BISX

The Bahamas International Securities Exchange (BISX) has announced that Freeport Concrete Limited, which recently competed its initial public offering of 4,500,000 common shares, has been approved for listing on BISX. Trading in the securities of the company is scheduled to commence on Wednesday 16th May. “We are very excited about being the newest addition to a growing capital market”, said Ken Hutton, President & CEO of Freeport Concrete. “We are particularly pleased that BISX has been and remains very receptive to the needs of not only the companies that list on the exchange, but the wider investing public. We see a great future for BISX and Freeport Concrete Company.” Gerry Ritchie, Chief Executive Officer, comments “BISX is very pleased to welcome Freeport Concrete as the seventeenth Bahamian issuer to have its securities listed and traded on the Exchange. It is particularly encouraging to welcome a further Freeport-based business to the market, and one from an industry which plays such an important role in the development of Grand Bahama.” The BISX domestic equity market catering for the trading in Bahamian public companies was launched on 12 May, 2000 with two broker-dealer members of the Exchange and 9 listed companies participating. 17 Bahamian issuers are now listed on the domestic market representing a market capitalisation of over US$1.8 billon. With this new listing BISX facilitates the trading of over 90% of the public trading of securities in The Bahamas. The market averages over 250 trades a month. Daily prices are posted on BISX’s website (www.bisxbahamas.com) and in the local newspapers. For further details contact: Freeport Concrete Company Suite 8, 1st Commercial Centre PO Box F-42647 Freeport, Grand Bahama Tel: + 242-351-4667 Fax: + 242-351-4670 The Bahamas International Securities Exchange Windermere House 404 East Bay Street P.O. Box EE-15672 Nassau, Bahamas Tel: + 242 323 2330 Fax: + 242 323 2320 Email: adillette@bisxbahams.com

The operational procedures with respect to the calculation of closing prices for equity securities listed and traded on the Bahamas International Securities Exchange (BISX) will be changed, effective Friday, 11 May 2001. Currently, the closing price for any equity security traded on BISX is calculated on a daily basis using the Volume Weighted Average Price (VWAP) of the trades for that day. The VWAP is calculated by taking the total value of shares traded divided by the total shares traded: “Volume Weighted Average Price = Total Value Traded / Total Shares Traded” Under the new procedure, the closing price for each individual security will continue to be calculated using the VWAP method; however, on any given trading day, the closing price will only be re-calculated if a total of 1,000 or more shares have been traded. If less than 1,000 shares trade in a security on a given trading day, then the closing price will remain unchanged from the previous trading day’s closing price. This procedure applies to each individual security and is applied to trading on a daily basis, and is not cumulative. Based on analysis of market trading, discussions with market participants and the Securities Commission of The Bahamas, BISX believes that this operational change will provide a more accurate reflection of pricing in the market. As part of its ongoing commitment to stimulate market development and growth, BISX will continue to enhance its market practices and operations to ensure that investors are provided with a transparent, fair and equitable securities market, where they can confidently trade their securities. As the domestic market in equity securities develops, BISX will continue to review its market operations and prior to any market operational changes being made, BISX will inform the public of such changes in a timely manner. BISX Chief Legal & Compliance Officer, Keith Davies comments: “This change in BISX’s operational procedures is the result of working closely with market participants and responding to the particular needs of the domestic capital market. We believe that this change will address the conditions in our current market, without affecting its integrity and fairness.” The Bahamas International Securities Exchange was incorporated in September 1999, with the domestic equity market catering for the trading in Bahamian public companies launched the following year on 12 May 2000. Currently 16 Bahamian public companies are listed on BISX, representing a market capitalization of over US$1.8 billon. Daily prices are posted on BISX’s website (www.bisxbahamas.com) and in local newspapers. Trading on BISX is conducted through its Broker Members via a secure Wide Area Network that provides immediate access to the market. Trading in a formalized regulated market environment has been conducted for the past 12 months using BISX infrastructure.

The Bahamas International Securities Exchange (BISX) launched its mutual funds listing facility earlier this week. The listing facility is targeted at meeting the needs of international investors who may require the extra visibility afforded by a listing on an established securities exchange as a basis for their choice of investment vehicle. There is a substantial offshore funds industry based in The Bahamas, with some 600 mutual funds based here, valued at around $100 billion. BISX CEO Gerry Ritchie comments, “BISX has been working closely with the Bahamian service providers in the mutual funds industry to align its facilities with their business development objectives. The listing facility provides an additional element to their services already offered in the growing and highly competitive offshore funds industry, and a catalyst to the ambitions of the Bahamian funds industry within that sector.” Role of BISX Sponsors BISX will provide for primary and secondary listing of Bahamian regulated and overseas regulated mutual funds, sponsored by specialist members of the Exchange. Gerry Ritchie adds: “The use of BISX sponsors is central to the development of a successful listing facility. Sponsor firms, likely to be from the licensed mutual fund administrators, legal and accountancy professions, will be required to meet BISX eligibility requirements to enable them to act as sponsors to the listing of their mutual fund clients on the Exchange. We see the addition of a BISX listing facility in the jurisdiction as a further opportunity for Bahamian service providers to pro-actively market the listing facilities of BISX as a means of expanding their overall business”. More detailed information on sponsors’ eligibility and application procedures and copies of the BISX listing rules for mutual funds may be obtained from BISX. Listing rules An industry consultation on the BISX listing rules for mutual funds has already been completed, enjoying a high level of participation from the mutual fund administrators sector, lawyers and accountants. The listing rules have been approved by The Securities Commission of The Bahamas, the supervisory authority of BISX under the Securities Industry Act, 1999. Distinct features of the rules are: -A close fit with mutual funds legislation and regulations; -Recognition of previously published offering documents as part of the listing disclosure documents, thus avoiding excessive expense to issuers in advisory fees; -Congruence with generally accepted international listing standards; and -Recognition of existing regulatory registrations and licenses. BISX Chief Legal & Compliance Officer, Keith Davies comments: “The analytical and consultative work we have undertaken with the mutual funds industry on formulating the rules for the listing of mutual funds provides BISX with a solid foundation for launching this new product. In particular the close liaison with the industry representatives allows us to competitively position this product internationally, within a regulatory context that adheres to generally accepted international regulatory and disclosure standards.” Competitive positioning and quality of service To meet the demands of mutual fund operators and its sponsor-users, BISX has established a user-friendly, fast-track listing service to ensure the highest quality of listing service for all its listing products is achieved. Listing fees have been set to position BISX and the Bahamian service providers competitively in relation to the costs in other financial centers. Ideally, BISX and its sponsor-users would wish to offer a full listings service utilizing the Internet. As soon as Bahamian legislation facilitating E-Commerce, currently being devised by the Government in close consultation with the E-Commerce service providers and the financial industry, is enacted, and digital signatures are recognized, BISX will be aiming to leap-frog developments elsewhere. Marketing focus BISX will market the advantages of listing funds on BISX to the investment community internationally, and continue to work with the Bahamas Financial Services Board to place itself in the vanguard of the ever-growing and diverse range of financial services available to international investors in The Bahamas. Ian Fair, BISX Chairman comments: “The launching of the BISX listing facility for mutual funds marks a further milestone in the development of the Exchange. BISX will be continuing to extend its facilities in both the domestic and international sectors to ensure that the Exchange is able to contribute fully to the continued emergence of the capital market as a dynamic for growth within our economy, and also to provide a platform for the enhancement of our services offered to the international investment community from The Bahamas.” The Bahamas International Securities Exchange was incorporated in September 1999. BISX raised its initial capital by way of a private placement of securities from broker-dealers, financial institutions and other business and private investors. The domestic equity market catering for the trading in Bahamian public companies was launched on 12 May 2000 with two broker-dealer members of the Exchange and 9 listed companies participating. Currently 16 Bahamian public companies are listed representing a market capitalisation of over US$1.8 billon. The local market averages over 250 trades a month. Daily prices are posted on BISX’s website (see url below) and in local newspapers. Contact BISX at: The Bahamas International Securities Exchange Windermere House 404 East Bay Street P.O. Box EE-15672 Nassau, Bahamas Tel: + 242 323 2330 Fax: + 242 323 2320

Mr. Gerry Ritchie is the new Chief Executive Officer at the Bahamas International Securities Exchange. Mr. Ritchie is an experienced professional, with a background in stock exchange strategic advisory services and market regulation. Additionally, the new CEO has extensive experience in securities market product development – including domestic, international, emerging and offshore markets. During 2000, Mr. Ritchie worked as a consultant on various aspects of the formation of BISX, establishing both sound knowledge of the Bahamian capital market and relationships with local regulators, domestic listed companies and the offshore funds industry of The Bahamas. Operating under the broad mandate of creating “a state-of-the-art securities exchange for the delivery of innovative and efficient financial services”, BISX launched its domestic market in May, 2000 for the listing and trading of local public companies. Currently, preparations are underway for the start up of its international segment, targeting mutual fund listings.

The Bahamas International Securities Exchange (BISX) is maintaining its current focus on development of its international tier. Currently, BISX is awaiting approval from the Securities Commission of the Bahamas (SCB) to list its first mutual fund. It is anticipated that the launch of the international segment of the Securities Exchange will follow this listing. With the trading of 16 companies on the Exchange, BISX already has established a solid operational base with its domestic segment, and is preparing now to move into permanent premises at the Centre of Commerce, #1 Bay Street, BISX has been successful in creating a regulated market for securities. At the launch of the Exchange in May, 2000 Minister of Finance Sir William Allen predicted that development of the Exchange would lead to a 5% growth in the Bahamian economy, “adding dynamism to financial intermediation and capitalization to new and existing enterprises”. The Minister recently indicated that Government securities, current traded on an “over-the-counter” (OTC) system, may be listed on the Bahamas International Securities Exchange in due course — as a “natural consequence in the development of capital markets, leading to greater openness and transparency in the issues”. BISX last month decided against joining the proposed Eastern Caribbean Regional Securities Exchange at this time. Eight Caribbean nations have signed a Treaty to form a regulatory body governing the regional exchange, which would involve integration and cross-listings with existing regional stock markets.

As investors open more and more accounts with their brokers, CEO Brian Taylor attributes the steady growth in trading volumes to “a significant confidence in BISX and the whole capital markets infrastructure.” Brokerage accounts are a pre-requisite of being able to trade on BISX. The market is growing steadily, with the most liquid trading day showing almost $3 million shares changing hands. The growth of trading has been helped, too, by positive efforts from the brokers, who are becoming more active with their clients and issuing information and research opinions on listed companies. There are now 16 listings on BISX. BISX has played a leading role in the investor education and information dissemination process. “BISX is now offering Bahamians a credible choice – one that was not available previously in The Bahamas. Historically, Bahamians could buy real estate, place their money on deposit or invest in a business. Now they can invest in the future of The Bahamas through the stock market. Similarly, issuers have a choice — instead of raising debt from banks, they can raise capital through the stock market. This applies to small to medium sized corporates, the banks themselves, and the Government. By using BISX the economy will grow. Launching BISX has been very timely now that external pressures are being placed on The Bahamas” states Ian Fair Chairman of BISX. In addition to the development of the domestic side of the capital markets, BISX has been engaged in the international strategy development with their advisors BTA Consulting. An international programme has been presented and is now being debated and considered at Board level. The International Segment will enforce the position that BISX is a major engine of growth for The Bahamas. The first full business plan will be presented and considered by the Board of BISX on September 27, 2000. The Governor of The Central Bank of The Bahamas is of the opinion that BISX will have a dramatic impact on the economy – strengthening, broadening and expanding development. “During the next five years, the Bahamian economy will begin to feel the affects of this very important institution. BISX will be the means by which private capital can be channeled directly to business without going through the banking system” Julian Francis, Governor, Central Bank Progress with Mutual Funds Listings is seen as a “quick-win” for BISX – especially as development work has been undertaken already in parallel with the launch of the Domestic Market. “BISX has not limited its vision to competing with other offshore centres, as the offshore market is changing rapidly and is frankly highly competitively priced” comments Gerry Ritchie of BTA Consulting. The Mutual Funds Listings facility, expected to be launched before the end of the year, will enable BISX to capitalise on the mutual funds industry that is already strong in The Bahamas. There are many reasons why a mutual fund should list — including the intrinsic marketing benefits that a listing provides. At this time of external pressure, listing – in accordance with international standards – reduces the apparent air of anonymity about mutual funds registered in any offshore centre. BISX adds a stamp of credibility and prestige to the mutual fund. Ideally, BISX and its intermediaries would like to offer a full listings service via the internet – today, no offshore centre really provides such a service. As soon as e-commerce legislation is passed in The Bahamas, and digital signatures are recognised, BISX will be able to leapfrog developments elsewhere. BISX aims to compete with other more established markets and seeks to provide the opportunities for Bahamians to participate in the international capital markets. A range of other innovative ideas is under consideration, including products designed to deliver significant value to the trade finance industry. A workshop also is being held with the Ministry of Finance to create an action plan that will drive legislative change, in order to facilitate substantial growth in the capital markets. Within the next few years, BISX should change the climate of opportunity in the Bahamian capital markets. Currently, there are scarce opportunities in the domestic environment, which has a negative impact on the business culture. BISX should drive an abundance mentality into the whole market, creating more opportunities for investors, advisors, brokers, and Bahamians at large. Visit the BISX www site for additional details – www.bisxbahamas.com

Thirty-eight of the 43 shareholders of the Bahamas International Securities Exchange attended an Extraordinary Shareholders Meeting on March 22. At that time, the shareholders selected the BISX Board of Directors from a slate of 19 nominations. The 15-strong Board comprises Gregory Bethel, President, Fidelity Merchant Bank and Trust Co. Ltd; Franklin Butler, Sir Milo Butler & Sons Ltd; Gregory Cleare, Senior Partner, KPMG; Kenneth Clowes, Chief Operating Officer, Oceanic Bank & Trust Limited; Frank Crothers, Chairman, Island Corporate Holdings Ltd; Ian Fair, Chairman, MeesPierson (Bahamas) Ltd.; Larry Gibson, Principal, Colina Financial Advisors Ltd; James Gomez, President, Bahamas Institute of Chartered Accountants; Claude Haylock, Deputy Manager, Central Bank of The Bahamas; Claire Hepburn, Partner, Graham Thompson & Co.; Patricia Hermanns, President, Global Life Assurance Bahamas Ltd.; Albert Miller, Co- Chairman, Grand Bahama Port Authority Ltd.; Robert Sands, The Bahamas Hotel and Allied Industry Pension Fund; James Smith, Bahamas Ambassador for Trade and Development; and Walter Wells, Vice President- Commercial Banking Centre, CIBC. Also included as ex-officio members of the Board of Directors are Brian Taylor, BISX’s Chief Executive Officer and Barry J. Malcolm, Executive Director of the Bahamas Financial Services Board (BFSB). Live trading (electronic) is expected to start in early April, with BISX presently in the process of conducting free training sessions for traders.

The Bahamas International Securities Exchange has announced that the Securities Commission of the Bahamas and the Central Bank of the Bahamas have approved its Founding Shareholders. An Extraordinary General Meeting of the shareholders (numbering 43) was held on Wednesday, March 22, 2000. CEO Brian Taylor stated that BISX now finds itself at the beginning of a new era of capital development in The Bahamas.