SOURCE: PowerShares Capital Management

June 23, 2005 15:11 ET

PowerShares Capital Management Crosses $1 Billion in Assets Under Management

PowerShares' "Intelligent ETF" Strategy Has Attracted Over $500 Million in Assets Over the Past Five Months

CHICAGO, IL -- (MARKET WIRE) -- June 23, 2005 -- PowerShares Capital Management LLC, an asset management firm specializing in the development and management of "Intelligent Exchange Traded Funds" (ETFs), announced today that it has exceeded the $1 billion mark for assets under management.

"We are excited to reach the $1 billion in capital under management threshold," said Bruce Bond, CEO of PowerShares Capital Management. "We attracted our first $500 million in assets over a 17-month period since PowerShares launched its first two ETFs in May of 2003. The next $500 million took only five months to achieve. This trend supports our belief that investors would embrace 'Intelligent ETFs' designed to out-perform their benchmarks.

"What distinguishes PowerShares from its larger competitors is its strategy of providing products based on value-added indexes, including the 'Intellidex' indexes developed by the American Stock Exchange.

"PowerShares 'Intelligent ETFs' replicate dynamic indexes which use rules-based quantitative analysis to adjust the index components typically on a quarterly basis," explained Bond. "The methodology is a sophisticated way to analyze large groups of stocks in order to select specific stocks that have the greatest potential for capital appreciation. Our 'Intelligent ETFs' allow investors an opportunity to benefit from this stock selection at the index level while capitalizing on the low cost and tax efficiency of the ETF structure."

PowerShares currently offers 19 ETF funds and plans to launch an additional 20 ETFs over the next 12 months. PowerShares Capital Management, LLC is headquartered in Wheaton, IL. and is the advisor and sponsor of PowerShares XTF, a family of ETFs.

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.

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 or by calling 800-THE-AMEX. The prospectus should be read carefully before investing.

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