Date: November 6, 2002

NEW YORK and LONDON — FTSE Group, the global index company, has reached a significant milestone in its expansion plans in the United States. FTSE and the American Stock Exchange(R) (Amex(R)), the leader and pioneer of exchange-traded funds (ETFs), today announced an agreement to promote the creation of ETFs for the U.S. marketplace.

FTSE and Amex ETF Services, which provides comprehensive, turnkey solutions to ETF issuers, sponsors and service providers, will work together to identify potential sponsors that will create ETFs, based on FTSE indexes, which will be listed for trading in the United States. Sponsors should be selected before the second half of 2003.
The first exchange-traded fund indexes that the Amex and FTSE will focus on include the FTSE 100, the blue-chip benchmark index for the London Stock Market, FTSE Global Sector Indexes and the FTSE4Good Series of Socially Responsible Indexes.

“We enjoy a strong relationship with the American Stock Exchange and in a crowded marketplace, this affiliation allows FTSE to tap into the Amex’s expertise and resources to help us create unique exchange-traded funds that meet the needs of investors seeking diversified portfolios,” said Mark Makepeace, Chief Executive, FTSE Group.
FTSE enters the U.S. ETF marketplace from a position of strength overseas. In the U.K., more ETF assets are linked to FTSE indexes than any other provider. In Europe, FTSE indexes are a primary choice for the creation of exchange-traded funds and the FTSE Global Sector Indexes are the basis for some of the leading sector-based ETFs.

The American Stock Exchange pioneered the creation of the ETF in 1993 and today lists and trades 125 ETFs, more than any other exchange in the U.S. The Amex’s market leadership in ETFs has also led to agreements with exchanges outside the U.S. and enabled the Amex to cross-list and trade ETFs with other leading exchanges around the world.

“The American Stock Exchange has always looked for ways to bring new diversified investment opportunities to investors,” said American Stock Exchange Chairman and CEO Salvatore F. Sodano. “FTSE Group is known for developing sound and reliable indexes, and we’re very pleased to partner with them to identify new opportunities to bring more of these increasingly popular products to the marketplace.”

Today’s agreement furthers the relationship between FTSE Group and the American Stock Exchange. Earlier this year, Mr. Sodano was appointed to the FTSE/Xinhua Index Committee, which oversees the FTSE/Xinhua series of Chinese indexes.