SOURCE: PowerShares

January 16, 2008 16:30 ET

PowerShares Capital Management Delivers Zero-Capital Gain Distributions for 2007 Across Equity and Fixed-Income ETF Portfolios

CHICAGO, IL--(Marketwire - January 16, 2008) - PowerShares Capital Management LLC, a leading provider of exchange-traded funds (ETFs), today announced that no capital gains distributions were made for any of its equity and fixed-income based exchange-traded fund portfolios for 2007. Since inception, PowerShares has never made a capital gain distribution to shareholders of equity or fixed-income based ETF portfolios.

"We are very pleased to again announce zero capital gains payouts for the year, and during 2007, this was achieved across PowerShares' entire family of equity-based and fixed-income ETF portfolios," said Bruce Bond, President and CEO of PowerShares Capital Management. "This highlights one of the many advantages PowerShares ETFs can provide shareholders seeking to maximize real returns. Reducing the impact of taxes and the power of compounding returns over time can meaningfully improve an investor's prospects for creating and preserving real wealth."

ETFs generally allow investors greater tax planning flexibility compared to other product structures, thereby potentially minimizing or eliminating tax liability. Like shares of common stock, the shareholders of an ETF typically realize taxable consequences only when shares are sold. Additionally, ETF asset managers use the "in kind" method for share transfer allowing portfolios to generally avoid year-end capital gain payouts.

PowerShares listed 33 new ETFs during 2007. PowerShares now offers investors one of the world's most comprehensive family of ETFs based on enhanced indexes with more than 100 portfolios..

PowerShares Capital Management LLC is leading the intelligent ETF revolution through its family of more than 100 domestic and international exchange-traded funds, which seek to outperform traditional benchmark indexes while providing advisors and investors access to an innovative array of focused investment opportunities. With franchise assets of over $35 billion, PowerShares ETFs trade on all three U.S. stock exchanges and the PowerShares QQQ™, which tracks 100 of the NASDAQ's fastest-growing companies, is the most actively traded equity security in the world. For more information, please visit us at

PowerShares is a part of Invesco, a leading independent global investment management company, dedicated to helping people worldwide build their financial security. By delivering the combined power of our distinctive worldwide investment management capabilities, including AIM, Atlantic Trust, Invesco, Perpetual, PowerShares, Trimark, and WL Ross, Invesco provides a comprehensive array of enduring investment solutions for retail, institutional and high net worth clients around the world. Operating in 20 countries, the company is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at

Risks of Owning Exchange-Traded Funds

Exchange-traded 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. Ordinary brokerage commissions apply. Shares are not individually redeemable and that owners of the Shares may acquire those Shares from the Fund and tender those Shares for redemption to the Fund in Creation Units only.

A I M Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust II.

An investor should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. For this and more complete information about the Fund, call 800.983.0903. Please read the prospectus carefully before investing.

PowerShares® and Leading the Intelligent ETF Revolution® are registered marks of PowerShares Capital Management LLC. A I M Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust and the PowerShares Global Exchange-Traded Fund Trust. ALPS Distributors, Inc. is the distributor of PowerShares QQQ. PowerShares QQQ is a unit investment trust. PowerShares Capital Management LLC and A I M Distributors, Inc. are not affiliated with ALPS Distributors, Inc.