Change In The Acceptance Procedure For Shares Being Added To The SWX New Market Index (SNMI)

The SWX Swiss Exchange, in consultation with the Index Commission, has decided upon the fallowing rule change as a means of improving the stability of the SNMI: The acceptance of new shares into the index will be spread over the five trading days immediately fallowing an IPO.

In other words, the shares beeing offred will not be fully weighted in the SNMI all at once, but rather will be staged in over a five day period. Each day during this time frame, a 20 % increment of the shares will be multiplied by the given closing price and incorporated into the index.

This rule shall take effect as of 31 March 2000.

This change is intended to ensure that the heavy flow of purchase and sale orders triggered by institutions with portfolios tied to the index are spread over a number of days.