iShares ETFs Experience Strong 2008 Inflows

Investors Pull Money out of Mutual Funds and Into ETFs in Record Breaking Year

SAN FRANCISCO, CA -- (Marketwire) -- 02/02/09 -- Barclays Global Investors (BGI), one of the world's largest asset managers and exchange traded funds (ETF) providers, today announced strong net inflows in the U.S. iShares Funds family, securing $56.3 billion in new ETF assets in 2008 -- just shy of U.S. iShares 2007 record of $58.2 billion in net flows. U.S. iShares net inflows came from institutional investors (44%) and individual investors and financial advisors (56%), putting the iShares family of 178 ETFs with assets under management (AUM) at $254.7 billion as of December 31, 2008.

iShares strong year positions the business as the third largest fund manager in the U.S. in terms of net flows.(1) The acceptance of ETFs as an alternative to single stocks, active management and mutual funds accelerated in 2008. In fact, U.S. ETFs experienced record flows of $176 billion, while investors withdrew $179 billion out of U.S. mutual funds.(2)

On a global basis, iShares had a record year and realized net inflows of $89 billion in new ETF assets at the end of 2008 compared with $70 billion the previous year. These inflows include investments in iShares ETFs by investors in North America, Europe, Middle East, Japan, Asia Pacific, and Latin America.

"The market conditions of 2008 have created a paradigm shift in investing," said Lee Kranefuss, Global CEO of iShares at BGI. "Investors and financial advisors have stopped being myopic on returns and are now focused on risks, costs and liquidity in order to build smarter portfolios. These attributes are inherent in iShares ETFs."

He continued: "Skyrocketing inflows into iShares ETFs during last quarter of 2008 is strong evidence that investors are demanding investment products that are transparent in costs, holdings and product structure. We expect that transparency will continue to be a strong theme in 2009. As investors and financial advisors continue to scrutinize their investment choices and seek alternatives, we remain committed to meeting their needs."

The table below shows the U.S.-listed iShares Funds that had the most net inflows in 2008 and reveals that the growth in iShares ETFs is not limited to one asset class. "Investors and financial advisors are looking to ETFs to create the core of their portfolios," said Kranefuss.

           Top 10 iShares ETFs in North America by net inflows

                                                        Net Inflows
                                            Type of       in 2008
Fund                                        exposure     (millions)  Ticker
                                          ------------- ------------ ------
                                            Domestic -
iShares Russell 2000                          Small Cap        5,868    IWM
                                          ------------- ------------ ------
                                            Domestic -
                                             Large Cap
iShares S&P 500                                  Equity        5,140    IVV
                                          ------------- ------------ ------
iShares MSCI Emerging Markets             International        4,707    EEM
                                          ------------- ------------ ------
iShares Barclays TIPS                      Fixed Income        4,097    TIP
                                          ------------- ------------ ------
iShares iBoxx $ Investment Grade
 Corporate                                 Fixed Income        3,831    LQD
                                          ------------- ------------ ------
                                            Domestic -
iShares Russell 1000                          Large Cap        3,800    IWB
                                          ------------- ------------ ------
iShares FTSE/Xinhua China 25              International        3,037    FXI
                                          ------------- ------------ ------
                                            Domestic -
iShares Russell 1000 Value                    Small Cap        2,567    IWD
                                          ------------- ------------ ------
                                            Domestic -
iShares Russell Midcap                          Mid Cap        1,937    IWR
                                          ------------- ------------ ------
iShares iBoxx $ High Yield Corporate Bond  Fixed Income        1,703    HYG
                                          ------------- ------------ ------

All Other US Inquiries:

1-800-iShares (1-800-474-2737)

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.

About Barclays Global Investors

Barclays Global Investors is one of the world's largest asset managers and a leading global provider of investment management products and services with more than 3,000 institutional clients and over $1.9 trillion of assets under management as of June 30, 2008. BGI 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® exchange traded funds) with over 330 funds for institutions and individuals globally.

Investing involves risk, including possible loss of principal. Transactions in shares of the iShares Funds will result in brokerage commissions.

The iShares Funds ("Funds") are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as the investment advisor to the Funds. BGFA is a subsidiary of Barclays Global Investors, N.A., 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/Xinhua Index Limited ("FXI"), iBoxx®, MSCI Inc., Frank Russell Company, or Standard & Poor's, nor are they sponsored or endorsed by Barclays Capital. None of these companies make any representation regarding the advisability of investing in the Funds. Neither SEI nor Barclays Global Investors, nor any of their affiliates, are affiliated with the companies listed above except Barclays Capital, which is an affiliate of Barclays Global Investors.

FXI does not make any warranty regarding the FTSE/Xinhua Index. All rights in the FTSE/Xinhua Index vest in FXI. "FTSE" is a trade- and servicemark of London Stock Exchange and The Financial Times Limited; "Xinhua" is a trade- and servicemark of Xinhua Financial Network Limited.

©2009 Barclays Global Investors, N.A. 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: Strategic Insight, SimFund Data as of 12/31/08.
(2) Ibid.

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