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iShares Receives Largest Purchase Ever of $2.25 Billion, Invested in the IShares MSCI EAFE Fund; Occurs as iShares Celebrates Two-Year Anniversary

iShares Receives Largest Purchase Ever of $2.25 Billion, Invested in the IShares MSCI EAFE Fund; Occurs as iShares Celebrates Two-Year Anniversary

Business Editors

SAN FRANCISCO–(BUSINESS WIRE)–May 20, 2002

One institution invested $2.25 billion last week in the iShares MSCI EAFE Index Fund (EFA), making it the largest, one-time purchase since the iShares fund family was launched. The amount represents more than many mutual fund companies attract in a month.(1) According to Financial Research Corporation’s data, iShares is one of the fastest growing equity fund complexes in the U.S. As of May 16th, the 77 U.S. listed iShares gained $9.3 billion in new assets year-to-date for a growth rate of 53%. Of the 77 iShares, the 33 international funds have grown 127%.(2)

Since its inception in August 2001, the iShares MSCI EAFE Index Fund has been the only tradable intra-day priced fund that tracks the flagship index for U.S. investors’ international assets. It is a cost-effective, tax efficient(3) way for all types of investors to gain exposure to developed markets outside of North America in a single transaction. In addition, the Fund is already benchmarked to the Provisional MSCI EAFE Index, which reflects MSCI’s Enhanced Equity Index Methodology, slated to become fully effective at the end of this month. Thus, by investing in the Fund investors can gain exposure to the new index and avoid incurring the costs associated with rebalancing to the new methodology.

Barclays Global Investors is the world’s largest institutional investment manager, and the world’s largest provider of ETFs and structured investment strategies such as indexing, tactical asset allocation, and quantitative active strategies(4). BGI managed more than $790 billion in assets as of 3/31/02. BGI is an innovator in investment management, applying science and technology to the investment process. BGI is owned by Barclays PLC.

iShares are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an advisor to iShares. Barclays Global Investors Services (BGIS) assists in the marketing of iShares. BGFA and BGIS are subsidiaries of Barclays Global Investors, N.A., none of which is affiliated with SEI. For complete information, including charges and expenses, request a prospectus by calling 1-800-iSHARES (1-800-474-2737). Read it carefully before you invest.

Past performance is no guarantee of future results. In addition to the normal risks associated with equity investing, international investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles or from economic or political instability in other nations.

iShares are not sponsored, endorsed, sold or promoted by Morgan Stanley Capital International, nor does this company make any representation regarding the advisability of investing in iShares.

iShares is a registered trademark of Barclays Global Investors, N.A. All other trademarks, service marks or registered trademarks are the property of their respective owners.

(1) Source: Financial Research Corporation.

(2) Source: SEI Investments Distribution Co. (SEI).

(3) iShares transactions will result in brokerage commissions and will generate tax consequences. Mutual funds and iShares are obliged to distribute portfolio gains to shareholders.

(4) Source: Pensions & Investments, (Sept. 2001).

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