London Stock Exchange Plc Announcement Of Intention To List And Preliminary Financial Results For The Year Ended 31 March 2001

Reporting strong results for the year ended 31 March 2001, London Stock Exchange plc (the "Exchange") today unveiled its corporate strategy with an intention to list in July 2001.

The Exchange's strategic aims are:

To be Europe's leading exchange organisation
To shape the globalisation of capital markets through technology links and partnerships
To create value for its shareholders

It intends to do this by:

Becoming the clear market of choice in the European time zone
Extending its service offering and broadening its product range
Building the reach and scale of its businesses
Promoting the growth of capital markets

The Exchange's listing plans include:

Introduction to the main market of the London Stock Exchange by the end of July 2001
EGM, inter alia, to remove the 4.9 per cent limit on shareholdings
9 for 1 bonus issue to facilitate trading in the Exchange's shares

Financial Highlights for the year 2000 / 2001 include:

Turnover from continuing operations up 18 per cent to £193.4 million
Operating profit from continuing operations before exceptional items up 39 per cent to £57.9 million
Adjusted earnings per share on continuing operations before exceptional items up 34 per cent to 152.0 pence
Final dividend 22 pence per share, bringing the total dividend for the year to 31 March 2001 to 32 pence per share

Commenting on the announcement of the intention to list, Don Cruickshank, Chairman of the Exchange, said: "The restructured board and strengthened management team at the Exchange are well positioned to carry forward the development of our business as a commercial organisation. We have reached the point now where we are ready to move to a full listing, offering us the flexibility to pursue the strategy developed by Clara Furse and her team."

Clara Furse, Chief Executive of the Exchange, said: "This year's strong results put us in a great position to scale up the business in the future. Delivering on the corporate strategy I have laid out today should ensure that the business and shareholder value continue to grow.

"The Exchange operates in a fast-moving and competitive market-place. I am determined that the Exchange should seize opportunities presented by its position in that market. If that means actively pursuing corporate deals, that is what we will do.

"During the year, we have worked with our customers to develop and deliver a wide range of initiatives. Over the coming year this will gather pace. As a business we must seek to position ourselves as Europe's leading capital market exchange organisation and exchange service provider rather than purely as a stock exchange."