MTSNext to License Lyxor AM for ETFs based on the EuroMTS Inflation Linked Index

27 January 2005

MTSNext is pleased to announce that the Company will license Lyxor AM for an Exchange Traded Fund (ETF) which will track the EuroMTS Inflation Linked Index (EMTXi). The EMTXi is the first real-time index of eurozone inflation-linked government bonds and reflects actual prices on the EuroMTS Linkers Market.

Lyxor AM, a wholly owned subsidiary of the Société Générale Group, is the pre-eminent player in the rapidly developing European ETF industry with more than €6 billion in its Master Unit range. During 2004, Lyxor AM launched three ETFs -- based on the EuroMTS bond indices -- listed on Euronext and Borsa Italiana with assets under management currently in excess of €590 million.

Isabelle Bourcier, ETF Global Coordinator at Lyxor AM, commented: "ETFs offer an easy and cost effective way for retail and institutional investors to access the inflation-linked bond market and the increased demand that we have encountered has led us to extend our Master Unit ETF range to EMTXi. We would expect EMTXi, which is an ideal underlying index for an ETF, to become the principal index in this area in line with the development of Europe’s inflation-linked bond market."

Scott Stark, Chief Executive Officer of MTSNext, said: "The launch of a number of products, including ETFs, based on the EMTXi, confirms the market’s recognition of the value provided by the index, both as a transparent European inflation linked government bond benchmark and as a base for cost efficient financial instruments. Lyxor’s acknowledged expertise in the European ETF market together with the advantages inherent in the EMTXi, bodes well for the ongoing development of this successful product".

The EMTXi incorporates eurozone issues quoted on MTS and the specifically created EuroMTS Linkers Market with more than €2 billion outstanding and a minimum of one year to maturity. The index, which comprises the entire range of existing inflation-linked securities, currently includes one Greek, three Italian and eight French inflation-linked bonds. Germany has announced the launch of inflation-linked bonds which, when issued, will be reflected in the EMTXi, if the minimum requirements are met.

Additional information in respect of the EuroMTS Indices, including underlying bond prices and historical index data, is available on and through market data vendors (Bloomberg "EMTS" and Reuters "EUROMTSINDEX").

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