Nasdaq Japan Completes Private Placement Thirteen Leading Japanese And Foreign Brokerages Participate In Subscription - Ten Investors To Form Investor Strategic Advisory Council

Nasdaq Japan, Inc., announced that subscription to its private placement was completed today. Upon closing of the private placement, 13 leading Japanese and foreign securities firms will own approximately 15 percent of the common stock of Nasdaq Japan, Inc., effective October 26, 2000.

In the private placement, a total of 2,100 shares were issued to investors at a price of 2.5 million yen per share. Capital raised by Nasdaq Japan, Inc., totaled 5.25 billion yen.

The firms participating in the private placement as strategic investors, each with approximately 1.4 percent ownership stake, are: Daiwa Securities Group; Deutsche Securities; Dresdner Kleinwort Benson; Knight Securities Japan; Lehman Brothers; Merrill Lynch, Morgan Stanley Dean Witter; Nikko Securities; Nikko Salomon Smith Barney; and UBS Warburg.

Goldman Sachs, Kokusai Securities, and Nomura Securities Co. will participate as limited investors and collectively own a 0.7 percent stake in Nasdaq Japan, Inc.

The ten strategic investors will be afforded an active role in the strategic and marketing decisions that will help drive the success of The Nasdaq Japan Market. Toward this objective, Nasdaq Japan, Inc., has established an Investor Strategic Advisory Council in which each strategic investor will be represented. The strategic investors will also have one representative serving on Nasdaq Japan Inc.’s Board of Directors, playing an active role in the company’s governance and strategy development.

Commenting on the significance of today's announcement, Nasdaq Japan, Inc., President and Chief Executive Officer Tatsuyuki Saeki said, "I am extremely pleased with the strong show of support for our market by these influential firms. This demonstrates that the Nasdaq Japan Market has the trust and backing of key members of the securities industry that are not only offering financial support for the short term, but strategic support for the future success of Nasdaq Japan."

Rich Bartolotta, Chief Financial Officer for Nasdaq Japan, Inc., stated, "We are fortunate to have a strong group of investors that are not only key players in the Japanese market, but globally as well. The support of these investors will be instrumental in fueling the growth of the Nasdaq Japan Market as a truly electronic and global market."

Nasdaq Japan, Inc., intends to use proceeds from the private placement primarily for working capital investment, development of its new hybrid market structure, and capital investments. Morgan Stanley Dean Witter and Nomura Securities acted as co-advisors to Nasdaq Japan Inc., during the private placement. Tomotsune Kimura & Mitomi provided legal counsel.

Nasdaq Japan, Inc., was founded on June 18, 1999 as a joint venture company with the mission of providing the latest market technology to facilitate The Nasdaq Japan Market, a state-of-the art electronic securities market for the growth of capital and globalization of the Japanese economy. The Nasdaq Japan Market operates as a section of the Osaka Securities Exchange. Nasdaq Japan, Inc., operates as a private, for-profit organization. For more information, visit http://www.nasdaq-japan.com/e/e_index.html.