Euronext N.V. Stock

Euronext N.V., a holding company, operates as a cross-border exchange in Europe. It offers a range of integrated services, including the listing of financial instruments, trading in securities and derivatives, clearing through its associate LCH.Clearnet, netting and settlement through its subsidiaries CIK and Interbolsa and its partner Euroclear, market data dissemination and IT solutions and support. The company provides services for regulated stock and derivatives markets in Belgium, France, the Netherlands and Portugal, as well as in the UK (derivatives only).

Cash Trading

Euronext’s Cash trading and listing SBU focuses on providing listing and trading facilities for cash instruments (equities, bonds, structured products, such as warrants and certificates, and investment products, such as exchange traded funds/trackers and investment funds). With regard to listing, Euronext intends to provide open access to all parties wishing to raise capital in Europe (primary market). In the area of trading (secondary market), Euronext operates fair, transparent, order-driven markets.

Listing

Euronext’s list comprises all companies listed in Belgium, France, the Netherlands and Portugal. A total of 52 new companies were listed on Euronext in 2004. Euronext handled a number of IPOs in Europe. As also of 31 December 2004, 1,333 companies were listed on Euronext (999 of which were domestic, and 334 foreign).

Once a security has been admitted to listing, Euronext handles all the corporate events related to the security and produces notices for the market. Corporate events include the issue of new securities giving direct or indirect rights to capital, public offers, exchange and squeeze-out offers, and trading suspensions that can occur when important information that could have a impact on the issuer’s share price is about to be published. Euronext provides services for issuers and investors and promotes its markets via various workshops, events and other market initiatives, and through partnerships and sponsoring.

Derivatives Trading

Euronext.liffe is the international derivatives business of Euronext, comprising of derivatives markets in Amsterdam, Brussels, Lisbon, London and Paris. The exchange offers a range of derivatives products to customers at 775 sites in 29 countries around the world. CONNECT that supports electronic trading in all contracts. LIFFE CONNECT, in the form of e-cbot, supports overnight trading in Kansas, Minneapolis and Winnipeg.

Information Services

Financial information complements securities listing and trading activities. Euronext’s Information Services SBU distributes and sells market data and market information, such as market prices, official market publications and press releases from listed companies. It is also responsible for managing the Euronext indices through its subsidiary, Euronext Indices B.V. Its clients include distributors, issuers, information suppliers and financial institutions.

Market data services: Euronext provides real-time data (prices, indices, volumes and other data) to financial information distributors, market intermediaries (investment banks and brokerage firms), Web sites, press agencies and other institutions. Approximately 160 data vendors distribute Euronext data in real time in 190,000 market data packages displayed on screens around the world.

Indices: In 2004, Euronext Indices B.V. completed the implementation of its consolidated index calculation and distribution platform. Euronext Indices B.V.’s portfolio includes the national blue-chip indices (AEX, BEL 20, CAC 40 and PSI 20), as well as Euronext’s cross-border indices and many others developed on behalf of or in conjunction with third parties.

Sale of Software

GL TRADE provides software systems for real-time financial data feeds, connectivity, order management, confirmation and clearing. Through its software solutions (GL STREAM, TRADIX), network (GL NET) and settlement business units (GL SETTLE and UBIX), GL TRADE provides services covering the entire trading process from front to back office, including order management, trading, market access and post-market

processing. It operates in 23 offices on five continents servicing 3,500 clients, including 550 international financial institutions.

Partnerships, Alliances and Other Strategic Activities

Post-trade activities:

The company introduced a radical change to its business activities by disposing of its post-trade activities. Euronext focuses on its core business activities (providing trading facilities for financial instruments), while clearing activities and settlement and custody are handled by LCH.Clearnet Group, Ltd. and Euroclear. In Belgium and Portugal, settlement activities are performed by Euronext’s subsidiaries, CIK and Interbolsa.

LCH.Clearnet Group: The company provides central counterparty services to users of Euronext’s cash and derivatives markets and a range of other customers across Europe.

CIK: CIK is a wholly owned subsidiary of Euronext that provides settlement and custody services for securities in Belgium. CIK also offers a shareholder register service that allows issuers to combine a listing on Euronext Brussels with registration services. The shareholder register service is available for listed and unlisted instruments.

Interbolsa: Interbolsa, a wholly owned subsidiary of Euronext Lisbon, is responsible for the management of settlement systems and CSD systems in Portugal. It supplies the main participants of the capital market (financial institutions and issuers) with securities registration depository and custody services, as well as settlement and clearing systems that process securities transactions.

Euroclear: Euroclear is Euronext’s partner for the settlement of transactions concluded on its markets.

Euronext.liffe Market Solutions: Euronext provides IT services through Euronext.liffe Market Solutions. This division designed and built LIFFE CONNECT, which is a distributed electronic trading platform in the world. Euronext.liffe Market Solutions distributes LIFFE CONNECT and provides system support to derivatives market and users in 29 countries around the world. Euronext.liffe Market Solutions provides derivatives markets with various software solutions and hosting services.

Partnership

Euronext Paris holds a 34% stake in Powernext S.A., a France regulated power exchange. On this market, electricity producers, consumers and traders can trade power for delivery on the French electricity network.

The company has partnership with MTS Group to promote bond market and indices. Euronext and MTS joined forces to produce the genuinely independent, transparent, pan-European government bond indices, collectively known as the EuroMTS Indices.

Customers

Euronext''s customers include listed companies, members, institutional and individual investors who trade on Euronext markets, other organizations, notably exchanges that use its technologies and services, and users of the financial information generated by market activity.