ProShares Launches First ETFs to Offer Short or Magnified Exposure to Small Cap Indexes

PRESS RELEASE

New York, NY, January 25, 2007—ProShares, together with The American Stock Exchange® (Amex®), today announced the launch of the first exchange traded funds (ETFs) in the U.S. to provide magnified or short exposure to small capitalization indexes. Each of the new six ETFs is benchmarked to the Russell 2000® or the S&P SmallCap 600®.

ProShares ETFs are designed to allow investors to easily execute sophisticated strategies for managing risk and enhancing return potential. The six new small cap ProShares join a lineup of 12 others—the first and only ETFs that provide built-in short or magnified exposure to popular large and mid cap indexes. Since their launch in June 2006, ProShares have been embraced by investors, attracting $2.4 billion in assets and trading as many as 10 million shares in a day.

"ETFs offering small cap exposure have been among the most popular choices for investors," said Michael Sapir, CEO of ProShare Advisors LLC. "We have heard strong demand from many who also wanted ProShares benchmarked to small cap indexes so that they could easily gain short or magnified exposure to that segment of the market."

"We have also heard loud and clear that investors want ProShares to cover many other segments of the market," Sapir added. "We will meet that demand, starting with 22 ProShares benchmarked to sector indexes that we plan to launch next month."

"The American Stock Exchange is excited to work with ProShares to bring another roster of innovative funds to the marketplace," said Cliff Weber, senior vice president of Amex's ETF Marketplace. "We look forward to a long-lasting partnership with ProShares as they continue to add new products to their growing family of ETFs."

ProShares ETFs now provide exposure to these popular small, mid, and large cap indexes.

Ultra ProShares
Fund Name	Ticker Symbol (NAV)
Ultra SmallCap600 ProShares	SAA
Ultra Russell2000 ProShares	UWM
Ultra QQQ® ProShares	QLD
Ultra S&P500 ProShares	SSO
Ultra Dow30 ProShares	DDM
Ultra MidCap400 ProShares	MVV

Short ProShares
Fund Name	Ticker Symbol (NAV)
Short SmallCap600 ProShares	SBB
Short Russell2000 ProShares	RWM
Short QQQ® ProShares	PSQ
Short S&P500® ProShares	SH
Short Dow30^SM ProShares	DOG
Short MidCap400 ProShares	MYY

UltraShort ProShares
Fund Name	Ticker Symbol (NAV)
UltraShort SmallCap600 ProShares	SDD
UltraShort Russell2000 ProShares	TWM
UltraShort QQQ® ProShares	QID
UltraShort S&P500® ProShares	SDS
UltraShort Dow30^SM ProShares	DXD
UltraShort MidCap400 ProShares	MZZ

About ProShares and ProFunds Group

The ProShares are managed by a team headed by Chief Investment Officer Bill Seale. In addition to ProShares ETFs, ProFunds Group manages ProFunds mutual funds, the nation's largest lineup of indexed mutual funds.¹ Since 1997, ProFunds has provided mutual fund investors with access to innovative mutual fund strategies, including 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.

About the Russell 2000® and S&P SmallCap 600®

The Russell 2000 includes the smallest 2000 securities in the Russell 3000®. The Russell 2000 is constructed to provide a comprehensive and unbiased small-cap barometer and is completely reconstituted annually to ensure larger stocks do not distort the performance and characteristics of the true small cap opportunity set. The S&P SmallCap 600® invests in 600 companies with market capitalizations between $300 million and $1.5 billion. S&P SmallCap 600® is designed to be an efficient portfolio of companies that meet specific inclusion criteria to ensure that they are investable and financially viable.

About The American Stock Exchange®

The American Stock Exchange® (Amex®) offers trading across a full range of equities, options and exchange traded funds (ETFs), including structured products and HOLDRS^SM. In addition to its role as a national equities market, the Amex is the pioneer of the ETF, responsible for bringing the first domestic product to market in 1993. Leading the industry in ETF listings, the Amex lists 236 ETFs to date. The Amex is also one of the largest options exchanges in the U.S., trading options on broad-based and sector indexes as well as domestic and foreign stocks. For more information, please visit www.amex.com.

Media contacts

Tucker Hewes, Hewes Communications, Inc., (212) 207-9451, tucker@hewescomm.com
American Stock Exchange: Mary Chung, 212-306-1641, mary.chung@amex.com

Jan 25, 2007

¹ Source: Lipper, October 6, 2006. Lipper defines "indexed fund" as an open-end mutual fund (not an ETF) that falls into one of the following subcategories: pure index, enhanced index or index-based. The majority of ProFunds are categorized by Lipper as enhanced index funds.

The Russell 2000 is a trademark of Frank Russell Company and has been licensed for use by ProShares Trust. The ProShares are not sponsored, endorsed, sold or promoted by Frank Russell Company and Frank Russell Company makes no representation regarding the advisability of investing in ProShares.

S&P SmallCap 600® is a trademark of The McGraw-Hill Companies, Inc. and has been licensed for use by ProShares. ProShares are not sponsored, endorsed, sold or promoted by S&P and S&P make(s) no representations regarding the advisability of investing in ProShares.

ProShares ETFs are distributed by SEI Investments Distribution Co. (SEI), which is not affiliated with any Profunds Group affiliate. ProFunds mutual funds are distributed by ProFunds Distributors, Inc. (PDI). SEI and PDI are not affiliated.

Investing involves risk, including the possible loss of principal. Please note that in addition to the normal risks associated with investing, ProShares and ProFunds entail certain risks, including, in all or some cases, aggressive investment technique, non-diversification, inverse and imperfect correlation, leverage, market price variance and short sale risks. In addition to the normal risks associated with investing, investments in smaller companies typically exhibit higher volatility. These risks may pose risks different from, or greater than, those associated with a direct investment in the securities underlying the funds' benchmarks, can increase volatility, and may dramatically decrease performance. Please see the prospectus for a more complete description of these risks. Investing in ProShares involves different fees and risks than maintaining a margin account.

Carefully consider the investment objectives, risks, and 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 www.proshares.com, and seek advice from you financial advisor 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 www.profunds.com. ProShares ETFs are distributed by SEI Investments Distribution Co. (SEI), which is not affiliated with any Profunds Group affiliate. ProFunds mutual funds are distributed by ProFunds Distributors, Inc. (PDI). SEI and PDI are not affiliated.

ProShares are distributed by SEI Investments Distribution Co., which is not affiliated with the funds' advisor or sponsor. Your use of this site signifies that you accept our Terms and Conditions of Use.

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ProShares Launches First ETFs to Offer Short or Magnified Exposure to Small Cap Indexes

About ProShares and ProFunds Group

About the Russell 2000® and S&P SmallCap 600®

About The American Stock Exchange®

Media contacts

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