Proshares Ultra Basic Materials (NYSE: UYM) Action Filed by Bernstein Liebhard LLP

March 11, 2010

Bernstein Liebhard LLP filed a class action lawsuit on March 10, 2010 in the United States District Court for the Southern District of New York, on behalf of all persons who purchased or otherwise acquired shares in the Ultra Basic Materials fund (the “UYM Fund”), an exchange-traded fund (“ETF”) offered by ProShares Trust (“ProShares”), pursuant or traceable to ProShares’ false and misleading Registration Statement, Prospectuses, and Statements of Additional Information (collectively, the “Registration Statement”) issued in connection with shares of the UYM Fund (the “Class”). The Class is seeking to pursue remedies under Sections 11 and 15 of the Securities Act of 1933 (the “Securities Act”).

The complaint names ProShares, ProShare Advisors LLC, SEI Investments Distribution Co., Michael L. Sapir, Louis M. Mayberg, Russell S. Reynolds, III, Michael Wachs, and Simon D. Collier, as defendants (collectively, “Defendants”). ProShares sells its Ultra and UltraShort ETFs as “simple” directional plays. As marketed by ProShares, Ultra ETFs are designed to go up when markets go up; UltraShort ETFs are designed to go up when markets go down. The UYM Fund is one of ProShares’ Ultra ETFs. The UYM Fund seeks investment results that correspond to twice (+200%) the daily performance of the Dow Jones U.S. Basic Materials Index (“DJBMI”). Accordingly, the UYM Fund is supposed to deliver double the return of the DJBMI, which, since its inception on February 1, 2007 through July 30, 2009, has fallen approximately 22.75 percent. Rather than fall 45.50 percent during that period, the UYM Fund fell approximately 54.46 percent.

The complaint alleges the Defendants violated the Securities Act by failing to disclose the following risks, inter alia, in the Registration Statement: (1) if UYM Fund shares were held for a time period longer than one day, the likelihood of catastrophic losses was huge; and (2) the extent to which performance of the UYM Fund would inevitably diverge from the performance of the DJBMI—i.e., the overwhelming probability, if not certainty, of spectacular divergence.

Plaintiffs seek to recover damages on behalf of all Class members who purchased or otherwise acquired shares of ProShares UYM. If you purchased or otherwise acquired ProShares UYM shares, and either lost money on the transaction or still hold the shares, you may wish to join in the action to serve as lead plaintiff. In order to do so, you must meet certain requirements set forth in the applicable law and file appropriate papers no later than March 15, 2010.

There are also lead plaintiff deadlines of April 12, 2010 for the UltraShort Russell MidCap Value fund (NYSE: SJL), and April 14, 2010 for the UltraShort Russell 2000 Proshares Fund (NYSE: SKK).

A “lead plaintiff” is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Bernstein Liebhard LLP, or other counsel of your choice, to serve as your counsel in this action.

If you purchased or otherwise acquired shares in the UYM, SJL, or SKK funds or any ProShares leveraged funds, and either lost money on the transaction or still hold the shares, please contact Joseph R. Seidman, Jr. at (877) 779-1414.

Bernstein Liebhard has pursued hundreds of securities and consumer cases and recovered over $3 billion for its clients. It has been named to The National Law Journal’s “Plaintiffs’ Hot List” in each of the last nine years.

Bernstein Liebhard has also filed cases concerning the SRS, SKF, DUG, DXD, UYG, and SMN funds. You can view a copy of the UYM complaint here.