Nasdaq Announces Joint Venture To Create A Pan-European Securities Market Nasdaq-Europe Targeted To Open Fourth Quarter 2000

The National Association of Securities Dealers, Inc. (NASD®) today announced the formation of a joint venture with SOFTBANK CORP. of Japan, News Corporation's venture capital fund epartners and Vivendi's venture capital fund Viventures Capital, jointly capitalizing a new pan-European stock market, which is scheduled to begin operating in the fourth quarter of 2000. Nasdaq-EuropeSM will create the first truly pan-European platform for initial public offerings (IPOs), listing high-growth companies from all across Europe. Modeled after The Nasdaq Stock Market®, the world's largest stock market and the unrivaled leader in bringing high-growth companies to market, this new market will offer European investors an Internet-accessible, high-performance, low-cost trading platform linked on a global basis with Nasdaq® markets in the US and Asia. Nasdaq-Europe will utilize an innovative hybrid market model that combines a next generation central limit order book with the best elements of a dealer-based system. This market model will support trading and promote liquidity in a wide range of securities, including high-growth European equities. Frank G. Zarb, Chairman and Chief Executive Officer of the NASD, commented, "Nasdaq-Europe is an important step in creating an electronic global stock market for the benefit of companies and investors around the world. Like its counterparts in the U.S. and Asia, we expect Nasdaq-Europe to be the IPO market of choice and an important contributor to job creation and economic growth for the region." Masayoshi Son, founder and CEO of SOFTBANK CORP., noted: "We are already working with NASD to develop an Internet-based stock market in Japan, to be called Nasdaq-Japan and also scheduled to launch in the fourth quarter of 2000. The creation of Nasdaq-Europe will greatly increase the potential value of those efforts. With technology as the enabler, it is now possible to envision the power of the Internet creating one worldwide electronic stock market. We're delighted to be a partner in this historic endeavor." Rupert Murdoch, Chairman and Chief Executive Officer of News Corporation (and Chairman of epartners) said, "News Corp. has always supported entrepreneurial companies and I hope embodied their spirit. Nasdaq has been responsible for helping such companies raise capital and achieve value recognition. As such, it has played a crucial role in speeding up the development and acceptance of new ideas. It is especially pivotal in the new media and it will fulfill a very important function in Europe." Jean-Marie Messier, Chairman and Chief Executive Officer, Vivendi, commented, "We are pleased to join with our partners to create a shared vision of the future of European markets. Nasdaq-Europe will offer investors in France and all across Europe an unparalleled opportunity to participate in the new global economy." The new market will be designed as a next generation hybrid-a central limit order book combined with the ability for market makers to internalize orders. It will offer auto-execution and negotiation functions and an opportunity for liquidity providers to act as principal. Nasdaq-Europe's innovative market model will create a liquid trading platform for the first truly pan-European growth market. Nasdaq-Europe will provide European investors with the opportunity to invest in initial public offerings from across Europe. In addition, Nasdaq-Europe will provide the European investor with access to the world's preeminent stocks, including US and Asian blue chip stocks, innovative exchange-traded fund and index products, such as the Nasdaq-100 Index Tracking StockSM (symbol QQQ) and EuroTop stocks. Nasdaq-Europe will be a private, for-profit company operating out of London. The NASD will be the lead and managing partner of Nasdaq-Europe with News Corporation's epartners, SOFTBANK CORP. and Vivendi's Viventures Capital as original founding shareholders. The founding partners are engaged in ongoing discussions with the leading European and US investment banks through which the key financial firms are expected to take a substantial equity stake in Nasdaq-Europe. Nasdaq will also pursue discussions with like-minded exchanges in the European region. Nasdaq-Europe will obtain Recognized Investment Exchange status in the UK and utilize the "regulatory passport" provisions of the Investment Services Directive to list and trade products on a pan-European basis. The market is expected to offer the following benefits: An unrivaled outlet for European IPOs; A transparent, liquid, efficient, Internet-accessible and well-regulated market; Access for issuers to pools of capital linked on a global basis by creating seamless electronic access between Nasdaq-Europe and financial interests in other parts of the world; A diverse range of premium products, including European IPOs, EuroTop equities, US and Asian blue chip stocks; The opportunity for European investors to invest in the world's preeminent stocks; A contribution to job creation and economic growth across Europe through an efficient market that links investors and entrepreneurs.