Investing in alternatives to surge worldwide (Russell.com)

Derivatives Based on Russell Indexes Trade at Record Volumes in August

TACOMA, Wash. — September 7, 2005 — Derivatives contracts based on Russell indexes traded at record-breaking levels in the month of August. Overall trading volume hit monthly volume records for iShares Russell 2000® (IWM) options, iShares Russell 2000® Value (IWN) options, Russell 2000® Index (RUT) options and E-mini Russell 2000® Index options on futures.

Trading volume for options on the iShares Russell 2000 surpassed 2.7 million in August, topping the previous high of 2.2 million in July. The volume has nearly quadrupled from the amount traded in August 2004.
Volume in iShares Russell 2000 Value options increased to 76,436, more than doubling the 36,446 traded in July and up dramatically from the 10,636 in August 2004.
The number of Russell 2000 Index options contracts that traded in August surged to 167,294 and nearly doubled the 84,227 contracts in August 2004.
Volume in E-mini Russell 2000 Index options on futures surpassed 20,000 in August, an increase of about 40% from 12,780 in July.

"These record trading volumes in August tell us more investors are opting for Russell's clear, unbiased index methodology," said Kelly Haughton, Strategic Director of Russell Indexes. "More investors in hedge funds and other alternatives in particular are using Russell-based options in their portfolio strategies."

"In August we added the iShares Russell Microcap Index to the list of more than 23 Russell products traded at the Chicago Board Options Exchange and CBOE Futures Exchange," said CBOE Chairman and CEO William J. Brodsky. "The Russell products traded at CBOE have seen explosive growth this year, and we expect that trend to continue as investors become more familiar with the products."

In addition to the CBOE, options products based on Russell indexes are available on the American Stock Exchange (Amex), Boston Options Exchange (BOX), Philadelphia Stock Exchange (Phlx), Pacific Exchange (PCX) and the International Securities Exchange (ISE). In addition, futures products based on Russell indexes are traded on the CBOE Futures Exchange (CFE) and Eurex US, while futures, as well as options on futures, are traded at the Chicago Mercantile Exchange (CME) and the New York Board of Trade (NYBOT). In the futures arena, Eurex US and the CFE are now offering 100% margin offsets on futures based on Russell indexes.

Additional details on Russell's indexes are available at: www.russell.com/US/Indexes/US/

About Russell
Russell Investment Group, a global leader in multi-manager investing, provides investment products and services in more than 39 countries. Russell manages more than $133 billion in assets and advises clients worldwide representing more than $2.3 trillion. Founded in 1936, Russell is a subsidiary of Northwestern Mutual and is headquartered in Tacoma, Wash., with additional offices in New York, Toronto, London, Paris, Sydney, Singapore, Auckland and Tokyo.

Russell employs its indexes to objectively evaluate investment managers for multi-manager funds and other investment services. More than $2.5 trillion in assets are benchmarked to Russell indexes.

Contact Steve Claiborne: 253-594-1858

Russell is known for its investment management, consulting and portfolio transition management expertise worldwide but investors should also be aware of the many exchange-traded products based on Russell's U.S. equity index family. These products are not distributed by Russell. You may find more information and purchasing capability via the various exchanges which sell them.

ETFs, like any investment, have risks. You should carefully consider these risks before investing. Nothing herein constitutes or should be construed as investment advice. You should consult your own financial advisor with respect to your own situation or that of any entity which you represent or advise.

This is not an offer to sell, solicit or recommend the purchase of any service or product.

Russell Investment Group is a registered trade name of Frank Russell Company, a Washington, USA corporation, which operates through subsidiaries worldwide. Frank Russell Company is a subsidiary of The Northwestern Mutual Life Insurance Company.

Frank Russell Company is the owner of the trademarks, service marks and copyrights related to its indexes.

Russell's indexes are unmanaged and cannot be invested in directly.

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