First ETF Tracking "TSEC Taiwan 50 Index " Launched On Taiwan Stock Exchange

Taiwan Stock Exchange on June 30 announced that the "Polaris Taiwan Top 50 Tracker Fund" (ETF) has been listed on Taiwan Stock Exchange and commenced trading on June 30, 2003 under the symbol of "TTT". This exchange traded fund (ETF) is designed to track the "TSEC Taiwan 50 Index" covering Taiwan's 50 most promising blue chip enterprises, one of the most closely watched barometers in Asian markets. That specific index, co-designed and co-owned by TSEC and globally renowned FTSE International, was launched last October. It has shown a positive performance of over 10% since inception. The earlier move was aimed at facilitating the development of derivative products based on the new index and providing investors with well-designed alternative benchmarks for planning their investment strategy.

Being advised by the well-known State Street Global Advisors (SSGA), Taiwan's noted fund manager, Polaris Securities Investment Co., Ltd. has signed contract with Taiwan Stock Exchange to act as the "TTT" issuer. Polaris has also successfully inked agreements with 17 local participating dealers (PD) to engage in trading with the underlying stock portfolio worth US$120 million (NT$4.2 billion). More funds are estimated to join the new product market in the near future.

Mr. Sean Chen, Chairman of Taiwan Stock Exchange, indicated, " Taiwan Stock Exchange is very pleased to launch the new tracker as both retail and professional investors will enjoy the flexibility of being exposed in a single transaction through the tracker to the Taiwan 50 Index which combines high liquidity and wide market coverage. Moreover, to meet the needs of qualified institutional investors for shares holding or redemption plan, a securities lending center was also set up on June 30 to serve the pragmatic or strategic purposes. With the well-rounded and all-faceted rules/regulations in place in historically shortest possible time to trade the new product, TSEC is fully confident that the investing public, after exposing to intensive six-month educational seminars, will benefit from broadening their portfolio mix with companies that represent a wide variety of sectors including high-technology, telecommunications, financial services, life science / biotechnology and conventional industries. Some of Taiwan's most visionary companies are among those to lure both retail and institutional investors at home and abroad for straight investment, hedging or arbitraging purposes."

Mr. Chen added that since TSEC is continuing to work with FTSE on developing other industrial sector indices, he foresees that, in addition to trackers, more varied new products will soon be launched for the investing public's portfolio management.

Moreover, the futures contract on the "TSEC Taiwan 50 Index", calculated by FTSE, was simultaneously launched by Taiwan Futures Exchange(TAIFEX) at the same day. Mr. Shih, Ming Hsiung, TAIEEX Chairman, stated that the new futures product was designed to satisfy the requirements of today's investors. He feels that it is very effective to build a futures product on the new index. And, he is confident that the first cash market tracker and futures product together will be successful as they will offer international investors an easy means of trading this simple and cost effective index, a superior solution for trading in Taiwan.

To invest in these products, investors should contact their brokers and obtain a copy of the prospectus. For additional information, please visit the web sites of tse.com.tw; taifex.com.tw; Polaris.com.tw, or FTSE.com.