THE AMERICAN STOCK EXCHANGE LAUNCHES NEW iSHARES BASED ON MSCI EAFE INDEX FUND


Friday, August 17, 2001

New York--The American Stock Exchange® (Amex® ), the leader and pioneer of exchange traded funds (ETFs), in conjunction with Barclays Global Investors, N.A., the largest manager of indexed products in the world, today announced trading in a new iShares based on the MSCI EAFE Index Fund. The new iShares will trade under the ticker symbol EFA.

The MSCI EAFE® Index is recognized as the preeminent benchmark in the U.S. to measure international equity performance. It comprises 21 MSCI country indices, representing the developed markets outside of North America: Europe, Australasia and the Far East. The fund uses a Representative Sampling strategy to track the Index.

iShares are the exchange traded funds managed by Barclays Global Fund Advisors, a subsidiary of Barclays Global Fund Investors, N.A., the largest manager of indexed products in the world which manages more than $770 billion in assets for institutions and individual investors across the globe. The provider of the index is MSCI, a leading provider of global indices and benchmark related products and services to investors worldwide.

"Together with our partner Barclays Global Investors, we have now brought 66 iShares to the marketplace. The addition of this latest product based on the MSCI EAFE Index Fund, provides investors with a great opportunity to gain broad international exposure in a single product," said Salvatore F. Sodano, Amex chairman and CEO. "It’s a pleasure to continue working with Barclay’s to bring new and innovative products to market."

"The iShares MSCI EAFE Fund may represent best the simplicity and value of iShares exchange traded funds," said Lee Kranefuss, CEO of Barclays Global Investors’ Individual Investor Business. "The fund provides a cost-effective, tax efficient way for investors to gain exposure in developed markets outside of North America in a single transaction. Investors also gain added flexibility and ease in implementing international asset allocation strategies using this broad international fund and the other 21 iShares MSCI Funds that trade on the Amex," he added.

The Amex pioneered the concept of ETFs in 1993 with the introduction of trading in SPDRs® -- Standard & Poor's Depositary Receipts®, an exchange-traded unit investment trust based on the Standard & Poor's 500 Index®. There are now 107 ETF products trading on the Amex, with assets currently totaling more than $80 billion. Each year since 1993, both total assets and trading volume of Amex-listed ETFs have doubled.


The American Stock Exchange®, a subsidiary of the National Association of Securities Dealers, Inc. NASD®, is the only primary exchange that offers trading across a full range of equities, Exchange Traded Funds (ETFs), including structured products and HOLDRSsm, and options. In addition to its role as a national equities market, the Amex is the leader in ETF listings, listing 107 ETFs to date, and is the second-largest options exchange in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks. For more information, visit www.amex.com.

For more complete information and prospectuses, including charges, expenses and potential risks, on Select Sector SPDRs*, SPDRs* and streetTRACKSsm, call 1-800-THE –AMEX or visit www.amex.com. Read a prospectus carefully before you invest.

ALPS Distributors, Inc., a registered broker-dealer, is distributor for the SPDR Trust, a unit investment trust, and the Select Sector SPDR Trust, an index fund. State Street Brokerage, a division of State Street Capital Markets, LLC, is distributor for streetTRACKS, an index fund. These products are not sponsored, endorsed, sold or promoted by the licensors of the foregoing trademarks and service marks.

Exchange-Traded Funds are subject to risks similar to those of stocks. Investment returns will fluctuate and are subject to market volatility, so that an investor’s shares, when redeemed or sold, may be worth more or less than their original cost. Sector funds may bear a higher level of risk than more broadly diversified funds. Investments in foreign investments may incur unique and greater risks than domestic investments. Past performance is no guarantee of future results.

For complete details regarding rights relating to HOLDRS and rights relating to the HOLDRS underlying securities, please refer to the prospectus. This is not an offer to sell HOLDRS and we are not soliciting offers to buy HOLDRS in any state where such offer or sale is not permitted. "HOLDRS’ and "HOLding Company Depositary ReceiptS" are service marks of Merrill Lynch & Co., Inc.

MSCI EAFE are service marks of Morgan Stanley Capital International Inc. and its affiliates.

Media Contact:
Lynn Teresky
Amex
(212) 306-1654