PowerShares is sending a fund to India. The Invesco-owned ETF specialist will list an ETF based on Indian shares in mid- to late-February on the NYSA Arca, according to Bruce Bond.

One challenge in running an Indian shares ETF is that the country restricts foreign stock ownership.

The ETF will skirt compensate for these restrictions through a "propriety measure of capitalization for foreign investment that is more relevant in this context than market or float-weighted capitalization," says Ranga Nathan, managing director of Indus Advisors.

PowerShares executives did not share any of the ingredients of that secret index sauce.

Company Press Release

CHICAGO, IL--(January 30, 2008) - PowerShares Capital Management LLC, a leading provider of exchange-traded funds (ETFs), today announced the anticipated listing of the PowerShares India Portfolio. The new ETF is expected to begin trading in mid- to late-February on the NYSE Arca.

Unlike other ETFs which propose to use derivatives and/or notes in an attempt to provide indirect exposure to India, the PowerShares India Portfolio will provide direct and diversified exposure to India's growing marketplace by owning local equities.

The anticipated ticker symbol and portfolio name is:

-- PIN - PowerShares India Portfolio

"The index on which the PowerShares India Portfolio is based is designed to be the proxy for investable assets into the Indian market," said Bruce Bond, president and CEO of PowerShares. "India is one of the fastest-growing economies in the world, and it also boasts the globe's second-largest population and fourth-largest GDP. We believe PIN is an excellent choice for investors seeking diversified access to a broad portfolio of Indian securities."

Like other ETFs, PowerShares India Portfolio is designed to trade at or near net asset value, removing the trading risks associated with other exchange listed India products that utilize derivatives and local share-linked structures.

"Because India imposes certain restrictions on foreign holdings, any investable India index must explicitly address these limits, as well as current foreign holdings," said Ranga Nathan, managing director of Indus Advisors. "The Indus Index does this through a propriety measure of capitalization for foreign investment that is more relevant in this context than market or float-weighted capitalization."

The PowerShares India Portfolio (PIN) is based on the Indus India Index compiled by Indus Advisors LLC. The Index is designed to track the performance of the Indian equity markets as a whole with representation across the information technology, health sciences, financial services, heavy industry, and consumer products segments. The rules-based index is rebalanced quarterly, and selects 50 components from a universe of Indian domiciled companies listed on the National and Bombay Stock Exchanges.

PowerShares Capital Management LLC is leading the intelligent ETF revolution through its family of more than 100 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 of over $35 billion, PowerShares ETFs trade on all three U.S. stock exchanges. For more information, please visit us at www.powershares.com.

PowerShares is a part of Invesco, a leading independent global investment management company, dedicated to helping people worldwide build their financial security. By delivering the combined power of our distinctive worldwide investment management capabilities, including AIM, Atlantic Trust, Invesco, Perpetual, PowerShares, Trimark, and WL Ross, Invesco provides a comprehensive array of enduring investment solutions for retail, institutional and high net worth clients around the world. Operating in 20 countries, the company is currently 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. The Fund is not actively managed and is subject to risk similar to stocks of emerging market countries, including those related to short selling and margin maintenance. Shares are not FDIC insured, may lose value and have no bank guarantee.

Stocks of Indian companies carry additional risks, including, but not limited to: The value of the Fund's assets may be adversely affected by political, economic, social and other factors, changes in Indian law or regulations and the status of India's relations with other countries. In addition, the economy of India may differ favorably or unfavorably from the U.S. economy in such respects as the rate of growth of gross domestic product, the rate of inflation, capital reinvestment, resource self-sufficiency and balance of payments position. Agriculture occupies a more prominent position in the Indian economy than in the United States, and the Indian economy therefore is more susceptible to adverse changes in weather. The Indian government has exercised and continues to exercise significant influence over many aspects of the economy, and the number of public sector enterprises in India is substantial. Accordingly, Indian government actions in the future could have a significant effect on the Indian economy, which could affect private sector companies and the Fund, market conditions, and prices and yields of securities in the Fund's portfolio. The Fund currently operates through a wholly owned subsidiary in the Republic of Mauritius and will benefit from favorable tax treatment by the Indian government pursuant to a taxation treaty between India and Mauritius. Please see the prospectus for more complete information.

Indus is the Index Provider for the Fund. Indus is not affiliated with the Trust, the Adviser or the Distributor. Indus' only relationship to the Adviser, the Fund or the Distributor is Indus' licensing to the Adviser of certain Indus trademarks, Indexes and trade names, which are composed by Indus without regard to the Adviser, the Fund, the Distributor or any investor; and Indus makes no warranty or representation regarding the advisability of purchasing, holding or trading this product.

A I M Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust II.

An investor should consider the Fund's investment objective, risks, charges and expenses carefully before investing. For this and more complete information about the Fund call 800.983.0903 or visit the website www.powershares.com for a prospectus. Please read the prospectus carefully before investing.

The information in the prospectus is not complete and may be changed. The portfolio may not sell its Shares until the registration statement filed with the Securities and Exchange Commission is effective. The prospectus is not an offer to sell the portfolio Shares, nor is the portfolio soliciting an offer to buy its Shares in any jurisdiction where the offer or sale is not permitted

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