The Bank of New York Serves as Index Provider and Trustee; NASDAQ
Serves as Sponsor and Marketplace

First NASDAQ-listed Exchange-Traded Funds

New York, N.Y. — Nasdaq Financial Products Services, Inc., a wholly-owned subsidiary of The Nasdaq Stock Market, Inc. (NASDAQ), today will introduce BLDRS^SM, a new family of exchange-traded funds (ETFs) based on The Bank of New York ADR Indexes^SM. The BLDRS Funds are the first ETFs listed on NASDAQ and the first ETFs based on depositary receipts (DRs). The Bank of New York will serve as Trustee and Index Provider. In honor of the launch, The Bank of New York Chairman Thomas A. Renyi will join NASDAQ Chairman Wick Simmons at MarketSite in Times Square to open NASDAQ trading today at 9:30 a.m. ET.

BLDRS Funds hold a portfolio of depositary receipts that can be bought and sold throughout the trading day similar to shares of stock. The BLDRS Funds enable investors to purchase a basket of depositary receipts with one simple and cost-effective transaction, as each BLDRS Fund has its ordinary expenses capped at 0.30%.

"We believe these one-of-a-kind financial products, the first-ever NASDAQ-listed exchange- traded funds, will provide an investment opportunity to individuals or institutional investors looking to add an international component to their portfolio mix," said Wick Simmons, chairman and chief executive officer of NASDAQ. "The BLDRS Funds are an example of NASDAQ's continuing innovation in, and support of, new financial products."

A BLDRS Fund offers the advantage of access to a depositary receipt index with the ease of stock trading. Investors will be able to purchase shares on margin, short sell shares, or hold for the long term. In addition, shares can be purchased throughout the trading day at intra-day prices.

Thomas A. Renyi, chairman and chief executive officer of The Bank of New York, said, "As demonstrated by its development and sponsorship of QQQ, the most actively traded ETF in the world, NASDAQ Financial Products Services is a leader in this area. We are pleased they are sponsoring the BLDRS Funds, which are based on The Bank of New York Indexes. The introduction of the BLDRS Fund family underscores The Bank of New York's prominence in both the exchange-traded fund servicing and depositary receipt markets."

Joseph M. Velli, senior executive vice president of The Bank of New York's Worldwide Securities Processing Services Sector, said, "As the world's largest depositary for depositary receipts, we are delighted to be associated with an ETF that offers investors another innovative solution as they continue to globalize their portfolios. The BLDRS Fund family broadens the advantages and enhances the visibility of depositary receipts as a convenient and cost-effective way to invest in non-U.S. securities."

"More than half the world's equity market is based outside the U.S. and the BLDRS Funds enable investors to purchase international securities in one simple and cost effective transaction," said John L. Jacobs, chief executive officer of NASDAQ Financial Products Services.

The BLDRS Fund family is currently made up of four ETFs, including two market index funds and two regional index funds:

• BLDRS Emerging Markets 50 ADR IndexSM Fund, Ticker Symbol: "ADRE"
• BLDRS Developed Markets 100 ADR IndexSM Fund, Ticker Symbol: "ADRD"
• BLDRS Europe 100 ADR IndexSM Fund, Ticker Symbol: "ADRU"
• BLDRS Asia 50 ADR IndexSM Fund, Ticker Symbol: "ADRA"

BLDRS Funds Characteristics:

• Low cost* — a 0.30% cap on ordinary operating expenses
• Diversification
• Convenient and efficient access to foreign markets through depositary receipts
• Transparency - because the financial products are based on American-based securities
• Liquidity
• Trading and tracking throughout the U.S. trading day
• U.S. custody of assets

*Brokerage commissions apply.

NASDAQ Financial Products Services, Inc. is the sponsor of the BLDRS Fund Family (BLDRS), and The Bank of New York is the trustee and index licensor. For more information about the BLDRS Fund Family, please visit http://www.bldrsfunds.com, or call 1-888-627-3837.

NASDAQ (OTCBB: NDAQ) is the world's largest electronic stock market. With approximately 3,800 companies, NASDAQ lists more companies and trades more shares per day than any other U.S. market. Over the past five years, NASDAQ has outpaced all other U.S. markets in listing IPOs. It is home to category-defining companies that are leaders across all areas of business including technology, retail, communications, financial services, media and biotechnology industries. NASDAQ is a key driver of capital formation. For more information about NASDAQ, visit the NASDAQ Web site at www.nasdaq.com or the NASDAQ Newsroom^SM at www.nasdaq.com/newsroom.

The Bank of New York is the world's largest depositary for American and global depositary receipts, allowing non-U.S. companies to offer dollar-denominated securities to investors worldwide. The Bank currently issues depositary receipts for more than 1,400 programs representing 70 countries and accounts for 66% of all public sponsored depositary receipt programs.

The Bank of New York, founded in 1784 by Alexander Hamilton, is the United States' oldest bank and is the principal subsidiary of The Bank of New York Company, Inc. (NYSE: BK), a financial holding company. With over $80 billion in total assets as of September 30, 2002, the Company provides a complete range of banking and other financial services to corporations and individuals worldwide through its basic businesses, namely, Securities Servicing and Global Payment Services, Corporate Banking, BNY Asset Management and Private Client Services, Retail Banking, and Global Market Services. Additional information on the Company is available at www.bankofny.com.

The offering is made only by means of the prospectus. For more complete information about BLDRS Index Funds, including risks, charges, and ongoing expenses, call 1-888-627-3837 or refer to the BLDRS website at www.bldrsfunds.com for a Prospectus. An investor should read the Prospectus carefully before investing. The BLDRS Funds are subject to risks similar to those of stocks, including those regarding short selling and margin account maintenance. An investor cannot invest directly in any of The Bank of New York ADR Indexes. The performance of the indexes does not reflect the fees and expenses associated with investing. While there is no assurance that the performance of The Bank of New York ADR Indexes can be fully matched, the BLDRS Funds are designed to provide investment results that generally correspond to the performance of their respective indexes before fees and expenses. Past performance is not indicative of future performance.

The BLDRS Funds are not insured by the FDIC; are not deposits or other obligations of The Bank of New York or NASDAQ and are not guaranteed by The Bank of New York or NASDAQ; and are subject to investment risks, including possible loss of principal investment.

ALPS Distributors, Inc. is the Distributor for the BLDRS Index Funds Trust, a unit investment trust