© Copyright 2004, The Nasdaq Stock Market, Inc. All rights reserved. Status of NASDAQ and the IPO Market Demetrios N. Skalkotos Vice President The NASDAQ Stock Market

© Copyright 2004, The Nasdaq Stock Market, Inc. All rights reserved. A Market that Works for Investors NASDAQ provides an open, transparent and competitive platform to enable buyers and sellers to efficiently interact and access pools of liquidity.

© Copyright 2004, The Nasdaq Stock Market, Inc. All rights reserved. 3 Number of listed companies = 3,285 Number of listed companies = 3,285 Market Cap. = $2.98 Trillion Market Cap. = $2.98 Trillion 2003 share volume = 425 Billion 2003 share volume = 425 Billion NASDAQ Trades More Shares than any other Market or Exchange

© Copyright 2004, The Nasdaq Stock Market, Inc. All rights reserved. 4 Since 1998 (to YTD 2004), the total number of publicly-traded companies on listed US markets is down 24%. NASDAQ NYSE AMEX Total Listings by Market

© Copyright 2004, The Nasdaq Stock Market, Inc. All rights reserved. 5 Consumer Discretionary 13% Energy 2% Financials 22% Health Care 17% Industrials 10% Information Technology 28% Materials 2% Utilities 1% Telecommunication Services 2% Consumer Staples 3% NASDAQ – National Industry Leaders *Includes Companies included in NASDAQ’s Dual Listing Program

© Copyright 2004, The Nasdaq Stock Market, Inc. All rights reserved. IPO Overview

© Copyright 2004, The Nasdaq Stock Market, Inc. All rights reserved. 7 Includes domestic and foreign IPOs on NASDAQ (NNM and SCM), NYSE and AMEX, best-efforts and bank demutualizations. Excludes unit investment trusts and fully classified closed-end funds. * As of Sept 20th, Source: NASDAQ, EquiDesk Annual Total Initial Public Offerings Total Number of IPOs After three very slow years, the IPO market is picking up; there have already been 162 IPOs that have raised over $25 Billion in 2004 (up over 300% from 2003). There are currently over 150 registrations for IPOs filed and pending.

© Copyright 2004, The Nasdaq Stock Market, Inc. All rights reserved. 8 Include all domestic and foreign common stocks. * As of Sept 20th, Source: NASDAQ, EquiDesk, FactSet Research Systems, Inc. S-1 Flied Priced SEC Filings for IPOs Number of Companies Filing Registrations for New Stock Offerings.

© Copyright 2004, The Nasdaq Stock Market, Inc. All rights reserved. 9 NASDAQ NYSE NASDAQ is the MarketPlace for IPOs Since 1992, NASDAQ has captured 83% of the IPO market. Number of IPOs by Market AMEX Includes domestic and foreign IPOs (NNM and SCM), best-efforts and bank demutualizations. Excludes unit investment trusts and fully classified closed-end funds. * As of Sept 20th, Source: NASDAQ, EquiDesk

© Copyright 2004, The Nasdaq Stock Market, Inc. All rights reserved. 10 IPO Market Value of NASDAQ-Listed Companies Number of NASDAQ Issues by IPO Market Value Greater than $1 Billion Between $300 Million and $1 Billion Below $300 Million Includes domestic and foreign IPOs (NNM and SCM), best-efforts and bank demutualizations. Excludes unit investment trusts and fully classified closed-end funds. * As of Sept 20th, Source: NASDAQ, EquiDesk, FactSet Research Systems, Inc.

© Copyright 2004, The Nasdaq Stock Market, Inc. All rights reserved. 11 Consumer Energy & Utilities NASDAQ-Listed IPOs by Industry Types of companies that are going public has changed over the last five years. Number of NASDAQ-Listed IPOs by Sector Financials Health Care Industrials Telecom & Technology * Includes domestic and foreign IPOs (NNM and SCM), best-efforts and bank demutualizations. Excludes unit investment trusts and fully classified closed-end funds. * As of Sept 20th, Source: NASDAQ, EquiDesk

© Copyright 2004, The Nasdaq Stock Market, Inc. All rights reserved. 12 Date: February 5, 2004Austin, TX Total shares offered: 10 Million $13.00 Lead Underwriter: Morgan Stanley Central Region: Recent IPOs Source: Equidesk, as of 08/19/2004, FastSet Research Systems, as of 8/19/2004 Recent Texas IPOs: Date: January 13, 2004Dallas, TX Total shares offered: 2.31 Million $19.50 Lead Underwriter: A.G. Edwards & Sons, Inc.

© Copyright 2004, The Nasdaq Stock Market, Inc. All rights reserved. 13 Date: June 25, 2004Austin, TX Total shares offered: 5 Million $10.00 Lead Underwriter: J.P. Morgan Chase & Co. Central Region: Recent IPOs Recent Texas IPOs: Date: June 23, 2004Houston, TX Total shares offered: 9 Million $9.50 Lead Underwriter: Friedman Billings Ramsey Date: July 9, 2004 Addison, TX (Dallas Area) Total shares offered: 8.17 Million $14.00 Lead Underwriter: Piper Jaffray Source: FastSet Research Systems, as of 8/19/2004 Date: August 19, 2004 Sugar Land, TX Total shares offered: 4.72 Million $11.50 Lead Underwriter: Keefe, Bruyette & Woods

© Copyright 2004, The Nasdaq Stock Market, Inc. All rights reserved. Listing on NASDAQ

© Copyright 2004, The Nasdaq Stock Market, Inc. All rights reserved. 15 Market Structure  Superior Trading Characteristics (based on SEC 11ac1-5 data)  Open, Competitive Market Delivering Best Executions for Investors Greater Visibility  More Analyst Coverage (Multiple Market Maker System) Better Services and Support  Insight and Analysis Tools for Trading, Ownership and Peer Comparisons Superior Value for Listing $  Listing Fees are less on NASDAQ vs. NYSE Why do Companies list on NASDAQ?

© Copyright 2004, The Nasdaq Stock Market, Inc. All rights reserved. 16 NASDAQ National Market Listing Requirements 1For Initial listing under Standard 3, a company must satisfy one of the following: the market value of listed securities requirement or the total assets and the total revenue requirement. Under Marketplace Rule 4200(a)(19), listed securities is defined as “securities quoted on NASDAQ or listed on a national securities exchange. 2Seasoned companies (those companies already listed or quoted on another marketplace) qualifying only under market value of listed securities requirement of Standard 3 must meet the market value of listed securities and the bid price requirement for 90 consecutive trading days prior to applying for listing. 3Publicly held shares is defined as total shares outstanding less any shares held by officers, directors or beneficial owners of 10% or more. 4Round lot holders are considered holders of 100 shares or more. 5An Electronic Communications Network (“ECN”) is not considered a market maker for the purposes of these rules. 6Marketplace Rules 4350 and NASDAQ National Market Listing Requirements

© Copyright 2004, The Nasdaq Stock Market, Inc. All rights reserved. 17 $0 $100,000 $200,000 $300,000 $400,000 $500, Max. NYSE Initial Fees NASDAQ Initial Fees NYSE Annual Fees NASDAQ Annual Fees Shares Outstanding (Millions) Comparative Listing Fees Source: Domestic listing fees for NASDAQ and NYSE; based on NASDAQ fees as of 01/02 and NYSE as of 01/03. Initial & Annual Listing Fees NASDAQ has lower listing fees for all levels of shares outstanding Listing Fees

© Copyright 2004, The Nasdaq Stock Market, Inc. All rights reserved. Status of NASDAQ and the IPO Market Demetrios N. Skalkotos Vice President The NASDAQ Stock Market