Rydex Investments Launches RydexShares(TM) Leveraged and Inverse Select Sector ETFs

ROCKVILLE, MD leveraged and inverse Select Sector ETFs aim to offer investors magnified and inverse exposure to the following Select Sector Indices: Energy, Financial, Technology and Health Care. With more than $25 billion(1) in benchmarked assets, Select Sectors represent the industry's largest and most liquid indices for sector investing.

"Financial professionals have shown significant interest in leveraged and inverse strategies for their potential to help capitalize on directional market moves or hedge an investment portfolio," says Carl Verboncoeur, Rydex Investments CEO. "As the pioneer of leveraged and inverse mutual funds, we're excited to bring new ETFs to the marketplace that offer unique leveraged and inverse exposure to the most widely traded sector indices."

On a daily basis, Rydex's leveraged Select Sector ETFs aim to magnify their benchmark exposures by 200%, which allows investors to achieve greater exposure to an index with less capital. The firm's inverse Select Sector ETFs seek to move in the opposite direction of their specific benchmarks, enabling investors to potentially profit during sector downturns. More convenient than margin accounts or options, the new ETFs offer an easy and cost-effective way to employ leverage or hedge against specific sector or stock positions without shorting.

"The Select Sector indices represent various sector components within the S&P 500," says Edward Lopez, director of ETF strategies at Rydex. "For those financial professionals who have built portfolio models around the S&P 500, as well as the Select Sector indices themselves, the new leveraged and inverse ETFs may provide a useful and convenient way to achieve directional exposure."

RydexShares(TM) leveraged and inverse Select Sector ETFs complement the firm's existing lineup of leveraged and inverse ETFs, which provide broad market exposure to small-, large- and mid-cap indices. At 70 basis points, Rydex's new sector ETFs also provide a lower-cost alternative for investors looking for leveraged and inverse sector exposure.

According to Lopez, recent market volatility has given rise to increased demand for ETFs that enable advisors to short specific segments of the market or take advantage of sector opportunities by using leveraged strategies. "The availability of new products combined with increased interest in leveraged and inverse ETFs calls for education about how these sophisticated products work, including their potential benefits and risks."

To help educate investors, Rydex continues to build on its ETF Essentials(TM) program, which explores the compounding effect of using leverage, among other ETF-related issues. The firm also offers educational literature and online tools to help investors understand leveraged and inverse ETFs.

Go Long

Rydex 2x S&P Select Sector Energy ETF (AMEX: REA)

Rydex 2x S&P Select Sector Financial ETF (AMEX: RFL)

Rydex 2x S&P Select Sector Health Care ETF (AMEX: RHM)

Rydex 2x S&P Select Sector Technology ETF (AMEX: RTG)

Go Short

Rydex Inverse 2x S&P Select Sector Energy ETF (AMEX: REC)

Rydex Inverse 2x S&P Select Sector Financial ETF (AMEX: RFN)

Rydex Inverse 2x S&P Select Sector Health Care ETF (AMEX: RHO)

Rydex Inverse 2x S&P Select Sector Technology ETF (AMEX: RTW)

(1) Data source: Morningstar as of March 31, 2008

About Rydex Investments

Rydex Investments continues to drive change in the financial industry by introducing investment products and services that challenge conventional thinking, empower investors and provide essential new options for uncertain market conditions. Rydex manages approximately $16 billion in assets via nearly 100 mutual funds and exchange traded products.

For more complete information regarding RydexShares(TM), including management fees and expenses, call 877.RYDEX34 or visit www.rydexinvestments.com for a prospectus. Investors should carefully consider the investment objectives, risks, charges and expenses of a fund before investing. The fund's prospectus contains this and other information about the fund. Please read the prospectus carefully before you invest or send money.

RydexShares are subject to risks similar to those of stocks and may not be suitable for all investors. Investment returns and principal value will fluctuate so that when shares are redeemed, they may be worth more or less than original cost. There are no assurances that any Rydex ETF will achieve its objective and/or strategy.

Investing in leveraged and inverse ETFs involves certain risks, which include increased volatility due to their use of short sales of securities and derivatives such as options and futures. The more an ETF invests in leveraged instruments, the more the leverage will magnify any gains or losses on those investments. The ETFs are subject to active trading risks that may increase volatility and impact the funds' ability to achieve their investment objectives.

Securities are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

"McGraw-Hill®," "Standard & Poor's®" and "S&P®," are trademarks of The McGraw-Hill Companies, Inc. The stocks included in each Select Sector Index were selected by a compilation agent. The composition and weightings of the stocks included in each Select Sector Index can be expected to differ from any similar S&P 500 sector index that is published by S&P. Select Sector indices have been licensed for use by Rydex Investments and its affiliates. Rydex ETFs are not sponsored, endorsed, sold or promoted by Standard & Poor's and S&P makes no representation regarding the advisability of investing in the funds. This entity and its affiliates make no warranties and bear no liability with respect to Rydex Investments.

Rydex Distributors, Inc., an affiliate of Rydex Investments, is the distributor of Rydex funds.

Contact: Lori Klash Winkler 301.296.5487 Email Contact