Two New iShares To Be Launched By Barclays Global Investors :iShares Launches The First Corporate Bond ETF On Euronext Amsterdam

Barclays Global Investors (BGI), the world’s largest provider of exchange traded funds (ETFs), today announces the launch of two new iShares ETFs on Euronext Amsterdam: iBoxx € Liquid Corporates and iShares S&P 500. iBoxx € Liquid Corporates is the first corporate bond ETF to be made available on Euronext. The new ETFs begin trading today, 2 July, on Euronext Amsterdam.

• iBoxx € Liquid Corporates (IBCX) has a diversified basket of 40 European investment-grade bonds. It has a Total Expense Ratio (TER) of 0.20% per annum and assets of €315 million (as at 25/06/04).
• iShares S&P 500 (IUSA) covers 500 leading US stocks. It has a TER of 0.40% per annum and assets of €727 million (as at 25/06/04).

Bruce Lavine, Head of iShares Europe said, “We are very pleased to be adding two new ETFs to our broad product offering on Euronext Amsterdam. For the first time, iShares will be offering investors the ability to gain diversified exposure to European Corporate bonds easily, quickly and cost-effectively in just one trade on the Euronext Amsterdam. The iBoxx € Liquid Corporates fund adds a revolutionary degree of bond portfolio transparency which cannot be ignored.”

Mr Lavine added, “The new iShares S&P 500 fund on Euronext Amsterdam, will allow Dutch investors access to the most traded index in the world. This fund has been very well received in other markets, as it offers Europeans the ability to trade the U.S. market during European trading hours with a locally registered and listed product. BGI is committed to the continuous development of innovative products for the Dutch market and around the globe.”

Marianne Demarchi, Director of Business Development, Strategy and Products at Euronext said, “Euronext is pleased to continue working with BGI and to list these two new ETFs from the iShares range. Euronext investors will be able to trade ETFs based on corporate-bond and S&P 500 indices for the first time.”

ETFs are a low-cost, flexible investment tool allowing investors to access a whole index of equities or bonds in just one transaction. They are used by institutional and retail investors and have many uses from buy and hold investment strategies to gaining short-term exposure to a market.

Market Makers and liquidity providers on the Euronext Amsterdam listed iShares ETFs will include Merrill Lynch, IMC FX Currency and Optiver.

iShares is the largest family of ETFs in the world with over 100 funds listed globally, totalling €71 billion, 10 of which are listed in Europe, with assets of €6.5 billion (as at 18/06/04). There are now 7 iShares listed on Euronext Amsterdam.

NextTrack is the segment of Euronext created to list, trade and market trackers. At the end of June 2004, 48 trackers were listed on NextTrack representing €19 billion of assets under management.

iBoxx represents a new generation of fixed income prices and indices, based on selected multiple contributor pricing, transparency, third party quality control and accessibility for all market participants.