Listing in London

the routes to market

Tel Aviv, November 2006

Agenda
London - the international market of choice Routes to a London listing
AIM GDRs on the Main Market Primary listing on the Main Market

Examples

London Stock Exchange - key statistics

Total companies

Domestic: 2,589 International: 599 UK listed: US$3,454bn International listed: US$4,044bn AIM: US$140bn Main Market: Domestic: US$4,361bn International: US$4,770bn GDRs: US$131bn AIM: US$75bn

Market capitalisation

Equity turnover (Jan-Dec 2005)

Source: London Stock Exchange statistics July 2006

The Exchange of choice for international companies

Total number of IPOs on the LSE, Nasdaq and NYSE 2002 to YTD 2006
450 400 350 300 London Stock Exchange Nasdaq NYSE

Total No of IPOs

250 200 150 100 50 0 2000 2001 2002 2003 2004 2005 YTD 2006

In 2005: London Stock Exchange - 493 new companies joined in 2005, 419 were IPOS, 93 of which were international NYSE 122 IPOs in 2005, 12 companies of which were international Nasdaq 138 IPOs in 2005, 21 companies of which were international
Source: London Stock Exchange and individual exchange websites July 2006

Routes to the London market

The London Stock Exchange offers international companies a number of routes to market 1. AIM
The worlds most successful growth market.

2. Main Market
Global Depository Receipts (GDRs) Specialist securities targeting professional investors focused on emerging markets. GDRs are traded on the International Order Book (IOB). Primary Listing on the Main Market

A choice of proven, global markets

A choice of globally respected markets supported by a wide range of institutional & retail investors
Main Market
Supports more established companies seeking further growth. 1,628 issuers

Supports earlier stage companies in their initial growth period. 1,560 issuers

UK Listing Authority

Nominated Adviser (Nomad)

Sponsor

Agenda
London - the international market of choice Routes to a London listing AIM GDRs on the Main Market Primary listing on the Main Market Examples

A market for growing companies

Distribution of AIM companies by market value July 2005 vs July 2006
400 350
No of companies

No of companies Jul-06 No of companies Jul-05

300 250 200 150 100 50 0 less than $3.8m $3.8m to $9.5m $9.5m to $19m $19m to $47m $47m to $95m

$95m to $189m

$189m to $473

more than $473m

Market Value ($)

Source: London Stock Exchange trade statistics July 2006

AIM key statistics

AIM companies: 1,560 Overseas AIM companies: 277 IPOs on AIM in 2005: 335 259 UK 76 overseas Capital raised (new & further) since 1995: US$63bn

AIM Key statistics

Capital raised (new & further) in 2005: US$16bn US$ 12bn UK companies US$ 4bn overseas companies

Source: London Stock Exchange trade statistics July 2006

Flexible regulation

Admission Rules
No minimum market cap No financial history required No minimum amount of shares to be in public hands In most cases, no prior shareholder approval required for transactions Admission documents not pre-vetted by Exchange or UKLA but by nominated adviser Nominated adviser (Nomad) required at all times

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Continuing obligations
AIM companies are subject to the AIM Rules which outline the continuing obligations of being on a public market. Some of the key continuing obligations are: AIM companies must have a Nomad at all times, otherwise they will be suspended from the market AIM companies must disclose all price sensitive information in a timely manner including substantial transactions, related party transaction, reverse takeovers and other miscellaneous transactions Half yearly and annual report and accounts required in adherence with deadlines All directors accept full responsibility, collectively and individually for the AIM Rules Restrictions on deals for directors and applicable employees on AIM securities during close periods UK Corporate Governance standards

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Efficient capital raising

Money raised on AIM since launch
20,000 18,000 16,000

USD millions

14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 to July Year Secondary issues New issues

Source: London Stock Exchange

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Institutional Investors
Major institutions invest in AIM.
Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Institutional investors understand

No of Investments 113 94 45 112 46 38 56 51 46 58 65 3 44 20 39 Value of Investments (m) 692.81 451.33 340.44 300.03 244.49 226.29 222.08 221.47 208.73 205.02 196.04 187.61 180.58 167.53 162.26

Most active Institutions by value of investment Fidelity Artemis Schroder Investment mgt Foreign & Colonial Merrill Lynch UBS Framlington Invesco Goldman Sachs RAB Capital Gartmore Tiger Resource Finance Jupiter Asset Management Lansdowne Aviva

Source: London Stock Exchange trade statistics December 2005

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Agenda
London - the international market of choice Routes to a London listing AIM GDRs on the Main Market Primary listing on the Main Market Examples

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Key features of Main Market

Pre-vetting of admission documents by the UKLA

Main Market

Compliance required with the rules of the UKLA

Normally three years of financials required Minimum of 25% shares in public hands Prior shareholders approval for certain transactions Sponsors needed for certain transactions

No equivalent to Sarbanes-Oxley section 404 An intelligent approach to regulation

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GDRs on the London Stock Exchange

Optimal point of access to the worldwide institutional investor base

Major hub for international fund managers Access to all institutions worldwide Highest profile of any international market

Widen shareholder base International profile and publicity Increased brand value A global peer group Worlds only dedicated, liquid market for Depositary Receipts
Transparent electronic platform for Depositary Receipts trading

London is the focal point of access to global investors

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Case Study: London a leader in international trading

Trading of DRs on International Order Book (2001 - 7 MNTHS 2006)
Turnover $
200 180 500 160 140

Trades

600

Trade value $bn Trade value $ billion

400 120 100 80 200 60 40 100 20 0 300

Trades 000

2001

2002

2003

2004

2005

7 MNTHS 2006

In 2005, IOB turnover was $131 billion. Jan - July 2006 over $160 billion.
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Source: London Stock Exchange April 2006

Trades '000

Main Market - UK Listing Authority

Admission Rules _ UKLA Listing rules, Chapter 18

Listing Rules Rules in relation to issuers who are listed on or are seeking admission to the Official List Disclosure Rules Rules in relation to: -issuers who have financial instruments admitted to trading on a regulated market; and -persons discharging managerial responsibilities' and their 'connected persons'

Prospectus Rules Rules in relation to those who are: -seeking admission of securities to trading on a regulated market; or -offering securities to the public.

http://www.fsa.gov.uk/pages/doing/ukla/

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Most advanced regulation and governance

Corporate governance: overall rating by country
UK USA Switzerland Germany Italy Singapore Hong Kong France Japan 0 1 2 3

7.39 7.03 5.53 5.23 5.08 5.06 4.05 4.05 3.49

4 5 6 7 8

Source: Governance Metrics International, March 2005

Principles-based regulation: high standard, pragmatic application No equivalent to Sarbanes-Oxley section 404 An intelligent approach.
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Permutations of cross listing

London Main Market Primary London Main Market GDR

TASE Frutarom

AIM
First listed on TASE

Tescom 888.com

First listed on TASE Sole primary listing in London First listed on London Sole listing on AIM

XTL Biopharmaceutical Bateman Engineering

Choice, flexibility, recognition

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Contact

Graham Dallas Head of Business Development EMEA & Americas

gdallas@londonstockexchange.com +44 (0) 20 7797 4055

Website: www.londonstockexchange.com

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