PowerShares has added three new funds to its family of fixed-income ETFs. The PowerShares VRDO Tax-Free Weekly Portfolio, the PowerShares Preferred Portfolio and the PowerShares High Yield Corporate Bond Portfolio will list in the AMEX Nov. 15.

PowerShares Capital Management LLC, a leading provider of exchange-traded funds (ETFs), today announced three new additions to its family of fixed-income ETFs. The listings include a tax-free variable rate demand obligations (VRDO) portfolio, as well as high-quality preferred and U.S. dollar denominated high-yield corporate bond portfolios. These new PowerShares ETF portfolios are expected to begin trading on the American Stock Exchange on Nov. 15, 2007.

The anticipated ticker symbols and portfolio names are:

-- PVI - PowerShares VRDO Tax-Free Weekly Portfolio
-- PGX - PowerShares Preferred Portfolio
-- PHB - PowerShares High Yield Corporate Bond Portfolio

PowerShares VRDO Tax-Free Weekly Portfolio will provide investors new access to an area of fixed-income where large trading denominations had previously created a barrier, said Bruce Bond, president and CEO of PowerShares.

"High-quality VRDOs can provide attractive tax-exempt yields, but the typical $100,000 trading increment precludes many investors from participating in this asset class. The PowerShares VRDO Tax-Free Weekly portfolio will truly open this market for investors," Bond said. "We also believe the PowerShares Preferred and PowerShares High Yield Corporate Bond Portfolios will provide investors better access to these types of fixed income-securities, with the additional benefits from the ETF format."

Product information on PowerShares' three new fixed-income ETF portfolios are as follows:

The PowerShares VRDO Tax-Free Weekly Portfolio (PVI) seeks to replicate the Thomson Municipal Market Data VRDO Index. This index is designed to track the performance of a pool of short-term, tax-exempt variable rate demand obligations issued by municipalities in the United States. The rules-based index is rebalanced quarterly, and excludes issues subject to alternative minimum tax (AMT).

The PowerShares Preferred Portfolio seeks to replicate the Merrill Lynch Fixed Rate Preferred Securities Index. This index is designed to replicate the total return of a diversified group of high-quality preferred securities. The rules-based index is rebalanced monthly and selects U.S. dollar-dominated, investment-grade preferred securities, with fixed dividend rates.

The PowerShares High Yield Corporate Bond Portfolio seeks to replicate the Wachovia High Yield Bond Index. This index measures potential returns of high-yield corporate bonds rated below investment grade by Moody's, S&P or Fitch, issued by U.S. or foreign private issuers that are payable in U.S. dollars. The index methodology evaluates securities quarterly using an equal-weighting methodology, and requires the securities have a minimum of five years to maturity, minimum par values and fixed interest rates.

PowerShares fixed-income ETFs provide investors the option to elect for monthly income distribution.

PowerShares Capital Management LLC is leading the intelligent ETF revolution through its family of over 100 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 of approximately $35 billion, PowerShares ETFs trade on all three U.S. stock exchanges and the PowerShares QQQ�, which tracks 100 of the NASDAQ's fastest-growing companies, is the most actively traded equity security in the world. For more information, please visit us at www.powershares.com.

PowerShares is a part of INVESCO PLC, a leading independent global investment manager dedicated to helping people worldwide build their financial security. Operating under the AIM, AIM Trimark, Atlantic Trust, Invesco Perpetual, PowerShares and WL Ross & Co. brands, INVESCO PLC strives to deliver outstanding products and services through a comprehensive array of enduring investment solutions for its retail, institutional and private wealth management clients around the world. The company, which had approximately $507 billion in assets under management as of Sept. 30, 2007, is listed on the London, New York and Toronto stock exchanges with the symbol "IVZ." Additional information is available at www.invesco.com.

Risks of Owning Exchange-Traded Funds

There are risks involved with investing in ETFs including possible loss of money. Shares are subject to risks similar to those of investing in any fund of variable rate demand obligations, high yield bonds or preferred securities, including credit, interest rate and general market risks, as well as those risks related to short selling and margin maintenance. Generally, the prices of income securities tend to fall as interest rates rise. The shares are subject to market fluctuations caused by such factors as economic, political, regulatory or market developments, changes in interest rates and perceived trends in securities prices. Please see the prospectus for more complete information regarding an investment in the Funds.

Shares are not FDIC insured, and may lose value and have no bank guarantee.

Variable Rate Debt Obligations Risk: There may not be an active secondary market with respect to particular variable rate instruments in which the Fund invests, which could make it difficult for the Fund to dispose of a variable rate instrument if the issuer and/or the Remarketing Agent defaulted on its payment obligation or during periods that the Fund is not entitled to exercise its demand rights, and the Fund could, for these or other reasons, suffer a loss with respect to such instruments. Municipal securities are subject to the risk that litigation, legislation or other political events, local business or economic conditions or the bankruptcy of the issuer could have a significant effect on an issuer's ability to make payments of principal and/or interest. Municipal securities can be significantly affected by political changes as well as uncertainties in the municipal market related to taxation, legislative changes or the rights of municipal security holders. Because many securities are issued to finance similar projects, especially those relating to education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market. In addition, changes in the financial condition of an individual municipal insurer can affect the overall municipal market. Please see the prospectus for more complete information regarding VRDOs and municipal securities.

Municipal Market data, a unit of Thomson Financial services ("Thomson Financial"), serves as index Provider for the Powershares VRDO Tax-Free Weekly Portfolio and owns intellectual property rights in the Underlying index. The Thomson Municipal Market data VRDO index is a trademark of Thomson Financial and has been licensed for use by the Adviser. The Fund is not sponsored, endorsed, sold or promoted by Thomson Financial or its affiliates and Thomson Financial makes no representation regarding the advisability of investing in the Fund. The Powershares VRDO Tax-Free Weekly Portfolio is entitled to use the Underlying indices pursuant to a sub-licensing agreement with the Adviser. The Thomson Municipal Market data VRDO index is a trademark of Thomson Financial and has been licensed for use for certain purposes by the Adviser. Powershares VRDO Tax-Free Weekly Portfolio is not sponsored, endorsed, sold or promoted by Thomson Financial. Thomson Financial makes no representation or warranty, express or implied, to Fund investors or any member of the public regarding the advisability of investing in securities generally or in the Fund particularly or the ability of any data supplied by Thomson Financial to track VRDO performance. Thomson Financial's only relationship to the distributor, the Adviser or the Trust is the licensing of certain trademarks and trade names of Thomson Financial and of the data supplied by Thomson Financial that is determined, composed and calculated by Thomson Financial without regard to the Fund or the shares. Thomson Financial has no obligation to take the needs of the Fund into consideration when determining, composing or calculating the data. Thomson Financial has no obligation or liability in connection with the administration, marketing or trading of the Fund.

There are special risks associated with investing in high yield bonds including, but not limited to: high yield securities generally offer a higher current yield than that available from higher grade issues, but typically involve greater risk. Securities rated below investment grade are commonly referred to as "junk bonds." The ability of issuers of high yield securities to make timely payments of interest and principal may be adversely impacted by adverse changes in general economic conditions, changes in the financial condition of their issuers and price fluctuation in response to changes in interest. Periods of economic downturn or rising interest rates may cause the issuers of high yield securities to experience financial distress, which could adversely impact their ability to make timely payments of principal and interest and increase the possibility of default. The market value and liquidity of high yield securities may be negatively impacted by adverse publicity and investor perceptions, whether or not based on fundamental analysis, especially in markets characterized by a low volume of trading. Global bonds are subject to the same risks as other debt issues, notably credit risk, market risk and liquidity risk. To a limited extent, they may also subject to certain sovereign risks. Generally, investments in the securities of non-U.S. issuers involve risks beyond those associated with investments in U.S. securities. Please see the prospectus for more complete risk information.

Wachovia and Wachovia Cap Markets (collectively, "Wachovia") serve as Index Provider for the PowerShares High Yield Corporate Bond Portfolio and own intellectual property rights in the underlying index. The Wachovia High Yield Bond Index is a trademark of Wachovia and has been licensed for use by the Adviser. The Fund is not sponsored, endorsed, sold or promoted by Wachovia or its affiliates and Wachovia makes no representation regarding the advisability of investing in the Fund. The PowerShares High Yield Corporate Bond Portfolio is entitled to use its respective Underlying Index pursuant to a sub-licensing agreement with the Adviser.

There are special risks associated with investing in preferred securities including, but not limited to: provisions that permit the issuer, in its discretion, to defer or omit distributions for a certain period of time; if the Fund owns a security that is deferring or omitting its distributions, the Fund may be required to report the distribution on its tax returns, even though it may not have received this income; preferred securities may lose substantial value due to the omission or deferment of dividend payments; preferred securities may be less liquid than many other securities, such as common stocks, and generally offer no voting rights with respect to the issuer; preferred securities may also be subordinated to bonds or other debt instruments in an issuer's capital structure, subjecting them to a greater risk of non-payment than more senior securities. In certain circumstances, an issuer of preferred securities may redeem the securities prior to a specified date, and this may negatively impact the return of the security. Investments in financial institutions may be subject to certain risks, including, but not limited to, the risk of regulatory actions, changes in interest rates and concentration of loan portfolios in an industry or sector. Financial institutions are highly regulated and may suffer setbacks should regulatory rules under which they operate change. Likewise, there is a high level of competition among financial institutions which could adversely affect the viability of an institution. The Fund's investments in non-U.S. issuers, although limited to Adrs, may involve unique risks compared to investing in securities of U.S. issuers, including, among others, greater market volatility, the availability of less reliable financial information, higher transactional costs, taxation by foreign governments, decreased market liquidity and political instability. Please see the prospectus for more complete risk information.

"Merrill Lynch" and "Merrill Lynch Fixed Rate Preferred Securities Index(SM)" are reprinted with permission. � Copyright 2007 Merrill Lynch, Pierce, Fenner & Smith Incorporated. All rights reserved. "Merrill Lynch" and "Merrill Lynch Fixed Rate Preferred Securities Index(SM)" are service marks of Merrill Lynch and have been licensed for use for certain purposes by PowerShares Capital Management LLC. The PowerShares Preferred Portfolio is based on the Merrill Lynch Fixed Rate Preferred Securities Index(SM), and is not sponsored, endorsed, sold or promoted by Merrill Lynch. Merrill Lynch, as Index Provider, makes no representation, express or implied, regarding the advisability of investing in this product or the Index and does not guarantee the quality, accuracy or completeness of the Index or any Index related data included herein or derived therefrom and assumes no liability in connection with their use. As the Index Provider, Merrill Lynch is licensing certain trademarks, the underlying Index and trade names which are composed by Merrill Lynch without regard to PowerShares, the Issuer, this product or any investor.

A I M Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust II.

An investor should consider the Fund's investment objectives, risks, charges and expenses carefully before investing. For this and more complete information about the Fund, call 800.983.0903. Please read the prospectus carefully before investing.

The information in this prospectus is not complete and may be changed. The portfolio may not sell its shares until the registration statement filed with the Securities and Exchange Commission is effective. The prospectus is not an offer to sell the portfolio shares, nor is the portfolio soliciting an offer to buy its shares in any jurisdiction where the offer or sale is not permitted.

PowerShares� and Leading the Intelligent ETF Revolution� are registered marks of PowerShares Capital Management LLC. A I M Distributors, Inc. is the distributor of the PowerShares Exchange-Traded Fund Trust and the PowerShares Global Exchange-Traded Fund Trust. ALPS Distributors, Inc. is the distributor of PowerShares QQQ. PowerShares QQQ is a unit investment trust. PowerShares Capital Management LLC and A I M Distributors, Inc. are not affiliated with ALPS Distributors, Inc.

Edited by: Erin Kello

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