CHICAGO, IL -- (MARKET WIRE) -- 10/21/2005 -- PowerShares continues to "Lead the Intelligent ETF Revolution" with the introduction of the PowerShares Lux Nanotech Portfolio. The trading symbol for the PowerShares Lux Nanotech Portfolio will be (AMEX: PXN) and is anticipated to begin trading October 26, 2005 on the American Stock Exchange.

The PowerShares Lux Nanotech Portfolio is an exchange traded fund designed to track the Lux Nanotech Index™, which is comprised of companies involved in developing, manufacturing and funding nanotechnology applications. The Lux Nanotech Index™ is based on the analytical framework developed by Lux Research, and is rebalanced and reconstituted quarterly.

"The Lux Nanotech Portfolio is the world's first nanotech ETF and it represents the first opportunity for many investors to obtain diversified exposure to this exciting segment of the market," said Bruce Bond, President of PowerShares Capital Management. "We are delighted to have Lux Research, the leading independent provider of nanotech research, as a partner on such an important initiative."

Lux Research CEO Peter Hebert added, "Our research indicates that over the next 10 years, products incorporating nanotechnology are expected to grow 18-fold to $2.9 trillion in revenue. Lux Research believes that nanotechnology is not a single industry, but rather an enabling technology which will impact many different industries including materials, electronics, healthcare and life sciences."

The Lux Nanotech Index™ is constructed using Lux Research's value chain framework which forecasts the value of companies and products that utilize nanotechnology. The four stages of the value chain framework are:

Nanomaterials -- Purposefully engineered structures of matter with a dimension of less than 100 nanometers which take advantage nanotech properties not found on a bulk scale. (nanoparticles, nanotubes, quantum dots)

Nanointermediates -- Intermediate products that incorporate nanomaterials. (coatings, fabrics, optical components and orthopedic materials) Nano-enabled Products -- Finished goods at the end of a value chain that incorporate nanomaterials or nanointermediates. (cars, clothing, airplanes, computers)

Nanotools -- Equipment and software used to visualize, manipulate, and model matter at the nanoscale. (microscopes, molecular modeling software, nanoimprint lithography equipment)

About PowerShares Capital Management LLC

PowerShares Capital Management, LLC provides institutional caliber asset management and market exposure through the replication of enhanced indexes. PowerShares delivers this sophisticated asset management in one of the more benefit rich investment vehicles available today, the exchange traded fund. The firm is committed to theoretically sound portfolio construction and empirically verifiable investment management approaches. PowerShares' asset management philosophy and investment discipline are deeply rooted in the application of intuitive factor analysis and model implementation to enhance investment decisions.

About Lux Research, Inc.

Lux Research is the world's leading nanotechnology research and advisory firm. We help our clients make better decisions to profit from nanoscale science and technology, tapping into our analysts' unique expertise and unrivaled network. Our clients include top decision makers at large corporations, portfolio managers and analysts at leading financial institutions, CEOs of the most innovative start-ups, and visionary public policy makers. www.luxresearch.com

Risks of Owning PowerShares

PowerShares funds are made up of publicly traded securities that can and will move higher and lower with market movements. You should anticipate that the value of the shares of each fund will advance or decline more or less in correlation with the advance or decline in value of the applicable index. The funds are not actively managed and shares of the funds may trade at or below the funds' NAV. Exchange-traded funds are subject to risks similar to those of stocks, including risks associated with short-selling and margin account maintenance.

An investor should consider investment objectives, risks, charges and expenses carefully before investing. A prospectus which contains more complete information about PowerShares, including, risks, fees and expenses can be obtained by visiting the PowerShares web site at www.PowerShares.com or by calling 800-THE-AMEX. The prospectus should be read 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.

ALPS Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust.

Largest Components of Index as of 06/30/05
Lux Nanotech Index Ticker Weight

Elan Corp Plc -ADR ELN 6.10%

Headwaters Inc HW 5.10%

American Pharma Inc APPX 5.00%

Westaim Corp WEDX 5.00%

Accelrys Inc ACCL 4.90%

Veeco Instruments Inc VECO 4.90%

Skyepharma Plc -ADR SKYE 4.60%

Biosante Pharmaceuticals Inc BPA 4.50%

Symyx Technologies Inc SMMX 4.50%

Altair Nanotechnologies Inc ALTI 4.50%

Harris & Harris Group TINY 4.10%

Nanophase Technologies NANX 3.90% NVE Corp NVEC 3.90%

Cambridge Display Tech OLED 3.80%

Flamel Technologies SA -ADR FLML 3.80% FEI Co

FEIC 3.70% Hewlett-Packard Co HPQ 3.20%

BASF AG -ADR BF 3.00%

Intl Business Machines Corp IBM 2.90%

Immunicon Corp/De IMMC 2.90%

NEC Corp. -ADR NIPNY 2.70%

General Electric Co GE 2.60%

General Motors Corp GM 2.60%

3M Co MMM 2.60%

Air Products & Chemicals Inc APD 2.50%

Du Pont ( E I) De Nemours DD 2.40%

For more information on PowerShares Exchange Traded Funds contact info@powershares.com or call 800-THE-AMEX.