US Exchange Traded Funds Based on MSCI Indices Launched by Barclays Global Investors

New York, May 19, 2000. Morgan Stanley Capital International (MSCI) announced today that a series of exchange traded funds based on its indices has been launched by Barclays Global Investors (BGI), as part of their iShares family of funds.

This is the latest development in MSCI's relationship with BGI who have been involved in managing MSCI-indexed exchange traded funds under the name WEBS (World Equity Benchmark Shares) since 1996. WEBS have now been re-named “iShares MSCI” to reflect the consistent brand name for all exchange traded funds managed by BGI. On May 12, the new iShares MSCI South Korea Index Fund was added to the iShares MSCI fund family:

iShares MSCI Australia
iShares MSCI Austria
iShares MSCI Belgium
iShares MSCI Canada
iShares MSCI France
iShares MSCI Germany
iShares MSCI Hong Kong
iShares MSCI Italy
iShares MSCI Japan
iShares MSCI Malaysia
iShares MSCI Mexico
iShares MSCI Netherlands
iShares MSCI Singapore
iShares MSCI South Korea
iShares MSCI Spain
iShares MSCI Sweden
iShares MSCI Switzerland
iShares MSCI United Kingdom

Lee Kranefuss, CEO of BGI's Individual Investor business, said "BGI is very pleased and proud to work with MSCI in the development of the iShares program. International investing is an important part of asset allocation and iShares. MSCI is clearly a leading provider of international indices for institutional and individual investors."

“MSCI is pleased to expand its relationship with Barclays Global Investors on the launch of this new and exciting product,“ said Henry Fernandez, President and CEO of MSCI. “This represents continuing progress in our exchange traded fund licensing business.”

iShares MSCI provide a cost-effective way for U.S investors to gain exposure to foreign equity markets. iShares (www.ishares.com) are index funds that can be bought and sold like common stocks on a national stock exchange. This flexibility enables U.S. investors to purchase and sell iShares through any brokerage firm, financial advisor, or online broker, and hold the funds in any type of brokerage account.

MSCI indices and benchmarks are widely used by institutions and investment professionals globally. Approximately $1.5 trillion of assets are benchmarked to MSCI indices. MSCI indices are also used as the basis for a wide range of products including exchange traded funds, mutual funds, listed futures and options, structured products and other derivatives.

Simon Midgen, MSCI, London + 44 20 7425 4595
Daniel Bacci, MSCI, New York + 1 212 762 5790
John Fildes, MSCI, Hong Kong + 852 2848 5296

Emma Leeds/Catherine May, Luther Pendragon + 44 20 7353 1500

MSCI

Morgan Stanley Capital International Inc. (MSCI) is a leading provider of global indices and benchmark related products and services to investors worldwide. Morgan Stanley Dean Witter & Co., a global financial services firm and a market leader in securities, asset management, and credit services, is the majority shareholder of MSCI and The Capital Group Companies, Inc., a global investment management group, is a minority shareholder.

MSCI, Morgan Stanley Capital International and MSCI Index are service marks of Morgan Stanley Capital International and have been licensed for use by Barclays Global Investors, N.A. The iShares funds are not sponsored, endorsed, sold or promoted by Morgan Stanley Capital International. Nor does Morgan Stanley Capital International make any representation regarding the advisability of investing in any of the Funds.

Barclays Global Investors

Barclays Global Investors is the world's largest institutional investment manager, and the world's largest provider of structured investment strategies such as indexing, tactical asset allocation, and quantitative active strategies. BGI manages more than $780 billion in assets, and over 1,500 funds, which track over 200 global indices, for nearly 1,600 clients in 36 countries around the world. As the creator of the first index strategy more than 25 years ago, BGI is truly an innovator in investment management, applying science and technology to the investment process. BGI has over 1,800 employees worldwide and is owned by Barclays PLC, one of the UK's largest companies, and one of the world's leading global financial services providers, with operations in about 70 countries worldwide.

BGI contacts:
www.barclaysglobal.com

Tom Taggart + 1 415-597-2736
Deborah Larson + 1 415-597-2727
Kerry Steele + 1 415-597-2167

iShares:
1-800-iSHARES (1-800-474 2737)
www.ishares.com