London Stock Exchange Group PLC (“London Stock Exchange”) merger with Borsa Italiana S.p.A. (“Borsa Italiana”)

8 August 2007

London Stock Exchange Group plc (the “Exchange”) announces that the resolutions put forward at today’s Extraordinary General Meeting were duly passed.

155,767,201 shares were voted in favour of the merger with Borsa Italiana, representing almost 100 per cent of votes cast and 78 per cent of the issued share capital. The merger is now expected to complete in October following regulatory approvals and listing of the new shares.

Earlier today, Borsa Italiana’s shareholders approved changes to Borsa Italiana’s articles of association that will enable the completion of the transaction. This follows the acceptance of the offer by 99.92 per cent of Borsa Italiana’s shareholders last week.

The merger will bring together two highly efficient and complementary businesses, coupling the strengths of Borsa Italiana in Italian cash equities, derivatives, securitised derivatives, fixed income products and efficient post-trade services with those of the London Stock Exchange in UK and international equities.

It will diversify the product and customer bases of the two exchanges; create cross-access opportunities for issuers, intermediaries and investors; enlarge the liquidity pool thereby reducing trading costs and the cost of capital; and leverage the highly compatible and broad range of skills to accelerate the growth of its marketplaces.

The enlarged group will be:

• Europe’s leading equities business with 48 per cent of the FTSEurofirst 100, the index of leading European quoted companies and the most liquid order book by value and volume traded;
• Europe’s leading market for electronic trading of exchange traded funds and securitised derivatives; and
• Europe’s leading fixed income market, through its interest in the electronic trading platform MTS.

Moreover the enlarged group will operate the most advanced trading platform of any exchange and the most efficient post-trade services in Europe.
Chris Gibson-Smith, Chairman of the Exchange, commented; “Today’s shareholder approval is a significant endorsement of the merits of the transaction and we would like to thank so many shareholders for registering their support.”

“This combination is good for shareholders, good for European financial markets and will enhance our position as the exchange partner of choice in a rapidly evolving industry.”

Clara Furse, Chief Executive of the Exchange, commente; “Borsa Italiana and the Exchange are highly complementary and the merger will create considerable value for both our customers and our shareholders. It will create a stronger, more diversified exchange group and will enhance our competitive position. This value-creating deal also accelerates our shared vision to become the world’s capital market.”

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