Dallas, TX – December 8, 2004 – Effective December 9, 2004, PowerShares Capital Management LLC will introduce a new exchange traded fund (ETF) based on the Halter USX China Index, the only index in the world devoted exclusively to U.S.-listed securities of companies that derive a majority of their revenues from the People’s Republic of China. The PowerShares Golden Dragon Halter USX China Portfolio (AMEX: PGJ) will begin trading on the American Stock Exchange December 9, 2004 and will mirror the Halter USX China Index. Currently, 38 public companies are represented in the Halter USX China Index.

Recent economic data shows that in 2003 China consumed one half of all cement in the world, one-third of all steel, one-quarter of all copper and one-fifth of all aluminum. Chinese automobile sales doubled in 2003. Analysts believe that China is now the world’s number one market for mobile phones and the number two market for personal computers. Economists are forecasting that China’s growing middle class will reach 250 million by 2005 and could reach 350 million by 2009, making the Chinese consumer market larger than the population of the United States.

“The stocks that make up the Halter USX China Index are required to abide by the regulatory and reporting requirements of the U.S.-regulated securities markets,” said Tim Halter, co-managing director and co-founder of the index. “These regulations include requirements for minimum corporate governance, disclosure and accounting standards.

“All of the companies in our index are public reporting companies that are governed by the rules and regulations of the U.S. Securities and Exchange Commission as well the individual exchanges on which their companies trade – the New York Stock Exchange, the American Stock Exchange and Nasdaq.”

Criteria for inclusion into the Halter USX China Index include the following: companies must conduct the majority of their business within the People's Republic of China, must be listed on the NYSE, Nasdaq or Amex and must have a market-cap greater than $50 million based on the average closing price for the prior 40 trading days, as identified by the Halter USX China Selection Committee. In addition to these basic requirements, the selection committee may consider other factors including the size of the public float, liquidity and fundamentals of all existing and potential constituents.

The following 38 public companies now comprise the Halter USX China Index:

China Mobile (Hong Kong) ads CHL 12.00% Petrochina Co Ltd Adr PTR 11.10% Cnooc Ltd Ads CEO 10.12% Shanda Interactive Entertainment Ltd SNDA 5.28% Semiconductor Manufacturing International Corp SMI 4.86% China Life Insurance Co Ltd LFC 4.65% China Telecom Ads CHA 4.57% China Unicom Ads CHU 4.56% China Petro & Chem Corp SNP 4.50% Utstarcom Inc UTSI 4.24% Huaneng Power Intl Ads HNP 3.90% Aluminum Corporation of China Ltd ACH 3.64% Sina Corp SINA 3.37% Netease.com Inc Ads NTES 2.90% Yanzhou Coal Mining Ltd YZC 2.70% Nam Tai Electronics NTE 1.51% Sinopec Shanghai Petrochemical Co Ltd SHI 1.47% Ctrip.com CTRP 1.44% TOM Online Inc. TOMO 1.35% Brilliance China Automotive Holdings Ltd CBA 1.27% Sohu.com Inc SOHU 1.17% China Yuchai Intl CYD 1.11% China Southern Airlines Company Ltd ZNH 0.87% chinadotcom corp CHINA 0.86% Guangshen Railway Ads GSH 0.74% Sinopec Beijing Yanhua Petrochemical Co Ltd BYH 0.67% China Automotive Systems Inc CAAS 0.64% China Eastern Airlines Corporation Ltd CEA 0.63% Webzen Inc WZEN 0.59% Jilin Chemical Industrial Co Ltd JCC 0.58% AsiaInfo Holdings Inc ASIA 0.48% Linktone Ltd LTON 0.44% Deswell Industries Inc DSWL 0.39% ASAT Holdings Ltd ASTT 0.39% INTAC International INTN 0.35% Radica Games Ltd RADA 0.31% Qiao Xing Universal Telephone Inc XING 0.25% PEAK INTL LTD PEAK 0.09% For additional information and further details about the Halter USX China Index, please visit www.usxchinaindex.com.