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MSCI Barra Announces MSCI Global Investable Market Indices Methodology andTransition Plan for the MSCI Standard and Small Cap Indices
Geneva – March 28, 2007 - MSCI Barra, a leading provider of benchmark indices and risk management analytics
products, announced today the details of the MSCI Global Investable Market Indices methodology and the plan fortransitioning the MSCI Standard and Small Cap Indices to the methodology. The transition plan involves a twophase transition implemented as of the close of November 30, 2007 and the close of May 30, 2008, respectively.
“Today’s announcement will result in enhancements to the existing MSCI International Equity Indices as well as thecreation of new indices. The resulting integrated investable family of indices will provide investors with broader
market coverage of international equity markets segmented by market cap size, value and growth, and industries,"
said Henry Fernandez, CEO and President of MSCI Barra. “The changes announced today demonstrate that as
markets and investment processes continue to evolve, MSCI Barra remains committed to enhancing the MSCIInternational Indices to provide the benchmark tools investors need for global asset allocation, mandate attribution,portfolio construction, and performance evaluation”.
MSCI Barra has posted the Global Investable Market Indices methodology book, including the transition plan, on its
website at http://www.mscibarra.com/products/indices/GIMImethodology.html. A pro-forma list of constituents of theMSCI Global Investable Market Indices – including the new Large Cap, Mid Cap, and Investable Market Indices aswell as the Provisional Standard and Provisional Small Cap Indices – will be available on May 3, 2007. Thechanges resulting from the May 2007 Index Review of the current Standard Indices and Small Cap Indices will also
be announced at the same time, earlier than the usual announcement schedule.
MSCI Barra will begin calculating the Provisional Standard and Small Cap Indices based on the Global Investable
Market Indices methodology, as well as the new Large Cap, Mid Cap, and Investable Market Indices, as of theclose of May 31, 2007 and begin distributing the indices from June 5, 2007.
Index Construction and Maintenance Methodology: The enhancements to the current Standard and Small Cap
Index methodologies set forth in the MSCI Global Investable Market Indices methodology reflect the changing
nature of international equity markets and the evolution of investment processes globally. The final methodology islargely similar to the one presented in the earlier consultation proposal with minor changes to the global minimum
size range and parameters for index continuity and periodic maintenance. The enhancements will allow the MSCIStandard and Small Cap Indices to continue to meet the needs of investors seeking indices that reflect theinternational opportunity set and geographic, style and sector diversification within equity global equity markets.
The enhanced Standard Indices will exhaustively cover the large- and mid-cap segments of the investable
equity universe by targeting a range around 85% coverage of the free float-adjusted market capitalization ineach market, while striving to achieve a balance between appropriate market representation in size segmentcomposites within countries and reasonable size integrity across countries.

The enhanced Small Cap Indices will exhaustively cover the small-cap segment of the investable equity
universe by targeting for inclusion all companies with a market capitalization below that of the companies in theenhanced Standard Indices and within the top 99% of the investable equity universe in each market in both
Developed and Emerging Markets, subject to a global minimum size requirement.

The enhanced Standard and Small Cap Indices will be combined to create an Investable Market Index in eachmarket to provide broad and exhaustive coverage of the large-cap, mid-cap, and small-cap companies in theinvestable equity universe, and, along with style segments, result in an integrated investable market index
family.

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For index construction and size segmentation purposes, the MSCI Developed Markets countries in Europe will
be aggregated and treated as a single market. The country indices for MSCI Developed Markets countries
within Europe will be derived from the MSCI Europe Index.

The Global Investable Market Indices methodology will continue to use a building block approach to allow
the creation and calculation of meaningful composite indices. The Global Investable Market Indicesmethodology also features sector indices created using the Global Industry Classification Standard(GICS®) and value and growth indices created using the existing MSCI Global Value and Growthmethodology, for all size segments.

Transition: The transition will occur in two phases rather than three phases as was proposed during theconsultation. The details of the transition plan are available in the transition section of the Global Investable MarketIndices methodology book. The transition will be synchronized for all markets and composite indices.
Timeline

The two phases of the transition of the current Standard Index and the current Small Cap Index will occur as ofthe close of November 30, 2007 and May 30, 2008, respectively.

The final additions and deletions of constituents for each phase will be announced at least 4 weeks in advanceof their implementation in the Standard and Small Cap Indices.

Provisional Indices

In order to add transparency to the transition process and to assist clients in planning and implementing theirindividual transition strategies, MSCI Barra will provide Provisional Indices for the Standard and Small Cap
Indices constructed and maintained according to the Global Investable Market Indices methodology.

These Provisional Indices will begin to be calculated as of the close of May 31, 2007 and will be distributed toclients from June 5, 2007.

Transition Methodology
In the first phase of the transition in November 2007, half of the differences between the Provisional Standard
and the Standard Indices will be implemented. That is, all companies in the Provisional Standard Index not in
the Standard Index will be added to the Standard Index at half of their free float-adjusted market capitalization,and companies in the Standard Index and not in the Provisional will have half of their free float-adjusted market
capitalization removed.

In the second and final phase of the transition in May 2008, after the rebalancing of the Provisional Indices, any
and all differences between the MSCI Standard and the MSCI Provisional Standard Indices will be fullyreflected in the MSCI Standard Index.

The transition of the Small Cap Indices will follow the same approach.

Maintenance of the Current Standard and Small Cap Indices during the Transition

MSCI Barra will maintain its schedule of regular index reviews for its current Standard and Small Cap Indices.

During the period from the announcement of the pro forma constituents to the end of the transition (May 3,2007 through May 30, 2008), MSCI Barra will seek to minimize changes in the current indices not related to thetransition.

In order to minimize reverse turnover, starting with the May 2007 Index Review for the Standard Indices will
use the same minimum size and other investability requirements that will be applied in the construction of theProvisional Standard Indices.

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The changes resulting from the May 2007 Index Reviews of the current Standard and Small Cap Indices will beavailable on May 3, 2007 at the same time the pro-forma list of constituents of the MSCI Global Investable
Market Indices, including the Provisional Indices, are made available.

MSCI Global Value and Growth Indices
The MSCI Global Value and Growth Indices will continue to be derived from the Standard Indices and follow
the two-phase transition of the Standard Indices. Starting with the first phase of the transition in November
2007, the constituents of the Global Value and Growth Indices will adopt the style inclusion factors of theProvisional Standard Indices.

Indices based on the Standard Indices

Indices constructed with the Standard Indices as their basis, such as the High Dividend Yield Indices, GDPweighted indices, 10/40 Indices and other custom indices, will continue to be derived from the Standard Indicesthroughout the transition.

The MSCI Euro and MSCI Pan-Euro Indices are subsets of the Standard MSCI EMU and MSCI Europe
Indices, respectively, and aim to capture 90% of the market capitalization of the broader benchmarks. TheMSCI Euro and MSCI Pan-Euro Indices will now evolve to the methodology for the Large Cap Index under theGlobal Investable Market Indices methodology and will be transitioned in one phase as of the close ofNovember 30, 2007.

Standalone Country Indices: MSCI Barra also intends to apply the general framework used to create the Global
Investable Market Indices to the MSCI stand-alone country indices.
This approach will target broader coverage of those markets while satisfying investability requirements that arereasonable and relevant for these countries and offer non-overlapping size segmentation with exhaustive
coverage of the size segments.

For countries included in the MSCI GCC (Gulf Cooperation Council) Countries Index, MSCI Barra will
announce the methodology and implementation schedule on May 3, 2007.

Documents: The methodology documents for the Global Investable Market Indices are available at
http://www.mscibarra.com/products/indices/GIMImethodology.html.
MSCI Barra has clarified and updated its methodology for country classification of securities. Please refer toAppendix I of the Methodology Book for the Standard or Small Cap Index Series, posted at www.mscibarra.com, forthe full document. The clarifications and updates are effective immediately.

Further information on the MSCI International Equity Indices can be found on www.mscibarra.com.
###About MSCI Barra
MSCI Barra develops and maintains equity, fixed income, multi-asset class, REIT and hedge fund indices thatserve as benchmarks for an estimated USD 3 trillion on a worldwide basis. MSCI Barra’s risk models and analytics
products help the world’s largest investors analyze, measure and manage portfolio and firm-wide investment risk.
MSCI Barra is headquartered in New York, with research and commercial offices around the world. Morgan
Stanley, a global financial services firm and a market leader in securities, asset management, and credit services,
is the majority shareholder of MSCI Barra, and Capital Group International, Inc. is the minority shareholder.

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Aatish Suchak, MSCI Barra, London
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Jackson Wang, MSCI Barra, San Francisco
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Jun Nishiyama, MSCI Barra, Tokyo+ 44.20.7618.2222+ 1.212.762.5790+ 1.415.576.2323+ 852.2848.7333+ 61.2.9220.9333+ 813.5424.5470

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