ProShares and KBW Announce the Launch of the First Leveraged and Inverse Regional Banking ETFs


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PRESS RELEASE

Bethesda, MD, April 22, 2010 — ProShares, the leading manager of leveraged and inverse ETFs,1and KBW (NYSE: KBW), the largest full-service investment bank specializing in the financial services sector, announced today the launch of the first ETFs providing leveraged or inverse exposure to the regional banking sector.

The ETFs seek to provide 200% or -100% of the return of the KBW Regional Banking IndexSM for a single day, before fees and expenses. The KBW Regional Banking Index, the most widely used benchmark for U.S. regional banking stocks,2 was created and is managed by KBW.

The new ProShares ETFs, Ultra KBW Regional Banking (KRU) and Short KBW Regional Banking (KRS), will list on NYSE Arca today.

"We're pleased to provide investors with ProShares ETFs on the regional banking sector," said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC, ProShares' investment advisor. "Many investors follow regional banking stocks, and these ETFs provide them with additional tools to act on their views."

"We are excited about teaming with ProShares to bring investors these valuable new tools for managing exposure to regional banks," added John N. Howard, Co-Director of Research at KBW.

ProShares Ticker Symbol Index Objective* Exchange
New Regional Banking Sector ProShares
Ultra KBW Regional Banking KRU KBW Regional Banking Index +200% Daily NYSE Arca
Short KBW Regional Banking KRS KBW Regional Banking Index -100% Daily NYSE Arca

*Before fees and expenses

About ProShares

ProShares is part of ProFunds Group, the leader in leveraged and inverse funds.1 ProShares introduced the first leveraged and inverse ETFs in the U.S. in 2006. Since 1997, ProFunds mutual funds have provided investors with access to sophisticated investment strategies.

About KBW

KBW operates in the U.S. and Europe through its broker dealer subsidiaries, Keefe, Bruyette & Woods, Inc., Keefe, Bruyette & Woods Limited and Keefe, Bruyette & Woods Asia Limited. It also offers asset management services through KBW Asset Management, Inc. Founded in 1962, the firm is widely recognized as a leading authority in the banking, insurance, brokerage, asset management, mortgage banking and specialty finance sectors. The firm has established industry-leading positions in the areas of research, corporate finance, mergers and acquisitions as well as sales and trading for financial services companies.

Statements in this press release that are not statements of historical or current fact constitute forward-looking statements. In some cases, you can identify these statements by words such as "may," "might," "will," "should," "expect," "plan," "intend," "anticipate," "believe," "estimate," "predict," "potential," or "continue," the negative of these terms and other comparable terminology. Such forward-looking statements, which are based on various underlying assumptions and expectations and are subject to risks, uncertainties and other unknown factors, may include projections of our future financial performance based on our growth strategies and anticipated trends in our business. These statements are only predictions based on our current expectations and projections about future events, and there are or may be important factors that could cause our actual results to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. These factors include, but are not limited to, those discussed under the caption "Risk Factors" in our annual report on Form 10-K, which is available at the Securities and Exchange Commission website at www.sec.gov. Unless required by law, we undertake no obligation to publicly update or revise any forward-looking statement to reflect circumstances or events after the date of this press release.

Media contact:

Tucker Hewes, Hewes Communications, Inc., (212) 207-9451, tucker@hewescomm.com
For KBW, Neil Shapiro, Intermarket Communications, (212) 754-5423, nshapiro@intermarket.com

Most ProShares ETFs and many ProFunds employ leveraged investment techniques that magnify gains and losses, and result in greater volatility in value. Each Short or Ultra ProShares ETF and leveraged or inverse ProFund seeks a return that is a multiple or inverse multiple (e.g., -200%) of the return of an index or other benchmark (target) for a single day, before fees and expenses. Due to the compounding of daily returns, Short or Ultra ProShares’ and leveraged and inverse ProFunds’ returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. Investors should monitor holdings consistent with their strategies, as frequently as daily. For more on correlation, leverage and other risks, please read the ProShares or ProFunds prospectus.

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Apr 22, 2010
 

1 Source: Lipper, based on a worldwide analysis of all of the known providers of funds in these categories. The analysis covered ETFs, ETNs and mutual funds by the number of funds and assets (as of 6/30/2009).

2 Source: Bloomberg, based on average volume, flows and assets from 3/31/2009 to 3/31/2010.