SGX to acquire a 5% Stake in BSE

Mumbai, 7th March, 2007 - Bombay Stock Exchange Limited (BSE) and Singapore Exchange Limited (SGX) announced today that they have entered into an agreement for SGX to invest in a 5% stake in BSE. SGX will subscribe to the shares of BSE at Rs. 5,200 per share for Rs 189 crore (USD 42.7 million).

The two exchanges have also agreed to actively explore collaboration in various areas relating to listings and product development, leveraging on SGX's leading position as a regional hub for derivatives and international listings and BSE's strong presence in India.

Mr. Rajnikant Patel, Managing Director & CEO, BSE, said," This strategic tie-up with SGX will offer the Asian advantage to BSE. SGX is Asia-Pacific's first demutualised and integrated securities and derivatives exchange. They bring a huge amount of learning to this partnership. This partnership will not only be mutually beneficial to both the exchanges, but also complement our association with Deutsche Börse. This alliance will position BSE to be an important player in the increasingly globalised market place."

Mr. Hsieh Fu Hua, CEO of SGX, said, "We look forward to supporting BSE's goal to strengthen their international position. Together, we aim to identify new business development opportunities and to foster an enduring partnership that is beneficial to both exchanges and our customers. Our investment in BSE is consistent with our strategy of building an Asian Gateway for securities and derivatives products.

The issue of shares is subject to relevant regulatory and shareholder approvals. Kotak Investment Banking advised BSE and UBS Investment Bank acted as financial advisor to SGX in connection with the transaction

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About BSE

BSE is the oldest stock exchange in Asia. It was established in 1875 as "The Native Share & Stock Brokers Association."

Earlier an Association of Persons (AOP), the Exchange is now a corporatised entity, incorporated under the provisions of the Companies Act, 1956, and is presently in the process of demutualisation. BSE is now professionally managed under the overall direction of the Board of Directors, which includes eminent professionals, and representatives of trading members.

BSE reaches out to more than 400 cities and towns in India. It has 4,800 listed companies on the board, with over 7,500 scrips being traded. The companies listed on BSE command a total market capitalisation of Rs 37,97,000 crore (USD 850 billion). The Exchange offers trading in the equity (cash and derivatives) and debt (corporate and government securities) segments.

About SGX

Singapore Exchange Limited (SGX) is Asia-Pacific's first demutualised and integrated securities and derivatives exchange.

SGX was inaugurated on 1 December 1999, following the merger of two established and well-respected financial institutions - the Stock Exchange of Singapore (SES) and the Singapore International Monetary Exchange (SIMEX).

On 23 November 2000, SGX became the first exchange in Asia-Pacific to be listed via a public offer and a private placement. Listed on its own bourse, the SGX stock is a component of benchmark indices such as the MSCI Singapore Free Index and the Straits Times Index.

SGX has positioned itself strongly as the Asian gateway for capital raising and risk management. One third of its market capitalisation are foreign companies, from across Asia and other continents. SGX lists and clears a wide range of Asian equity and interest rate derivative products. It has also launched a commodity derivatives trading and clearing platform, and rolled out an OTC clearing facility.