SOURCE: PowerShares Capital Management

September 09, 2005 08:00 ET

PowerShares Capital Management Awarded Exclusive ETF License for the "FTSE RAFI US 1000 Index"

CHICAGO, IL -- (MARKET WIRE) -- September 9, 2005 -- PowerShares Capital Management continues to "Lead the Intelligent ETF Revolution" and today announced that it has been selected by FTSE International Limited (FTSE) and Research Affiliates LLC as the sole licensee of the FTSE RAFI US 1000 Index for Exchange Traded Funds (ETF). PowerShares has filed a registration statement with the SEC and anticipates listing an ETF based on the index sometime late this year.

"Interest from asset managers to license the FTSE RAFI US 1000 Index has been very strong," said Rob Arnott, Chairman of Research Affiliates LLC, and the brain trust behind the Fundamental Indexing approach. "After careful consideration of several leading managers, we chose to partner with PowerShares because of their distribution capabilities and innovative product positioning within the ETF marketplace."

The FTSE Research Affiliates Fundamentals US 1000 Index is a broad market index which incorporates "fundamental" factors, as opposed to "market capitalization" for ranking and weighting companies in the index. The financial data points of sales, cash flow, book value and dividends are used in constructing the index. Fundamental Indexing offers investors the same benefits as traditional passive market capitalization weighted indexing such as: low turnover costs, broad diversification and transparent rules-based selection. However, RAFI studies indicate that fundamental indexes have produced consistently higher returns, at modestly lower risk, when compared to market capitalization weighted indexes.

"The FTSE RAFI US 1000 Index is an exciting new development in equity management which we believe will appeal to many investors," said Bruce Bond, President of PowerShares Capital Management. "The index is a great fit for PowerShares growing family of 'Intelligent ETFs' and we believe offers both retail and institutional investors tremendous value when compared to traditional market cap indexes such as the S&P 500 and Russell 1000*."

Jerry Moskowitz, Managing Director of FTSE Americas who is working with Research Affiliates to provide the index to the market stated, "We are delighted to work with PowerShares and Research Affiliates to introduce this innovative product. This is the beginning of a strong relationship and we look forward to developing and introducing new ideas to the marketplace."

PowerShares Capital Management, LLC, is passionate about our goal of efficiently delivering the highest quality institutional investment management available. In this pursuit of investment excellence the PowerShares were created. PowerShares provide institutional caliber asset management in an Exchange Traded Fund through the replication of enhanced and intelligent indexes. PowerShares Capital Management, LLC, is an asset management company 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.

Research Affiliates, LLC, was formed by Robert D. Arnott in 2002 to engage in quantitative investment research designed to create innovative investment products. As the company name suggests, these products are primarily implemented and introduced to the market through affiliations with other firms. Research Affiliates offers sub-advisory services and pioneering investment product development.

FTSE Group is a world-leader in the creation and management of indexes. With offices in London, Frankfurt, Hong Kong, Madrid, Paris, New York, San Francisco, and Tokyo, FTSE Group services clients in 77 countries worldwide. FTSE indexes are used extensively by investors worldwide for investment analysis, performance measurement, asset allocation, portfolio hedging and for creating a wide range of index tracking funds. Real-time FTSE indexes are calculated on systems managed by Reuters. Prices and FX rates used are supplied by Reuters.

* The S&P 500 and Russell 1000 indexes are unmanaged indexes used as a measurement of change in stock market conditions based on the average performance of approximately 500 and 1000 common stocks, respectively.

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

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.THE.AMEX or visit the website for a prospectus. Please read the prospectus carefully before investing.

The information in this prospectus is not complete and may be changed. The portfolio may not sell its shares until the registration statement filed with the Securities and Exchange Commission is effective. The prospectus is not an offer to sell the portfolio shares, nor is the portfolio soliciting an offer to buy its shares in any jurisdiction where the offer or sale is not permitted.

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