london stock exchange's smallcap market casting net for ipos...shares for quotation on aim has...

London Stock Exchange's smallcap market casting net for IPOs The Associated Press Tuesday, June 12, 2007

CAMBRIDGE, Massachusetts: Going public? Go London.

That was the message given Tuesday by Clara Furse, chief executive of the London Stock Exchange, who visited Massachusetts on something of a road show to urge U.S. startups to list on AIM, London's junior international market for small, growing companies.

Furse, speaking before the Mass Technology Leadership Council, an association of technology companies, said thousands of small companies are choosing to do initial public offerings on AIM, the LSE's 12-year-old international market for smallcap companies, rather than U.S. markets.

Furse said companies listed on AIM — ranging from mining to e-commerce to handcrafting wine — raised $30 billion (€22.5 billion) in capital last year. She estimated that if AIM was its own exchange, it would rank as the world's sixth-largest exchange for IPOs, after the LSE, New York Stock Exchange, Nasdaq Stock Market and the Hong Kong Stock Market.

Furse, who has been credited with increasing revenue at the LSE and fending off hostile bids for the exchange, including one earlier this year from its 30 percent shareholder, Nasdaq Stock Market Inc., portrayed AIM as a less costly and cumbersome alternative to Nasdaq. She described AIM as a ticket into London's worldly trading market for companies that "need access to the kind of international investor community that we, and only we, have."

Several entrepreneurs in the audience said there was another big draw to AIM: They don't want to deal with U.S. regulatory requirements mandated by the 2002 Sarbanes-Oxley Act, which was passed in response to a slew of accounting and finance scandals.

The total number of companies listed on AIM has tripled since 2000, to 1,640 companies, Furse said. Nearly 500 of the companies are international, with the highest representation — 63 companies worth $11 billion (€8.2 billion) — coming from the United States. AIM stocks, she said, have become a "mainstream asset class," with 57 percent of shares now owned by institutions compared with 37 percent of shares in 2003.

"The ability to raise more new money as you progress is a very distinctive feature of AIM," Furse told a company executive in the audience who said her software company was trying to decide between doing an IPO on AIM or Nasdaq.

Describing one success story, Furse said the chief executive of Protonex Technology Corp. — a Southborough, Massachusetts maker of portable fuel supplies for the military and commercial use — listed with AIM saying, "it costs $1 million (€750,000) to be traded in London, compared with $3 million

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(€2.25 million) on Nasdaq."

Scott Pearson, chief executive of Protonex, which went public in July and now has a market cap of $110 million (€82.5 million), said later that, indeed, cost was a factor.

John Jacobs, the executive vice president of Nasdaq, says Nasdaq's listing fees are "modest," but that companies do incur costs in complying with federal regulation. "If you want to reach U.S. investors, that's the rule set that's in place," he says.

But Jacobs says Nasdaq is in the final stages of approval for Portal, a new trading market in which companies will be able to sell shares to sophisticated institutional investors without going through Sarbanes-Oxley requirements.

Furse said AIM has created a "culture of openness" to startups. But Furse was defensive about criticism, which she views as coming primarily from the United States, that AIM is weak on regulation. "A view is taken in some quarters that AIM is a regulation-free zone; when in fact that could not be further from the truth," she said.

But the perception of a less-stringent regulatory environment is a big attraction for startups like CambridgeSoft, a company that makes software for chemists. "We're planning to go public on AIM," said Susan Kim-van Dongen, the corporate controller of the company. "Companies have to go through such stringent preparations for Nasdaq ... It's a big burden for a small company," she says.

___

Jennifer Levitz is a correspondent of Dow Jones Newswires

Notes:

Copyright © 2007 The International Herald Tribune | www.iht.com

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London AIM Listing as an Alternative for US Companies Advantages of Listing on AIM

• Access to Capital (Institutional and Private). AIM attracts both institutional and private investors.

• Liquidity. Substantial trading volumes on AIM. Liquidity in the secondary market through market makers (member firms of the London Stock Exchange).

• No Minimum Share Requirement for Public Offering.

• No Trading Track Record Necessary. Lock in period may be required for insiders (12 months).

• No Shareholder Approval for Substantial Transactions Required by AIM. A substantial transaction = exceeds 10 percent of specified thresholds (based on revenue, profits, assets, consideration and gross capital); instead, the market announcement required. Shareholder approval is required for reverse takeovers and disposals resulting in a fundamental change of business.

©2007 Foley & Lardner LLP

Key Issues for U. S. Corporations

Whilst U S corporations listing their shares on AIM often retain most of the customary characteristics and provisions of the corporate charter and structure of a U.S. publicly traded corporation, U. S. corporations should expect to have to make a number of modifications to reflect market practices in the United Kingdom and the differences in the corporate structure of a public limited company incorporated in England and Wales.

• Pre-emptive Right (new share issues) Under UK company law new shares may only be issued for cash if they are first offered to the company’s existing shareholders (pro rata in proportion to existing shareholdings). The shareholders are typically asked annually to waive these rights. US corporations may provide that they will not issue new shares for cash representing more than a fixed percentage of the issued share capital without shareholder consent (excepting certain issuances, such as under a stock option plan) for so long as their shares are admitted to AIM, each year the corporation will not issue.

• Ownership Disclosures UK law requires shareholders holding at least 3 percent of the issued share capital to disclose their ownership interest.

• Uncertificated Securities Shares in the UK can be held in paperless form through the CREST system (provided by CRESTCo Limited), a settlement system for enabling securities to be evidenced otherwise than by certificate and transferred other than by written instrument. This may pose challenges to US corporations due to transfer restrictions under the Securities Act of 1933 as amended. Various methods exist to address these restrictions when listing on AIM.

• Denomination a pound sterling denomination for shares of AIM listed companies is not required. The shares of various US corporations quoted on AIM are denominated in US dollars.

• Accounting For fiscal years beginning before Jan. 1, 2007 AIM quoted companies may


prepare their financial statements in accordance with U.S-GAAP (or UK-GAAP). AIM companies incorporated in countries within the European Economic Area (EEA) must comply with the International Financial Reporting Standards (IFRS) in preparing their financial statements in accordance with either IFRS, U. S. GAAP, Canadian GAAP or Australian IFRS.

• Investor Protection Each AIM listed company is expected to comply with certain specified non-statutory statements of “best practice”, in particular, in the corporate governance arena.

• Due diligence The nominated adviser (NOMAD) for the company seeking admission of its shares for quotation on AIM has to confirm to the London Stock Exchange that the admission document prepared by the company contains all information which an investor would require to make an informed investment decision on the issuer’s securities. To understand the issuer and its business, the NOMAD requires both the issuer’s legal counsel and its accountants/auditors to undertake a thorough due diligence exercise and report their findings to the NOMAD and the issuer.

• Non-Executive Directors Independent non-executive directors will likely have to be appointed to the issuer’s board. These proposed directors will need to be comfortable with the liabilities/responsibilities associated with being a director of an AIM quoted company under UK law and regulations.


Some US Federal Securities Laws Considerations

• Regulation S and Share Settlement Transactions in AIM quoted shares are typically settled through CREST, although it is possible for shareholders to hold shares in certificated form with share transaction settled non-efficiently through a stock transfer form. CREST does not monitor share transactions to ensure compliance with the resale “safe harbor” provisions of Rule 904 of Regulation S. To ensure compliance with the safe harbor, shares of US corporations will be to be admitted to AIM in certificated form only. The share certificates bear a customary restricted legend for Regulation S purposes. Any transaction in the shares during the 12-month distribution compliance period (1) must involve a buyer outside the United States or there must be evidence that the transaction was not prearranged with a US buyer and (2) there must be evidence that the transaction was executed through the AIM market.

• Securities and Exchange Act of 1934 and Secondary Trading An AIM listing does not automatically insulate a US corporation from compliance with the US Federal securities laws, including in particular the periodic listing requirements under the Securities and Exchange Act of 1934 or the requirements of the Sarbanes-Oxley Act.

A US corporation that has more than 300 US shareholders or more than 500 shareholders and total assets exceeding $10 million becomes a US reporting company and is required to register with the SEC under the Exchange Act and provide the extensive periodic reporting under the US securities laws. Once shares in US corporation are trading on AIM, an issuer cannot prevent the 500 shareholder limit being breached.

A US corporation may determine to redomicile to an offshore domicile in order to list its shares on AIM. Whether a US corporation’s reorganization to change to an offshore domicile will be recognized for U. S. Federal securities law purposes will depend on its nexus to the United States (in terms of securities ownership, location of assets, residence/citizenship of officers and directors and location of business activities).

If it is recognized, it has to have 300 or more US beneficial holders of its securities before it becomes subject to the registration and periodic reporting requirements under the Securities and Exchange Act of 1934.


The tax and other consequences of such a reorganization will need to be explored. Material factors in this review will be the long term capital ambitions of the issuer and its owners an the ultimate securities exchange of choice.


Admission Requirements for Quotation on AIM

There are only a few requirements for admission to AIM. As a self-regulated, “disclosure” based market, the NOMAD will determine whether an issuer is suitable for admission. In determining “suitability”, the Nomad will conduct the initial due diligence of the issues, including the business and prospects as well as the background of the management and the directors. If the NOMAD considers the issuer is to be “suitable”, the admission requirements include:

the issuer must have a NOMAD and a broker

a prospectus (for a public offer) or an admission document (for a private placement) must be published (in English) and be made available, free of charge, for at least one month following admission

The prospectus must be filed with and reviewed by the Financial Services Authority (“FSA”) in the United Kingdom. The prospectus must include the information required by the Prospectus Rules, AIM Rules, and any additional information the NOMAD required to be included. It is a criminal offense for transferable securities to be offered to the public without a prospectus being published. Exemptions from the obligation to publish a prospectus are:

o the offer is addressed to fewer than 100 persons, excluding “qualified investors”, in each country in the EEA;

o the offer is made only to “qualified investors” (who can be self-certified on a qualified investors’ register kept by the FSA);

o the total amount raised from the securities offer is less than �2.5 million (or an equivalent amount), even when aggregated with offers open during the previous 12 months;

o the shares are issued as part of a securities exchange amount (but a document containing the equivalent


information and vetted by the FSA must still be produced); or

o the minimum consideration which may be paid by any person for securities being offered is at least �50,000.

The admission document must contain information as required by the AIM Rules and must contain the information required by the NOMAD to explain the issuer’s business, assets, liabilities, profits/losses and prospects

the securities to be admitted to trading must be freely transferable

appropriate arrangements must be in place to enable the settlement by shareholders

Fast-Track Admission to AIM for Listed Companies

The London Stock Exchange introduced a new fast-track admission procedure (including the publication of a scaled-down or “exempt” admission document) for certain types of companies wishing to join AIM.

These new rules apply to companies already listed for at least 18 months on certain foreign exchanges (referred to as “Designated Markets”) including

the Australian Stock Exchange,

Euronet,

Deutsche Börse,

NASDAQ,

Johannesburg Stock Exchange,

New York Stock Exchange,

Stockholm Börsen,

Swiss Exchange,


Toronto Exchange, and

the Official List


Certain Information Required for AIM Listing

• Admission document must include most of the information required in a prospectus

• Other information must be included in the prospectus or admission document which the company reasonably considers necessary to enable investors to form a full understanding of in particular:

o The financial position, assets and liabilities, profits and losses, and prospects of the applicant and the securities to be admitted

o the rights attaching to the securities to be admitted.


New and Further issues by business sector New Issues New Issues No. of Money No. of Money No. of Money No. of MoneyGroup Business sector companies raised (£m) issues raised (£m) companies raised (£m) issues raised (£m)

Equities0530 Oil & Gas Producers 1 38.93 21 47.38 5 122.84 105 301.610570 Oil Equipment, Services & Distribution 0 0.00 0 0.00 0 0.00 4 0.000000 Total Oil & Gas 1 38.93 21 47.38 5 122.84 109 301.61

1350 Chemicals 1 20.00 2 0.00 1 20.00 21 5.271730 Forestry & Paper 1 96.80 0 0.00 2 201.15 0 0.001750 Industrial Metals 0 0.00 0 0.00 0 0.00 5 51.391770 Mining 0 0.00 60 266.99 8 111.10 242 531.281000 Total Basic Materials 2 116.80 62 266.99 11 332.25 268 587.94

2350 Construction & Materials 0 0.00 3 0.00 2 6.47 20 136.402710 Aerospace & Defence 0 0.00 6 0.00 0 0.00 9 0.002720 General Industrials 0 0.00 2 15.08 0 0.00 13 16.202730 Electronic & Electrical Equipment 0 0.00 3 0.00 4 34.04 38 28.112750 Industrial Engineering 1 4.25 8 10.25 3 24.25 32 32.782770 Industrial Transportation 0 0.00 1 2.42 1 28.00 3 15.122790 Support Services 0 0.00 30 42.26 5 17.69 135 206.862000 Total Industrials 1 4.25 53 70.02 15 110.44 250 435.47

3350 Automobiles & Parts 1 37.44 1 0.00 1 37.44 14 0.003530 Beverages 0 0.00 0 0.00 0 0.00 1 0.003570 Food Producers 0 0.00 8 0.00 2 10.63 23 26.003720 Household Goods 0 0.00 1 15.00 1 4.50 7 15.003740 Leisure Goods 0 0.00 1 0.00 1 0.00 3 0.253760 Personal Goods 0 0.00 4 0.43 0 0.00 11 1.173780 Tobacco 0 0.00 0 0.00 0 0.00 0 0.003000 Consumer Goods 1 37.44 15 15.43 5 52.57 59 42.42

4530 Health Care Equipment & Services 0 0.00 6 0.00 0 0.00 39 24.244570 Pharmaceuticals & Biotechnology 2 3.57 9 7.97 6 10.78 74 132.974000 Total Health Care 2 3.57 15 7.97 6 10.78 113 157.21

5330 Food & Drug Retailers 0 0.00 2 0.00 1 0.00 4 0.005370 General Retailers 1 5.50 5 0.00 4 121.70 33 7.395550 Media 2 0.00 26 24.36 3 1.50 113 709.935750 Travel & Leisure 1 0.00 21 24.46 1 0.00 78 106.225000 Total Consumer Services 4 5.50 54 48.81 9 123.20 228 823.54

6530 Fixed Line Telecommunications 0 0.00 0 0.00 0 0.00 5 5.386570 Mobile Telecommunications 0 0.00 8 0.00 2 0.00 29 10.156000 Total Telecommunications 0 0.00 8 0.00 2 0.00 34 15.53

7530 Electricity 2 50.20 4 2.01 3 52.24 19 48.367570 Gas, Water & Multiutilities 0 0.00 0 0.00 0 0.00 0 0.007000 Total Utilities 2 50.20 4 2.01 3 52.24 19 48.36

8350 Banks 1 0.00 1 0.00 1 0.00 2 0.008530 Nonlife Insurance 0 0.00 2 0.00 0 0.00 6 0.008570 Life Insurance 0 0.00 0 0.00 0 0.00 0 0.008730 Real Estate 4 285.36 9 393.95 14 769.64 38 1,085.838770 General Financial 4 162.94 39 35.97 16 306.32 175 287.458980 Equity Investment Instruments 1 25.00 6 223.09 6 411.14 29 292.418990 Nonequity Investment Instruments 0 0.00 0 0.00 0 0.00 0 0.008000 Total Financials 10 473.30 57 653.01 37 1,487.11 250 1,665.69

9530 Software & Computer Services 2 15.22 43 75.67 6 38.72 185 177.659570 Technology Hardware & Equipment 0 0.00 8 17.83 2 13.29 46 61.539000 Total Technology 2 15.22 51 93.50 8 52.01 231 239.18

Total Equities 25 745.21 340 1,205.12 101 2,343.43 1,561 4,316.96

Company Fixed Interest 0 0.00 0 0.00 0 0.00 1 2.71

Grand Total 25 745.21 340 1,205.12 101 2,343.43 1,562 4,319.67

May 2007 January to May 2007Further issues Further issues

New Issues by business sector

New Companies Transfers Re-Admissions Introduction Money Raising Introduction Money Raising Introduction Money RaisingGroup Business sector No. of co's No. (£m) No. of co's No. (£m) No. of co's No. (£m)

of co's of co's of co's

Equities0530 Oil & Gas Producers 0 1 38.93 0 0 0.00 0 0 0.000570 Oil Equipment, Services & Distribution 0 0 0.00 0 0 0.00 0 0 0.000000 Total Oil & Gas 0 1 38.93 0 0 0.00 0 0 0.00

1350 Chemicals 0 1 20.00 0 0 0.00 0 0 0.001730 Forestry & Paper 0 1 96.80 0 0 0.00 0 0 0.001750 Industrial Metals 0 0 0.00 0 0 0.00 0 0 0.001770 Mining 0 0 0.00 0 0 0.00 0 0 0.001000 Total Basic Materials 0 2 116.80 0 0 0.00 0 0 0.00

2350 Construction & Materials 0 0 0.00 0 0 0.00 0 0 0.002710 Aerospace & Defence 0 0 0.00 0 0 0.00 0 0 0.002720 General Industrials 0 0 0.00 0 0 0.00 0 0 0.002730 Electronic & Electrical Equipment 0 0 0.00 0 0 0.00 0 0 0.002750 Industrial Engineering 0 1 4.25 0 0 0.00 0 0 0.002770 Industrial Transportation 0 0 0.00 0 0 0.00 0 0 0.002790 Support Services 0 0 0.00 0 0 0.00 0 0 0.002000 Total Industrials 0 1 4.25 0 0 0.00 0 0 0.00

3350 Automobiles & Parts 0 1 37.44 0 0 0.00 0 0 0.003530 Beverages 0 0 0.00 0 0 0.00 0 0 0.003570 Food Producers 0 0 0.00 0 0 0.00 0 0 0.003720 Household Goods 0 0 0.00 0 0 0.00 0 0 0.003740 Leisure Goods 0 0 0.00 0 0 0.00 0 0 0.003760 Personal Goods 0 0 0.00 0 0 0.00 0 0 0.003780 Tobacco 0 0 0.00 0 0 0.00 0 0 0.003000 Consumer Goods 0 1 37.44 0 0 0.00 0 0 0.00

4530 Health Care Equipment & Services 0 0 0.00 0 0 0.00 0 0 0.004570 Pharmaceuticals & Biotechnology 0 0 0.00 0 0 0.00 1 1 3.574000 Total Health Care 0 0 0.00 0 0 0.00 1 1 3.57

5330 Food & Drug Retailers 0 0 0.00 0 0 0.00 0 0 0.005370 General Retailers 0 0 0.00 0 0 0.00 0 1 5.505550 Media 1 0 0.00 0 0 0.00 1 0 0.005750 Travel & Leisure 1 0 0.00 0 0 0.00 0 0 0.005000 Total Consumer Services 2 0 0.00 0 0 0.00 1 1 5.50

6530 Fixed Line Telecommunications 0 0 0.00 0 0 0.00 0 0 0.006570 Mobile Telecommunications 0 0 0.00 0 0 0.00 0 0 0.006000 Total Telecommunications 0 0 0.00 0 0 0.00 0 0 0.00

7530 Electricity 0 0 0.00 0 0 0.00 1 1 50.207570 Gas, Water & Multiutilities 0 0 0.00 0 0 0.00 0 0 0.007000 Total Utilities 0 0 0.00 0 0 0.00 1 1 50.20

8350 Banks 1 0 0.00 0 0 0.00 0 0 0.008530 Nonlife Insurance 0 0 0.00 0 0 0.00 0 0 0.008570 Life Insurance 0 0 0.00 0 0 0.00 0 0 0.008730 Real Estate 1 3 285.36 0 0 0.00 0 0 0.008770 General Financial 1 3 162.94 0 0 0.00 0 0 0.008980 Equity Investment Instruments 0 1 25.00 0 0 0.00 0 0 0.008990 Nonequity Investment Instruments 0 0 0.00 0 0 0.00 0 0 0.008000 Total Financials 3 7 473.30 0 0 0.00 0 0 0.00

9530 Software & Computer Services 1 1 15.22 0 0 0.00 0 0 0.009570 Technology Hardware & Equipment 0 0 0.00 0 0 0.00 0 0 0.009000 Total Technology 1 1 15.22 0 0 0.00 0 0 0.00

Total Equities 6 13 685.94 0 0 0.00 3 3 59.27

Company Fixed Interest Debentures and Loans 0 0 0.00 0 0 0.00 0 0 0.00Convertibles 0 0 0.00 0 0 0.00 0 0 0.00Preference 0 0 0.00 0 0 0.00 0 0 0.00Total Company Fixed Interest 0 0 0.00 0 0 0.00 0 0 0.00

May 2007

IPO's

New Issues by business sector

New Companies Transfers Re-Admissions Introduction Money Raising Introduction Money Raising Introduction Money RaisingGroup Business sector No. of co's No. (£m) No. of co's No. (£m) No. of co's No. (£m)

of co's of co's of co's

Equities0530 Oil & Gas Producers 0 4 121.56 0 0 0.00 0 1 1.280570 Oil Equipment, Services & Distribut 0 0 0.00 0 0 0.00 0 0 0.000000 Total Oil & Gas 0 4 121.56 0 0 0.00 0 1 1.28

1350 Chemicals 0 1 20.00 0 0 0.00 0 0 0.001730 Forestry & Paper 0 2 201.15 0 0 0.00 0 0 0.001750 Industrial Metals 0 0 0.00 0 0 0.00 0 0 0.001770 Mining 0 7 89.10 0 0 0.00 0 1 22.001000 Total Basic Materials 0 10 310.25 0 0 0.00 0 1 22.00

2350 Construction & Materials 0 1 6.47 0 0 0.00 1 0 0.002710 Aerospace & Defence 0 0 0.00 0 0 0.00 0 0 0.002720 General Industrials 0 0 0.00 0 0 0.00 0 0 0.002730 Electronic & Electrical Equipment 0 4 34.04 0 0 0.00 0 0 0.002750 Industrial Engineering 0 1 4.25 0 0 0.00 0 2 20.002770 Industrial Transportation 0 0 0.00 0 0 0.00 0 1 28.002790 Support Services 0 3 15.00 0 0 0.00 0 2 2.692000 Total Industrials 0 9 59.76 0 0 0.00 1 5 50.69

3350 Automobiles & Parts 0 1 37.44 0 0 0.00 0 0 0.003530 Beverages 0 0 0.00 0 0 0.00 0 0 0.003570 Food Producers 0 0 0.00 1 0 0.00 0 1 10.633720 Household Goods 0 1 4.50 0 0 0.00 0 0 0.003740 Leisure Goods 0 0 0.00 0 0 0.00 1 0 0.003760 Personal Goods 0 0 0.00 0 0 0.00 0 0 0.003780 Tobacco 0 0 0.00 0 0 0.00 0 0 0.003000 Consumer Goods 0 2 41.94 1 0 0.00 1 1 10.63

4530 Health Care Equipment & Services 0 0 0.00 0 0 0.00 0 0 0.004570 Pharmaceuticals & Biotechnology 0 2 5.74 0 1 1.46 2 1 3.574000 Total Health Care 0 2 5.74 0 1 1.46 2 1 3.57

5330 Food & Drug Retailers 1 0 0.00 0 0 0.00 0 0 0.005370 General Retailers 0 2 90.00 0 0 0.00 0 2 31.705550 Media 1 0 0.00 0 0 0.00 1 1 1.505750 Travel & Leisure 1 0 0.00 0 0 0.00 0 0 0.005000 Total Consumer Services 3 2 90.00 0 0 0.00 1 3 33.20

6530 Fixed Line Telecommunications 0 0 0.00 0 0 0.00 0 0 0.006570 Mobile Telecommunications 2 0 0.00 0 0 0.00 0 0 0.006000 Total Telecommunications 2 0 0.00 0 0 0.00 0 0 0.00

7530 Electricity 0 1 2.04 0 0 0.00 1 1 50.207570 Gas, Water & Multiutilities 0 0 0.00 0 0 0.00 0 0 0.007000 Total Utilities 0 1 2.04 0 0 0.00 1 1 50.20

8350 Banks 1 0 0.00 0 0 0.00 0 0 0.008530 Nonlife Insurance 0 0 0.00 0 0 0.00 0 0 0.008570 Life Insurance 0 0 0.00 0 0 0.00 0 0 0.008730 Real Estate 1 11 769.64 0 0 0.00 2 0 0.008770 General Financial 2 13 306.32 0 0 0.00 1 0 0.008980 Equity Investment Instruments 0 6 411.14 0 0 0.00 0 0 0.008990 Nonequity Investment Instruments 0 0 0.00 0 0 0.00 0 0 0.008000 Total Financials 4 30 1,487.11 0 0 0.00 3 0 0.00

9530 Software & Computer Services 1 4 35.72 0 0 0.00 0 1 3.009570 Technology Hardware & Equipmen 1 1 13.29 0 0 0.00 0 0 0.009000 Total Information Technology 2 5 49.01 0 0 0.00 0 1 3.00

Total Equities 11 65 2,167.41 1 1 1.46 9 14 174.57

Company Fixed InterestDebentures and Loans 0 0 0.00 0 0 0.00 0 0 0.00Convertibles 0 0 0.00 0 0 0.00 0 0 0.00Preference 0 0 0.00 0 0 0.00 0 0 0.00Total Company Fixed Interest 0 0 0.00 0 0 0.00 0 0 0.00

January to May 2007

IPO's

Top 50 AIM companies by May 2007

market capitalisationBusiness Market

Company sub-sector Capitalisation £m

1 YAMANA GOLD INC 1777 Gold Mining 2,043.712 NEW STAR ASSET MANAGEMENT GROUP 8771 Asset Managers 1,608.933 SIBIR ENERGY 0533 Exploration & Production 1,346.614 MECOM GROUP PLC 5557 Publishing 1,286.675 AIM RESOURCES 1775 General Mining 1,023.226 NIKANOR PLC 1755 Nonferrous Metals 988.747 CLIPPER WINDPOWER 7535 Electricity 983.908 URAMIN INC 1755 Nonferrous Metals 898.049 XG TECHNOLOGY INC 2733 Electrical Components & Equipment 851.61

10 PLAYTECH 5752 Gambling 836.2711 OILEXCO INC 0533 Exploration & Production 810.6112 JUST RETIREMENT(HLDGS)PLC 8575 Life Insurance 733.4013 R.G.I. INTL LTD 8733 Real Estate Holding & Development 728.7614 PETER HAMBRO MINING PLC 1777 Gold Mining 706.5815 MONSOON 5371 Apparel Retailers 688.7416 CLIMATE EXCHANGE 8777 Investment Services 675.7417 LANCASHIRE HLDGS 8536 Property & Casualty Insurance 663.6818 LAMPRELL PLC 0573 Oil Equipment & Services 658.0019 SONGBIRD ESTATES 8733 Real Estate Holding & Development 639.2820 MIRLAND DEVELOPMENT CORP PLC 8733 Real Estate Holding & Development 631.7021 CENTRAL AFRICAN MINING&EXPLORTN CO 1775 General Mining 626.3822 DAWNAY DAY TREVERIA 8733 Real Estate Holding & Development 609.6323 RAB CAPITAL 8775 Specialty Finance 605.8924 EASTERN PLATINUM LTD 1779 Platinum & Precious Metals 593.3325 MAX PETROLEUM 0533 Exploration & Production 573.8426 FIRST CALGARY PETROLEUMS 0533 Exploration & Production 563.7127 RENESOLA LTD 2733 Electrical Components & Equipment 532.0028 DELEK GLOBAL REAL ESTATE LTD 8733 Real Estate Holding & Development 513.1529 RAVEN RUSSIA 8733 Real Estate Holding & Development 494.0330 CANACCORD CAPITAL INC 8777 Investment Services 492.9131 TANFIELD GROUP 2791 Business Support Services 484.8432 DATATEC 9533 Computer Services 473.0333 URALS ENERGY PUBLIC CO 0533 Exploration & Production 464.2834 TRADING EMISSIONS 8775 Specialty Finance 462.3535 DOMINO'S PIZZA UK & IRL 5757 Restaurants & Bars 458.2336 SYNERGY HEALTHCARE 4533 Health Care Providers 448.1437 VIETNAM OPPORTUNITY FUND 8985 Equity Investment Instruments 445.1238 EROS INTERNATIONAL 5553 Broadcasting & Entertainment 435.1439 NORTHERN EUROPEAN PROPERTIES LTD 8733 Real Estate Holding & Development 418.7640 INTERNATIONAL FERRO METALS 1757 Steel 403.9041 ROC OIL CO LTD 0533 Exploration & Production 398.6142 YOUNG & CO'S BREWERY 5757 Restaurants & Bars 392.4943 VINALAND 8733 Real Estate Holding & Development 387.8944 ACCSYS TECHNOLOGIES 2727 Diversified Industrials 387.3545 SPEYMILL DEUTSCHE IMMOBILIEN CO 8733 Real Estate Holding & Development 375.1746 GENUS 4573 Biotechnology 369.5947 ARICOM 1775 General Mining 368.8248 RAMBLER MEDIA 5553 Broadcasting & Entertainment 365.2449 WHITE NILE 0533 Exploration & Production 357.7950 NUMIS CORP 8777 Investment Services 355.15

http://www.londonstockexchange.comAIM Market statistics is located within the Statistics section

AIM Daily turnover / FTSE AIM index

FTSE Period Value £ Bargains Shares FTSE AIM A All-share

1,054.56 3,221.42

30/04/2007 1,181.17 3,355.60

01/05/2007 257,768,948 13,688 467,550,376 1,199.98 3,404.0002/05/2007 453,406,227 18,154 665,020,884 1,199.81 3,393.4603/05/2007 381,905,636 18,397 680,846,392 1,191.44 3,398.2304/05/2007 317,761,512 16,830 550,894,882 1,198.77 3,433.8607/05/2007 0 0 0 1,198.77 3,433.8608/05/2007 341,346,256 21,221 529,827,788 1,199.26 3,406.6909/05/2007 338,696,237 15,514 572,620,830 1,199.98 3,404.0010/05/2007 373,184,932 14,645 578,517,710 1,199.81 3,393.4611/05/2007 347,927,990 16,479 585,176,968 1,200.88 3,409.9314/05/2007 364,332,952 17,889 784,247,309 1,200.79 3,405.7915/05/2007 349,752,018 18,251 748,297,589 1,202.10 3,413.7516/05/2007 409,911,704 17,516 548,688,143 1,200.03 3,410.3117/05/2007 378,617,111 15,601 578,265,682 1,202.18 3,420.6018/05/2007 283,117,098 15,471 527,509,805 1,205.67 3,449.6921/05/2007 258,414,668 16,330 495,050,076 1,208.39 3,448.2922/05/2007 342,655,002 17,087 801,612,241 1,209.17 3,434.2223/05/2007 313,910,719 16,700 702,201,661 1,208.81 3,440.3824/05/2007 307,111,336 16,485 554,429,095 1,206.22 3,414.6725/05/2007 311,010,950 16,224 536,579,37428/05/2007 0 0 029/05/2007 257,515,774 16,562 472,193,661 1,207.17 3,431.2730/05/2007 296,225,426 16,783 521,516,620 1,202.96 3,426.5231/05/2007 387,175,916 18,323 637,125,529 1,212.76 3,438.70

Totals month 7,071,748,412 354,150 12,538,172,615 +1.8% +2.1%

Year to date32,843,673,551 1,718,962 67,245,673,375 +14.1% +6.4%

Year 706,251,485 24,826 3,512,480,190 1,212.76 3,449.69High 30.3.07 28.2.07 12.3.07 31.5.07 18.5.07

Year 170,577,458 11,558 390,940,937 1,046.34 3,118.15Low 2.1.07 16.3.07 2.1.07 10.1.07 14.3.07

Record 706,251,485 30,375 3,512,480,190 2,924.93 3,340.86High 30.3.07 17.1.00 12.3.07 3.3.00 19.2.07

Record 43,160 7 66,297 542.39 61.92Low 6.7.95 30.6.95 6.7.95 1.4.03 13.12.74

Firstcompiled 19.6.95 19.6.95 19.6.95 2.1.96 1.4.62

Trading for individual companies can be found within the AIM Market Statistics on the web edition - address below

Total trading

29/12/2006

May 2007


Turnover by sectorincluding number of companies and market capitalisation by sector

Total turnover Market No. of No. of No. of CapitalisationBusiness sector Total Value (£) Bargains Shares Companies (£m)

Equities0530 Oil & Gas Producers 854,750,993 51,583 1,504,808,578 97 10,554.30570 Oil Equipment, Services & Distribution 63,077,656 2,350 32,919,532 12 1,124.70000 Total Oil & Gas 917,828,649 53,933 1,537,728,110 109 11,678.9

1350 Chemicals 68,878,028 5,014 147,570,722 25 948.91730 Forestry & Paper 17,542,886 847 23,599,790 4 247.91750 Industrial Metals 329,265,887 3,705 132,815,576 8 2,754.31770 Mining 1,135,697,403 63,372 2,108,979,218 178 15,027.51000 Total Basic Materials 1,551,384,203 72,938 2,412,965,306 215 18,978.6

2350 Construction & Materials 98,992,367 4,373 142,452,900 29 2,277.52710 Aerospace & Defence 68,593,018 1,549 19,611,345 3 140.22720 General Industrials 43,487,101 2,808 27,347,363 7 675.32730 Electronic & Electrical Equipment 145,976,894 11,305 243,093,313 61 3,216.42750 Industrial Engineering 116,463,040 6,927 120,730,012 39 1,468.52770 Industrial Transportation 9,278,359 1,524 112,773,144 11 492.82790 Support Services 466,606,589 31,515 648,103,002 138 7,005.92000 Total Industrials 949,397,367 60,001 1,314,111,079 288 15,276.7

3350 Automobiles & Parts 18,256,356 1,210 29,303,068 10 513.53530 Beverages 1,454,293 244 1,754,310 4 117.93570 Food Producers 51,002,471 3,492 157,714,636 22 1,355.43720 Household Goods 24,999,440 1,892 17,683,775 19 530.33740 Leisure Goods 1,509,706 744 22,282,120 9 40.93760 Personal Goods 6,152,177 778 22,080,597 14 120.83780 Tobacco 0 0 0 0 0.03000 Consumer Goods 103,374,443 8,360 250,818,506 78 2,678.7

4530 Health Care Equipment & Services 55,267,565 4,954 158,433,515 41 1,468.34570 Pharmaceuticals & Biotechnology 146,242,524 14,594 884,556,854 73 3,466.54000 Total Health Care 201,510,089 19,548 1,042,990,369 114 4,934.8

5330 Food & Drug Retailers 22,325,714 1,251 34,450,247 6 441.55370 General Retailers 37,973,634 3,261 137,474,683 38 1,874.25550 Media 320,964,278 15,576 820,661,834 114 5,226.05750 Travel & Leisure 283,250,125 17,257 605,162,138 84 5,139.35000 Total Consumer Services 664,513,751 37,345 1,597,748,902 242 12,681.1

6530 Fixed Line Telecommunications 60,022,091 5,337 498,783,947 13 472.46570 Mobile Telecommunications 11,361,915 998 34,299,123 16 372.26000 Total Telecommunications 71,384,006 6,335 533,083,070 29 844.6

7530 Electricity 155,266,991 2,228 61,938,056 11 1,724.87570 Gas, Water & Multiutilities 5,283,842 86 4,575,530 1 117.07000 Total Utilities 160,550,833 2,314 66,513,586 12 1,841.8

8350 Banks 11,472,976 120 101,860,642 3 633.78530 Nonlife Insurance 71,799,908 2,466 36,508,170 11 1,253.48570 Life Insurance 26,425,033 1,373 9,941,223 1 733.48730 Real Estate 901,532,398 17,489 780,390,765 94 13,692.88770 General Financial 694,278,185 33,513 1,046,577,295 192 11,637.28980 Equity Investment Instruments 392,761,528 6,118 329,103,833 61 4,551.88990 Nonequity Investment Instruments 19,011 7 332,830 1 4.08000 Total Financials 2,098,289,039 61,086 2,304,714,758 363 32,506.2

9530 Software & Computer Services 294,280,033 26,461 1,158,529,288 147 4,821.19570 Technology Hardware & Equipment 59,029,595 5,796 318,863,291 40 1,423.49000 Total Technology 353,309,627 32,257 1,477,392,579 187 6,244.5

Total Equities 7,071,542,007 354,117 12,538,066,265 1,637 107,665.86

Fixed Interest 206,406 33 106,350

Total trading 7,071,748,412 354,150 12,538,172,615

May 2007

(Equity only)

Turnover by sector - year to date January to May 2007

Total turnover No. of No. of

Business sector Total Value (£) Bargains Shares

0530 Oil & Gas Producers 4,302,152,905 262,413 7,109,867,4680570 Oil Equipment, Services & Distribution 272,057,832 9,220 158,806,7930000 Total Oil & Gas 4,574,210,737 271,633 7,268,674,261

1350 Chemicals 309,469,760 32,472 869,219,1081730 Forestry & Paper 32,973,251 1,344 45,426,6871750 Industrial Metals 1,144,565,542 33,020 625,815,4811770 Mining 4,431,917,132 251,048 8,693,584,8531000 Total Basic Materials 5,918,925,685 317,884 10,234,046,129

2350 Construction & Materials 422,441,605 23,742 602,472,6142710 Aerospace & Defence 118,990,826 6,425 66,468,5652720 General Industrials 176,646,553 9,823 162,308,7862730 Electronic & Electrical Equipment 917,484,378 74,448 1,501,519,6552750 Industrial Engineering 429,573,012 29,692 589,992,6562770 Industrial Transportation 56,167,736 7,911 230,935,3862790 Support Services 1,992,320,964 140,342 3,730,406,2712000 Total Industrials 4,113,625,073 292,383 6,884,103,933

3350 Automobiles & Parts 78,686,131 7,482 157,619,9923530 Beverages 11,366,532 1,818 22,186,0753570 Food Producers 319,509,455 17,811 604,871,0003720 Household Goods 91,890,854 9,742 106,068,7163740 Leisure Goods 5,172,962 3,053 153,925,1933760 Personal Goods 24,488,768 4,544 156,303,4053780 Tobacco 0 0 03000 Consumer Goods 531,114,702 44,450 1,200,974,381

4530 Health Care Equipment & Services 269,786,906 24,294 716,513,1174570 Pharmaceuticals & Biotechnology 855,746,826 80,500 4,692,672,0694000 Total Health Care 1,125,533,732 104,794 5,409,185,186

5330 Food & Drug Retailers 95,201,038 6,395 124,537,7995370 General Retailers 310,968,677 22,296 856,271,1715550 Media 1,256,418,432 72,090 3,993,213,8365750 Travel & Leisure 1,906,145,493 96,999 9,042,208,3345000 Total Consumer Services 3,568,733,640 197,780 14,016,231,140

6530 Fixed Line Telecommunications 381,642,506 25,944 2,752,462,4696570 Mobile Telecommunications 51,504,741 4,751 300,615,2276000 Total Telecommunications 433,147,248 30,695 3,053,077,696

7530 Electricity 756,588,922 10,547 326,789,6157570 Gas, Water & Multiutilities 29,490,330 586 26,409,4617000 Total Utilities 786,079,252 11,133 353,199,076

8350 Banks 29,816,973 630 171,081,7668530 Nonlife Insurance 394,286,198 10,740 242,502,9788570 Life Insurance 508,647,766 6,645 187,236,3178730 Real Estate 3,765,531,032 74,655 3,766,150,5918770 General Financial 3,473,696,383 162,862 5,791,976,7478980 Equity Investment Instruments 2,056,187,196 41,588 1,511,056,3168990 Nonequity Investment Instruments 11,800,750 128 13,996,8348000 Total Financials 10,239,966,298 297,248 11,684,001,549

9530 Software & Computer Services 1,234,774,718 124,100 5,506,088,1539570 Technology Hardware & Equipment 309,899,867 26,664 1,626,347,7599000 Total Technology 1,544,674,585 150,764 7,132,435,912

Total Equities 32,836,010,951 1,718,764 67,235,929,263

Fixed Interest 7,662,600 198 9,744,112

Total trading 32,843,673,551 1,718,962 67,245,673,375

Most actively traded securitiesBargains

Business ValueCompany Security sector (£m) Bargains Shares

1 PETER HAMBRO MINING ORD GBP0.01 1770 292,802,317 9,821 28,678,9382 TANFIELD GROUP GBP0.01 2790 161,198,628 9,747 114,402,7533 NEW STAR ASSET MANAGEMENT GROUP ORD GBP0.05 8770 214,252,259 7,434 43,671,7324 CENTRAL AFRICAN MINING & EXPLORTN ORD GBP0.001 1770 129,825,939 7,001 258,958,5675 MAX PETROLEUM ORD GBP0.0001 530 119,207,809 5,374 66,431,9166 RAB CAPITAL ORD GBP0.001 8770 108,244,030 4,781 98,692,9577 PIPEX COMMUNICATIONS ORD GBP0.01 6530 57,931,311 4,750 445,577,4878 BLINKX PLC ORD GBP0.01 9530 55,909,155 4,294 107,198,8659 SPORTINGBET ORD GBP0.001 5750 37,699,115 3,464 64,708,449

10 RCG HLDGS LTD HKD0.01 9530 28,288,726 3,286 26,903,10011 MECOM GROUP ORD GBP0.00608588 5550 159,298,497 3,198 178,683,18012 SIBIR ENERGY ORD GBP0.10 530 77,845,511 3,130 17,781,30713 RENESOLA LTD ORD SHS NPV 2730 73,391,367 3,075 14,884,24514 ARICOM ORD GBP0.001 1770 103,959,422 2,723 145,134,12315 TOLEDO MINING CORP ORD GBP0.05 1770 46,109,119 2,710 13,780,67516 VICTORIA OIL & GAS ORD GBP0.005 530 16,426,037 2,695 35,382,22317 ITM POWER ORD GBP0.05 2730 14,463,929 2,598 10,203,65718 REGAL PETROLEUM ORD GBP0.05 530 33,855,167 2,480 18,770,69019 VIALOGY PLC ORD GBP0.01 9530 12,994,898 2,252 101,271,75320 WORTHINGTON NICHOLLS GROUP ORD GBP0.01 2790 29,632,784 2,201 16,984,11821 CAPE ORD GBP0.25 2790 33,200,579 2,159 12,280,28022 NIGHTHAWK ENERGY PLC ORD GBP0.0025 530 18,933,912 2,135 59,518,21223 EUROPEAN NICKEL ORD GBP0.01 1770 58,993,298 2,067 99,509,73424 PURSUIT DYNAMICS ORD GBP0.01 2750 28,016,071 1,993 12,011,34225 HAIKE CHEMICAL GROUP LTD ORD USD0.002 530 18,629,834 1,986 11,262,532

Value1 PETER HAMBRO MINING ORD GBP0.01 1770 292,802,317 9,821 28,678,9382 NEW STAR ASSET MANAGEMENT GROUP ORD GBP0.05 8770 214,252,259 7,434 43,671,7323 TANFIELD GROUP GBP0.01 2790 161,198,628 9,747 114,402,7534 MECOM GROUP ORD GBP0.00608588 5550 159,298,497 3,198 178,683,1805 NIKANOR PLC ORD USD0.01 1750 145,082,123 1,321 22,786,8786 CENTRAL AFRICAN MINING & EXPLORTN ORD GBP0.001 1770 129,825,939 7,001 258,958,5677 DOLPHIN CAPITAL INVESTORS COM SHS EUR0.01 8730 128,478,227 891 75,800,0458 MAX PETROLEUM ORD GBP0.0001 530 119,207,809 5,374 66,431,9169 RAB CAPITAL ORD GBP0.001 8770 108,244,030 4,781 98,692,957

10 ARICOM ORD GBP0.001 1770 103,959,422 2,723 145,134,12311 FIRST QUANTUM MINERALS COM NPV 1750 101,922,907 233 2,262,54812 CLIPPER WINDPOWER ORD GBP0.10 'REGS' 7530 101,822,516 743 11,451,75313 OILEXCO INC COM NPV 530 87,484,109 1,837 18,720,54214 SIBIR ENERGY ORD GBP0.10 530 77,845,511 3,130 17,781,30715 RENESOLA LTD ORD SHS NPV 2730 73,391,367 3,075 14,884,24516 NORTHERN EUROPEAN PROPERTIES LTD ORD NPV 8730 72,659,894 719 83,002,96417 AERO INVENTORY GBP0.0125 2710 67,699,865 1,448 16,471,37218 INTERNATIONAL FERRO METALS NPV 1750 63,998,715 1,247 80,023,83319 VIETNAM OPPORTUNITY FUND ORD USD0.01 8980 63,299,466 1,725 34,946,84720 LANCASHIRE HLDGS COM STK USD0.5 8530 62,970,865 1,908 17,988,30621 PLAYTECH ORD NPV 5750 60,702,229 1,339 16,208,16722 DAWNAY DAY SIRIUS LTD ORD NPV 8730 59,872,658 959 82,304,28223 HIRCO PLC ORD GBP0.01 8730 59,730,158 404 15,331,76324 DAWNAY DAY TREVERIA ORD SHS EUR0.01 8730 59,431,490 1,032 66,140,79725 EUROPEAN NICKEL ORD GBP0.01 1770 58,993,298 2,067 99,509,734

Trading for all companies can be found within the AIM Market Statistics on the web edition - address below

May 2007


The most successful growth market in the world

AIM: powering the companies of tomorrowAIM is the world’s leading market for smaller, growingcompanies from all over the world. Since its launch in 1995,over 2,100 companies have chosen to join AIM, creating a unique community of innovative and entrepreneurialcompanies. AIM’s success is built on a simplified regulatoryenvironment which has been specifically designed for theneeds of smaller companies.

On AIM you will find a widerange of companies fromyoung, venture capital-backedbusinesses to more establishedbusinesses looking to expand.

These companies are attractedto AIM for a variety of reasons.They may see it as a means ofraising capital to fund futuregrowth, a way of effectingacquisitions or as a steppingstone to a full listing.

AIM is also a diverse marketwith companies admitted fromall business sectors from allover the world. Whatever theirarea of business, all of themhave joined AIM because theyfound it the best way to fulfiltheir objectives.

This brochure tells you moreabout AIM and why it could be right for your company. If, having read it, you areinterested in finding out more,you should contact one of ourrelationship managers whowill be happy to talk to you inmore detail.

2

“Since launch in 1995, AIM has provided a widerange of companies with higher visibility, improvedliquidity and increased access to capital. It hasallowed them to raise the capital they need to fundtheir future development and fulfil their aspirations.”Tim Davis, Charles Stanley

3

Why choose the London markets?

A company might choose tojoin the London markets to:

• access capital forgrowth, both at the time of flotation and later through further issues

• create a market for itsshares, broadening itsshareholder base andpotentially giving existingshareholders the chance to exit

• obtain an objective marketvalue for its business

• raise its profile with a view toexpanding its operations intonew overseas markets

• obtain currency in the form ofshares to make acquisitions

• reward and encourageemployees through theintroduction of shareincentive schemes

Why join AIM?

A unique advantage of AIM is that it offers all thebenefits of being traded on a public market but withina regulatory environmentdesigned specifically forsmaller companies.

Here are just some of thereasons why so manycompanies have chosen to join AIM:

AccessibilityUnlike most other markets,AIM does not stipulateminimum criteria in relation to: company size; track-record;or a set number of shares tobe in public hands. Instead, all prospective companies will need a nominated adviser(‘Nomad’) from our approvedregister who will ensure thatthey are suitable for AIM andready to be admitted to apublic market.

This flexible approach ensuresappropriate quality control ofprospective AIM companieswhilst making AIM as open aspossible to a range of smaller,growing companies.

Why join a public market?Deciding to join a public market is a major milestone in the history of your company. It is important to make the right choice as this canhave a big impact on the future success of your organisation.

“We are delighted to have successfully floated onAIM, which will help our profile in the markets inwhich we operate, incentivise key staff throughshare ownership and will help our future developmentthrough the new monies raised on the AIM marketof the London Stock Exchange.” Andrew Newland, Chief Executive, ANGLE plc

4

A simple admission process Part of the Nomad’s role is to take responsibility for co-ordinating the admissionprocess alongside the companyand other advisers, such aslawyers and accountants.

The Nomad will carry outextensive due diligence to ensure the company issuitable for AIM and that all the necessary informationabout the company is included within the admission document.

AIM has attracted a number of companies with operationsoutside the United Kingdom. In May 2003, we introduced asimplified fast-track admissionprocess for internationalcompanies meeting certaincriteria known as the AIMDesignated Markets Route.

Appropriate regulation for smaller companiesAll AIM companies arerequired to disclose details of their financial performancethrough scheduled interim and full year resultsannouncements. In addition,the company will be required to make disclosures on an ongoing basis about otherdevelopments that might have an impact on the futureperformance of the companyand/or its share price.

However, in most cases, AIM companies are notrequired to produce furtherdocumentation when effectingacquisitions and disposals thus enabling the company to expand or change directionquickly and cost-effectively.

Tax breaks for investors in AIM companies There are a range of tax breaks available for investorsin AIM companies. To find out more please visit theExchange’s website onwww.londonstockexchange.com/aim or talk to your adviser.

“AIM has been developed to meet the needs ofsmaller companies. A flexible approach to regulationand a streamlined admission process make AIM the ideal market for smaller growing companiesseeking to develop their business in a supportiveenvironment.”Philip Secrett, Corporate Finance Partner, Grant Thornton

5

AIM – an international focusSince its launch in 1995, AIM has attracted over 250 international companies,currently represented by 22 different countries and 33 business sectors. Between them they have raised over £2.2 billion on AIM.

For international companies,admission to AIM not onlyprovides access to capital and a broad range of bothinstitutional and privateinvestors, but it also helpsthem to raise their profile if they wish to expand theiroperations into new overseasmarkets. Internationalcompanies can join AIMthrough the standardadmission route or, ifapplicable, via the AIMDesignated Markets Route.

AIM Designated Markets Route

Our Designated MarketsRoute offers a further benefitfor international companies. It is designed to simplify theAIM admission process forcompanies that have beentraded on certain majormarkets (known as ‘AIMDesignated Markets’) for at least 18 months. Thesecompanies can use theirexisting annual report andaccounts as a basis for acomplementary quotation on AIM.

Other exchanges may beadded to this list from time to time.

The current AIM Designated Markets

• Australian Stock Exchange

• Euronext

• Deutsche Börse

• JSE Securities ExchangeSouth Africa

• NASDAQ

• NYSE

• Stockholmsbörsen

• Swiss Exchange

• Toronto Stock Exchange

“Our objective from a London quotation is to raiseour profile within Europe to help us move into thisimportant market.”George Taylor, CEO, Ocean Power Technologies

6

BenefitsAllows you to raise capital for funding organic growth and/or acquisitions

Offers existing shareholders an exit strategy and the chance to realise their investment

Raises your visibility and enhances your status with yourcustomers and suppliers around the world

Enables you to broaden your shareholder base

Provides you with an objective market valuation for your business

Allows you to boost employee motivation by creating a shareownership scheme

Enables you to make acquisitions using your shares as currency

Increases your credibility with a high quality and broad range of investors

ConsiderationsBoard members and other employees must accept thedisciplines of having shares traded publicly and be preparedfor closer scrutiny of the company and its performance

The directors will face increased accountability for keymanagement decisions and actions and must ensure that they run the company in the interests of shareholders

Quotation on a public market brings with it the uncertainty of market conditions and other factors which may affect your share price, such as general market sentiment ordevelopments in the same sector

The board must be prepared for greater openness, in terms of disclosing the company’s financial position and details of other developments such as corporate activity

In most cases, admission to AIM will mark the start of thecompany’s relationship with new investors and it will beimportant to maintain an active programme of activities tokeep investors aware of the company’s development andplans for the future

Is AIM right for you?A quotation on AIM can be an incredibly powerful way to continue yourcompany’s growth and development. However, before you make thedecision to join there are some key issues that you need to consider.

Admission to AIM requires commitment from the company and its directors. However, if you are prepared to take full advantage of the opportunities that AIM can provide, you will find a warm welcome to the most successful growth market in the world.

7

“I am delighted with Huveaux’s performance since we joined the market back in December 2001. AIM has enabled the company to grow (based onmarket cap) to a size that is 15 times greater thanwhen we first floated.

In 2 years, we have returned to the market on 4 occasions to raise substantial amounts of capital to fund our recent acquisitions.

AIM has been the perfect market environment,allowing me to achieve my aspirations and take the business to a whole new level.”John Van Kuffeler, Chairman, Huveaux plc

8

Who will you find on AIM?AIM’s flexibility attracts a huge range of dynamic companies – from young, venture capital-backed businesses to more established businesses looking to expand. These are just some of the companies from a broad range of sectors and from around the world who have chosen to come to AIM.Name Country Business Mkt cap £m (as at 31 Oct 2005)

TeleUnit SPA Italy Fixed-Line Telecommunication Services 40.06

Solar Integrated Technologies Inc. USA Electrical Equipment 54.38

First Calgary Petroleums Ltd Canada Oil & Gas – Exploration & Production 669.23

BKN International AG Germany Television, Radio and Filmed Entertainment 30.52

Palandri Australia Beverages – Distillers & Vintners 5.50

Peter Hambro Mining UK Gold Mining 588.49

Nelson Resources Bermuda Oil & Gas – Exploration & Production 844.71

Majestic Wine UK Food & Drug Retailers 174.11

Domino’s Pizza UK & IRL UK Restaurants, Pubs & Breweries 158.60

Civica UK Software 118.93

M&C Saatchi UK Media Agencies 58.54

Titan Europe UK Commercial Vehicles & Trucks 85.91

Sinclair Pharma UK Pharmaceuticals 77.50

Monstermob Group UK Publishing & Printing 183.63

Oakdene Homes UK Real Estate Holding & Development 38.22

Coffee Republic UK Food & Drug Retailers 4.13

CEPS UK Clothing & Footwear 2.12

121Media Inc USA Media Agencies 13.87

Galapagos Belgium Biotechnology 65.97

Jumpit ASA Norway Electrical Equipment 13.05

BKN International AG Germany Television, Radio and Filmed Entertainment 30.52

Orca Interactive Ltd Israel Software 21.52

Electronic & Electrical Equipment 2.6%Engineering & Machinery 3.3%

Health 2.7%Household Goods & Textiles 2.7%

Leisure & Hotels 5.5% Other18.7%

Media & Entertainment 9%

Support Services 9.7%

Mining 7.3%Oil & Gas 4.5%

Pharmaceuticals & Biotechnology 3.3% Real Estate 3.7%

Software & Computer Services 11%Speciality & Other Finance 16%

Companies by SectorNational

Automobiles 2%Electronic & Electrical Equipment 3%Health 2%Information Technology Hardware 2%Investment Companies 2.6% Leisure & Hotels 2.6%Media & Entertainment 4.6% Other 10.7% Support Services 6% Speciality & Other Finance 10.7%

Software & Computer Services 7.7%

Pharmaceuticals & Biotechnology 4%

Oil & Gas 12.8% Mining 29%

International

9

AIM investors and the secondary marketAIM attracts a broad range of investors, and it will be important to develop a relationship with this essential stakeholder group as part of your AIM quotation.

As a publicly quoted company, you undertake toabide by a number of ongoingrequirements. These areprimarily requirements forregular disclosure to the marketto ensure that investors cantake investment decisions on a fully informed basis. Your Nomad will ensure that you are fully briefed onthese requirements and will be able to guide you on anongoing basis.

Once your shares are admittedto AIM, trading will commenceand your share price will bevisible across the Exchange’sinformation network of 90,000terminals worldwide.

Liquidity in the secondarymarket is provided by marketmakers who are member firmsof the London Stock Exchangeand are obliged to quote a pricein your shares between 8amand 4.30pm UK GMT time.Trading by investors is carriedout through the Exchange’snetwork of member firms.

What next?

If, having assessed theadvantages and responsibilitiesinvolved in being traded on apublic market, you believe yourcompany is right for AIM, thenyour first step is to contact oneof our relationship managers.They will be able to talk youthrough the process in moredetail, but broadly speakingthese are the key stages:

• appointing your Nomad and broker. You will alsoneed to bring on board other advisers such asaccountants and lawyers

• decide whether you will workwith a Public Relations orInvestor Relations company.They can help the successof your quotation by raisingawareness of your companyand its business

• with your Nomad and other advisers, prepare thenecessary documentationfor your admission to AIM

• talk to potential investors by embarking on a series of roadshows. This can becritical to the success ofyour quotation and it is also the beginning of yourongoing communication with your shareholders

You may want to visit our website at www.londonstockexchange.com/aim.You can also download our Practical Guide to Listing atwww.londonstockexchange.com/practicalguide.

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“We are continually searching for well-managedcompanies across all areas of the economy whichhave the potential to deliver strong growth andshareholder value. AIM has been a prime source of such companies.” Andrew Impey, Chief Investment Officer, Singer & Friedlander Investment Management

11

Admission timetable

24 weeks >>Appoint and instructadvisers. Agree timetable

12 weeks >>Review problem areas

Produce draft prospectus

Produce other documents in first draft

Initial review of pricing issues

Review PR presentations

Host analyst presentations

>>

Weeks before admission

“AIM is undoubtedly Europe’s leading market for smaller growing companies. AIM’s success has been underpinned by the community of advisers and investors who understand the needs of smaller companies combined with access to a deep pool of capital.” Adam Hart, KBC Peel Hunt

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Choosing your Nomad

You must have a Nomad at all times – both before andafter admission. Once yourcompany has been admittedto AIM your Nomad willcontinue to give you adviceand guidance on the AIMRules on a continuing basis.In the run up to admission they will:

• assess whether yourcompany is appropriate for the market

• explain the AIM rules to your company’s board andensure that the directors areaware of their responsibilitiesand obligations

• co-ordinate the work ofother professionals – suchas accountants and lawyerswho are involved in preparingyour company for the market

• help you put together youradmission documents

• give you ongoing advice andguidance on the AIM rulesonce you have been admitted

For a full list of Nomads seewww.londonstockexchange.com/aim

Choosing your broker

Brokers are securities housesthat are also members of theLondon Stock Exchange.Whilst they may be part of the same organisation as yourNomad, procedures will be in place to avoid conflicts ofinterest as they work togetheron any fundraisings.

In particular, your broker willplay an important role in:

• bringing buyers and sellers of your shares together

• preparing and accompanying you on your roadshow to promote your shares to investors

• trading in the secondary market

• providing research on your company

6 weeks >>Continue drafting meetings

Carry out due diligence

Hold PR meetings androadshows

Submit 10 day announcementto Exchange of intention tojoin AIM

1 week >>All documents completed and approved

Pricing and allocation of the offer

Register admissiondocument

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Want to know more?

For training services, please visit www.londonstockexchange.com/trainingYou can download copies of the following documents from www.londonstockexchange.com/aim

Publications:The AIM rules

A guide to AIM tax benefits

The AIM Designated Markets Route

AIM fees

Practical Guides:A practical guide to listing

A practical guide toInvestor Relations

A practical guide to Corporate Governance

Other useful information on our website:The register of nominatedadvisers and brokers

Declaration forms forcompanies and advisers

Statistics on AIM and its companies

AIM notices

The Exchange’s ongoing commitment to youWe are committed to supporting you every step of the way – before, during andafter your admission. We have a team of relationship managers to assist youwith any queries you may have and to help you make the most of your quotation.We have also developed a wide range of products and services, drawing onresources and expertise from all parts of the Exchange. Your relationshipmanager will be able to advise you on which solutions are most suited to your business and goals.

© January 2006 London Stock Exchange plc, London EC4M 7LS. Telephone +44 (0)20 7797 1000. www.londonstockexchange.com

Registered in England and Wales No 2075721

This brochure is written as a general information guide only. It should not berelied upon as a substitute for specific legal or financial advice. Every effort has been made to ensure that the information in this guide is correct at the time of publication. Figures correct as at January 2006.

AIM and the London Stock Exchange crest and logo are trademarks of London Stock Exchange plc.

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