Private Investors Continue To Take The Long-Term View

Just over 80 per cent of the share owning population believe investing in the stock market represents a good long-term investment.

These findings are part of The 2001 British Share Ownership Survey - an annual research study conducted on behalf of the London Stock Exchange and ProShare by MORI in association with World Investor Link - launched at briefings held at the London Stock Exchange today.

Encouragingly, the bought-to-sold ratio of shares remains positive. Although for the majority of the 1990s private investors were selling shares more than they bought, this ratio was reversed during 2000 and investors have continued this pattern during the past 12 months.

Only 26 per cent of all shareholders have sold shares in the past 12 months, further emphasising the longer-term perspective of most shareholders. The majority of respondents continue to hold shares until they need the money (34%) or the shares reach the right price (24%).

Chris Broad, Head of Broker Services at the London Stock Exchange said:

"The MORI research indicates that the vast majority of private investors in the UK are sitting tight to ride out the current market conditions. They are understandably more cautious at the current time, but it is encouraging that their overall confidence in the stock market as a long-term investment is not diminished.

"The Exchange is committed to helping private investors by providing a range of services free of charge via the internet allowing them to become wiser investors, to monitor their investments and to do company research."

The research also reveals that private investors are taking a keener interest across a broad range of company communication.

Commenting on this, Diane Hay, Chief Executive of ProShare said:

"When market conditions are good, private investors take a more passive approach to their investments, entrusting the company management to look after them. Current conditions, however, are prompting private investors to take a much greater interest in companies so they will be more likely to attend AGMs and to vote on company resolutions".

The findings indicate that investors are becoming more comfortable receiving communication from companies over the internet. 86 per cent of those who have ever sought company information via a company's website find it useful.

Grant Woodall, Director of World Investor Link commented:

"As interest in communications increases, the use of the internet will help to enhance this process. This is good news for both the investor and Company. New technology creates the opportunity to bring the two closer together".

Other findings from the research include almost 80 per cent of respondents participating in employee share ownership schemes still hold most or all of the shares they received as part of such schemes.

Copies of the research are available from ProShare.

ENDS

160

Notes to editors:

• Full copies of the research are available by calling Maureen Mawson on 020-7220 1767.
• The research was undertaken between 16th August and 9th September 2001.

About the London Stock Exchange:

The London Stock Exchange is one of the world's leading equity exchanges and a leading provider of services that facilitate the raising of capital and the trading of shares.

The London Stock Exchange is the most international equities exchange in the world and Europe's largest pool of liquidity. By the end of 2000, the market capitalisation of UK and international companies on its markets amounted to 1635.3 trillion, with over 1635.4 trillion of business transacted over the year.

The London Stock Exchange is a Recognised Investment Exchange (RIE) under the Financial Services Act and is supervised by the Financial Services Authority.

About ProShare

ProShare - the independent not for profit organisation which promotes wider share ownership and financial education.

Funded by corporate sponsorship and charitable donations, ProShare believes everybody should have the chance to learn about shares. ProShare is dedicated to making shares, investment and personal finance accessible to everyone.

Their work can be divided into 4 categories:

160

• At school - delivering financial education in the classroom
• At work - promoting employee share ownership
• At home - looking after the private investor and club investment clubs
• At large - campaigning for wider share ownership and financial education.

About World Investor Link

World Investor Link Inc. (www.worldinvestorlink.com) connects public companies and investors. It provides current and prospective investors access to company information as they research investment decisions, and helps companies and funds get visibility with investors at the time investors are making decisions. World Investor Links' array of products and services also enables companies to comply with regulation fair-disclosure requirements. The Annual Reports Service and The Fund Info Service provide investors free access to company annual reports and mutual fund prospectuses through relationships with over 160 of the leading financial media channels including The Wall Street Journal, Financial Times, Barron's and Yahoo! Finance. Informed Investors (www.informedinvestors.com), which World Investor Link acquired in the first quarter of 2001, allows investors to attend on-site and virtual industry-specific investment forums and provides companies a direct channel for communicating with self-directed investors. Vcall (www.vcall.com), also a recent acquisition for World Investor Link, allows investors to access company-specific announcements and events through webcasts. Investor Conference (www.investorconference.com) uses webcasting technology to bring investors to the leading investment conferences including institutional conferences hosted by investment banks, brokerages and Industry Associations. In total, 2 million registered users of World Investor Link's services have access to information about more than 4,600 corporate clients.

World Investor Link, Inc. is a wholly owned subsidiary of WILink.com plc (WLK on The London Stock Exchange).

LONDON STOCK EXCHANGE Crest and Logo are trademarks of London Stock Exchange plc.

PROSHARE Logo is a trademark of ProShare UK Limited

WORLDINVESTORLINK Logo is a trademark of World Investor Link