SOURCE: PowerShares Capital Management

August 07, 2006 08:00 ET

PowerShares Announces Proxy Results

CHICAGO, IL -- (MARKET WIRE) -- August 7, 2006 -- PowerShares Capital Management LLC announced today that shareholders successfully achieved the necessary quorum and affirmative votes required to approve the Board's proposals on 34 of 37 funds of the PowerShares Exchange-Traded Fund Trust. The meetings on the remaining three funds have been adjourned until August 16, 2006 to provide shareholders additional time to vote their shares and the funds to achieve the necessary quorum.

"We are pleased to have a quorum and shareholder approval for 34 of our funds," said Bruce Bond, President and CEO of PowerShares Capital Management LLC. "We are focusing in on reaching the shareholders of the remaining three funds and believe we remain on target to close with AMVESCAP PLC in the third quarter."

The PowerShares ETFs still requiring a quorum to vote on the investment advisory agreement with the Trust, and a change in the classification of each Fund's investment objective from a fundamental investment policy to a non-fundamental investment policy, are listed below.

Ticker       Fund Name
----------------------------------------------------------
PPA          PowerShares Aerospace & Defense Portfolio
PBW          PowerShares WilderHill Clean Energy Portfolio
PHO          PowerShares Water Resources Portfolio
PowerShares proxy solicitor, The Altman Group, will continue to contact shareholders of the adjourned Funds who have not voted their shares to help assure that a quorum is reached by the August 16, 2006 shareholder meeting. Shareholders of the adjourned Funds who have voted their shares will not be contacted and do not need to take any further action at this time. To obtain additional information on the proposals and how to vote your shares, please call (800) 884-5197.

The Wednesday, August 16, 2006 shareholder meeting will be held at the offices of PowerShares Capital Management LLC, 301 West Roosevelt Road, Wheaton, Illinois 60187 at 10:00 a.m., Central Time.

PowerShares Capital Management LLC

PowerShares Capital Management LLC provides institutional caliber asset management and market exposure through the replication of enhanced indexes. PowerShares delivers this sophisticated asset management in one of the more benefit rich investment vehicles available today, the exchange-traded fund. The firm is committed to theoretically sound portfolio construction and empirically verifiable investment management approaches. PowerShares' asset management philosophy and investment discipline are deeply rooted in the application of intuitive factor analysis and model implementation to enhance investment decisions.

AMVESCAP

AMVESCAP PLC is a leading independent global investment manager, dedicated to helping people worldwide build their financial security. Operating under the AIM, AIM Trimark, INVESCO, Invesco Perpetual, and Atlantic Trust brands, AMVESCAP strives to deliver outstanding products and services through a comprehensive array of enduring investment solutions for retail, institutional, and private wealth management clients around the world. The Company, which had approximately $414 billion in assets under management as of June 30, 2006, is listed on the London, New York and Toronto stock exchanges with the symbol "AVZ." Additional information is available at www.amvescap.com.

Risks of Owning PowerShares

PowerShares funds are made up of publicly traded securities that can and will move higher and lower with market movements. You should anticipate that the value of the shares of each fund will advance or decline more or less in correlation with the advance or decline in value of the applicable index. The funds are not actively managed and shares of the funds may trade at or below the funds' NAV. Exchange traded funds are subject to risks similar to those of stocks, including risks associated with short-selling and margin account maintenance.

An investor should consider investment objectives, risks, charges and expenses carefully before investing. A prospectus which contains more complete information about PowerShares, including, risks, fees and expenses, can be obtained by visiting the PowerShares web site at www.PowerShares.com or by calling 800-983-0903. The prospectus should be read carefully before investing.

Statements in this press release that are not historical fact may be deemed forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Although we believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that its expectations will be attained.

ALPS Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust.

Contact Information

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