SOURCE: PowerShares Capital Management

February 08, 2007 06:00 ET

PowerShares Capital Management Powers Investors With Zero Capital Gain Distributions for 2006

CHICAGO, IL -- (MARKET WIRE) -- February 8, 2007 -- PowerShares Capital Management LLC continues Leading the Intelligent ETF Revolution® announcing today that no capital gains distributions were made for any of its Exchange Traded Fund (ETF) portfolios for 2006. Since inception, PowerShares' ETFs have never made a capital gain distribution to shareholders.

"We are very pleased to once again announce zero capital gains payouts for the year across the entire family of PowerShares ETF portfolios," said Bruce Bond, President and CEO of PowerShares Capital Management. "This achievement highlights one of the advantages PowerShares provides to shareholders seeking to maximize their real returns. Many investors do not fully appreciate the power of compounding returns over time and the substantial impact taxes can have on asset growth. Investors utilizing PowerShares ETFs can meaningfully improve their prospects of creating and preserving wealth over time."

An ETF's ability to substantially mitigate or possibly avoid capital gains distributions stems from the unique product structure and "in kind" method for share transfer. The format allows ETF asset managers to generally avoid year-end capital gain payouts. Like shares of common stock, ETF shareholders typically realize taxable consequences only when the ETF shares are sold. This difference allows investors additional tax planning benefits by providing control over the timing of capital gains, potentially minimizing or eliminating tax liability.

PowerShares launched 33 new ETFs during 2006, and currently offers 69 ETF portfolios representing a broad and comprehensive family of domestic ETF portfolios.

PowerShares Capital Management LLC is passionate about its goal of efficiently delivering the highest quality institutional investment management services available. PowerShares is Leading the Intelligent ETF Revolution® providing investment advisors with institutional caliber asset management that seeks to replicate enhanced indexes in one of the more benefit rich investment vehicles available in the marketplace 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. Ordinary brokerage commissions apply.

Please be aware that the foregoing statements are not in any way intended to provide U.S. federal tax advice, and cannot be used, by any taxpayer for the purpose of avoiding any taxes or penalties that may be imposed on such taxpayer by the Internal Revenue Service. Each investor should seek their own investment and tax advice based on their particular circumstances from an independent advisor of their choosing.

A I M 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 a PowerShares Fund, call 800.983.0903 or visit the website for a prospectus. Please read the prospectus carefully before investing.

Contact Information

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