iShares Trust
N-SAR filing dated 8/31/03
Attachment for Item 77E

The Trust has reached a settlement in an action in the U.S.  District  Court for
the Northern  District of Illinois.  In the action, a company named Mopex,  Inc.
and a company  named  Realtimemutualfunds.com  alleged  that the  actions of the
Trust and others  infringed a patent held by Mopex, and that the parties engaged
in a "conspiracy"  amongst  themselves to infringe the patent. The patent itself
was found to be invalid in a related  action to which the Trust was not a party.
In the  settlement,  the  plaintiffs'  claims and allegations are dismissed with
prejudice,  and  neither  the  Trust  nor  any  other  defendant  will  pay  any
compensation to the plaintiffs.