ASX/SFE Announcement - Calculation Of Cash and Share Alternative

On 27 March 2006, SFE Corporation Limited (“SFE”) and Australian Stock Exchange Limited (“ASX”) announced the terms for the proposed merger of their businesses via a scheme of arrangement.

Details of the Merger were provided in an Explanatory Memorandum dated 29 May 2006, which was mailed to all shareholders on the register at that date. A meeting of SFE shareholders to consider the Merger will be held on 5 July 2006 at the Shangri-La Hotel, Cumberland Street, The Rocks, Sydney at 11:00am ("Scheme Meeting").

Under the terms of the Merger, SFE shareholders can elect to receive either:

• 0.51 fully paid ASX shares per SFE share (“Share Alternative”); or
• $2.58 cash per SFE share plus a variable ratio of fully paid ASX shares for the parcel of SFE shares held by an SFE shareholder at 7.00pm on 18 July 2006, such that the alternatives deliver equivalent value based on the VWAP¹ of ASX shares over the five business days ending on 3 July 2006 (“Cash and Share Alternative”).

  ¹VWAP (volume weighted average price) means the ratio of the total value of shares traded to the total volume of shares traded over the period.

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