iPath® CBOE S&P 500 BuyWrite Index(SM) ETN

The iPath^® CBOE S&P 500 BuyWrite Index

ETN offers investors cost-effective exposure to the CBOE S&P 500 BuyWrite Index

, commonly known as the BXM Index

(the "Index"). The Index is designed to measure the total rate of return of a hypothetical "buy-write", or "covered call", strategy on the S&P 500^® Index. This strategy consists of a hypothetical portfolio consisting of a "long" position indexed to the S&P 500^® Index (i.e. purchasing the common stocks included in the S&P 500^® Index) and the sale of a succession of one-month, at– or slightly out-of-the-money S&P 500^® Index call options that are listed on the Chicago Board Options Exchange ("CBOE").

The following is a chart of the hypothetical average call premiums earned from the deemed sale of a succession of one-month, at-the-money or slightly out-of-the-money call options on the S&P 500® Index. This monthly deemed income component combined with the monthly return on a long position in the S&P 500® Index would equal the strategy's monthly return.

Monthly Call Premiums: CBOE S&P 500 BuyWrite Index^SM (% of S&P 500® Index underlying value) (As of 08/29/2008)

Sources: CBOE, S&P, BGI 06/88-08/08.

Index returns are for illustrative purposes only and do not represent actual iPath ETN performance. Index performance returns do not reflect any investor fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

"Standard & Poor's®", "S&P®", "S&P 500®", "Standard & Poor's 500", and "500" are trademarks of Standard & Poor's, a division of The McGraw-Hill Companies, Inc. ("S&P") and "BuyWrite" and "CBOE" are trademarks of the Chicago Board Options Exchange, Incorporated ("CBOE"). These marks have been licensed for use by Barclays Bank PLC. The Securities are not sponsored, endorsed, sold or promoted by S&P or CBOE and S&P and CBOE make no representation regarding the advisability of investing in the Securities.