The document discusses the London Stock Exchange as a listing location for companies. It notes that the LSE provides access to global institutional investors and has high standards of regulation. The LSE has over 2,500 domestic companies listed and over 675 international companies listed, with a combined market capitalization of trillions of dollars. The Alternative Investment Market (AIM) has over 1,675 companies listed, including 343 international companies, and has raised over $115 billion since 1995. The document argues that the LSE provides a more flexible regulatory environment compared to exchanges like the NYSE or Nasdaq.

1. Listing in London 7 th September 2011 The world’s capital market

2. Global platform for global institutional investors Global institutional investor base Local market US Institutional Investors 144A Regional funds and retail investors USA Middle East Asia Eastern Europe Europe UK

3. London Stock Exchange - key statistics Source: London Stock Exchange statistics – December 2007 Total companies Domestic: 2,550 International: 675 Market capitalisation Main Market: UK listed: US$3,570bn International listed: US$4,398bn AIM: US$181bn Turnover value (Jan-Dec 2007) Main Market: US$8,054bn AIM: US$150bn London Stock Exchange

4. Source: IPREO 2007 More international equity assets under management London has a far bigger international presence and weight. 45% of equity assets under management are invested in international markets. New York is a larger but mainly domestic market. Equity assets under management by centre. In US$ billions

5. The platform of choice for international companies In 2006: London Stock Exchange - 367 new companies joined in 2006. NYSE, Nasdaq & Hong Kong Stock Exchange had 332 IPOs in 2006. $104bn raised on the London Stock Exchange, $40bn on NYSE, and $29bn on Nasdaq In 2007 : London Stock Exchange - 252 new companies joined the London Stock Exchange, 142 new companies on Nasdaq, 67 on NYSE $88bn raised on the London Stock Exchange . Source: London Stock Exchange and WFE – December 2007 Q1, 2008

6. Leader in cumulative capital raised at IPO General Market Summary Source: London Stock Exchange and WFE – December 2007

7. Comparing UK and US as listing locations London and New York exchanges offer optimal profile London has world’s highest reputation for regulation and governance Principles-based (UK) versus rule-based (US) approach London has the most liquid equity market in Europe London has the world’s most successful growth market (AIM) London Stock Exchange offers world’s only location for liquid and transparent trading of GDRs London combines simple, flexible disclosure with high reputation of regulators US disclosure regime more prescriptive, exacerbated by need to protect against opportunistic securities litigation London offers rapid turnaround by regulators, and limits the time regulators can take to approve offer documents US: SEC review periods longer, with no certainty on turnaround time AIM offers potentially shorter transaction timetable Timing Disclosure Trading Cost-benefit analysis favours London Profile

8. Comparison of international listing locations Optimal Least suitable Strategic financings from global companies will converge on London or New York High profile Rapid timing Simplified disclosure Trading / liquidity London Stock Exchange NYSE / Nasdaq Bovespa

9. An intelligent approach to regulation Balance Competing Needs Companies Investors Minimise bureaucracy and cost Maximise protection US UK Ranked first in corporate governance standards by GMI, Deminor and Davis Global Advisors Increased cost of compliance and risk premium (Financial Executive & Korn Ferry Surveys) Principles based - “ comply or explain” Rules based - prescriptive and expensive

10. Corporate Governance and regulatory framework Sarbanes–Oxley has increased the costs of listing in US: Has it improved governance standards in USA? N o evidence that Sarbanes–Oxley delivers benefits beyond those that apply under the UK regime The Cost of Capital: An International Comparison - report available here: http://www.londonstockexchange.com/NR/rdonlyres/B032122B-B1DA-4E4A-B1C8-42D2FAE8EB01/0/Costofcapital_full.pdf London Stock Exchange – intelligent regulation The UK’s intelligent approach to regulation & the success of the Combined Code is the foundation for Europe’s deepest pool of capital in Europe and why our Main Market is one of the world’s most cost-efficient to access

11. Corporate governance: overall rating by country Principles-based regulation: high standard, pragmatic application No equivalent to Sarbanes-Oxley section 404 An intelligent approach. Most advanced regulation and governance Source: Governance Metrics International, 2007

12. Main features London Stock Exchange Setting the standard for excellence Where ideas take off Highest standards of regulation Largest institutional investor base Deepest capital pool Most liquid trading platforms Enhanced profile and status Investable indices Easier entry requirements Flexible regulatory regime Specialist small-cap institutional & retail investor base Variety of tax benefits may be available Bespoke indices

13. The widest choice of proven global markets A choice of globally respected markets supported by a wide range of institutional & retail investors Supports more established companies seeking further growth. 1,550 issuers Supports earlier stage companies in their initial growth period. 1,675 issuers Main Market Sponsor UK Listing Authority Nominated Adviser (Nomad)

14. The world’s most successful growth market

15. The widest choice of proven global markets AIM companies: 1,675 Overseas AIM companies: 343 (non UK incorporated) IPOs on AIM in 2007: 182 Total capital raised in 2007: US$32.4bn US$13.2bn New US$19.2bn Further Capital raised (new & further) since 1995: US$115bn Key Statistics Source: London Stock Exchange trade statistics – April 2008

16. AIM – critical mass to support growth Source: London Stock Exchange trade statistics –April 2008 Number of IPOs Q1, 2008

17. As at April 2008, there were 1675 companies on AIM of which 343 were international with a combined market capitalisation of £91billion. 590 companies have their primary business outside the UK Source: London Stock Exchange trade statistics – April 2008 AIM today

18. Raising new and further capital on AIM Source: London Stock Exchange trade statistics – April 2008 2006- More money was raised on AIM in 2006 ($31bn) than on NASDAQ ($29bn) 2007- More money was raised on AIM in 2007 ($32bn) than on NASDAQ ($20bn) Funds raised in ($bn) Q1, 2008

19. AIM - company size Source: London Stock Exchange trade statistics – April 2008

20. A diverse market Source: London Stock Exchange trade statistics – April 2008 Top AIM sectors by market value & no. of companies April 08

21. AIM – The market of choice for growing Mining companies Mining companies on AIM: Money raised ($m) Source: London Stock Exchange April 08.

22. Flexible regulation Admission Rules No minimum size to be admitted No minimum financial history required No minimum amount of shares to be in public hands In most cases, no prior shareholder approval required for transactions Admission documents not pre-vetted by Exchange or UKLA but by nominated adviser Nominated adviser (Nomad ) required at all times Appropriate regulation and oversight

23. Continuing obligations AIM companies are subject to the AIM Rules which outline the continuing obligations of being on a public market. Key continuing obligations are: AIM companies must have a Nomad at all times, otherwise they will be suspended from the market AIM companies must disclose all price sensitive information in a timely manner including substantial transactions, related party transaction, reverse takeovers and other miscellaneous transactions Half yearly and annual report and accounts required in adherence with deadlines All directors accept full responsibility, collectively and individually for the AIM Rules Restrictions on deals for directors and applicable employees on AIM securities during close periods UK Corporate Governance standards as best practice Appropriate regulation and oversight

24. Source: GCI Institutional Investors in AIM survey 2007 Institutional Investors on AIM – Sector breakdown AIM has a deep pool of institutional investors

25. Institutional Investors on AIM – Most active Source: GCI Institutional Investors in AIM survey 2007

26. Institutional investors understand AIM Fidelity Investments Value of largest holdings, 2006 $ million* Sportingbet Leisure $268 Imperial Energy Oil & gas 117 First Calgary Oil & gas 91 Centurion Electronics Electronics 60 PIPEX Comms Telecoms 57 Highland Gold Mining 53 Clipper Windpower Electricity 47 Star Energy Oil & gas 41 Asia Energy Coal 39 Serica Energy Oil & gas 39 Artemis Investment Management Value of largest holdings, 2006 $ million* Star Energy Oil & gas $ 60 - Develica Deutschld Equity fund 49 Cape Support ser 47 Genesis Oil & gas 44 Coda Software 41 - Speymill Real estate 30 European Goldfields Mining 30 Prosperity Minerals Bldg Mats 30 Equest Balkan Real estate 29 Imperial Energy Oil & gas 28 Source: Teather & Greenwood, Growth Company Investor * Translated into $ at £1.00 = $1.90 Data for year 2006 Leading investors

27. To summarise… why choose AIM The world’s most successful growth market An internationally focused, professional investor base Comprehensive research coverage for international companies A more flexible approach to regulation Better value than NYSE or NASDAQ A global platform The Exchange of choice for companies wishing to access the international capital markets

28. The world’s capital market New York Listing Higher cost Slower to market Higher risk Sarbanes Oxley Section 404 Class actions London Listing Access to global capital Lower cost Lower risk Faster to market Intelligent regulation

29. CONCLUSION CONCLUSION