XHB iShares Canadian HYBrid Corporate Bond Index ETF

BlackRock Asset Management Canada Limited (BlackRock Canada), an indirect,
wholly-owned subsidiary of BlackRock, Inc., today announced that the iShares
Exchange-Traded Funds (ETFs) business, the world's largest provider of ETFs,
launched the new iShares DEX HYBrid Bond Index Fund (TSX:XHB), the first ETF in
Canada to invest in both high-yield and investment-grade corporate bonds. 


XHB, which will begin trading on the Toronto Stock Exchange today, is a unique
vehicle designed to provide investors with regular monthly income by investing
in both BBB-rated corporate bonds and the high-yield bond market. XHB will
invest exclusively in Canadian-dollar denominated securities.


"XHB is unique in Canada as the only ETF to give investors exposure to the
expanding Canadian high-yield marketplace. Historically, we have had a
relatively small high-yield market, with most high-yield issuers looking to
raise capital in the US. However, over the last 18 months we have seen a number
of new high-yield issues within Canada, and the number of issuers is expected to
grow as the our marketplace becomes more established," said Oliver McMahon,
Director of Product Management for iShares ETFs at BlackRock Canada.


"XHB meets investor demand for a diversified, high-yielding product, while it is
designed to mitigate risk and deliver regular distributions." 


Like the other trusted iShares ETFs, XHB offers the benefit of reasonable
management fees (lower than many mutual funds) and the convenience of an
exchange listing and intra-day trading. Unlike mutual funds, this means that
investors can buy and sell throughout the trading day, and realize the current
market value of their investments in real-time. They can also use value-added
trading strategies, such as limit and stop orders. 


Why XHB Will Appeal to Investors

A recent study found that most investors say the experience of the last two
years has made them more cautious. In fact, preserving initial capital has
become a considerably greater priority to them. Yet, not surprisingly, they also
want to maximize their rates of return, and they view income generation as a
cornerstone of any sound personal investment strategy. 


On behalf of iShares ETFs, The Gandalf Group last month interviewed a
representative sample of individual Canadian investors with more than $50,000 in
the stock market, bonds, or mutual funds. It found that 95% said that preserving
their initial investment and minimizing the risk of loss in their portfolio is a
priority right now. (Fully 62% reported that it was a very important objective.)
Still, at the same time, 89% of respondents said that it was also important to
maximize the potential for increases in their holdings. And 73% stressed the
importance of income generation to their overall investment plan. 


"Our research shows that a majority of people today believe it is important to
maximize the value of their investments and generate regular income," said
Oliver McMahon. "We expect all investors to find XHB an attractive addition to
an intelligently created, balanced portfolio."


XHB's Unique Methodology

XHB will invest in both high-yield and BBB-rated investment-grade corporate
bonds and track a new and innovative index from PC-Bond, a business unit of TSX
Inc., the DEX HYBrid Index (the "Index"). 


The Index will combine the full market capitalization of eligible Canadian
high-yield bonds (which typically pay higher yields in order to compensate for
greater credit risk) along with 30% of the market capitalization of the eligible
BBB-rated corporate bond market. While the Canadian high-yield market is still
nascent and relatively small, this innovative methodology allows the Index to
maintain a significant yet investible weight in high yield-bonds. This
diversification across ratings generates high income without sacrificing the
stability that bonds provide. XHB will carry a management fee of only 0.45%.


As of August 31, 2010, there were 228 bonds included in the DEX HYBrid Bond
Index. Of those, 16 were high yield-rated and 212 were BBB-rated bonds.
High-yield rated bonds accounted for approximately 18% of the Index. 


For more information about the new iShares funds, please visit www.iShares.ca.
All other inquiries: 1-866-iShares (1-866-474-2737) or email
iSharesCanada@blackrock.com.


About BlackRock

BlackRock is a leader in investment management, risk management and advisory
services for institutional and retail clients worldwide. At June 30, 2010,
BlackRock's AUM was $3.151 trillion. BlackRock offers products that span the
risk spectrum to meet clients' needs, including active, enhanced and index
strategies across markets and asset classes. Products are offered in a variety
of structures including separate accounts, mutual funds, iShares(R) (exchange
traded funds), and other pooled investment vehicles. BlackRock also offers risk
management, advisory and enterprise investment system services to a broad base
of institutional investors through BlackRock Solutions. Headquartered in New
York City, as of June 30, 2010, the firm has approximately 8,500 employees in 24
countries and a major presence in key global markets, including North and South
America, Europe, Asia, Australia and the Middle East and Africa. For additional
information, please visit the company's website at www.blackrock.com.


About iShares ETFs

The iShares business is a global product leader in ETFs with over 410 funds
globally across equities, fixed income and commodities, which trade on 16
exchanges worldwide. The iShares funds are bought and sold like common stocks on
securities exchanges. The iShares funds are attractive to many individual and
institutional investors and financial intermediaries because of their relative
low cost, tax efficiency and trading flexibility. Investors can purchase and
sell securities through any brokerage firm, financial advisor, or online broker,
and hold the funds in any type of brokerage account. The iShares customer base
consists of the institutional segment of pension plans and fund managers, as
well as the retail segment of financial advisors.

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