Invesco PowerShares Capital Management LLC, a leading provider of exchange-traded funds (ETFs) with more than $50 billion in franchise assets, announced today the five-year anniversary of PowerShares Water Resources Portfolio (NYSE Arca: PHO).

The PowerShares Water Resources Portfolio is the industry's first water ETF. Listed on Dec. 6, 2005, PHO is the largest and most actively traded ETF providing investors with access to a portfolio of U.S.-listed companies engaged in the water industry and is positioned in a way that seeks to benefit from the rapidly accelerating water resource challenges (Bloomberg LP, as of Dec. 6, 2010).

"The world's supply of clean water is increasingly in demand for consumption, irrigation and industrial production, and we believe the PowerShares Water Resources Portfolio (PHO) is a compelling way for investors to capitalize on this investment theme," noted Ben Fulton, Invesco PowerShares managing director of ETFs. "We are pleased with the performance and success of PHO, and remain committed to expanding investors' access to investment themes, strategies, and asset classes that were previously difficult to reach."

"That Invesco PowerShares had the insight to pioneer water as an investment is a testament to their leadership in the field. It was truly a unique combination; water as an investment theme packaged in the then relatively new framework of a specialized ETF," said Steve Hoffmann, designer of the Palisades Water Index.

Consistent with the long-term investment fundamentals of the water industry, the Palisades Water Index™ underlying PHO gained a cumulative total return of 36.10% over the five-year period, significantly outperforming the S&P 500, which gained a total return of 7.87% during the period as indicated in the chart below. The comparisons are also favorable relative to the cumulative total returns of other major market indexes calculated for the five-year period ending Dec. 3, 2010, which saw the DJIA up 19.81%, the Nasdaq up 32.68%, and the Russell 2000 gaining 17.72%.

As of 9/30/2010
Fund History (%)   1 Year  3 Year  Fund Inception
NAV                 -0.25   -7.88       2.24
After Tax Held      -0.46   -8.03       2.02
After Tax Sold      -0.16   -6.70       1.79
Market Price        -0.19   -7.88       2.00

Performance data quoted represents past performance. As stated in the Fund's prospectus, the gross annual fund operating expense ratio is 0.64%. Past performance is not a guarantee of future results; current performance may be higher or lower than performance quoted. Investment returns and principal value will fluctuate and Shares, when redeemed, may be worth more or less than their original cost. The Shares' performance reflects fee waivers, absent which performance would have been lower. See invescopowershares.com to find the most recent month-end performance numbers. After Tax Held represents total return after taxes on distributions and assumes Shares have not been sold. After Tax Sold represents total return after taxes on distributions and the sale of Fund Shares. After-tax returns reflect the highest federal income tax rate but exclude state and local taxes. Market returns are based on the midpoint of the bid/ask spread at 4 p.m. ET and do not represent the returns an investor would receive if shares were traded at other times.

"Since the launch of PHO in December of 2005, the investment fundamentals of the global water industry have strengthened considerably," commented Steve Hoffmann, co-founder of the Palisades Water Indexes. "Not only has the temporal and spatial scarcity of water increased dramatically but the stature of water has gained as an economic, as opposed to a purely public, good. This has important ramifications for positive institutional changes in water governance and private investment in the water business."

The PowerShares Water Resources Portfolio (PHO) is based on the Palisades Water Index. The Fund will normally invest at least 90% of its total assets in ADRs and common stocks that comprise the Index. The Index seeks to identify a group of companies that focus on the provision of potable water, the treatment of water, and the technology and services that are directly related to water consumption. The differentiating design and methodology of the Palisades Water Index optimizes the exposure to the water industry. The modified equal weighted portfolio is rebalanced and reconstituted quarterly.

The PowerShares Global Water Portfolio (NYSE Arca: PIO) is the complementary international water ETF.

Invesco PowerShares Capital Management LLC is leading the Intelligent ETF Revolution® through its family of more than 148 domestic and international exchange-traded funds, which seek to outperform traditional benchmark indexes while providing advisors and investors access to an innovative array of focused investment opportunities. With franchise assets over $50 billion as of Sept. 30, 2010, PowerShares ETFs trade on both U.S. stock exchanges. For more information, please visit us at www.invescopowershares.com.

Invesco PowerShares is part of Invesco Ltd., a leading independent global investment manager, dedicated to helping investors worldwide achieve their financial objectives. By delivering the combined power of our distinctive investment management capabilities, Invesco provides a wide range of investment strategies and vehicles to our retail, institutional and high net worth clients around the world. Operating in 20 countries, the company is listed on the New York Stock Exchange under the symbol IVZ. Additional information is available at www.invesco.com.

There are risks involved with investing in ETFs, including possible loss of money. Shares are not actively managed and are subject to risks similar to those of stocks, including those regarding short selling and margin maintenance requirements. Ordinary brokerage commissions apply.

The Fund may contain securities in the water industry. Companies engaged in this industry are subject to greater risks, and are more greatly impacted by market volatility, than more diversified investments.

The Fund's use of a representative sampling approach will result in its holding a smaller number of securities than are in the underlying Index, and may be subject to greater volatility.

Investing in securities of small and medium-sized companies may involve greater risk than is customarily associated with investing in large companies.

Foreign securities have additional risks, including exchange-rate changes, decreased market liquidity, political instability and taxation by foreign governments.

The Funds are considered non-diversified and may be subject to greater risks than a diversified fund.

Not FDIC Insured | May Lose Value | No Bank Guarantee

PowerShares® is a registered trademark of Invesco PowerShares Capital Management LLC (Invesco PowerShares). Invesco PowerShares Capital Management LLC and Invesco Distributors, Inc. are indirect, wholly owned subsidiaries of Invesco Ltd.

Shares are not individually redeemable and owners of the Shares may acquire those Shares from the Funds and tender those Shares for redemption to the Funds in Creation Unit aggregations only, typically consisting of 50,000 Shares.

Invesco Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust and the PowerShares Exchange-Traded Fund Trust II.

An investor should consider the Funds' investment objectives, risks, charges and expenses. For this and more complete information about the Funds, call 800 983 0903 or visit invescopowershares.com for a prospectus. Please read the prospectus carefully before investing.

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Media Contacts: Kristin Sadlon Porter Novelli 212-601-8192 Email Contact Bill Conboy 303-415-2290 Email Contact

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