1. BUCHAREST STOCK EXCHANGE

2. BRIEF HISTORY July 1, 1881  July 1, 1881  “Law on exchanges, securities, and commodities brokers” was adopted after the French model December 1, 1882  December 1, 1882  Bucharest Exchange was established under Royal Decree, upon the initiative of bankers and merchants First instruments traded  First instruments traded  6 shares and 15 fixed-income securities 1934 - 1945  1934 - 1945  56 companies listed (mining, banking petroleum industries)  some of the listed companies were also traded on European markets (Paris, Anvers, Frankfurt, Amsterdam, Basel, Zurich, etc)  77 government and corporate bonds 1948  1948  Bucharest Exchange was closed due to the communist regime coming into power Chamber of Commerce and Industry building that housed the Bucharest Exchange during 1911 - 1948

3. REOPENING OF THE EXCHANGE  ESTABLISHMENT April 21, 1995  April 21, 1995  Bucharest Stock Exchange was reopened after almost 50 years since closing down of the Bucharest Exchange - “Law no. 52/1994 on securities and stock exchanges” - assistance granted by the Romanian and Canadian governments, National Bank of Romania, and Know How Fund 20 November 20, 1995  20 November 20, 1995 - first trading session - 24 founding members - 9 listed companies - fully electronic environment:  automated trading system (A.T.E.S.)  clearing-settlement and registry system (C.D.S.)  PURPOSE  since its reopening in 1995, BSE’s main purpose has been to provide efficient and transparent market mechanisms for trading in securities issued by major Romanian and international companies, investment funds, Government and local authorities

4. BSE CORPORATE STRUCTURE  ORGANIZATION For- profit stock corporation  For- profit stock corporation  January 10, 2005: BSE Association decided upon changing the legal status from an institution of public interest into a for-profit stock corporation  the share capital is equally divided among the 67 former member firms  BSE’s share capital of ROL 205,750,300,000 (face value of ROL 100,000)  BSE set up The Corporate Governance Institute  BSE and BER merged into a single entity  November 30, 2005: BSE and BER shareholders approved the merger document. In April 2003, BSE moved to a new location in the International Business Center Modern

5. ROMANIAN STOCK MARKET IN 2005 BUCHAREST STOCK EXCHANGE (BSE) RASDAQ MARKET (BER) BSE ELECTRONIC PLATFORM LISTED COMPANIES TRADED COMPANIES BSE & BER COOPERATION UNLISTED COMPANIES Regular Order driven DEAL Quote driven ODD LOT Order driven Dealing BER Most traded companies Clearing&Settlement: BSE Department Order driven

6. ROMANIAN STOCK MARKET: FUTURE BUCHAREST STOCK EXCHANGE - Market operator - BSE ALTERNATIV TRADING SYSTEM (ATS) BSE REGULATED MARKET (OFFICIAL MARKET) SPOT MARKET DERIVATIVE MARKET SECTOR A MAIN MARKET SECTOR B PARALLEL MARKET SECTOR C NEW MARKET SECTOR D FUNDS SECTOR E BONDS ISSUED BY PUBLIC ENTITIES SECTOR F INTERNATIONAL SECTOR EQUITIES BONDS RIGHTS EQUITIES BONDS RIGHTS EQUITIES BONDS EQUITIES UCITS MUNICIPAL BONDS GOVERNMENT BONDS EQUITIES BONDS

7. BUCHAREST STOCK EXCHANGE BSE’s main purpose is to provide an efficient and transparent market mechanism for trading in securities issued by major Romanian companies, Government and local authorities. Since BSE’s reopening in 1995, market operations have been conducted within a dematerialized environment, through fully electronic systems, in accordance with the international standards. Services delivered by BSE: –traditional services: trading, listing, data dissemination. –clearing and settlement through a special department organized by BSE. –registry services.

8. BSE LISTING LISTED SECURITIESLISTED SECURITIES  3 sectors:  “Securities issued by Romanian legal entities” - TIER I - large and competitive companies (20 common stocks) - TIER II (“base tier”) - medium size companies (44 common stocks) -TRANSPARENCY TIER (“PLUS tier”) - companies from both tiers adhering to the BSE’s Corporate Governance Code (1 common stock)  “Bonds and other debt securities issued by the State, central and local administration, and by other public authorities and companies” - municipal & corporate bonds (outstanding issues: 21)  “International Sector” - securities issued by foreign legal entities (no listings yet) UNLISTED SECURITIESUNLISTED SECURITIES  “Traded but not listed companies” (42 common stocks)

9. TRADING MARKET INSTRUMENTS:MARKET INSTRUMENTS: –shares; –municipal and corporate bonds; –rights. REMOTE TRADINGREMOTE TRADING: - fully dematerialized environment; - electronic negotiation and confirmation of trades; - trading is done through the market intermediaries’ (SSIF) terminals locate in their offices EFFICIENT PRICE DISCOVERYMECHANISM:EFFICIENT PRICE DISCOVERY MECHANISM: - order-driven and quote-driven; -full audit trail of orders and trades; - on-line trading information and statistics; -market surveillance tools; -flexibility in implementation of new market rules and financial instruments.

10. CLEARING & SETTLEMENT MAIN CHARACTERISTICS:MAIN CHARACTERISTICS: –Rolling settlement cycle : T+3; –Delivery Versus Payment (DVP); –BIS model 2: net settlement for money & gross settlement for securities; PARTICIPANTS TO THE SETTLEMENT PROCESSPARTICIPANTS TO THE SETTLEMENT PROCESS: - brokerage companies; - custodians; - settlement banks; - Romanian National Bank (NBR) 100% OF SETTLED TRANSACTIONS:100% OF SETTLED TRANSACTIONS: –no failure to the settlement. COST EFFECTIVE:COST EFFECTIVE: –no specific fees for clearing and settlement

11. BSE: INFORMATION DISEMINATION NEWS AGENCIES BROKERS INTERNET MEDIA ISSUERS

12. BSE REGISTRY REGISTRY STRUCTUREREGISTRY STRUCTURE –Section I: beneficial owner accounts opened by BSE for natural and legal persons. The securities kept in accounts opened in this section are not subject to trading; –Section II: beneficial owner accounts opened with brokerage houses/custodians by natural and legal persons that are clients; –Section III: beneficial owner accounts opened by brokerage houses/custodians for their own account, when acting as principal. REAL TIME LINK BETWEEN EXCHANGE OPERATIONSREAL TIME LINK BETWEEN EXCHANGE OPERATIONS: - trading system  clearing-settlement & registry system; -update of the securities holdings for each individual or nominee accounts; -access to the consolidated list of holders of securities in BSE’s registry BSE SHALL EXTERNALIZE SETTLEMENT&REGISTRY SERVICES IN THE NEXT FEW MONTHS TO THE NEW CENTRAL SECURITIES DEPOSITORY

13. BSE ELECTRONIC SYSTEMS MARKET OPERATIONSMARKET OPERATIONS  since BSE’s reopening in 1995, market operations have been conducted within a dematerialized environment, through fully electronic systems, in accordance with the international standards CURRENT ELECTRONIC SYSTEMCURRENT ELECTRONIC SYSTEM  ARENA - Automated Exchange Platform TM implemented in-house by the BSE experts:  shares  fixed income securities Note: March 14, 2005 ARENA Note: As of March 14, 2005, trading in all securities listed at the BSE is performed only through the ARENA electronic platform, thus discontinuing the market operations the HORIZON & EQUATOR systems previously employed for common stocks

14. BSE: MARKET INDICATORS Total capitalization and liquidity increased, but the market concentration remained high (both on turnover and capitalization).

15. BSE INDICES 20042005* BSE indices in 2005: BET: +51%; BET-C: +38%; BET-FI:+176%

16. INVESTORS ON THE BSE BSE investors structure in 2004 BSE investors structure in 2005

17. BSE IN FIGURES Year No. of Trading Sessions No. of Trades No. of Shares Traded (volume) Turnover Value of Trades (EUR) Capitalization (EUR) No. of Companies with Listed Shares No. of New Listed Companies No. of Delisted Companies No. of Participants No. of Custodian Banks 1999253415,0451,057,558,61684,067,123313,001,20312715141507 2000251496,8871,806,587,26593,244,168450,512,6391141141207 2001247357,5772,277,454,017148,544,8381,361,079,746653521105 2002247689,1844,085,123,289222,426,5772,646,438,3766511756 2003241440,0844,106,381,895268,641,3522,991,017,0826203736 2004253644,83913,007,587,776598,072,1588,818,832,1586035676 20052471,159,06016,934,865,9572,152,052,95915,311,354,5576451706

18. BSE INTERNATIONAL COOPERATION  MEMORANDUMS OF UNDERSTANDING  Athens Stock Exchange (1997)  Tokyo Stock Exchange (1999)  London Stock Exchange (2000)  Italian Exchange (2002)  Thessaloniki Stock Exchange Center (2003)  Wiener Börse AG (2004)  AFFILIATIONS  Member of the Central and Eastern Europe Central Securities Depositories and Clearing Houses Association (CEECSDA) - 1999  Correspondent Emerging Markets Member of the World Federation of Exchanges (WFE) - 1998  Correspondent Member the Federation of European Stock Exchanges (FESE) - 2002  Member of the Federation of Euro-Asian Stock Exchanges (FEAS) - 2003