Fund Description: ProShares Ultra FTSE Europe, formerly ProShares Ultra MSCI Europe, is an exchange-traded index fund or Index ETF which is a separate investment portfolio of the ProShares Trust, an open-end investment management company. INVESTMENT OBJECTIVE: The ProShares Ultra FTSE Europe seeks investment results for a single day only, not for longer periods. The Fund seeks daily investment results, before fees and expenses, that correspond to twice (200%) the daily performance of the FTSE Developed Europe Index, formerly MSCI Europe Index. Due to the compounding of daily returns, returns over periods other than one day will likely differ in amount and possibly direction from the target return for the same period. Investors should monitor their ProShares holdings consistent with their strategies, as frequently as daily. INDEX DESCRIPTION: The FTSE Developed Europe Index is comprised of large- and midcap stocks and targets the performance of approximately 500 large- and mid-cap companies. The Index utilizes free float adjusted market capitalizations and components are screened for liquidity. As of June 30, 2012, the Index consists of the following 16 developed market countries: Austria, Belgium/Luxembourg, Denmark, Finland, France, Germany, Greece, Ireland, Italy, the Netherlands, Norway, Portugal, Spain, Sweden, Switzerland and the United Kingdom. The Index is published under the Bloomberg ticker symbol FTR1DEUR. FUND STRATEGY: The Fund invests in equity securities and derivatives that ProShare Advisors believes, in combination, should have similar daily performance characteristics as twice (200%) the daily return of the Index. The Fund invests in financial instruments whose value is derived from the value of an underlying asset, interest rate or index. The Fund invests in derivatives as a substitute for investing in stocks in order to gain leveraged exposure to the Index. ProShare Advisors uses a mathematical approach to investing. Using this approach, the Advisor determines the type, quantity and mix of investment positions that the Fund should hold to approximate the performance of its Index. The Fund may gain exposure to only a representative sample of the securities in the Index, which is intended to have aggregate characteristics similar to those of the Index. FUND MANAGEMENT: ProShare Advisors serves as the investment advisor to the Fund and provides investment advice and management services to the Fund.