Press release

Lyxor AM launches the first ETF on S&P/MIB index on

Borsa Italiana


Milan, Paris, New York, 10 November 2003

- Lyxor Asset Management will list on 12 November an Exchange Traded Fund (ETF) on the S&P/MIB index on Borsa Italiana, one of Europe's leading exchanges. It will be this market's first ETF based on an Italian index. The S&P/MIB ETF will provide exposure to the Italian equity universe as tracked by the S&P/MIB index, which was created and launched by Standard & Poor's and Borsa Italiana earlier this year.

The S&P/MIB Master Unit ETF will distribute a yearly dividend and will carry annual management fees of 0.35%. Neither entry, exit, nor performance fees will be charged.

The S&P/MIB Master Unit ETF will quote 1/1000 of the tracked index, and its minimum trading lot will be one ETF unit, equivalent to less than 30 Euro at this time.

Continuous trading liquidity for the ETF will be guaranteed by Société Générale and its partners.

The S&P/MIB Master Unit ETF will be listed on "Mercato Telematico Fondi - MTF", the Borsa Italiana segment dedicated to ETFs and will expand the range of ETFs trading in Italy to 13 ETFs based on 12 unique underlying indices, and offered by five different asset managers.

Lyxor Asset Management is a 100% wholly owned subsidiary of Société Générale. Specialising in index tracking, alternative investment and structured asset management, Lyxor AM is the leader in the ETF industry in Italy and France and is among the main players in Europe with over €3 billion of assets managed through its ETFs.

"S&P/MIB Master Unit widens Borsa Italiana's offer of financial products for institutional and retail investors even more" states Massimo Capuano, President and CEO of Borsa Italiana. "We are convinced that the S&P/MIB Master Unit will strongly boost the success of ETFs in Italy, contributing to a greater knowledge and diffusion of these products, and attracting new interest from international investors for the Italian markets."

"The S&P/MIB Master Unit will be the first listed product on this new index in what is planned to be a long series of S&P/MIB listed instruments," states Eudald Canadell, managing director at Standard & Poor's Index Services (Europe). "This product was the essential component missing from Europe's ETF product offer; the S&P/MIB Master Unit essentially completes the possibility for investors to obtain country exposure to Europe's most dynamic domestic markets in a single trade."

"We are extremely proud that our subsidiary Lyxor Asset Management has been chosen to manage the ETF on the S&P/MIB index. We believe this ETF will become a milestone for the European market. Private and professional investors will enjoy the flexibility and the convenience of being exposed in a single transaction through the ETF to a representative and liquid index. Together with prestigious partners, Société Générale will ensure a high liquidity for the ETF" said David Armstrong, Head of Equity Derivatives for Italy, Société Générale.


Notes to editors

S&P/MIB Index is the only Italian equity index that relies on Standard & Poor's world-renowned approach to index construction. It features free float adjustment, high liquidity and broad, accurate representation of market performance based on the leading companies in leading industries.

The S&P/MIB Index offers broad market coverage of the Italian equities market, while still providing the liquidity needed to be truly investable.

The index aims to cover 80% of the Italian equity universe, and is not a fixed-numbered index. The index currently includes 40 listed securities. The eligible universe for the S&P/MIB is derived from all stocks trading on Borsa Italiana exchanges (MTA and Nuovo Mercato).

Company additions to and deletions from an S&P equity index do not in any way reflect an opinion on the investment merits of the company. Standard & Poor's does not sponsor, endorse, sell or promote any S&P index-based investment products.

Exchange Traded Funds (ETFs), are index funds listed and traded on Borsa Italiana's MTF market. They offer the performance of an index and combine the advantages of equity investing (simplicity, continuous quotation, and the ability to short), with the benefits of traditional funds, including access to a diverse basket of shares.

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