SOURCE: Barclays Global Investors

December 21, 2006 10:00 ET

iShares® Funds Announces Year-End Capital Gains Distributions

SAN FRANCISCO, CA -- (MARKET WIRE) -- December 21, 2006 -- iShares Funds announced today the year-end capital gains distributions for its family of U.S. exchange traded funds (ETFs). The year-end capital gains distributions are zero for 115 domestic equity, international equity and domestic fixed income iShares Funds. The iShares Dow Jones U.S. Real Estate Index Fund (IYR) and the iShares Cohen & Steers Realty Majors Index Fund (ICF) realized capital gains distributions for the 2006 tax year as noted below. The iShares Funds are providing this information in an effort to assist investors with year-end tax and investment planning.

"The mutual fund industry is expected to make one of the largest capital gains distributions on record, right behind 2000 and 1999. Real estate funds, for instance, experienced tremendous gains," said Lee Kranefuss, CEO of BGI's Intermediary and Exchange Traded Funds Business. "Exchange traded funds continue to prove their tax efficiency due to relatively low portfolio turnover and their unique structure."

                  Short-Term  Long-Term  Total Cap
Fund Name          Cap Gain   Cap Gain     Gain    Distribution  Ex-Date
iShares Dow Jones
U.S. Real Estate
Index Fund            --     7,911,258  7,911,258     0.3722    12/20/2006

iShares Cohen &
Steers Realty
Majors Index Fund     --       149,937    149,937     0.0055    12/21/2006
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 the leader in assets and products in exchange traded funds (ETFs) through its iShares® brand with more than 180 ETFs globally. The firm managed over $1.6 trillion in assets as of 6/30/06, for more than 2,800 clients in 52 countries around the world. BGI is a majority-owned subsidiary of Barclays Bank PLC.

All registered investment companies, including iShares Funds, are obliged to distribute portfolio gains to shareholders at year's end regardless of performance. Transactions in shares of the iShares Funds will also generate tax consequences and transaction expenses. The information provided is not intended to be tax advice. Tax consequences of dividend distributions may vary by individual taxpayer.

To receive distribution, you must have been a registered shareholder of the fund on the record date. Distributions were paid to shareholders on the payment date. Past distributions are not indicative of future trends. Please consult your tax professional or financial advisor for more information regarding your tax situation.

There are risks involved with investing, including possible loss of principal.

The annual management fee of iShares Funds may be substantially less than those of most mutual funds. Buying and selling shares of iShares Funds will result in brokerage commissions, but the savings from lower annual fees can help offset these costs. The iShares Funds may be sold throughout the day on the exchange through any brokerage account. However, iShares Funds may only be redeemed directly from the fund by Authorized Participants, in very large creation/redemption units.

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.

Neither Barclays Global Investors, N.A. and its affiliates nor SEI and its affiliates provide tax advice. Please note that (i) any discussion of U.S. tax matters contained in this communication (including any attachments) cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein: and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.

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.
© 2006 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.