Covered Bonds See Strong Growth on MTS Markets and BondVision

London, May 12, 2005 – - MTS is pleased to announce strong growth in its covered bond markets in 2005 with the addition of new dealers contributing to record turnover on both the MTS Cedulas market and on the BondVision dealer-to-client market.

The MTS Cedulas Market, which was launched in January 2005, now includes 28 participants, 22 of which act as Market Makers. Further, trading in Cedulas on both EuroCredit MTS and the MTS Cedulas Market showed strong growth with healthy volumes in the first four months of the year. Turnover was €7.365 billion, or a daily average of €120 million for the first quarter, and rose to a record daily average of €170 million in April, or a total of €3.55 billion for the month.

The covered bond segment on BondVision, the dealer-to-client market of the MTS Group, also experienced strong growth. Eight new dealers began providing liquidity for their clients on covered bonds and the agency/quasi-sovereign segment in 2005, including Barclays Capital, Deutsche Bank and UBS, which joined within the last week. Seventeen dealers now provide liquidity for the covered bonds segment, which now includes all jumbo covered bond issues (greater than €1 billion of outstanding) for Pfandbriefe, Cedulas, Obligations Foncieres, ACS, UK covered bonds and Italian CDP.

BondVision witnessed a record quarter in terms of covered and agency bond volumes with more than €3 billion traded in the first quarter of 2005, a 62% increase over the previous quarter.

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