SUPPLEMENT DATED JULY 7, 2000

                                       TO

                                  iSHARES, INC.

                                   PROSPECTUS

                                       AND

                       STATEMENT OF ADDITIONAL INFORMATION

                             DATED DECEMBER 30, 1999

                            (AS REVISED MAY 22, 2000)

         THE  INFORMATION IN THIS  SUPPLEMENT  UPDATES THE  INFORMATION  IN, AND
SHOULD  BE READ IN  CONJUNCTION  WITH,  THE  PROSPECTUS  AND  THE  STATEMENT  OF
ADDITIONAL  INFORMATION  OF  ISHARES,  INC.,  EACH DATED  DECEMBER  30, 1999 (AS
REVISED MAY 22, 2000).

AMEX LISTING OF ISHARES MSCI TAIWAN INDEX FUND AND  COMMENCEMENT OF SALES TO THE
PUBLIC

         The American Stock Exchange LLC has approved the listing of the iShares
MSCI Taiwan Index Fund.

         Shares of the iShares  MSCI  Taiwan  Index Fund began to be offered for
sale to the public on June 23, 2000,  and trade on the American  Stock  Exchange
under the ticker symbol "EWT".

AMEX TRADING SYMBOL FOR THE ISHARES MSCI AUSTRIA INDEX FUND (EWO)

         The  iShares  MSCI  Austria  Index Fund  trades on the  American  Stock
Exchange  under the ticker  symbol  "EWO",  not under the ticker symbol "EAO" as
stated on page 8 of the Prospectus.

THE ISHARES MSCI MALAYSIA (FREE) INDEX FUND HAS BEEN RE-OPENED

         Effective  May 26, 2000,  the iShares MSCI  Malaysia  (Free) Index Fund
commenced offers of Creation Units of its iShares for U.S. dollars.

         The Company continues to seek relief from the Malaysian  authorities to
permit it to effect sales and redemptions of Creation Units of the MSCI Malaysia
(Free) Index Fund's  iShares on an "in kind" basis.  There can be no  assurances
that such  relief will be  obtained,  or that the  Company's  decision to permit
offers and  redemptions  of Creation  Units of the MSCI  Malaysia  (Free)  Index
Fund's iShares for U.S. dollars will result in that Fund's iShares trading close
to their net asset value.

SPECIAL  MEETINGS OF SHAREHOLDERS  OF THE ISHARES MSCI CANADA,  JAPAN AND UNITED
KINGDOM INDEX FUNDS

         The  shareholders  of the MSCI Canada Index Fund approved a proposal on
June 27, 2000 to change that fund from "diversified" to "non-diversified".  Such
change became effective immediately.  As a consequence,  the iShares MSCI Canada
Index  Fund is now  subject to the  non-diversification  risks  described  under
"Principal Risk Factors" in the Prospectus.

         Shareholders  of the iShares MSCI Japan and United  Kingdom Index Funds
did  not  approve   proposals  to  change  the  funds  from   "diversified"   to
"non-diversified"  funds  at  special meetings that  had  been  adjourned  until
July 3. Accordingly,  these iShares MSCI Index Funds will continue to operate as
diversified funds.

COMMENCEMENT  OF SALES TO THE PUBLIC OF THE  ISHARES  MSCI BRAZIL  (FREE),  EMU,
SOUTH AFRICA AND USA INDEX FUNDS

         Shares of the iShares  MSCI  Brazil  (Free) and EMU Index Funds will be
offered for sale to the public on a date to be  announced in the Summer of 2000.
Dates for the  commencement  of sales to the  public of the  iShares  MSCI South
Africa and USA Index Funds have yet to be determined. Shares of the iShares MSCI
Brazil and EMU Index Funds have been approved for listing on the American  Stock
Exchange and trading of such shares is expected to commence on the day shares of
the respective Index Funds are first offered to the public.