About the SPADE Defense Index
The SPADE® Defense Index (NYSEarca: DXS) is a modified capitalization-weighted index comprised of publicly traded companies that benchmarks the performance of companies involved with defense, homeland security, and space. The Index is composed of more than 50 firms with representative business activities including: naval vessels, military aircraft, missiles and munitions, battlespace awareness, C4ISR, network centric warfare, homeland security including border security and biometric and screening systems, and space systems.

Index values are distributed by the NYSEarca under the ticker 'DXS'. The Powershares Aerospace & Defense Portfolio ETF, designed to track the SPADE Defense Index, trades under the ticker 'PPA'. Historical data for the Index is available from 30 December 1997. The ETF was launched on 26 October 2005.

About the Market
The Defense and Homeland Security market represents nearly 5% of U.S. GDP and includes a number of the world's leading industrial firms as well as those developing the next generation of cutting-edge technologies.

The sector's performance over the past decade has been driven by a global increase in spending by governments for defense and security -- now totaling more than $1 Trillion annually; supplemental budgets in the United States to fund operations in Iraq and Afghanistan and to reset the military after we depart these regions; and the acquisition of commercial aircraft designed to fly with increased fuel efficiencies.

A Decade of Performance
• The sector continues to present opportunities to investors with a strong track record that shows outperformance of the broader market over the past 15 years.

• The Powershares Aerospace & Defense ETF (PPA), which tracks the Index, is highly liquid.