Berlin, Bremen And Nasdaq Stock Markets Partner With Major German Banks To Establish Stock Market In Germany

• Berlin and Bremen stock exchanges will merge
• Partnership with comdirect bank, Commerzbank, Dresdner Bank open for other market participants
• Nasdaq technology forms base for trading German and international bluechips, and growth stocks
• Immediate access through existing infrastructure

The Berlin and Bremen Stock Exchanges and The Nasdaq Stock Market, through its subsidiary Nasdaq Europe, in partnership with comdirect bank, Commerzbank and Dresdner Bank are establishing a stock market in Germany on which German and international blue chips and growth stocks will be traded, starting in January 2003. The new market will be created through a capital reconstruction of the operating company for the Bremen Stock Exchange, in which Berliner Borse, BWB Holding, comdirect bank, Commerzbank, Dresdner Bank and Nasdaq will be shareholders. The new stock market will be officially named Nasdaq Deutschland AG with legal headquarters in Berlin and Bremen and an office in Frankfurt. The Berlin and Bremen stock exchanges will merge. The business model of the new stock market is based on four important elements from which German private investors, market makers, banks and institutional investors benefit:

• A best execution model which provides German retail investors with more competitive pricing and improved liquidity for both German and international stocks
• A transparent market model that is based on the competition of market makers in combination with the advantages of an open order book
• An attractive platform for listing growth companies across all sectors
• The exchange will be marketed under the Nasdaq brand which represents transparency, quality and innovation

Nasdaq is committed to initially hold 50% in the venture; Dresdner Bank will hold 15%, comdirect bank and Commerzbank 7.5% each and the Berlin and Bremen stock exchanges 10% each. The partnership is open to further investment by new shareholders. Trading will be drawn from stocks of the DAX 100, NEMAX 50, Nasdaq 100, Eurostoxx 50 and Dow 30. Over time, it is planned to expand trading to some 3,000 stocks. The new stock market will also offer an attractive platform for the listing for growth companies across all sectors. The trading system of Nasdaq Deutschland is a version of Nasdaq's SuperMontage that has been adapted to the specific requirements of German market participants and investors, with the following advantages:

• Transparency: a fully integrated trading system that combines the advantages of a quote driven market model with those of an open order book.
• Liquidity: Automatic referral at the time of price formation to international reference markets like Xetra, EuroNext or Nasdaq guarantees maximum transparency and liquidity.
• Competition: The competition between market makers, of which there are at least two for each stock traded, ensures high price quality and liquidity.
• Lower Costs: Maintaining low costs for trading from execution through settlement, to the ultimate benefit of the investor.

Market participants with a Xontro connection will have immediate access to the stock market through the current infrastructure.

"We are consolidating two exchanges, and bringing together market makers and banks to the ultimate benefit of the German private investor. With our innovative market model we are setting standards for transparency, efficiency and fair competition," says Rick Ketchum, President of The Nasdaq Stock Market. "Nasdaq is a world leader in electronic trading and the listing of successful growth companies within a well regulated environment. This experience, together with the local expertise of our partners makes a very strong combination for the German market."