news about PowerShares Capital Management LLC

PowerShares Capital Management LLC

2005/12/06

PowerShares Launches Value Line Timeliness(TM) Select Portfolio and Three New Industry Group ETFs

PowerShares Capital Management LLC continues to "Lead the Intelligent ETF Revolution" with the launch of four new Exchange Traded Funds (ETFs) today, December 6, 2005, at the American Stock Exchange. This launch includes the PowerShares Value Line Timeliness™ Select Portfolio and three industry group portfolios. The new PowerShares ETFs and ticker symbols are listed below.

The PowerShares Value Line Timeliness™ Select Portfolio is based on the Value Line Timeliness™ Select Index, which chooses securities using Value Lines' proprietary ranking systems of Timeliness™, Safety™ and Technicals™. The index seeks to identify companies that have the potential to outperform the overall U.S. equity market. The Value Line Timeliness™ Select Index has outperformed the S&P 500 benchmark over the past 1, 3, 5 and 10 year periods.

The Index performance results are hypothetical and index returns do not represent Fund returns. An investor cannot invest directly in an index. The Index does not charge management fees or brokerage expenses, and no such fees or expenses were deducted from the hypothetical performance shown nor does the index lend securities, and no revenues from securities lending were added to the performance shown. In addition, the results actual investors might have achieved would have differed from those shown because of differences in the timing, amounts of their investments, and fees and expenses associated with an investment in the Fund. +The S&P 500 and Russell 2000 Indexes are unmanaged indexes used as a measurement of change in stock market conditions based on the average performance of approximately 500 and 2000 common stocks, respectively. The PowerShares Water Resources Portfolio is based on the Palisades Water Index which seeks to identify companies that focus on the provision of potable water, the treatment of water, and the technology and services that are directly related to water consumption. The PowerShares Dynamic Hardware & Consumer Electronics and PowerShares Dynamic Telecommunications & Wireless Portfolios are both based on Intellidex indexes which incorporate advanced quantitative methodologies to discriminate between securities and select the stocks within an industry group identified as having the greatest capital appreciation potential. "Today, for the first time investors will have access to Value Lines proprietary ranking systems in a low cost ETF format," said Bruce Bond, President of PowerShares Capital Management. "Our Water Resource and Hardware & Consumer Electronics Portfolios are also industry firsts for the ETF market. We're pleased to offer these new PowerShares portfolios providing investors with unique options to meet their personal financial goals. The launch of these four new ETFs brings the total number of PowerShares ETF portfolios to 35."

PowerShares Capital Management, LLC

PowerShares Capital Management, LLC provides institutional caliber asset management and market exposure through the replication of enhanced indexes. PowerShares delivers this sophisticated asset management in one of the more benefit rich investment vehicles available today, the exchange traded fund. The firm is committed to theoretically sound portfolio construction and empirically verifiable investment management approaches. PowerShares' asset management philosophy and investment discipline are deeply rooted in the application of intuitive factor analysis and model implementation to enhance investment decisions.

Risks of Owning PowerShares

PowerShares funds are made up of publicly traded securities that can and will move higher and lower with market movements. You should anticipate that the value of the shares of each fund will advance or decline more or less in correlation with the advance or decline in value of the applicable index. The funds are not actively managed and shares of the funds may trade at or below the funds' NAV. Exchange traded funds are subject to risks similar to those of stocks, including risks associated with short-selling and margin account maintenance.

American Stock Exchange Lists Four New ETFs From Powershares

PowerShares lists 35th ETF at the Amex, becoming the second largest ETF issuer in the United States.

The American Stock Exchange® (Amex®) announced today the launch of four new exchange traded funds from PowerShares Capital Management LLC. Options on the new ETFs are also available for trading.

The launch of these new funds increases the total number of PowerShares ETFs now listed at the Amex to 35, and makes the company the second largest ETF issuer in the United States.

The new PowerShares funds, and their ticker symbols, are: PowerShares Value Line Timeliness Select Portfolio (Symbol: PIV); PowerShares Water Resources Portfolio (Symbol: PHO); PowerShares Dynamic Telecommunications & Wireless Portfolio (Symbol: PTE); PowerShares Dynamic Hardware & Consumer Electronics Portfolio (Symbol: PHW). All four ETFs seek investment results that correspond generally to the price and yield, before fees and expenses, of the index on which they are based.

"The year 2005 has been a banner year for PowerShares, and the Amex is very enthusiastic about its relationship with this unique company," said Cliff Weber, Senior Vice President of the ETF Marketplace at the Amex. "PowerShares continues to create new products at a tireless pace, to the benefit of investors in search of uniquely targeted financial products."

"The American Stock Exchange has been a great partner in supporting PowerShares' aggressive product rollout during 2005," said Bruce Bond, President of PowerShares Capital Management. "With today's offerings, we now have one of the most comprehensive groups of ETF portfolios in the industry, providing investors the powerful combination of intelligent stock selection with the low cost and tax efficiency of an exchange traded fund."

Both the telecommunications and hardware ETFs are based on Intellidexes, which are owned and calculated by the Amex. The Intellidex Indexes are modified equal dollar weighted indexes designed to objectively identify and select stocks from a particular market segment that have greater capital appreciation potential.

For each of the Industry Group Intellidex Indexes, Revere Data LLC is the primary resource for identifying companies included in each customized industry group universe. Eligible companies are ranked quarterly, based on criteria including fundamentals, valuation, timeliness and risk factors, and 30 stocks are selected from each of the targeted industry universes based on their Intellidex model score.

The Water Resources Portfolio is based on the Palisades Water Index, a modified equal-dollar weighted index comprised of U.S. exchange-traded companies that are engaged in the global water industry. The Palisades Water Index is a modified equal weighted index comprised of companies whose businesses stand to benefit substantially from the burgeoning global demand for safe drinking water, environmentally sustainable use, and industrial process improvement. The index is rebalanced each March, June, September and December. The Value Line Timeliness Portfolio tracks the Value Line Timeliness Select Portfolio, representing the 50 highest ranking common stocks for timeliness and safety based on a methodology that employs three merit indicators: Timeliness (TM), Safety(TM) and Technical Rankings.

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