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Friday 11 October, 2002

iShares PLC

Proposed Changes

iShares PLC
11 October 2002

                    iShares public limited company announces
  the potential change to the investment objectives and policies of iBloomberg
European Resources, iBloomberg European Staples, iBloomberg European Industrials
                        and iBloomberg European Telecoms



On the advice of Barclays Global Investors Limited, the investment manager to
the iShares plc's funds, the directors of iShares plc are proposing to change
the benchmark index of certain funds on the basis that the new benchmark indices
would represent a more recognisable market standard for those funds and be more
appropriate to shareholders. As a result, the name of those funds (in line with
all the iShares Sector funds) will also change to reflect the proposed change in
the fund's benchmark index.

The relevant funds, proposed changes to the benchmark indices and associated
name changes are set out in the table below.

Fund                        Current Benchmark Index      Proposed Benchmark Index     Proposed name of the fund

iBloomberg European         Bloomberg European           FTSE European Oil and Gas    iShares FTSE European Oil
Resources                   Investable Resources Index   Index                        and Gas

iBloomberg European Staples Bloomberg European           FTSE European Consumer       iShares FTSE European
                            Investable Staples Index     Non-Cyclicals Index          Consumer Non-Cyclicals
iBloomberg European         Bloomberg European           FTSE European Utilities      iShares FTSE European
Industrials                 Investable Industrials Index Index                        Utilities

iBloomberg European         Bloomberg European           FTSE European Media Index    iShares FTSE European Media
Telecoms                    Investable Telecoms Index


The changes to these benchmark indices will also result in a change to the
investment objective and policies of the funds, which requires shareholder
approval. An EGM will be held for each fund at New Century House, International
Financial Services Centre, Mayor Street Lower, Dublin 1, Ireland on Monday 11
November 2002 starting at 10am to pass a resolution to amend the investment
objective and policies of the funds for the reasons outlined above.

The board of directors of iShares plc believe that the proposed changes to the
investment objective and policies of the funds, which are required to reflect
the change in the funds' benchmark indices, are in the best interests of the
shareholders of these funds as a whole and, accordingly, the directors strongly
recommend that the shareholders vote in favour of the resolution at the EGM.

All of the changes outlined above will take effect following shareholder
approval at the EGM and a separate notice will be issued at that time.

In addition, the remaining iShares European Sector funds will also change their
names and benchmark indices as set out below. These changes do not require
shareholder approval.

Fund                     Currrent                       Proposed Benchmark Index    Proposed name of the fund

                         Benchmark Index

iBloomberg European      Bloomberg European Investable  FTSE European Technology    iShares FTSE European
Technology               Technology Index               Index                       Technology

iBloomberg European      Bloomberg Investable European  FTSE European Banks Index   iShares FTSE European BKS
Financials               Financials Index

iBloomberg European      Bloomberg Investable European  FTSE European               iShares FTSE European
Pharmaceuticals          Pharmaceuticals Index          Pharmaceuticals and         Pharmaceuticals and
                                                        Bio-technology Index        Bio-technology

iBloomberg European      Bloomberg European Investable  FTSE European Consumer      iShares FTSE European Consumer
Cyclicals                Cyclicals Index                Cyclicals Index             Cyclicals



The existing investment objective and policies and the proposed revised
investment objective and policies for iBloomberg European Resources, iBloomberg
European Staples, iBloomberg European Industrials, iBloomberg European Telecoms
are set out below.

iBloomberg European Resources (to be renamed iShares FTSE European Oil and Gas)

Existing investment objective and policies

The investment objective of iBloomberg European Resources is to provide
investors with a total return, taking into account both capital and income
returns, which reflects the return of the energy and basic materials sectors on
European markets. The energy sector includes oil and gas. The basic materials
sector includes mining and paper.

In order to achieve this investment objective, the investment policy of
iBloomberg European Resources is to invest in a portfolio of European equity
securities in these energy and basic materials sectors. Additionally, the Fund
may invest in convertibles, gilts, liquidity instruments such as floating rate
instruments and commercial paper, other transferable securities and open-ended
collective investment undertakings. The Fund's investments will normally be
listed or traded on Regulated Markets in member states of the European Union,
Switzerland and Norway, but may alternatively be listed or traded on other
Regulated Markets set out in the Prospectus. The fund may hold ancillary liquid
assets subject to certain limits.

The Benchmark Index for this Fund will initially be the Bloomberg European
Investable Resources Index. Rebalancing will be carried out semi-annually. The
index will initially contain approximately 30 stocks.

The base currency of this Fund is Euros.

The Fund will not undertake any exposure to currencies other than Euros or the
currency of member states of the European Economic Area (EEA) (i.e. EU member
states, Norway, Iceland and Liechtenstein), except in the efficient portfolio
management of changes in the Benchmark Index and in the management of any future
share classes of the Fund which may be denominated in a currency other than
these currencies.

The prospects of the Fund are expected to reflect the performance of its
Benchmark Index, initially the Bloomberg European Investable Resources Index.

Proposed revised investment objective and policies

The investment objective of iShares FTSE European Oil and Gas is to provide
investors with a total return, taking into account both capital and income
returns, which reflects the return of the oil and gas sectors on European
markets.

In order to achieve this investment objective, the investment policy of iShares
FTSE European Oil and Gas is to invest in a portfolio of European equity
securities in the oil and gas sectors. Additionally, the Fund may invest in
convertibles, gilts, liquidity instruments such as floating rate instruments and
commercial paper, other transferable securities and open-ended collective
investment undertakings. The Fund's investments will normally be listed or
traded on Regulated Markets in member states of the European Union, Switzerland
and Norway, but may alternatively be listed or traded on other Regulated Markets
set out in the Prospectus. The Fund may hold ancillary liquid assets subject to
certain limits.

The Benchmark Index for this Fund is currently the FTSE European Oil and Gas
Index. Rebalancing will be carried out semi-annually. The index may contain up
to approximately 40 stocks.

The base currency of this Fund is Euros.

The Fund will not undertake any exposure to currencies other than Euros or the
currency of member states of the European Economic Area (EEA) (i.e. EU member
states, Norway, Iceland and Liechtenstein), except in the efficient portfolio
management of changes in the Benchmark Index and in the management of any future
share classes of the Fund which may be denominated in a currency other than
these currencies.

The prospects of the Fund are expected to reflect the performance of its
Benchmark Index, currently the FTSE European Oil and Gas Index.

iBloomberg European Staples (to be renamed iShares FTSE European Consumer
Non-Cyclicals)

Existing investment objective and policies

The investment objective of iBloomberg European Staples is to provide investors
with a total return, taking into account both capital and income returns, which
reflects the return of the consumer non-cyclical and utilities sectors on
European markets. The consumer non-cyclical sector includes agriculture, food,
drinks and cosmetics. The utilities sector includes water and electricity.

In order to achieve this investment objective, the investment policy of
iBloomberg European Staples is to invest in a portfolio of European equity
securities in the consumer non-cyclical and utilities sectors. Additionally, the
Fund may invest in convertibles, gilts, liquidity instruments such as floating
rate instruments and commercial paper, other transferable securities and
open-ended collective investment undertakings. The Fund's investments will
normally be listed or traded on Regulated Markets in member states of the
European Union, Switzerland and Norway, but may alternatively be listed or
traded on other Regulated Markets set out in the Prospectus. The Fund may hold
ancillary liquid assets subject to certain limits.

The Benchmark Index for this Fund will initially be the Bloomberg European
Investable Staples Index. Rebalancing will be carried out semi-annually. The
index will initially contain approximately 40 stocks.

The base currency of this Fund is Euros.

The Fund will not undertake any exposure to currencies other than Euros or the
currency of member states of the European Economic Area (EEA) (i.e. EU member
states, Norway, Iceland and Liechtenstein), except in the efficient portfolio
management of changes in the Benchmark Index and in the management of any future
share classes of the Fund which may be denominated in a currency other than
these currencies.

The prospects of the Fund are expected to reflect the performance of its
Benchmark Index, initially the Bloomberg European Investable Staples Index.

Proposed revised investment objective and policies

The investment objective of iShares FTSE European Consumer Non-Cyclicals is to
provide investors with a total return, taking into account both capital and
income returns, which reflects the return of the consumer non-cyclical sector on
European markets. The consumer non-cyclical sector includes agriculture, food,
drinks and cosmetics.

In order to achieve this investment objective, the investment policy of iShares
FTSE European Consumer Non-Cyclicals is to invest in a portfolio of European
equity securities in the consumer non-cyclical sector. Additionally, the Fund
may invest in convertibles, gilts, liquidity instruments such as floating rate
instruments and commercial paper, other transferable securities and open-ended
collective investment undertakings. The Fund's investments will normally be
listed or traded on Regulated Markets in member states of the European Union,
Switzerland and Norway, but may alternatively be listed or traded on other
Regulated Markets set out in the Prospectus. The Fund may hold ancillary liquid
assets subject to certain limits.

The Benchmark Index for this Fund is currently the FTSE European Consumer
Non-Cyclicals Index. Rebalancing will be carried out semi-annually. The index
may contain up to approximately 40 stocks.

The base currency of this Fund is Euros.

The Fund will not undertake any exposure to currencies other than Euros or the
currency of member states of the European Economic Area (EEA) (i.e. EU member
states, Norway, Iceland and Liechtenstein), except in the efficient portfolio
management of changes in the Benchmark Index and in the management of any future
share classes of the Fund which may be denominated in a currency other than
these currencies.

The prospects of the Fund are expected to reflect the performance of its
Benchmark Index, currently the FTSE European Consumer Non-Cyclicals Index.

iBloomberg European Industrials (to be renamed iShares FTSE European Utilities)

Existing investment objective and policies

The investment objective of iBloomberg European Industrials is to provide
investors with a total return, taking into account both capital and income
returns, which reflects the return of the industrials sector on European
markets. The industrials sector includes aerospace, building materials,
electronics and transportation.

In order to achieve this investment objective, the investment policy of
iBloomberg European Industrials is to invest in a portfolio of European equity
securities in the industrials sector. Additionally, the Fund may invest in
convertibles, gilts, liquidity instruments such as floating rate instruments and
commercial paper, other transferable securities and open-ended collective
investment undertakings. The Fund's investments will normally be listed or
traded on Regulated Markets in member states of the European Union, Switzerland
and Norway, but may alternatively be listed or traded on other Regulated Markets
set out in the Prospectus. The Fund may hold ancillary liquid assets subject to
certain limits.

The Benchmark Index for this Fund will initially be the Bloomberg European
Investable Industrials Index. Rebalancing will be carried out semi-annually. The
index will initially contain approximately 40 stocks.

The base currency of this Fund is Euros.

The Fund will not undertake any exposure to currencies other than Euros or the
currency of member states of the European Economic Area (EEA) (i.e. EU member
states, Norway, Iceland and Liechtenstein), except in the efficient portfolio
management of changes in the Benchmark Index and in the management of any future
share classes of the Fund which may be denominated in a currency other than
these currencies.

The prospects of the Fund are expected to reflect the performance of its
Benchmark Index, initially the Bloomberg European Investable Industrials Index.

Proposed revised investment objective and policies

The investment objective of iShares FTSE European Utilities is to provide
investors with a total return, taking into account both capital and income
returns, which reflects the return of the utilities sector on European markets.
The utilities sector includes electricity, gas distribution and water.

In order to achieve this investment objective, the investment policy of iShares
FTSE European Utilities is to invest in a portfolio of European equity
securities in the utilities sector. Additionally, the Fund may invest in
convertibles, gilts, liquidity instruments such as floating rate instruments and
commercial paper, other transferable securities and open-ended collective
investment undertakings. The Fund's investments will normally be listed or
traded on Regulated Markets in member states of the European Union, Switzerland
and Norway, but may alternatively be listed or traded on other Regulated Markets
set out in the Prospectus. The Fund may hold ancillary liquid assets subject to
certain limits. Benchmark Index for this Fund is currently the FTSE European
Utilities Index. Rebalancing will be carried out semi-annually. The index may
contain up to approximately 40 stocks.

The base currency of this Fund is Euros.

The Fund will not undertake any exposure to currencies other than Euros or the
currency of member states of the European Economic Area (EEA) (i.e. EU member
states, Norway, Iceland and Liechtenstein), except in the efficient portfolio
management of changes in the Benchmark Index and in the management of any future
share classes of the Fund which may be denominated in a currency other than
these currencies.

The prospects of the Fund are expected to reflect the performance of its
Benchmark Index, currently the FTSE European Utilities Index.

iBloomberg European Telecoms (to be renamed iShares FTSE European Media)

Existing investment objective and policies

The investment objective of iBloomberg European Telecoms is to provide investors
with a total return, taking into account both capital and income returns, which
reflects the return of the telecoms sector on European markets.

In order to achieve this investment objective, the investment policy of
iBloomberg European Telecoms is to invest in a portfolio of European equity
securities in the telecoms sector. Additionally, the Fund may invest in
convertibles, gilts, liquidity instruments such as floating rate instruments and
commercial paper, other transferable securities and open-ended collective
investment undertakings. The Fund's investments will normally be listed or
traded on Regulated Markets in member states of the European Union, Switzerland
and Norway, but may alternatively be listed or traded on other Regulated Markets
set out in the Prospectus. The Fund may hold ancillary liquid assets subject to
certain limits.

The Benchmark Index for this Fund is currently the Bloomberg European Investable
Telecommunications Index. Rebalancing will be carried out semi-annually. The
index currently contains between 30 to 40 stocks.

The base currency of this Fund is Euros.

The Fund will not undertake any exposure to currencies other than Euros or the
currency of member states of the European Economic Area (EEA) (i.e. EU member
states, Norway, Iceland and Liechtenstein), except in the efficient portfolio
management of changes in the Benchmark Index and in the management of any future
share classes of the Fund which may be denominated in a currency other than
these currencies.

The prospects of the Fund are expected to reflect the performance of its
Benchmark Index, currently the Bloomberg European Investable Telecommunications
Index.

Proposed revised investment objective and policies

The investment objective of iShares FTSE European Media is to provide investors
with a total return, taking into account both capital and income returns, which
reflects the return of the media sector on European markets.

In order to achieve this investment objective, the investment policy of iShares
FTSE European Media is to invest in a portfolio of European equity securities in
the media sector. Additionally, the Fund may invest in convertibles, gilts,
liquidity instruments such as floating rate instruments and commercial paper,
other transferable securities and open-ended collective investment undertakings.
The Fund's investments will normally be listed or traded on Regulated Markets in
member states of the European Union, Switzerland and Norway, but may
alternatively be listed or traded on other Regulated Markets set out in the
Prospectus. The Fund may hold ancillary liquid assets subject to certain limits.

The Benchmark Index for this Fund is currently the FTSE European Media Index.
Rebalancing will be carried out semi-annually. The index may contain up to
approximately 40 stocks.

The base currency of this Fund is Euros.

The Fund will not undertake any exposure to currencies other than Euros or the
currency of member states of the European Economic Area (EEA) (i.e. EU member
states, Norway, Iceland and Liechtenstein), except in the efficient portfolio
management of changes in the Benchmark Index and in the management of any future
share classes of the Fund which may be denominated in a currency other than
these currencies.

The prospects of the Fund are expected to reflect the performance of its
Benchmark Index, currently the FTSE European Media Index.


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