Barclays Global Investors Introduces SponsorMatch

SAN FRANCISCO, CA, October 10, 2007 -- Barclays Global Investors (BGI), one of the world's largest asset managers, today announced a new investment category for defined contribution (DC) plans. SponsorMatch^TM, a new investment solution focused on the company match, defines a new category in DC investing and seeks to deliver some of the best features of a defined benefit (DB) plan to DC investors. Specifically, SponsorMatch is designed to optimize the company match of DC plans to address growing concerns about securing post-retirement income and dealing with longevity risk. Furthermore, SponsorMatch is designed to meet the criteria outlined in the proposed Department of Labor (DOL) regulations concerning qualified default investment alternatives (QDIA), which help plan sponsors meet their fiduciary responsibilities; it also improves DC participants' ability to achieve their retirement goals.

SponsorMatch is uniquely designed to fully utilize the company match and mitigate investment risks, such as longevity, not generally addressed in most DC products. Traditionally, the company match either has been allocated to company stock or directed into the investment products selected by the plan participant. The shortcomings of both of these options are well documented(1).

As many as two-thirds of all Americans underestimate longevity -- meaning how long they will live -- and the amount of retirement savings they will realistically need to last their lifetime. Despite plan sponsors' efforts to help participants adequately prepare for retirement, there have been no DC investment vehicles specifically focusing on the company match to provide annuitized retirement income that traditional pension plans have historically delivered.

"We created this category with the goal of providing a more direct way for plan sponsors to help improve investment outcomes for future retirees," said Kristi Mitchem, head of the US defined contribution group at BGI. "What is exciting about SponsorMatch is that it is a very innovative solution designed to improve the utilization of a familiar feature in 401k plans -- the company match. To the participant, it looks very much like a target-maturity date fund; however, the investment technology underlying the fund is much more sophisticated and provides results that are more like a traditional pension plan."

With SponsorMatch, plan sponsors gain access to an investment vehicle that includes BGI's institutional alpha (strategies which seek above-market returns) and beta (strategies which seek to match market return), combined with deferred annuities. The solution seeks to maximize the value of a company's matching contributions and provide participants with an income stream for retirement.

"We believe SponsorMatch can provide plan sponsors with superior investment results from their match dollars than what is typically achievable from the investment products solely offered on the 401k platform," said Mitchem.

Each SponsorMatch Fund Has Three Main Components:

• An annuity portfolio to provide an income stream. SponsorMatch is designed to increase this income stream over time as an employee ages.
• A beta portfolio to capture market returns. This portfolio is invested in line with the asset allocation policies of the 200 largest retirement plans in the world, and incorporates an expanded menu of asset classes and strategies.
• An institutional alpha portfolio. This portfolio provides diversification benefits, as well as enhanced return potential.

How It Works:

• The plan sponsor contributes to the SponsorMatch target maturity date fund that matches the participant's birth year.
• BGI manages the fund with the goal of securing a certain level of income for retirement, while participating in market gains.
• SponsorMatch seeks to control exposure to market risk over time by increasing the level of the annuity as the participant ages.
• SponsorMatch is designed to integrate with traditional DC recordkeeping platforms to allow for daily liquidity.
• SponsorMatch is designed to meet the criteria for QDIA as outlined in the proposed DOL regulation.
• There is no specific action required by employees to participate, though employees may elect to opt out.

"By combining annuity expertise, asset allocation capabilities and advanced alpha strategies, BGI seeks to help 401k plan sponsors provide for DB-like income benefits to DC plan participants," said Mitchem. "BGI has a long history of innovation -- creating the first index strategy, the first quantitative active equity strategy, the first lifecycle portfolios and now the first SponsorMatch portfolios. We are dedicated to transforming the DC landscape with tangible solutions that serve plan sponsors, and in the end, make it easier for individual participants to attain their retirement needs."

About Barclays Global Investors

Barclays Global Investors is one of the world's largest asset managers and a leading global provider of investment management products and services(3). It has over 2,900 institutional clients and over $2.0 trillion of assets under management. It transformed the investment industry by creating the first index strategy in 1971 and the first quantitative active strategy in 1979. BGI is the global product leader in Exchange Traded Funds with over 190 funds for institutions and individuals trading in 19 markets. For further information about Barclays Global Investors, please visit our website www.barclaysglobal.com.

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