Listing in London

Santiago

12th June 2008

The world’s capital market

2

Global platform for global institutional investors

Global institutional

investor base

Local market

US Institution

al Investors

144A

Regional funds

and retail investors

USA Middle East

Asia Eastern Europe

Europe UK

3Source: London Stock Exchange statistics – December 2007

London Stock Exchange - key statistics

Total companiesDomestic: 2,550International: 675

Market capitalisation Main Market: UK listed: US$3,570bnInternational listed: US$4,398bnAIM: US$181bn

Turnover value (Jan-Dec 2007) Main Market: US$8,054bn

AIM: US$150bn

London Stock Exchange

4Source: IPREO 2007

More international equity assets under management

London has a far bigger international presence and weight. 45% of equity assets under management are invested in international markets.

New York is a larger but mainly domestic market.

0

1000

2000

3000

4000

5000

6000

7000

International

Domestic

Equity assets under management by centre.

In US$ billions

5

The platform of choice for international companies

In 2006: London Stock Exchange - 367 new companies joined in 2006. NYSE, Nasdaq & Hong Kong Stock Exchange had 332 IPOs

in 2006.

$104bn raised on the London Stock Exchange, $40bn on NYSE, and $29bn on Nasdaq

In 2007:London Stock Exchange - 252 new companies joined the London Stock Exchange, 142 new companies on Nasdaq, 67 on NYSE

$88bn raised on the London Stock Exchange.

Source: London Stock Exchange and WFE – December 2007

0

50

100

150

200

250

300

350

400

450

2000 2001 2002 2003 2004 2005 2006 2007 2008

London Stock ExchangeNasdaqNYSE

Q1, 2008

6

Leader in cumulative capital raised at IPO

General Market Summary

Investment Flows - Cumulative Total Funds Raised ($US million) since Jan 2005 by Shares at Initial Public Offering (IPO), Comparing Various Exchanges.

Source: World Federation of Exchanges

London Stock Exchange

$0

$10,000

$20,000

$30,000

$40,000

$50,000

$60,000

$70,000

$80,000

$90,000

$100,000

$110,000

$120,000

$130,000

$140,000

Jan-

05

Mar

-05

May

-05

Jul-0

5

Sep-0

5

Nov-05

Jan-

06

Mar

-06

May

-06

Jul-0

6

Sep-0

6

Nov-06

Jan-

07

Mar

-07

May

-07

Jul-0

7

Sep-0

7

Nov-07

$US

mil

lio

n -

cu

mu

lati

ve t

ota

l

NASDAQ

NYSE

London Stock Exchange

Hong Kong Stock Exchanges

Source: London Stock Exchange and WFE – December 2007

7

Comparing UK and US as listing locations

London and New York exchanges offer optimal profile London has world’s highest reputation for regulation and

governance Principles-based (UK) versus rule-based (US) approach

London has the most liquid equity market in Europe London has the world’s most successful growth market (AIM) London Stock Exchange offers world’s only location for liquid and

transparent trading of GDRs

London combines simple, flexible disclosure with high reputation of regulators

US disclosure regime more prescriptive, exacerbated by need to protect against opportunistic securities litigation

London offers rapid turnaround by regulators, and limits the time regulators can take to approve offer documents

US: SEC review periods longer, with no certainty on turnaround time

AIM offers potentially shorter transaction timetable

Timing

Disclosure

Trading

Cost-benefit analysis favours London

Profile

8

Optimal Least suitable

Comparison of international listing locations

High profile

Rapid timing Simplified disclosure

Trading / liquidity

London Stock Exchange

NYSE / Nasdaq

Bovespa

Strategic financings from global companies will converge on London or New York

9

An intelligent approach to regulation

Balance Competing Needs

Companies Investors

Minimise bureaucracy

and cost

Maximise protection

US

UK

Ranked first in corporate governance standards by GMI, Deminor and Davis Global Advisors

Increased cost of compliance and risk premium (Financial Executive & Korn Ferry Surveys)

Principles based - “comply or explain”

Rules based - prescriptive and expensive

10

Corporate Governance and regulatory framework

Sarbanes–Oxley has increased the costs of listing in US:• Has it improved governance standards in USA?• No evidence that Sarbanes–Oxley delivers benefits beyond

those that apply under the UK regime• The Cost of Capital: An International Comparison - report

available here:

http://www.londonstockexchange.com/NR/rdonlyres/B032122B-B1DA-4E4A-B1C8-42D2FAE8EB01/0/Costofcapital_full.pdf

London Stock Exchange – intelligent regulation

The UK’s intelligent approach to regulation & the success The UK’s intelligent approach to regulation & the success of the Combined Code is the foundation for Europe’s deepest of the Combined Code is the foundation for Europe’s deepest pool of capital in Europe pool of capital in Europe andand why our Main Market is one of why our Main Market is one of

the world’s most cost-efficient to accessthe world’s most cost-efficient to access

11

Corporate governance: overall rating by country

3.34

4.20

4.73

5.08

5.61

5.85

6.15

6.40

7.25

7.31

7.39

7.40

0 1 2 3 4 5 6 7 8

China

Mexico

Spain

India

Switzerland

Norway

Germany

Finland

USA

Canada

Ireland

UK

Principles-based regulation: high standard, pragmatic application

No equivalent to Sarbanes-Oxley section 404

An intelligent approach.

Most advanced regulation and governance

Source: Governance Metrics International, 2007

12

Main features

Setting the standard for excellence Where ideas take off

Highest standards of regulation

Largest institutional investor base

Deepest capital pool

Most liquid trading platforms

Enhanced profile and status

Investable indices

Easier entry requirements

Flexible regulatory regime

Specialist small-cap institutional & retail investor base

Variety of tax benefits may be available

Bespoke indices

London Stock Exchange

13

The widest choice of proven global markets

A choice of globally respected markets supported by a wide range of institutional & retail investors

Supports more established companies seeking further

growth.1,550 issuers

Supports earlier stage companies in their initial

growth period.1,675 issuers

Main Market

Sponsor

UK Listing AuthorityNominated Adviser (Nomad)

14

The world’s most successful growth market

15

• AIM companies: 1,675

• Overseas AIM companies: 343 (non UK incorporated)

• IPOs on AIM in 2007: 182

• Total capital raised in 2007: US$32.4bn• US$13.2bn New • US$19.2bn Further

• Capital raised (new & further) since 1995: US$115bn

Key Statisti

cs

Source: London Stock Exchange trade statistics – April 2008

The widest choice of proven global markets

16

AIM – critical mass to support growth

Source: London Stock Exchange trade statistics –April 2008

123145

10775

102

277

177160 162

355

519

462

284

41

0

100

200

300

400

500

600

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Nu

mb

er o

f ad

mis

sio

ns

Number of IPOs

Q1, 2008

17

118

235286 291

325

493

587

654694

905

1,179

1330 1,347 1,332

3 17 22 21 22 31 42 50 60116

220

304347 343

0

200

400

600

800

1000

1200

1400

1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 toApr

UK International

As at April 2008, there were 1675 companies on AIM of which 343 were international with a combined market capitalisation of £91billion.

590 companies have their primary business outside the UK

Source: London Stock Exchange trade statistics – April 2008

AIM today

18

Raising new and further capital on AIM

Source: London Stock Exchange trade statistics – April 2008

2006- More money was raised on AIM in 2006 ($31bn) than on NASDAQ ($29bn)2007- More money was raised on AIM in 2007 ($32bn) than on NASDAQ ($20bn)

2000 2001 2002 2003 2004 2005 2006 2007 2008

New Further

6.1

2.32.0

4.2

9.3

17.9

31.432.4

2.93

Funds raised in ($bn)

Q1, 2008

19

AIM - company size

Source: London Stock Exchange trade statistics – April 2008

0

50

100

150

200

250

300

350

400

Less than$5m

$5m - $10m

$10m - $20m

$20m - $50m

$50m - $100m

$100m - $200m

$200m - $500m

$500m -$1000m

$1000m - $2000m

over$2000m

Market Value ($)

No

of

Co

mp

an

ies

Apr-08 Apr-07

20

A diverse market

Source: London Stock Exchange trade statistics – April 2008

-

5,000

10,000

15,000

20,000

25,000

30,000

Min

ing

Oil &

Gas

Pro

du

cers

Real E

sta

te

Gen

era

l

Fin

an

cia

l

Su

pp

ort

Serv

ices

Eq

uit

y

Investm

en

t

Intr

um

en

ts

So

ftw

are

Co

mp

ute

r &

Serv

ices

Tra

vel &

Leis

ure

Med

ia

Fo

od

Pro

du

cers

Mkt

Val

ue

($m

)

0

20

40

60

80

100

120

140

160

180

200

Nu

mb

er o

f co

mp

anie

s

Latest Market Value $

Number of Companies

Top AIM sectors by market value & no. of companies April 08

21

AIM – The market of choice for growing Mining companies

2002 2003 2004 2005 2006 2007

New Further

309598

1,656

2,194

3,552

5,262

Mining companies on AIM: Money raised ($m)

Source: London Stock Exchange April 08.

22

Flexible regulationAdmission Rules

• No minimum size to be admitted

• No minimum financial history required

• No minimum amount of shares to be in public hands

• In most cases, no prior shareholder approval required for transactions

• Admission documents not pre-vetted by Exchange or UKLA but by nominated adviser

Nominated adviser (Nomad) required at all times

Appropriate regulation and oversight

23

Continuing obligations

• AIM companies are subject to the AIM Rules which outline the continuing obligations of being on a public market. Key continuing obligations are:

• AIM companies must have a Nomad at all times, otherwise they will be suspended from the market

• AIM companies must disclose all price sensitive information in a timely manner including substantial transactions, related party transaction, reverse takeovers and other miscellaneous transactions

• Half yearly and annual report and accounts required in adherence with deadlines• All directors accept full responsibility, collectively and individually for the AIM

Rules• Restrictions on deals for directors and applicable employees on AIM securities

during close periods• UK Corporate Governance standards as best practice

Appropriate regulation and oversight

24Source: GCI Institutional Investors in AIM survey 2007

Institutional Investors on AIM – Sector breakdown

AIM has a deep pool of institutional investors

25

Institutional Investors on AIM – Most active

Source: GCI Institutional Investors in AIM survey 2007

26

Fidelity Investments

Value of largest holdings, 2006

$ million*

- Sportingbet Leisure $268

- Imperial Energy Oil & gas 117

- First Calgary Oil & gas 91

- Centurion ElectronicsElectronics 60

- PIPEX Comms Telecoms 57

- Highland Gold Mining 53

- Clipper Windpower Electricity 47

- Star Energy Oil & gas 41

- Asia Energy Coal 39

- Serica Energy Oil & gas 39

Artemis Investment Management

Value of largest holdings, 2006

$ million*

- Star Energy Oil & gas $60

- Develica Deutschld Equity fund49

- Cape Support ser47

- Genesis Oil & gas 44

- Coda Software 41

- Speymill Real estate30

- European GoldfieldsMining 30

- Prosperity Minerals Bldg Mats 30

- Equest Balkan Real estate29

- Imperial Energy Oil & gas 28Source: Teather & Greenwood, Growth Company Investor* Translated into $ at £1.00 = $1.90Data for year 2006

Leading investors

Institutional investors understand AIM

27

To summarise… why choose AIM

• The world’s most successful growth market

• An internationally focused, professional investor base

• Comprehensive research coverage for international companies

• A more flexible approach to regulation

• Better value than NYSE or NASDAQ

• A global platform

The Exchange of choice for companies wishing to access the international capital markets

28

New York Listing

• Higher cost

• Slower to market

• Higher risk

• Sarbanes Oxley

• Section 404

• Class actions

London Listing

• Access to global capital

• Lower cost

• Lower risk

• Faster to market

• Intelligent regulation

The world’s capital market

29

Contact us

Graham DallasHead of Business Development – The Americasgdallas@londonstockexchange.com +44 (0) 20 7797 4055

Anne MoulierBusiness Development Manager– Latin Americaamoulier@londonstockexchange.com +44 (0) 20 7797 4584

Website: www.londonstockexchange.com