NEWS

Paul Hastings Acts as Counsel in Launch of New HealthShares  Exchange Traded Funds

January 23, 2007

Paul Hastings Acts as Counsel in Launch of New HealthShares  Exchange Traded Funds

First Ever ETFs Organized Vertically by Therapeutic Categories in Pharmaceuticals, Healthcare Services, Life Science and Biotechnology

New York, (January  23, 2007) - Paul, Hastings, Janofsky & Walker LLP (Paul Hastings), a leading international law firm, has served as counsel to XShares Advisors and HealthShares , Inc. in the launch of a new family of exchange traded funds (ETFs), known as HealthShares  Inc., which will begin trading today on the New York Stock Exchange (NYSE).
HealthShares  ETFs are organized into therapeutic 'Verticals' and represent specific areas of the healthcare, life science and biotechnology industries.  Each Vertical tracks a collection of large, mid and small-cap stocks that addresses a distinct sub-segment of healthcare, such as the diagnosis and treatment of specific therapeutic areas (e.g. cardiology, cancer, infectious disease, etc.) and the development of medical devices (e.g. orthopedic repair, cardio devices, etc.).

The deal was led by partners Michael R. Rosella and Domenick Pugliese and Of Counsel Gary Rawitz.

The new HealthShares  family of funds includes twenty separate portfolios, each focusing on a different subsector of the healthcare services, pharmaceuticals, life sciences or biotechnology industry. Five of these portfolios are scheduled to begin trading on the New York Stock Exchange today. These portfolios are:

• HealthShares  Cardio Devices ETF (HHE)

• HealthShares  Diagnostics ETF (HHD)

• HealthShares  Emerging Cancer ETF (HHJ)

• HealthShares  Enabling Technologies ETF (HHV)

• HealthShares  Patient Care Services ETF (HHB)

The remaining HealthShares portfolios will commence trading in the near future. Each HealthShares  ETF is comprised of 22-25 stocks and tracks an index that is based on a proprietary intellectual model developed by XShares Group LLC, the parent of XShares Advisors LLC, with well defined quantitative parameters.  Each Index composition calculation is administered independently by Standard & Poor's (S&P).  The specialist for these HealthShares  ETFs is Goldman Sachs. Bank of New York is acting as administrator and transfer agent for the HealthShares  Exchange Traded Funds.

XShares Advisors LLC is a registered investment advisor that provides investment advisory services to Exchange Traded Funds. XShares also partners with major institutions and index providers seeking to bring innovative Exchange Traded Funds to market using its administrative platform.  Paul Hastings also serves as counsel to  other ETFs advised by XShares Advisors that are expected to begin trading on national securities exchanges in the spring and summer of 2007.

Paul Hastings Investment Management Practice: Paul Hastings has a leading Investment Management Practice, supporting its clients with diversified capabilities covering all aspects of the investment management industry.  Our clients include exchange traded funds, mutual funds, unit investment trusts, domestic and offshore private investment funds (including venture capital, private equity and hedge funds), investment advisors and broker-dealers.  We serve as counsel to open-end and closed-end funds, fund advisers, independent directors, fund administrators and fund underwriters.

Paul Hastings Janofsky & Walker LLP, founded in 1951, is a leading international law firm with over 1,100 attorneys in 18 offices. The firm serves a diverse client base including many of the leading global financial institutions and Fortune 500 companies and offers deep capabilities in Banking and Finance, Capital Markets, Corporate/M+A, Litigation and Dispute Resolution, Intellectual Property, Project Finance, Investment Management, Real Estate, Labor and Employment and Tax Advisory Services. For additional information, please visit our website at www.paulhastings.com.