AMVESCAP To Acquire PowerShares Capital Management For $60 Million

AMVESCAP PLC plans to acquire PowerShares Capital Management LLC, a provider of exchange traded funds (ETFs), for $60 million. PowerShares, based in Wheaton, IL, now manages more than $3.5 billion in assets in a family of 36 different ETFs. The

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AMVESCAP PLC plans to acquire PowerShares Capital Management LLC, a provider of exchange-traded funds (ETFs), for $60 million.

PowerShares, based in Wheaton, IL, now manages more than $3.5 billion in assets in a family of 36 different ETFs. The initial purchase price of $60 million.

Subsequent earn-out provisions for the business are described in the transaction summary below. The transaction, which must be approved by PowerShares’ board of directors and the shareholders of the company’s ETFs, is expected to close in the second or third quarter of 2006.

“The addition of PowerShares ETFs is a natural extension of our core mission to provide a broad range of investment management solutions to our diverse clients across the globe,” said Marty Flanagan, president and chief executive officer of AMVESCAP. “Our combination with PowerShares immediately establishes AMVESCAP as a significant emerging player in exchange-traded funds.”

AIM expects to begin distributing PowerShares ETFs after regulatory approval.

“This is a very important event for investors because, for the first time, a leading investment management company with tremendous institutional and retail distribution capabilities is embracing ETFs,” said H. Bruce Bond, president and CEO of PowerShares Capital Management.

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