Invesco PowerShares to Introduce the First Fundamental Pure Style ETFs

CHICAGO, IL -- (Marketwire) -- 05/23/11 -- Invesco PowerShares Capital Management LLC, a leading global provider of exchange-traded funds (ETFs), announced today plans for a suite of nine Fundamental Pure Style ETFs based on the Research Affiliates® Fundamental Index® (RAFI®) methodology.

On June 16, 2011, Invesco PowerShares will list the PowerShares Fundamental Pure Large Growth Portfolio (PXLG) based on the RAFI® Fundamental Large Growth Index, and the PowerShares Fundamental Pure Large Value Portfolio (PXLV) based on the RAFI® Fundamental Large Value Index on the NYSE Arca.

In addition, Invesco PowerShares will be changing the indexes, names and ticker symbols for seven existing ETFs in its Intellidex style/size lineup to the RAFI Fundamental US Style Index Series (RAFI Index Series), to provide investors with a complete suite of style box ETFs based on the RAFI Fundamental Index methodology. The rebranded portfolios management fees will be reduced to 0.29% and their operating expenses (excluding certain expenses) will be capped at 0.39% until at least August 31, 2012.

The names and tickers for the full suite of nine PowerShares Fundamental Pure Style ETFs are listed in the table below.


  -----------------------------------------------------------------------
                    Value                Core                Growth
  -----------------------------------------------------------------------
              Fundamental Pure    Fundamental Pure    Fundamental Pure
     Large    Large Value         Large Core          Large Growth
              Portfolio (PXLV)    Portfolio (PXLC)    Portfolio (PXLG)
  -----------------------------------------------------------------------
              Fundamental Pure    Fundamental Pure    Fundamental Pure
      Mid     Mid Value           Mid Core            Mid Growth
              Portfolio (PXMV)    Portfolio (PXMC)    Portfolio (PXMG)
  -----------------------------------------------------------------------
              Fundamental Pure    Fundamental Pure    Fundamental Pure
     Small    Small Value         Small Core          Small Growth
              Portfolio (PXSV)    Portfolio (PXSC)    Portfolio (PXSG)
  -----------------------------------------------------------------------

"We continuously review and analyze ways to improve our overall product lineup," said Ben Fulton, Invesco PowerShares managing director of global ETFs. "We believe the change to the RAFI Index Series and lower fees will provide investors with the potential for improved risk-adjusted returns, and will position our innovative family of ETFs for the future."

"We currently offer six equity ETFs based on the RAFI Fundamental Index methodology. The funds have all outperformed their benchmarks since their respective inception dates(1)," said John Feyerer, head of product strategy & research at Invesco PowerShares. "PowerShares Fundamental Pure Portfolios incorporate the RAFI Fundamental Index investment criteria of cash flow, book value, sales and dividends to determine a stock's weight. We believe this methodology has shown the potential to produce improved risk-adjusted returns compared to cap-weighted benchmarks."

Details for the seven rebranded PowerShares ETFs including portfolio names, tickers and indexes are listed below.

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Former Portfolio  New Portfolio Name  Former Index        New Index
 Name & Ticker    & Ticker
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PowerShares       PowerShares         Dynamic Large Cap   RAFI® Fundamental
 Dynamic Large    Fundamental Pure    Intellidex(SM)      Large Core Index
 Cap (PJF)        Large Core (PXLC)   Index
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PowerShares       PowerShares         Dynamic Mid Cap     RAFI® Fundamental
 Dynamic Mid Cap  Fundamental Pure    Growth              Mid Growth Index
 Growth (PWJ)     Mid Growth (PXMG)   Intellidex(SM)
                                      Index
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PowerShares       PowerShares         Dynamic Mid Cap     RAFI® Fundamental
 Dynamic Mid Cap  Fundamental Pure    Intellidex(SM)      Mid Core Index
 (PJG)            Mid Core (PXMC)     Index
----------------------------------------------------------------------------
PowerShares       PowerShares         Dynamic Mid Cap     RAFI® Fundamental
 Dynamic Mid Cap  Fundamental Pure    Value               Mid Value Index
 Value (PWP)      Mid Value (PXMV)    Intellidex(SM)
                                      Index
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PowerShares       PowerShares         Dynamic Small Cap   RAFI® Fundamental
 Dynamic Small    Fundamental Pure    Growth              Small Growth Index
 Cap Growth (PWT) Small Growth        Intellidex(SM)
                  (PXSG)              Index
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PowerShares       PowerShares         Dynamic Small Cap   RAFI® Fundamental
 Dynamic Small    Fundamental Pure    Intellidex(SM)      Small Core Index
 Cap (PJM)        Small Core (PXSC)   Index
----------------------------------------------------------------------------
PowerShares       PowerShares         Dynamic Small Cap   RAFI® Fundamental
 Dynamic Small    Fundamental Pure    Value               Small Value Index
 Cap Value (PWY)  Small Value (PXSV)  Intellidex(SM)
                                      Index
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The RAFI Index Series is constructed from the 2,500 largest U.S. listed companies, based on the following four fundamental measures of firm size: latest available book value, cash flow averaged over the prior five years, sales averaged over the prior five years and total dividend distributions averaged over the prior five years. A composite fundamental weight is calculated for each firm by equally weighting the four fundamental measures. For companies that have never paid dividends, that measure will be excluded from the average. Each company is then classified as "large," "mid" or "small" and "growth," "core" or "value" in the following manner:

1) Stocks are segregated into three size groups: "large," "mid" and "small." Companies are divided amongst these groups based on their fundamental weight. Securities which have a substantially different fundamental weight relative to their market cap weight are excluded.

2) Once classified into the three size groups, RAFI uses a methodology using fundamental measures of growth and value to give each company a style score. Based on this style score companies are classified as "growth," "core" or "value."

3) Stocks within each sub-index are weighted by their composite fundamental weight.

Each index in the RAFI Index Series is reconstituted and rebalanced annually on the third Friday of March.

1 Source: Bloomberg LP, as of April 30, 2011

                                     ---------------------------------------
As of March 31, 2011                          Annualized Returns (%)
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PowerShares FTSE RAFI®         Exp.           NAV          After Tax Held
                                     ---------------------------------------
Portfolio                      Ratio   1 Yr  5 Yr Incept. 1 Yr  5 Yr Incept.
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US 1000                        0.39%*  16.50 4.42 5.03    15.80 3.82 4.44
US 1500 Small-Mid              0.39%*  25.14      8.10    24.80      7.78
Emerging Markets               0.85%   16.64      2.26    16.20      1.76
Developed Markets ex-U.S.      0.75%   11.05     -2.89    10.07     -3.57
Developed Markets ex-U.S. S/M  0.75%   18.72      1.95    17.51      1.24
Asia Pacific ex-Japan          0.80%   22.72      7.50    21.73      6.20
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                          ------------------------------------------
As of March 31, 2011                 Annualized Returns (%)
--------------------------------------------------------------------
PowerShares FTSE RAFI®          After Tax Sold      Market Price
--------------------------------------------------------------------
Portfolio                      1 Yr  5 Yr Incept. 1 Yr  5 Yr Incept.
--------------------------------------------------------------------
US 1000                        10.68 3.41 3.95    16.47 4.42 5.09
US 1500 Small-Mid              16.31      6.80    25.13      8.09
Emerging Markets               10.80      1.60    15.93      1.61
Developed Markets ex-U.S.       7.12     -2.85    12.23     -2.74
Developed Markets ex-U.S. S/M  11.83      1.21    16.46      1.49
Asia Pacific ex-Japan          14.69      5.59    23.33      7.78
--------------------------------------------------------------------



----------------------------------------------------------------------------
                               Inception Dates
----------------------------------------------------------------------------
US 1000   12/19/2005 Emerging Markets  9/27/2007 Developed Markets 9/27/2007
US 1500                                          ex-U.S. S/M
Small-Mid  9/20/2006 Developed Markets 6/25/2007 Asia Pacific      6/25/2007
                     ex-U.S.                     ex-Japan
----------------------------------------------------------------------------

Performance data quoted represents past performance. As stated in each Fund's prospectus, expense ratios are expressed as a unitary fee to cover expenses incurred in connection with managing the portfolios. *The PowerShares FTSE RAFI US 1000 and US 1500 Small-Mid Portfolios have gross expense ratios of 0.45% and 0.51%, respectively. However, the Adviser has contractually agreed to waive fees and/or pay certain Fund expenses which resulted in the total net operating expense of 0.39% for each fund. These waivers and reimbursement contracts extend through at least Aug. 30, 2011. Past performance is not a guarantee of future results; current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and Shares, when redeemed, may be worth more or less than their original cost. The Shares' performance reflects fee waivers, absent which performance would have been lower. See invescopowershares.com to find the most recent month-end performance numbers. After Tax Held represents total return after taxes on distributions and assumes Shares have not been sold. After Tax Sold represents total return after taxes on distributions and the sale of Fund Shares. After-tax returns reflect the highest federal income tax rate but exclude state and local taxes. Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times.

Invesco PowerShares Capital Management LLC is leading the Intelligent ETF Revolution® through its family of more than 140 domestic and international exchange-traded funds, which seek to outperform traditional benchmark indexes while providing advisors and investors access to an innovative array of focused investment opportunities. With franchise assets over $60 billion as of March 31, 2011, PowerShares ETFs trade on both U.S. stock exchanges. For more information, please visit us at invescopowershares.com or follow us on Twitter @PowerShares.

Invesco is a leading independent global investment manager, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our retail, institutional and high net worth clients around the world. Operating in more than 20 countries, the company is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com.

There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply.

Not FDIC Insured | May Lose Value | No Bank Guarantee

Investing in securities of small and medium-sized companies may involve greater risk than is customarily associated with investing in large companies.

PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC (Invesco PowerShares). Invesco PowerShares Capital Management LLC and Invesco Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd.

Invesco Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust.

The trade names Fundamental Index®, RAFI®, the RAFI logo, and the Research Affiliates corporate name and logo are registered trademarks and are the exclusive property of Research Affiliates, LLC.

Shares are not individually redeemable and owners of the Shares may acquire those Shares from the Fund and tender those Shares for redemption to the Fund in Creation Unit aggregations only, typically consisting of 50,000 Shares.

Note: Not all products available through all firms.

An investor should consider the Funds' investment objectives, risks, charges and expenses carefully before investing. For this and more complete information about the Funds, call 800 983 0903 or visit invescopowershares.com for a prospectus. Please read the prospectus carefully before investing.

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