SAN FRANCISCO, CA--(MARKET WIRE)--Nov 7, 2008 -- Barclays Global Investors (BGI), one of the world's largest asset managers and Exchange Traded Funds (ETF) providers, announced today the launch of the iShares S&P Short Term National Municipal Bond Fund (ticker: SUB) and the iShares Barclays Agency Bond Fund (ticker: AGZ). The new iShares Funds offer convenient, cost-effective, liquid ways to access the municipal and agency markets. The new iShares ETFs began trading today on the NYSE Arca.

"Recent volatility in the fixed income markets has increased investor demand for products that are liquid and transparent," said Matthew Tucker, Head of U.S. Fixed Income Investment Strategy at BGI. "Fixed income iShares ETFs have provided investors with access to a wide range of fixed income sectors in these difficult times and we're pleased to offer the two new funds."

Tucker said, "Municipals appeal to investors who seek tax-advantaged income and the yields are currently attractive. We are applying our quantitative investment management expertise to deliver a high quality municipal ETF accessible to investors."

The iShares S&P Short Term National Municipal Bond Fund's expense ratio is 0.25% and the fund is designed to track the S&P National 0-5 Year Municipal Bond Index, which is market value weighted and measures the performance of the short-term investment-grade segment of the U.S. municipal bond market. As of September 30, 2008, there were 1,725 issues in the Index, including municipal bonds from issuers that are primarily state or local governments or agencies (including the Commonwealth of Puerto Rico and U.S. territories). The interest on each bond is exempt from U.S. federal income taxes and the federal alternative minimum tax (AMT). Each bond must have a rating of at least BBB- by S&P, Baa3 by Moody's Investors Service, Inc., or BBB- by Fitch Inc. Each bond must be denominated in U.S. dollars and must have a minimum par amount of $25 million to be eligible for inclusion. The securities in the Underlying Index are updated after the close on the last business day of each month.

Tucker said, "U.S. Agency exposure becomes increasingly important an as investor diversifies the fixed income portion of his or her portfolio. Agencies are one of the larger segments of the fixed income market and make up 9.6% of the Barclays Capital U.S. Aggregate index as of 10/31/08. The iShares Barclays Agency Bond Fund includes issuers such as Fannie Mae and Freddie Mac whose securities are effectively guaranteed by the U.S. federal government."

The iShares Barclays Agency Bond Fund's expense ratio is 0.20% and the fund is designed to track the Barclays Capital U.S. Agency Index, which measures the performance of the agency sector of the U.S. government bond market. It is comprised of investment-grade U.S. dollar-denominated debentures issued by government and government-related agencies, including the Federal National Mortgage Association ("FNMA" or "Fannie Mae"). The Index includes both callable and non-callable agency securities that are publicly-issued by U.S. government agencies, quasi-federal corporations, and corporate and foreign debt guaranteed by the U.S. government. In addition, the securities must be fixed-rate and non-convertible. To be included within the index each bond must have a rating of at least BBB- by S&P's Rating Services, Baa3 by Moody's Investors Service, or BBB- by Fitch Inc.; at least $250 million in par amount outstanding; and at least one year to final maturity.

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.

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 risks, including possible loss of principal. Bonds and bond funds will decrease in value as interest rates rise. There is no guarantee that the Fund's income will be exempt from federal or state income taxes. Capital gains, if any, are subject to capital gains tax. An investment in the fund(s) is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

The iShares Funds are not sponsored, endorsed, issued, sold or promoted by Standard and Poor's. 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

The iShares Funds ("Funds") are distributed by SEI Investments Distribution Co. (SEI). Barclays Global Fund Advisors (BGFA) serves as an 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.

©2008 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.