ProShares Launches First ETFs Designed to Rise When Treasury Bond Prices Fall

Thu May 1, 2008 8:00am EDT

* Reuters is not responsible for the content in this press release.

New ProShares simplify getting short exposure to intermediate- and
                       long-term U.S. Treasuries
BETHESDA, Md.--(Business Wire)--
ProFunds Group, the nation's largest provider of short
and leveraged ETFs and mutual funds,(1) announced today the launch of
two innovative ProShares ETFs--the first ETFs designed to go up when
U.S. Treasury bond prices fall. ProShares, which introduced short ETFs
to the marketplace in 2006, now offers 38 Short ProShares across a
wide range of asset classes, sectors and investment styles.

   "Because the flight to quality during the credit crunch crisis
pushed up Treasury prices, many market watchers are suggesting that
investors reconsider their Treasury positions," said Michael Sapir,
ProShares Chairman and CEO. He added that when a high-profile bond
expert like Bill Gross calls Treasurys "the most overvalued asset in
the world, bar none,"(2) investors usually take note.

   ProShares short Treasury ETFs provide a way to hedge away some of
the uncertainty about the Treasury market--or seek profit if Treasury
prices fall. "These new ProShares make it easier than ever to gain
short exposure to intermediate- or long-term Treasury prices," said
Sapir. "It's as simple as buying an ETF."

   The two new ProShares, each to be listed on the American Stock
Exchange, are:

ProShares           Daily Objective*                            Ticker
UltraShort Lehman   Twice the inverse of the daily performance  PST
 7-10 Year Treasury of the Lehman Brothers 7-10 Year U.S.
                     Treasury Index
UltraShort Lehman   Twice the inverse of the daily performance  TBT
 20+ Year Treasury  of the Lehman Brothers 20+ Year U.S.
                     Treasury Index

* Before fees and expense. Each fund may benefit from interest earned
 on cash and investments.

   UltraShort ProShares are designed to deliver twice the inverse of
the daily performance of their underlying index. For instance, if the
Lehman Brothers 7-10 Year U.S. Treasury Index declined by 1% in a day,
the UltraShort Lehman 7-10 Year Treasury ProShares should appreciate
by 2%, and if the benchmark rose by 1%, the ETF should decline by 2%,
before fees and expenses. However, keep in mind that the interest
earned on cash and financial instruments will also contribute to the
fund's performance.

   Using Short Fixed-Income ProShares, investors can achieve short
exposure without opening a margin account--buying short exposure is as
convenient and simple as purchasing a stock. In addition, investors
can lose only the amount that they invest, whereas when they short
securities, security baskets or ETFs, their losses are theoretically
unlimited. Moreover, these ETFs can be employed in vehicles that do
not permit margin accounts. And finally, these ETFs can easily be
tracked throughout the day. However, investors should understand that
ETFs have fees and expenses of their own.

   About ProShares and ProFunds Group

   ProShares launched the first ETFs that provide built-in short or
magnified exposure to a variety of well-known indexes in June 2006.
The firm had the most successful first year of any ETF company in
history(3) and currently offers 62 ETFs with $17 billion in assets
under management. ProShares is part of the $24 billion ProFunds Group,
which also includes more than 60 ProFunds mutual funds. Since 1997,
ProFunds has provided mutual fund investors with easier access to
sophisticated investment strategies, with offerings that include
mutual funds that seek to magnify daily index performance and funds
that seek to increase in value when markets decline.

   ProFunds Group describes the portfolio managers common to ProFund
Advisors LLC, advisor to ProFunds mutual funds; and ProShare Advisors
LLC, advisor to ProShares ETFs. JPMorgan Worldwide Securities Services
provides a full range of ETF services to ProShares, including fund
accounting and administration, transfer agency and custody.

   All investing involves risk, including the possible loss of
principal. Short ProShares should lose value when their market indexes
rise; and they entail certain risks, including, in some or all cases,
aggressive investment techniques, inverse correlation and market price
variance risks, all of which can increase volatility and decrease
performance. ProShares are not diversified investments. ProShares are
designed to meet daily objectives; results over longer periods may
differ. There is no guarantee that any ProShares ETF will achieve its
investment objective.

   Carefully consider the investment objectives, risks, charges and
expenses of ProShares and ProFunds before investing. This and other
information can be found in their prospectuses. Read the
prospectus(es) carefully before investing. For a ProShares ETF
prospectus, visit and seek advice from your
financial adviser or broker/dealer representative. Financial
professionals can also call 866-PRO-5125. For a ProFunds mutual funds
prospectus, call 888-PRO-FNDS (individual investors) or 888-PRO-5717
(financial professionals) or visit Read the
prospectus(es) carefully before investing.

   ProFunds Distributors, Inc. is distributor for ProFunds mutual
funds. ProShares ETFs are distributed by SEI Investments Distribution
Co, which is not affiliated with any ProFunds Group affiliate.

   Lehman Brothers and Lehman Brothers Inc. are trademarks of Lehman
Brothers Inc. ProShares have not been passed on by these entities or
their affiliates as to their legality or suitability. ProShares are
not sponsored, endorsed, sold or promoted by these entities or their
affiliates, and they make no representation regarding the advisability
of investing in these products.



   (1) Based on an analysis by FRC of the largest providers of funds
in these categories. The analysis covered ETFs and mutual funds by the
number of funds and assets.

   (2) Reuters, April 7, 2008.

   (3) According to FRC, the total assets in ProShares ETFs after the
first 12 months of operation were more than any other ETF provider's
assets after its first 12 months of operation.

Hewes Communications, Inc.
Tucker Hewes, 212-207-9451

Copyright Business Wire 2008
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