Five-Day Rule In Connection With Adjustments To The SWX New Market Index (SNMI)

On 23 July 2002, the SWX Swiss Exchange announced that the marketing activities for the SWX New Market brand would be discontinued. The Additional Rules for listing in this segment will remain in effect, and issuers will continue to be able to be listed according to the rules applicable to this segment. The index will also be continued. If individual companies listed on the SWX New Market switch to another segment, this will have an effect on the SWX New Market. After a change of segment, the securities in question will be removed from the SNMI. This may result in sharp price movements both for the securities switching to another segment and for the securities remaining in the index. The reason for these potential price movements lies in purchases and sales by investors whose portfolios track the SNMI. Reallocated securities will have to be sold, remaining securities will have to be bought. In order to minimize the potential price movements associated with such changes of segment, a five-day rule, much like the one that is applied when a new security is admitted to the index, will be used in calculating the SNMI: for five days before the switch, the weighting of the security will be reduced by 20% per day.