XShares Advisors plans to close more of its ETFs. The company said last week that it will close 15 HealthShares ETFs and reorganize four others. The closings are expected to significantly lower the expense ratio on the four remaining funds.

The closings were also covered in Monday's WSJ Fund Track. XShares spokeswoman Marsha Zapson, told Daisy Maxey that the 15 closing funds had only $50 million in AUM. She added that the four HealthShares funds that will remain open have the same AUM.

Back in June, XShares liquidated another line of its ETFs, the Adelante Shares (see The MFWire, July 8, 2008). That same month, the New York City company said that it had raised additional capital and named an interim chief executive of XShares Group see The MFWire, June 25, 2008).

Company Press Release

NEW YORK--(BUSINESS WIRE)--XShares Advisors LLC (XShares), a registered investment adviser developing precisely focused, innovative exchange traded funds (ETFs), today announced that the Board of Directors of its flagship ETF family, HealthShares�, Inc., has approved a reorganization of the 19 HealthShares ETFs currently listed for trading on the NYSE ARCA. XShares also announced changes to a number of its proprietary HealthShares indexes that will affect the portfolios of HealthShares ETFs.

The redesigned HealthShares suite of ETFs will include four of the current HealthShares ETFs�each of which is expected to carry a significantly lower expense ratio�the closing of 15 HealthShares ETFs now trading, and the expected introduction of new HealthShares ETFs in the coming months. Changes in the composition of the proprietary HealthShares indexes will result in the remaining HealthShares ETFs holding a greater number of constituent companies and generally higher minimum capitalization requirements.

�Healthcare and life sciences remain the most exciting sectors for investment in the global economy,� said Joseph L. Schocken, Chairman and Interim Chief Executive Officer of XShares Group, Inc., parent company of XShares Advisors. �We believe that significant, untapped demand exists for specialized healthcare investment vehicles that focus on the innovation taking place outside the sector�s large-cap and mega-cap companies.�

After taking a long, careful look at the HealthShares ETFs and the healthcare sector, these strategic redesigns reflect a sharper differentiation in the investment rationales of the continuing HealthShares ETFs. �In addition,� continued Mr. Schocken, �we also pared back those ETFs that didn�t resonate with investors. We expect these changes will make HealthShares ETFs more attractive to a wider array of individual and institutional investors.�

Redesign

The following HealthShares ETFs will remain:

* HealthShares� Cancer Exchange Traded Fund (HHK)

* HealthShares� European Drugs Exchange Traded Fund (HRJ)

* HealthShares� Diagnostics Exchange Traded Fund (HHD)

* HealthShares� Enabling Technologies Exchange Traded Fund (HHV)

(to be renamed HealthShares� Drug Discovery Tools Exchange Traded Fund)

In addition, the HealthShares� Asian Health Exchange Traded Fund, which has not yet commenced trading, is expected to launch in the coming months. Additional HealthShares ETFs may also be brought to market in the near future. Changes in the construction of the HealthShares indexes will result in an increased number of constituent companies in each of the five remaining HealthShares ETFs. Currently, HealthShares indexes generally contain as few as 22 companies; the redesigned indexes will result in HealthShares ETFs holding between 40 and 100 companies. A detailed description of the changes in the methodology will be posted on the company�s Website at www.healthsharesinc.com. These methodology changes will be implemented 60 days after posting on the Website.

Reduced Expense Ratios

The Board of Directors of HealthShares has also approved a reduction in the expense caps currently in place for the four HealthShares ETFs listed above. The Cancer, Diagnostic and Drug Discovery ETFs, which currently have expense caps of 75 basis points (bps), will be capped at 60 bps. The European Drugs ETF, which currently has an expense cap of 95 bps, will be capped at 72 bps. The Asian Health ETF will remain at 95 bps. The reduced expense caps will become effective October 1, 2008.

Closings

September 19, 2008 will be the last day of trading on the NYSE Arca in the following ETFs: HealthShares� Autoimmune-Inflammation (HHA), HealthShares� Cardio Devices (HHE), HealthShares� Cardiology (HRD), HealthShares� Composite (HHQ), HealthShares� Dermatology & Wound Care (HRW), HealthShares� Emerging Cancer (HHJ), HealthShares� European Medical Products & Devices (HHT), HealthShares� GI/Gender Health (HHU), HealthShares� Infectious Disease (HHG), HealthShares� Metabolic-Endocrine Disorders (HHM), HealthShares� Neuroscience (HHN), HealthShares� Ophthalmology (HHZ), HealthShares� Orthopedic Repair (HHP), HealthShares� Patient Care Services (HHB), and HealthShares� Respiratory/Pulmonary (HHR).

NYSE Arca will halt trading in these ETFs before the open of trading on September 22, 2008, and September 19, 2008 will be the last day on which creation unit aggregations of fund shares may be purchased or redeemed. The funds will be closed to new investment beginning September 22, 2008.

Shareholders may sell their holdings up through September 19, 2008, incurring a transaction fee from their broker-dealer. From September 22, 2008, through September 30, 2008, shareholders may be able to sell their shares off the exchange to certain broker-dealers, but there can be no assurance that there will be a market for the ETFs. All shareholders remaining on September 30, 2008 will receive the value of their shares as of September 30, 2008, which will include any capital gains and dividends into the cash portion of their brokerage accounts.

About HealthShares�

XShares Advisors LLC, a financial services company based in New York, is the creator of the HealthShares family of exchange traded funds (ETFs). Each HealthShares ETF addresses a distinct healthcare subsector. HealthShares ETFs offer individual and institutional investors a more precise financial instrument that leverages the potential of healthcare investing while mitigating the risks of single stock picking. For more information about HealthShares, visit the website: www.healthsharesinc.com.

About XShares Advisors

XShares Advisors LLC, a registered investment advisor, sponsors and develops innovative exchange traded products (ETPs). XShares Advisors partners with major institutions and index providers to create and license distinctive intellectual property for its ETPs. For more information, visit the company�s website at: www.xsharesadvisors.com.

An investor should consider the fund�s investment objectives, risks, charges and expenses carefully before investing. For this and more complete information about the fund, call 800.925.2870 or visit the website, www.healthsharesinc.com for a prospectus. Please read the prospectus carefully before investing.

There are risks involved with investing in ETFs, including possible loss of money. HealthShares are not actively managed and are subject to risks similar to stocks, including those related to short selling and margin maintenance. HealthShares ETFs are subject to increased risks associated with investing in a specific sector compared to more a diversified investment. The prospectus is not an offer to buy or sell portfolio shares, nor is the fund soliciting an offer to buy its shares in any jurisdiction where the offer or sale is not permitted.

Distributed by ALPS Distributors, Inc.

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