SOURCE: Barclays Global Investors

September 10, 2007 08:00 ET

Barclays Global Investors Announces the Trading of the First U.S. Listed Municipal Bond Exchange Traded Fund

SAN FRANCISCO, CA--(Marketwire - September 10, 2007) - Barclays Global Investors (BGI) announced that the iShares S&P National Municipal Bond Fund (AMEX: MUB) will begin trading today on the American Stock Exchange. It is the first municipal bond ETF available to U.S. investors. The Fund is designed to track a liquid, institutional quality municipal bond index and its annual expense ratio is 0.25%*.

"Investors have been looking for a simple and cost-effective method of gaining exposure to the municipal market, which is traditionally a less liquid and expensive marketplace especially for those building a portfolio of individual issues," said Noel Archard, Head of U.S. iShares Product Development. "The iShares S&P National Municipal Bond Fund looks to solve those problems. BGI applied its quantitative investment management expertise to deliver what it believes is a quality municipal ETF accessible to investors."

The S&P National Municipal Bond Index™ includes bonds from issuers that are primarily state or local governments or agencies such that the interest in the bond is exempt from U.S. federal income taxes. Each bond must have a rating of at least BBB- and must have a minimum par amount outstanding of $50 million.

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 Read the prospectus carefully before investing.

Barclays Global Investors (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 exchange traded funds (ETFs) through its iShares® brand with more than 190 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. Bonds and bond funds will decrease in value as interest rates rise. There is no guarantee that the Fund's income will be exempt from federal or state income taxes. Federal or state changes in income or alternative minimum tax rates or in the tax treatment of municipal bonds may make them less attractive as investments and cause them to lose value. Capital gains, if any, are subject to capital gains tax.

* The total annual operating expense of the iShares S&P National Municipal Bond Fund includes waiver of 0.05%. BGFA has contractually agreed to waive a portion of its management fees for its investment advisory services to the Fund through June 30, 2008, after which the waiver is not guaranteed. Before giving effect to such contractual waiver, the management fee is 0.30%.

Although a registration statement relating to the iShares S&P California Municipal Bond Fund and the iShares S&P New York Municipal Bond Fund has been filed with the Securities and Exchange Commission, that registration statement has not yet become effective. Consequently, the iShares S&P California Municipal Bond Fund and the iShares S&P New York Municipal Bond Fund are not available for sale and will not be available for sale, nor may offers to buy these securities be accepted, prior to the time the registration statement becomes effective. This communication shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any State in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such State.

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 iShares Funds are not sponsored, endorsed, issued, sold or promoted by Standard and Poor's ("S&P"). S&P does not make any representation regarding the advisability of investing in the Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with S&P.

© 2007 Barclays Global Investors. 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.