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MSCI Announces New License for MSCI ACWI Investable Market Indices

  MSCI Announces New License for MSCI ACWI Investable Market Indices

Business Wire

NEW YORK -- October 17, 2012

MSCI Inc. (NYSE: MSCI),a leading provider of investment decision support
tools worldwide, including indices, portfolio risk and performance analytics
and corporate governance services, announced that its MSCI ACWI IMI ex US,
MSCI EAFE IMI and MSCI Emerging Markets IMI Indices will serve as the basis
for the international equity components of iShares’ Core Series of Exchange
Traded Funds (ETFs). The iShares Core Series, the launch of which was
announced on October 15, 2012, is a suite of products offering a family of
domestic and international equity and U.S. fixed income ETFs. Included in the
launch are three international equity ETFs: iShares Core MSCI Total
International Stock ETF, iShares Core MSCI Emerging Markets ETF, and iShares
Core MSCI EAFE ETF.

Baer Pettit, Managing Director and Head of MSCI’s Index Business, said, “We
are delighted that iShares has chosen MSCI indices as the basis for this
exciting new series of ETFs. The licensing of these indices will enable
iShares to further broaden its product offering beyond ETFs based on our
standard family of indices. We look forward to continuing to work with iShares
in the future.”

Mark Wiedman, Managing Director and Global Head of iShares, said, “All three
iShares Core international equity ETFs track segments of the flagship MSCI
ACWI Investable Market Index (IMI), providing investors access to some of the
broadest exposure available in the global equity universe today. MSCI is the
predominant choice of professional investors and we’re pleased to deepen our
relationship with them through the introduction of these new products using
their indexes to help deliver high quality portfolio construction to all
investors small and large.”

iShares selection of MSCI further broadens the range of MSCI indices linked to
iShares ETFs. Many of iShares’ existing ETFs, including such large ETFs as
iShares MSCI Emerging Markets ETF and iShares MSCI EAFE ETF, track indices
fromMSCI’s standard family. The standard family of indices is comprised of
global large and mid-cap equities, and a number of indices within the standard
family, such as MSCI EAFE, MSCI Emerging Markets and MSCI Europe, are among
the world’s mostly broadly followed by institutional investors. While MSCI’s
licensing fees for use of its ACWI IMI indices as the basis of the Core Series
ETFs are lower than its current blended average licensing fee with iShares,
the terms of MSCI’s licenses with respect to existing ETFs were not amended.

The MSCI ACWI Investable Market Index (IMI)  captures large, mid and small cap
representation across 24 Developed Markets (DM) and 21 Emerging Markets (EM)
countries. The index is comprehensive, targeting coverage of approximately 99%
of the global equity investment opportunity set, with a strong emphasis on
liquidity, investability and replicability. MSCI indices are reviewed
quarterly with the objective of reflecting changes in the underlying equity
markets in a timely manner, while limiting undue index turnover.

About MSCI

MSCI Inc. is a leading provider of investment decision support tools to
investors globally, including asset managers, banks, hedge funds and pension
funds. MSCI products and services include indices, portfolio risk and
performance analytics, and governance tools.

The company’s flagship product offerings are: the MSCI indices with
approximately USD 7 trillion estimated to be benchmarked to them on a
worldwide basis^1; Barra multi-asset class factor models, portfolio risk and
performance analytics; RiskMetrics multi-asset class market and credit risk
analytics; ISS governance research and outsourced proxy voting and reporting
services; and FEA valuation models and risk management software for the energy
and commodities markets. MSCI is headquartered in New York, with research and
commercial offices around the world. MSCI#IR

1 As of June 30, 2011. Estimate based on eVestment, Lipper and Bloomberg data

For further information on MSCI, please visit our web site at www.msci.com

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of
the Private Securities Litigation Reform Act of 1995. These statements relate
to future events or to future financial performance and involve known and
unknown risks, uncertainties and other factors that may cause our actual
results, levels of activity, performance, or achievements to be materially
different from any future results, levels of activity, performance, or
achievements expressed or implied by these forward-looking statements. In some
cases, you can identify forward-looking statements by the use of words such as
"may," "could," "expect," "intend," "plan," "seek," "anticipate," "believe,"
"estimate," "predict," "potential," or "continue", or the negative of these
terms or other comparable terminology. You should not place undue reliance on
forward-looking statements because they involve known and unknown risks,
uncertainties and other factors that are, in some cases, beyond our control
and that could materially affect actual results, levels of activity,
performance, or achievements.

Other factors that could materially affect actual results, levels of activity,
performance or achievements can be found in MSCI's Annual Report on Form 10-K
for the fiscal year ended December 31, 2011 and filed with the Securities and
Exchange Commission (SEC) on February 29, 2012, and in quarterly reports on
Form 10-Q and current reports on Form 8-K filed with the SEC. If any of these
risks or uncertainties materialize, or if our underlying assumptions prove to
be incorrect, actual results may vary significantly from what we projected.
Any forward-looking statement in this release reflects our current views with
respect to future events and is subject to these and other risks,
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update or revise these forward-looking statements for any reason, whether as a
result of new information, future events, or otherwise.

This document and all of the information contained in it, including without
limitation all text, data, graphs, charts (collectively, the “Information”) is
the property of MSCI Inc. or its subsidiaries (collectively, “MSCI”), or
MSCI’s licensors, direct or indirect suppliers or any third party involved in
making or compiling any Information (collectively, with MSCI, the “Information
Providers”) and is provided for informational purposes only. The Information
may not be reproduced or redisseminated in whole or in part without prior
written permission from MSCI.

The Information may not be used to create derivative works or to verify or
correct other data or information. For example (but without limitation), the
Information many not be used to create indices, databases, risk models,
analytics, software, or in connection with the issuing, offering, sponsoring,
managing or marketing of any securities, portfolios, financial products or
other investment vehicles utilizing or based on, linked to, tracking or
otherwise derived from the Information or any other MSCI data, information,
products or services.

The user of the Information assumes the entire risk of any use it may make or
permit to be made of the Information. NONE OF THE INFORMATION PROVIDERS MAKES
ANY EXPRESS OR IMPLIED WARRANTIES OR REPRESENTATIONS WITH RESPECT TO THE
INFORMATION (OR THE RESULTS TO BE OBTAINED BY THE USE THEREOF), AND TO THE
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EXPRESSLY DISCLAIMS ALL IMPLIED WARRANTIES (INCLUDING, WITHOUT LIMITATION, ANY
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RESPECT TO ANY OF THE INFORMATION.

Without limiting any of the foregoing and to the maximum extent permitted by
applicable law, in no event shall any Information Provider have any liability
regarding any of the Information for any direct, indirect, special, punitive,
consequential (including lost profits) or any other damages even if notified
of the possibility of such damages. The foregoing shall not exclude or limit
any liability that may not by applicable law be excluded or limited, including
without limitation (as applicable), any liability for death or personal injury
to the extent that such injury results from the negligence or wilful default
of itself, its servants, agents or sub-contractors.

Information containing any historical information, data or analysis should not
be taken as an indication or guarantee of any future performance, analysis,
forecast or prediction. Past performance does not guarantee future results.

None of the Information constitutes an offer to sell (or a solicitation of an
offer to buy), any security, financial product or other investment vehicle or
any trading strategy.

MSCI’s indirect wholly-owned subsidiary Institutional Shareholder Services,
Inc. (“ISS”) is a Registered Investment Adviser under the Investment Advisers
Act of 1940. Except with respect to any applicable products or services from
ISS (including applicable products or services from MSCI ESG Research
Information, which are provided by ISS), none of MSCI’s products or services
recommends, endorses, approves or otherwise expresses any opinion regarding
any issuer, securities, financial products or instruments or trading
strategies and none of MSCI’s products or services is intended to constitute
investment advice or a recommendation to make (or refrain from making) any
kind of investment decision and may not be relied on as such.

The MSCI ESG Indices use ratings and other data, analysis and information from
MSCI ESG Research. MSCI ESG Research is produced by ISS or its subsidiaries.
Issuers mentioned or included in any MSCI ESG Research materials may be a
client of MSCI, ISS, or another MSCI subsidiary, or the parent of, or
affiliated with, a client of MSCI, ISS, or another MSCI subsidiary, including
ISS Corporate Services, Inc., which provides tools and services to issuers.
MSCI ESG Research materials, including materials utilized in any MSCI ESG
Indices or other products, have not been submitted to, nor received approval
from, the United States Securities and Exchange Commission or any other
regulatory body.

Any use of or access to products, services or information of MSCI requires a
license from MSCI. MSCI, Barra, RiskMetrics, ISS, CFRA, FEA, and other MSCI
brands and product names are the trademarks, service marks, or registered
trademarks of MSCI or its subsidiaries in the United States and other
jurisdictions. The Global Industry Classification Standard (GICS) was
developed by and is the exclusive property of MSCI and Standard & Poor’s.
“Global Industry Classification Standard (GICS)” is a service mark of MSCI and
Standard & Poor’s.

Contact:

MSCI Inc.:
MSCI, New York
Edings Thibault, + 1-212-804-5273
or
Media:
MHP Communications, London
Sally Todd or Jennifer Spivey, + 44-20-3128-8100
or
Abernathy MacGregor, New York
Patrick Clifford or Nick Connors, + 1-212-371-5999