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ProShares Launches First Geared VIX Futures ETFs

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 (NYSE: UVXY) 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 (NYSE: SVXY) 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.

Ticker Symbol

Daily Objective
New Volatility ETFs

Ultra VIX Short-TermFutures
      UVXY       S&P 500 VIX Short-Term Futures       2x

Short VIX Short-TermFutures
      SVXY       S&P 500 VIX Short-Term Futures       -1x
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®, which was founded in 1997 and includes nearly $30 billion in mutual fund and ETF assets. 2

About VIX and VIX Futures Indexes

The CBOE Volatility Index® (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.

These ETFs invest in futures. VIX futures are among the most volatile futures contracts. A fund's exposure to its index may subject that fund to greater volatility than investments in traditional securities, which may adversely affect an investor's investment in that fund. VIX futures indexes are mean reverting; funds benchmarked to them should not be expected to appreciate over extended periods of time. Due to defined time periods and other features, VIX futures indexes and funds benchmarked to them can be expected to perform differently than the VIX.

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