ProShares Announces Zero Capital Gain Distributions for ETFs

ProShares, the leading manager of leveraged and inverse ETFs¹, announced today that it estimates that none of its 99 equity and fixed-income ETFs will pay any 2010 capital gain distributions.

“A goal of ProShares is to provide investors with opportunities to manage risk and seek returns while also providing them with tax efficiency,” said Michael L. Sapir, Chairman and CEO of ProShare Advisors LLC. “As a result, we are pleased to announce that we expect no capital gain distributions this year.”

Estimates of capital gain distributions are subject to change. Capital gain distribution and income dividend amounts will vary from year to year. The estimate is for informational purposes only. For specific tax advice, we recommend that investors seek advice from a qualified tax professional. ProShares plans to provide information about any fourth quarter income dividends separately.

About ProShares

ProShares is part of ProFunds Group, founded in 1997 and with assets under management of more than $31 billion. ProShares is a leading provider of exchange traded funds and offers an expanding array of alternative products, including the largest lineup of leveraged and inverse ETFs.

¹Source: Lipper, based on a worldwide analysis of all of the known providers of funds in these categories. The analysis covered the number of funds and assets (as of 6/30/2010).

Most ProShares ETFs and many ProFunds employ leveraged investment techniques that magnify gains and losses and result in greater volatility in value. Each Short or Ultra ProShares ETF and leveraged or inverse ProFund seeks a return that is a multiple or inverse multiple (e.g. -200%) of the return of the index or other benchmark (target) for a single day. Due to the compounding of daily returns, ProShares and leveraged and inverse ProFunds returns over periods other than a day will likely differ in amount and possibly direction from the target return of the same period. Investors should monitor holdings consistent with their strategies, as frequently as daily.

All investing involves risk, including the possible loss of principal. ProShares entail certain risks, including risk associated with the use of derivatives (futures contracts, swap agreements and similar instruments), imperfect benchmark correlation, leverage and market-price variance risks, all of which can increase volatility and decrease performance. ProShares are non-diversified and narrowly focused investments typically exhibiting higher volatility. There is no guarantee that any ProShares ETF will achieve its investment objective.

Carefully consider the investment objectives, risks, charges and expenses of ProShares and ProFunds before investing. This and other information can be found in their summary and full prospectuses. Read them carefully before investing. For ProShares ETF prospectuses visit proshares.com.

ProShares ETFs are distributed by SEI Investments Distribution Co., which is not affiliated with the advisor.