SAN FRANCISCO, CA -- (MARKET WIRE) -- 05/04/07 -- Barclays Global Investors (BGI) announced today that five iShares Funds designed to track the FTSE NAREIT Indexes began trading today on the NYSE Arca. With an annual expense ratio of 0.48%, the new iShares Funds provide targeted exposure to the U.S. Real Estate Investment Trust (REIT) market. The new funds are:

iShares FTSE NAREIT Residential Index Fund (ticker: REZ)

iShares FTSE NAREIT Industrial/Office Index Fund (ticker: FIO)

iShares FTSE NAREIT Retail Index Fund (ticker: RTL)

iShares FTSE NAREIT Mortgage REITs Index Fund (ticker: REM)

iShares FTSE NAREIT Real Estate 50 Index Fund (ticker: FTY)

"BGI continues to demonstrate its commitment to providing investors with all the necessary tools via an exchange traded product that are useful for many investors and their financial advisors as they construct a complete asset allocation plan," said Noel Archard, Head of iShares Product Development. "REIT exposure generally offers several useful portfolio attributes, such as lower correlation to the broad equity and bond markets along with higher dividend yield. The iShares FTSE NAREIT Funds should provide investors with income and portfolio diversification benefits, in a cost-effective manner."

The FTSE NAREIT U.S. Real Estate Indexes ("FTSE NAREIT Indexes") are primarily rule-based, but are also monitored by the FTSE NAREIT Index Advisory Committee. All tax-qualified REITs that are listed on the NYSE, the American Stock Exchange ("AMEX") or the NASDAQ are eligible for inclusion in the FTSE NAREIT Indexes. Potential constituents for the FTSE NAREIT Residential Index, the FTSE NAREIT Industrial/Office Index, the FTSE NAREIT Retail Index, and the FTSE NAREIT Mortgage REITs Index are determined by sector classifications of constituents in the FTSE NAREIT Composite Index. The FTSE NAREIT Real Estate 50 Index measures the performance of the large-cap real estate sector of the U.S. equity market and is comprised of the 50 largest REIT companies within the FTSE NAREIT Composite Index.

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 www.ishares.com. Read the prospectus carefully before investing.

BGI is one of the world's largest asset managers(1) and a leading global provider of investment management products and services. It has over 2,900 institutional clients and over $1.8 trillion of assets under management as of 12/31/06. It transformed the investment industry by creating the first index strategy in 1971 and the first quantitative active strategy in 1979. BGI is the global product leader in exchange traded funds (iShares) with over 190 funds for institutions and individuals trading in fifteen markets. Globally, BGI and its affiliates have approximately $287 billion of iShares assets under management. BGI is a majority-owned subsidiary of Barclays Bank PLC.

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

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.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by FTSE International Limited ("FTSE"). This company does not make any representation regarding the advisability of investing in the Funds. Neither SEI nor BGI, nor any of their affiliates, are affiliated with the company listed above.

Neither FTSE nor NAREIT makes any warranty regarding the FTSE NAREIT Real Estate 50 Index, FTSE NAREIT Residential Index, FTSE NAREIT Retail Index, FTSE NAREIT Mortgage REITs Index or FTSE NAREIT Industrial/Office Index; all rights vest in NAREIT. "FTSE" is a trade- and servicemark of London Stock Exchange and The Financial Times Limited; "NAREIT®" is a trademark of NAREIT.

© 2007 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.

(1) Source: "P&I/Watson Wyatt World 500," Pensions & Investments, September 4, 2006.