HEX enters into strategic co-operation with Riga Stock Exchange and Latvian Central Depository

18.03.2002 RIG

HEX Group is entering into strategic co-operation with Riga Stock Exchange (RSE) and Latvian Central Depository (LCD). The aim of the co-operation is to create a well-functioning Latvian securities market infrastructure and increase the visibility of Latvian companies and liquidity of their shares. The co-operation is a logical continuation of HEX’s Baltic strategy, which aims to create a well-functioning marketplace for the leading Baltic companies.

HEX has made a conditional offer to acquire over 75 % ownership in RSE by purchasing existing shares from current shareholders. A prerequisite for the offer is that RSE has acquired all issued shares of Latvian Central Depository (LCD). RSE already holds 27 per cent of LCD’s shares. The transaction will create a group uniting the national stock exchange and central securities depository in Latvia, a structure similar to that in place already in Finland and Estonia. The new group will form a part of HEX’s Baltic Operations.

RSE, LCD and shareholders of both companies have welcomed the co-operation between HEX, RSE and LCD. The parties expect to complete the transaction during the first half of 2002, after completing due diligence procedures and receiving necessary approvals from authorities. The operational implementation will begin as soon as the ownership transaction is completed.

“HEX is happy to announce this co-operation plan with Riga Stock Exchange and Latvian Central Depository. This co-operation is an important part or our objective to create a well-functioning and seamlessly integrated Baltic capital market. The successful launch of HEX Tallinn reinforces our commitment to the Baltic markets”, says Jukka Ruuska, President and CEO of the HEX Group.

“Riga Stock Exchange has long identified the need for a strong strategic partner, as we are convinced that this will benefit the development of the Latvian capital markets. Our co-operation with HEX will benefit Latvian issuers, investors and professional market participants. Additionally, we believe that together the Riga Stock Exchange and Latvian Central Depository will form a strong entity and the synergies created will enable us to operate even more efficiently,” says Guntars Kokorevičs, President of the Riga Stock Exchange

HEX GROUP                                 RIGA STOCK EXCHANGE
Jukka Ruuska                              Guntars Kokorevičs
President and CEO                      President

For further information, please contact
at HEX: Mr Jukka Ruuska, President and CEO of HEX Group, tel. +358 9 6166 7200
or Mr Gert Tiivas, Senior Vice President of HEX’s Baltic Operations, tel. +372 51 77579
at RSE: Mr Guntars Kokorevičs, President of Riga Stock Exchange, tel. + 371 7 212 431
at LCD: Mr Mārtiņš Rikšis, Chairman of the Management Board, tel + 371 7 229 821

HEX is a growing and increasingly international group that operates the stock exchange and the national central securities depository in Finland providing market parties with high-quality and reliable services. HEX also offers efficient trading, registration and information services in Estonia.

Group turnover for the year 2001 was 92.1 million euro and profit before extraordinary items and taxes amounted to 32.2 million euro. The business operations of the Group are divided into six units: trading, settlement and depository, issuer services, securities services, eHEX, and Baltic operations.

HEX has currently 41 members, who operate from Helsinki, Stockholm, London, Paris and Amsterdam. HEX is the majority shareholder of Tallinn Stock Exchange, which has 14 members operating from Tallinn, Helsinki and London. For more information, see www.hex.com.

Riga Stock Exchange (RSE) is the sole stock exchange in Latvia, open for trading since 1995. The RSE runs an order driven market based on dematerialised securities. Listings include shares, Government Treasury bills and bonds, corporate bonds, mortgage bonds and investment fund units. RSE has 62 listed companies with a total market value of EUR 620 million (March 15, 2002). The average daily trading volume in 2001 was EUR 3.7 million. Riga has become the leading debt securities market in the Baltic countries. For more information, please see www.rfb.lv.

Latvian Central Depository (LCD) is the sole central securities depository in Latvia. Its functions include custody of publicly issued securities, clearing and settlement for securities trading and management of corporate actions. For more information, see www.lcd.lv