ProShares Launches First Geared VIX Futures ETFs Expands Lineup of the Nation's Only VIX Futures ETFs to Four

ProShares, a premier provider of alternative exchange traded funds (ETFs), including the only VIX futures ETFs in the United States, today announced the expansion of its lineup with the launch of the first ETFs in the United States designed to provide magnified or inverse exposure to VIX futures.

The ProShares Ultra VIX Short-Term Futures ETF seeks to provide 2x the daily performance of the S&P 500 VIX Short-Term Futures Index, before fees and expenses. The ProShares Short VIX Short-Term Futures ETF seeks to provide -1x the daily performance of the S&P 500 VIX Short-Term Futures Index, before fees and expenses. The ETFs list on NYSE Arca today.

"Many investors are focused on volatility of the equity markets and are interested in tools that could help manage or incorporate volatility in sophisticated portfolios," said Michael L. Sapir, Chairman and CEO of ProShare Capital Management, the sponsor of the funds. "Now, with our introduction of these new ProShares, investors for the first time can get leveraged or inverse exposure to VIX futures with an exchange traded fund."

Since the financial crisis, there has been heightened attention on equity market volatility. ProShares introduced the nation's first two VIX futures ETFs in early 2011. Today's launch expands the firm's lineup of the nation's only VIX futures ETFs to four, providing investors a suite of tools to help manage risk or to act on views on volatility.

ProShares Ticker Index/Benchmark Daily Symbol Objective ---------------------- ------ ------------------------------ --------- New Volatility ETFs -------------------------------------------------------------------------------- Ultra VIX Short-Term UVXY S&P 500 VIX Short-Term Futures 2x Futures ---------------------- ------ ------------------------------ --------- Short VIX Short-Term SVXY S&P 500 VIX Short-Term Futures -1x Futures ---------------------- ------ ------------------------------ --------- Existing Volatility ETFs -------------------------------------------------------------------------------- VIX Short-Term Futures VIXY S&P 500 VIX Short-Term Futures 1x ---------------------- ------ ------------------------------ --------- VIX Mid-Term Futures VIXM S&P 500 VIX Mid-Term Futures 1x ---------------------- ------ ------------------------------ ---------

About ProShares ProShares is a premier provider of alternative ETFs, with 124 funds and more than $26 billion in assets. ProShares is the largest provider of geared (leveraged or inverse) ETFs.(1) ProShares is part of ProFunds Group(R), which was founded in 1997 and includes nearly $30 billion in mutual fund and ETF assets.

About VIX and VIX Futures Indexes The CBOE Volatility Index(R) (VIX) is a widely followed measure of the expected volatility of the S&P 500. Since the VIX is not directly investable, S&P 500 volatility exposure is often achieved through VIX futures. Each of the VIX futures indexes measures the movements of a combination of VIX futures and is designed to track changes in the expectation for VIX over a specific time window in the future. As a result, the VIX futures indexes, and UVXY, SVXY, VIXY and VIXM, can be expected to perform differently than the VIX. The S&P 500 VIX Short-Term Futures(TM) Index, targets a constant, weighted-average term of one month. The S&P 500 VIX Mid-Term Futures(TM)Index, targets a constant, weighted-average term of five months.

Short or Ultra ProShares ETFs seek returns that are 3x, 2x, -1x, -2x or -3x the return of an index or other benchmark (target) for a single day, as measured from one NAV calculation to the next. Due to the compounding of daily returns, ProShares' returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. Investors should monitor their holdings consistent with their strategies, as frequently as daily. For more on correlation and other risks, please read the prospectus.

(1) Source: Lipper, based on a worldwide analysis of all of the known providers of funds in these categories. The analysis covered ETFs and ETNs by the number of funds and assets (as of 6/30/2011). (2) Assets as of 8/31/2011. Volatility ProShares ETFs are not investment companies regulated under the Investment Company Act of 1940 and are not afforded its protections. Investing in these ETFs involves a substantial risk of loss. These ETFs may not be suitable for all investors. ProShares are non-diversified and entail certain risks, including risk associated with the use of derivatives (swap agreements, futures contracts and similar instruments), imperfect benchmark correlation, leverage and market price variance, all of which can increase volatility and decrease performance. Short ProShares should lose money when their benchmarks or indexes rise. For more on correlation, leverage and other risks, please read the prospectus. There is no guarantee any ProShares ETF will achieve its investment objective. These funds may have different tax implications and generate K-1 tax forms.


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