SOURCE: Barclays Global Investors

December 21, 2007 09:35 ET

Barclays Global Investors Announces the Trading of the iShares Japan Small Cap Exchange Traded Fund

SAN FRANCISCO, CA--(Marketwire - December 21, 2007) - Barclays Global Investors (BGI), the world's largest institutional asset manager and largest manager of exchange traded funds (ETFs), announced today the launch of the iShares MSCI Japan Small Cap Index Fund (NYSE: SCJ) on NYSE Arca. With an annual expense ratio of 0.59%, the new fund tracks the MSCI Japan Small Cap Index, which is designed to measure small capitalization equity market performance in the Japanese market. The stocks held in the Index trade primarily on the Tokyo Stock Exchange.

"Small cap investing is increasingly accepted as a core asset allocation due to different risk and return characteristics in comparison to large cap and other asset classes. The iShares MSCI Japan Small Cap Index Fund is the third international small cap introduced by iShares recently," noted Michael Latham, Head of Americas iShares for BGI.

The iShares funds are index funds 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.

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.

BGI 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 manages 65% of the world's 100 largest pension plans(3) and is a leader in assets and products in ETFs through its iShares® brand with more than 290 ETFs globally. The firm managed over $2 trillion in assets as of 6/30/07, for more than 2,900 clients in 52 countries around the world. BGI is a majority-owned subsidiary of Barclays Bank PLC.

There are risks involved with investing, including possible loss of principal. In addition to the normal risks associated with investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations. Securities focusing on a single country may be subject to higher volatility. Investments in smaller companies typically exhibit higher volatility.

The iShares funds ("Funds") are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to the Funds. Barclays Global Investors Services (BGIS) assists in the marketing of the Funds. BGFA and BGIS are subsidiaries of Barclays Global Investors, N.A., which is a majority-owned subsidiary of Barclays Bank PLC, none of which is affiliated with SEI.

The Funds are not sponsored, endorsed, issued, sold or promoted by MSCI, Inc. ("MSCI") and MSCI makes no representation regarding the advisability of investing in the Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the companies listed above.

©2007 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.

(1) Source: "P&I/Watson Wyatt World 500,"
    Pensions & Investments, September 4, 2006.

(2) Source: "Special Reports: Money Manager Directory,"
    Pensions & Investments, May 29, 2006.

(3) Source: "P&I/Watson Wyatt World 300: Largest Pension Funds,"
    Pensions & Investments, September 18, 2006.