iShares Trust
Attachment for Item 77E - Legal Proceedings
N-SAR filing dated 4/30/2002


In April 2002, the judge overseeing an ongoing action in the U.S. District Court
for the  Northern  District  of  Illinois  granted  leave  for a  United  States
patentholder  named MOPEX,  Inc. to amend its complaint to add the Trust,  along
with  seven  other  parties,  as a  defendant.  There  are now a total of twenty
defendants,  including the Trust's  investment  advisor,  other exchange  traded
funds,  various fund service providers and market makers,  and the Chicago Stock
Exchange,  Inc. In the action,  the  plaintiff  alleges  that the actions of the
parties,  now including the Trust,  infringed  their  patent.  In addition,  the
plaintiff alleges that the parties engaged in a "conspiracy"  amongst themselves
to infringe  the patent.  Although  this is the only case to which the Trust has
been named as a party, this action is one of three involving related issues. The
Trust  believes  that  it  has  valid  defenses  to  all  claims  raised  by the
patentholder.  However,  a resolution of this case may impose increased costs on
the Trust and thus raise the expense  ratios of the Funds,  adversely  affecting
performance.