ProShares Launches ETF Providing Short Exposure to Long-Term Treasury Bonds

ProFunds Group, the world’s largest manager of leveraged and inverse funds,1 announced today that it is launching an ETF designed to provide short exposure to the market for long-term U.S. Treasury bonds. ProShares Short 20+ Year Treasury (TBF) is built to produce 100% of the inverse performance of the Barclays Capital 20+ Year U.S. Treasury Index for a single day, excluding fees and expenses.

The Barclays Capital 20+ Year U.S. Treasury Index measures the performance of U.S. Treasury bonds with maturities of 20 years or greater. The new ETF will be listed on NYSE Arca today.

“This new ETF is a useful addition to our two ProShares ETFs currently offering short exposure to the U.S. Treasury market—the ProShares UltraShort 7-10 Year and UltraShort 20+ Year Treasury funds,” said Michael L. Sapir, ProFunds Group Chairman and CEO. “We are introducing this new ProShare in direct response to strong investor demand for a single beta2 short treasury fund.”

About ProFunds Group

ProShares is part of ProFunds Group, the largest manager of short and leveraged funds. The group includes 90 ProShares ETFs and 115 ProFunds mutual funds. ProShares, which introduced the first short and leveraged ETFs in 2006, continues to be a leader in launching innovative new products—for two years in a row, ProShares has led the industry in attracting assets to newly launched ETFs3 and now is the fifth-largest manager of ETFs in the nation.4 Since 1997, ProFunds mutual funds have provided investors with access to sophisticated investment strategies, with offerings that include funds that seek to magnify or return the inverse of index performance on a daily basis. The group also manages the Canada-based Horizons BetaPro ETFs.

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 an 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 one day will likely differ in amount and possibly direction from the target return for the same period. Investors should monitor holdings consistent with their strategies, as frequently as daily. For more on correlation, leverage and other risks, please read the ProShares or ProFunds prospectus.

August 20, 2009

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All investing involves risk, including the loss of principal. ProShares entail certain risks, including, in some or all cases, aggressive investment techniques (futures contracts, options, forward contracts, swap agreements and similar instruments), correlation or inverse correlation, and market price variance risk, all of which can increase volatility and decrease performance. In addition, ProShares are non-diversified, and narrowly focused investments typically exhibit 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 prospectuses. Read the prospectus(es) carefully before investing. For a ProShares ETF prospectus, visit www.proshares.com and seek advice from your financial adviser or broker/dealer representative. Financial professionals can also call 866-PRO-5125. For a ProFunds mutual fund prospectus, call 888-PRO-FNDS (individual investors) or 888-PRO-5717 (financial professionals), or visit www.profunds.com. Read the prospectus(es) carefully before investing.

Barclays Capital 20+ Year U.S. Treasury Index is a trademark or service mark of Barclays Capital and has been licensed for use by ProShares. ProShares are not sponsored, endorsed, sold or promoted by Barclays Capital, and Barclays Capital makes no representation regarding the advisability of investing in ProShares. THIS ENTITY AND ITS AFFILIATES MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO PROSHARES.

ProFunds Group includes ProFunds mutual funds and ProShares ETFs. ProFunds Distributors, Inc., is distributor for ProFunds mutual funds. ProShares ETFs registered under the Investment Company Act of 1940 are distributed by SEI Investments Distribution Co., which is not affiliated with ProFunds Group or its affiliates.

1 Lipper, based on a worldwide analysis of all of the known providers of publicly traded funds in these categories. The analysis covered ETFs, ETNs and mutual funds by the number of funds and assets (as of 6/30/2009).

2 Beta—A measure of an investment’s price variability relative to its market. For example, an investment with a beta of 1.0 should generally move in line with its benchmarked market return.

3 Citigroup ETF Flow Report, based on an analysis of ETPs introduced in 2007 and 2008.

4 Bloomberg, based on assets for 7/31/2009.