and The Capital Group Companies, Inc., a global investment management group, is the minority shareholder.

CBOE, the world's largest options marketplace and creator of listed options, is regulated by the Securities and Exchange Commission (SEC). For additional information about the CBOE and its products, please visit CBOE's web site at http://www.cboe.com.