Financial Research Corporation and College Savings Foundation Report: Index Funds Represent Fastest Growing Segment of 529 Plan Investment Options

BlackRock, Inc. (NYSE: BLK) announced that its iShares® Exchange Traded Funds (ETFs) business, the world’s largest manager of ETFs, recognized that, according to a recent report by the Financial Research Corporation (FRC) and the College Savings Foundation (CSF), index investment options appear to be the fastest growing segment of 529 plan investment options.

According to the report, CSF members (who manage between 40-45% of overall assets in the 529 industry) reported that, as of December 31, 2010, over $5 billion was invested in index options -- a nearly 10% increase in assets on a quarterly basis and a nearly 25% increase on an annual basis. This compares to assets under management (AUM) increases of approximately 8% and 18%, respectively, for the population overall. Gross sales in the fourth quarter 2010 in index options increased 23% on a year-over-year basis from 2009. And net contributions into index investment options almost tripled in the fourth quarter 2010 as compared to the third quarter.1

The iShares 529 Plan -- available through financial advisors -- is the only 529 plan with all ETFs as the underlying investments.

Like other index-based Plans, the iShares 529 Plan has seen flows grow dramatically, with AUM doubling year over year.2

“We are seeing steady and significant growth in the iShares 529 Plan,” says Stephen Jobe, Director, iShares 529 Plan at BlackRock. “The inflows demonstrate an increasing appetite among clients and their advisors for a 529 plan with many of the same benefits as ETFs themselves.”

Benefits of ETFs in a 529 Plan: Transparency, No Style-Drift and Low Cost

Transparency. “529 plans with portfolios that invest in index-based ETFs can provide clients and their advisors with the peace of mind that comes from knowing what you own,” says Jobe.

The ETFs in the Plan are all based on popular indices, and the iShares 529 Plan updates all the holdings of each underlying ETF on its website daily.

No Style-Drift. Many ETFs are specifically designed to closely follow specific indices, providing access to specific sectors and asset classes.

“An extra measure of comfort comes from knowing that the underlying ETFs in the iShares 529 Plan are consistent with the portfolio’s objective,” says Jobe.

Low Cost. The average asset-based fees for the iShares 529 Plan are the lowest in the industry for advisor-sold 529 plans. According to data as of December 31, 2010, released by FRC this month, the industry average annual asset-based fee for advisor-sold 529 Plans was 1.16%, compared to 0.62% for the iShares 529 Plan.3

“Advisors and their clients are understandably focused on getting the most value for their investment, and constructing a 529 plan with low fees was central to our product development process,” said Jobe.

A useful tool can be found on the iShares 529 Plan website, which enables users to compare any two 529 Plans, to see the effects of fees on the Plans’ returns. Point your browser to:

https://ishares529.s.upromise.com/content/adv_comparisoncalculator.html

For more information about the iShares 529 Plan, please visit www.ishares529.com.

About iShares

iShares is the global product leader in exchange traded funds with over 460 funds globally across equities, fixed income and commodities, which trade on 19 exchanges worldwide. The iShares Funds are bought and sold like common stocks on securities exchanges. The iShares Funds are attractive to many individual and institutional investors and financial intermediaries because of their relative low cost and trading flexibility. Investors can purchase and sell shares through any brokerage firm, financial advisor, or online broker, and hold the funds in any type of brokerage account. The iShares customer base consists of the institutional segment of pension plans and fund managers, as well as the retail segment of financial advisors and high net worth individuals.

About BlackRock

BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. At March 31, 2011, BlackRock’s AUM was $3.648 trillion. BlackRock offers products that span the risk spectrum to meet clients’ needs, including active, enhanced and index strategies across markets and asset classes. Products are offered in a variety of structures including separate accounts, mutual funds, iShares® (exchange-traded funds), and other pooled investment vehicles. BlackRock also offers risk management, advisory and enterprise investment system services to a broad base of institutional investors through BlackRock Solutions®. Headquartered in New York City, as of March 31, 2011, the firm has approximately 9,300 employees in 26 countries and a major presence in key global markets, including North and South America, Europe, Asia, Australia and the Middle East and Africa. For additional information, please visit the Company's website at www.blackrock.com.

For more information about the iShares 529 Plan, contact your financial advisor, call 1-888-529-9552 or visit www.ishares529.com to obtain a Program Description and Participation Agreement which includes investment objectives, risks, charges, expenses, and other important information; read and consider it carefully before investing or sending money. Upromise Investments, Inc., Co-Distributor and Underwriter; BlackRock Fund Distribution Company, Co-Distributor.

If you are not an Arkansas taxpayer, consider before investing whether your or the designated beneficiary’s home state offers any state tax or other benefits that are only available for investments in such state's qualified tuition program.

The iShares 529 Plan is a college tuition savings program sponsored by the State of Arkansas and is administered by the Arkansas 529 Plan Review Committee. Upromise Investments, Inc., and Upromise Investment Advisors, LLC, serve as the Program Manager and Recordkeeping and Servicing Agent, respectively, with overall responsibility for the day-to-day operations, including marketing and co-distribution of the Plan. BlackRock Fund Distribution Company also has responsibility for co-distribution of the Plan. BlackRock Institutional Trust Company, N.A., serves as Investment Manager for the Plan. The Plan’s portfolios, although they invest in exchange traded funds, are not exchange traded funds. Units of the Portfolios are municipal securities and the value of units will vary with market conditions.

Investing involves risk, including possible loss of principal. Diversification and asset allocation may not protect against market risk.

Neither the iShares 529 Plan nor the underlying iShares Funds are sponsored, endorsed issued, sold or promoted by Russell Investment Group, nor are they sponsored, endorsed or issued by Barclay’s Capital Inc. None of these companies make any representation regarding the advisability of investing in the portfolios of the underlying investments. Neither Upromise nor BlackRock, Inc., or any of their affiliates are affiliated with the company listed above.

The information is for illustrative and educational purposes only. This information should not be relied upon as investment advice.

Neither BlackRock Institutional Trust Company, N.A., and its affiliates nor Upromise and its affiliates provide tax advice. Please note that (i) any discussion of U.S. tax matters contained in this communication cannot be used by you for the purpose of avoiding tax penalties; (ii) this communication was written to support the promotion or marketing of the matters addressed herein; and (iii) you should seek advice based on your particular circumstances from an independent tax advisor.

BlackRock Institutional Trust Company, N.A., and BlackRock Fund Distribution Company are subsidiaries of BlackRock, Inc., none of which is affiliated with Upromise.

© 2011 BlackRock Institutional Trust Company, N.A. iShares® is a registered trademark of BlackRock Institutional Trust Company, N.A. All other trademarks, servicemarks or registered trademarks are the property of their respective owners. 529-0173-0411

* Not FDIC Insured * No Bank, State or Federal Guarantee * May Lose Value

1 Source: College Savings Foundation 529 Data Report 4Q10, released February 24, 2011.

2 Source: BlackRock. 12/31/2010.

3 Source: FRC, “529 College Savings Quarterly Data Update – Fourth Quarter 2010,” released February 2011. The average of 1.16 in the advisor-sold channel includes only A- and single-share classes.