XTR iShares Diversified Monthly Income 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, can
now provide investors looking for a consistent monthly income stream, along with
full liquidity and the potential for modest long-term capital growth with an
appealing-and tax-friendlier-option: the iShares Diversified Monthly Income
Fund, trading on the TSX under the symbol XTR (TSX:XTR). 


Managed by BlackRock Canada, XTR offers all the benefits that investors have
come to expect from iShares ETFs, including reasonable management fees, full
intra-day tradability, and the power of the iShares ETFs' unique and trusted
product engineering.


XTR replaces the former iShares S&P(R)/TSX(R) Income Trust Fund, which traded
under the same symbol. The conversion, approved by a special meeting of
unitholders on August 23, 2010, is designed to provide maximum investor benefit
in advance of changes to the federal tax regulations governing income trusts
that will come into effect in January 2011.


"The goal here is to ensure investors continue to receive a reliable monthly
income stream while still enjoying the benefits they've come to associate with
iShares ETFs," said Oliver McMahon, director of product management for iShares
ETFs at BlackRock Canada. "The new XTR is an income product that has the ETF's
inherent advantages, including diversification, transparency, low costs, tax
efficiency and the ability to use value-adding trading strategies, such as limit
and stop orders."


The New iShares XTR Advantage

XTR will invest primarily (though not exclusively) in other Canadian iShares
ETFs. It will offer a diversified portfolio of income-bearing asset classes
including, but not limited to, dividend-paying common equities, fixed-income
securities (such as corporate bonds and long-maturity vehicles) and property
investments, such as real-estate investment trusts. In addition to other
Canadian iShares ETFs, XTR may also hold other income-bearing investments
directly and/or through the use of derivatives.


BlackRock Canada will maintain a strategic asset allocation policy for XTR that
emphasizes income generation while maintaining the potential for modest
long-term capital growth. 


The initial target asset allocation is expected, in aggregate, to be composed of
approximately 50% equities (mostly Canadian, although foreign holdings may be
included for diversification) and approximately 50% fixed-income investment
vehicles. XTR will rebalance its strategic asset allocation on a quarterly
basis, but will do so more frequently if market conditions dictate. 


The aim of XTR is to distribute net income regularly to investors in a way that
maximizes benefit while minimizing the sting of the new tax rules.


How XTR Will Continue to Deliver

XTR has been specially designed to be transparent and offers a methodology that
provides a consistent income stream through monthly nominal distributions, to be
determined annually. 


The strategy will distribute the fund's net income to the extent that the fund
will not be liable for ordinary income tax on the earnings. Net capital gains
will be distributed so that they, too, are not subject to ordinary income taxes.



Should XTR's net income and net realized capital gains in any year not be
sufficient to fund pre-determined monthly distributions, the balance of the
monthly payouts will constitute a return of capital to unitholders. Returns of
capital are generally non-taxable to unitholders, but ultimately reduce the
adjusted cost base of their units for tax purposes. 


XTR has a management fee of 0.55%. There are balanced mutual funds in Canada
with similar characteristics, but higher fees-and investors are well advised to
compare the numbers. XTR's assets under management totalled $207.9 million as of
August 16, 2010. 


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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