• ETFS Physical Platinum (PHPT) demand surges 265% in 2008, accounting for 54% of precious metal demand
• 361,540 platinum ounces held representing 5% of annual world demand
• 220,980 palladium ounces held representing 2.5% of annual world demand
• Total Precious Metal ETC assets burst through US$2 billion in 12 months as weekly volumes increase over 500% to $200 million

ETF Securities Limited, the global pioneer of exchange traded commodities (ETCs), has seen demand for platinum and palladium ETCs rise sharply, bringing total ounces under management to US$880 million. The ETCs now hold 361,540 ounces of platinum and 220,890 ounces of palladium, equivalent to around 5% and 2.5% of annual world demand respectively. Platinum and palladium prices have been benefiting from investor demand for commodities and assets which are non-correlated to equities. As a result, precious metal ETC assets have grown by over 1,000% in the past 12 months, adding over $2 billion to $2.2 billion.

In particular, ETFS Physical Platinum (PHPT) has been a major beneficiary of this trend, with total assets increasing by 265% to $740 million since 31 December 2007. The price of ETFS Physical Platinum (PHPT) is up 39% year-to-date and has risen over 60% during the past twelve months. With this extraordinary growth, ETFS Physical Platinum (PHPT) has been the most popular individual commodity in 2008. Platinum now contributes approximately 15% to total assets and 38% to physical precious metal ETC assets. In 2008, ETFS Physical Platinum (PHPT) has contributed 54% of all physical precious metal ETC inflows and has been the most popular individual commodity.

Palladium prices have tended to follow platinum prices with ETFS Physical Palladium’s (PHPD) price gaining 21% since the beginning of the year. While secondary to platinum in terms of demand, trading in palladium has tended to be used to benefit from short-term price differentials between platinum and palladium. Total assets in ETFS Physical Palladium (PHPD) have increased by over 750% to $85 million since 31 December 2007.

The third way investors can gain exposure to physical platinum and palladium is through ETFS Physical PM Basket (PHPM), a basket of four physical precious metals including a 21% allocation to platinum and a 12% allocation to palladium. ETFS Physical PM Basket (PHPM) has grown by 100% in 2008 to $120 million. The ETCs now hold $880 million of platinum and palladium.

In addition to physically-backed ETCs, ETF Securities recently launched a platform of short and leveraged ETCs in February 2008 priced off Dow Jones – AIG Commodity IndicesSM and which include ETFS Short Platinum (SPLA) and ETFS Leveraged Platinum (LPLA). These new ETCs open up a range of new investment and trading strategies for both strategic and tactical investors. Short ETCs enable investors to gain from falls in commodity prices and Leveraged ETCs enable investors to gain from rising commodity prices, providing exposure with 50% less capital.

In total, ETF Securities now offers sixteen precious metal ETCs which give investors the choice of physical, long, leveraged and short exposure to platinum, palladium, gold, silver and baskets of precious metals. ETCs are simple to access, being traded in three currencies (Euros, USD and Sterling) and listed on five major European Exchanges including the London Stock Exchange, Euronext Paris, Euronext Amsterdam, Deutsche Borse and Borsa Italiana. Each Exchange has created unique ETC trading segments resulting in trading volumes exploding by 500% to over $600 million per week. Of this, precious metal ETC trading contributes 30% of total volumes, having increased from $30 million per week to approximately $200 million, an increase of 565% in 2008. Total precious metal ETC assets have increased by $2 billion in the past twelve months to over $2.2 billion.

All physical precious metal ETCs are backed by physical, allocated metal - uniquely identifiable bars which carry no bank credit risk. The precious metal bars and ingots are held in trust in London by the Custodian HSBC Bank USA N.A., who is the world's leading Custodian for ETCs. The metal held with the Custodian must conform to the rules for Good Delivery of the London Bullion Market Association (LBMA) and London Platinum Palladium Market (LPPM). ETCs are only issued once metal is confirmed as being deposited into the Issuer’s bullion account with the Custodian.

Commenting on the response of investors for ETF Securities’ precious metal ETCs, Nik Bienkowski, Chief Operating Officer, said:

“The success of our platinum and palladium ETCs has been overwhelming. Substantial interest has come from investors who have sought safe havens from the continued uncertainty facing most traditional asset classes. Investors have also been moving into precious metals as a hedge against rising inflation and potential further weakening of the US dollar. In addition, power shortages due to significant under investment in capex around the globe has thus far had greatest impact on South Africa and platinum production.

Since May 2007 platinum has been one of the most popular ETCs and in 2008, ETFS Physical Platinum (PHPT) has been the most popular individual commodity. This is evident in the fact that ETFS Physical Platinum (PHPT) now contributes 5% to global annual platinum demand. Over $880 million of physical platinum and physical palladium is held on behalf of ETC investors and we would expect this to reach $1 billion in the not too distant future.”

For further information, please contact:

Roman Townsend
Penrose Financial
Tel: +44 (0) 20 7786 4875

Notes to editors:

The management of ETF Securities Limited pioneered the development of Exchange Traded Commodities (ETCs), in 2003. Building on its success ETF Securities created the world’s first entire ETC platform which was listed on the London Stock Exchange in September 2006. Since then, ETF Securities has listed its ETCs on Europe’s major exchanges (Frankfurt, Paris, Amsterdam and Italy) with each exchange creating a separate ETC segment. With Classic, Forward, Short and Leveraged ETCs available, investors can execute most trading and investment strategies previously not possible.

ETF Securities continues its series of conferences for finance professionals:

Overview of the fundamentals of each Precious metals: Platinum, Palladium, Silver and Gold

Date: 12th June
Time: 12:00am - 19:00pm London Time
City: London, Venue: TBC
Guest Speakers:

David Jollie (Johnson Matthey)

Click here to register
http://www.etfsecurities.com/en/events/etfs_events_calls.asp

To learn more about ETF Securities go to: www.etfsecurities.com

This press release does not constitute or form part of any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for, any transferable securities to be issued by ETFS Commodity Securities Limited or any other securities, nor shall it or any part of it nor the fact of its distribution form part of or be relied on in connection with any contract or investment decision relating thereto. Any offer, invitation or solicitation shall be made solely by means of the prospectus and recipients of this advertisement who are considering a purchase of securities following distribution of the prospectus in connection therewith are reminded that any such purchase should be made solely on the basis of the information contained in such prospectus and any supplementary prospectus(es). This advertisement does not constitute any recommendation regarding the securities of ETFS Commodity Securities Limited.

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This is not an offer of securities for sale in the United States. Securities issued by Commodity Securities Limited (“ Securities”) have not been and will not be registered under the US Securities Act or any other applicable law of the United States. These Securities are being offered and sold only outside the United States to non-US persons in reliance on the exemption from registration provided by Regulation S of the US Securities Act. The Issuer has not been and does not intend to become registered as an investment company under the Investment Company Act and related rules. These Securities and any beneficial interest therein may not be reoffered, resold, pledged or otherwise transferred in the United States or to US persons. If the Issuer determines that any Security Holder is a Prohibited US Person (being a US Person who is not a "qualified purchaser" as defined in the Investment Company Act), the Issuer may redeem the Securities held by that Security Holder in accordance with the provisions described in the Prospectus. The Securities may not be purchased with plan assets of any "employee benefit plan" within the meaning of section 3(3) of the United States Employee Retirement Income Security Act of 1974, as amended ("ERISA"), any "plan" described in section 4975(e)(1) of the United States Internal Revenue Code of 1986, as amended (the "Code") or any entity whose underlying assets include "plan assets" of any of the foregoing by reason of an employee benefit plan's or other plan's investment in such entity, which employee benefit plan, plan or entity is subject to Title I of ERISA or section 4975 of the Code or any United States Federal, state, or local law or non-United States law that is substantially similar to the prohibited transaction provisions of section 406 of ERISA or section 4975 of the Code (any such employee benefit plan, plan or entity, a "Prohibited Benefit Plan Investor"). If the Issuer determines that any Security Holder is a Prohibited Benefit Plan Investor, the Issuer may redeem the Securities held by that Security Holder in accordance with the provisions described in the Prospectus relating to those Securities."

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