BSX Granted Approved Stock Exchange Status under Australia's Foreign Investment Fund -FIF- Taxation Rules.

HAMILTON, Bermuda -- The Bermuda Stock Exchange (BSX) is pleased to announce that the Exchange has been granted Approved Stock Exchange status under Australia's Foreign Investment Fund (FIF) taxation rules.

Recognition by the Australian authorities is seen as a tremendous step forward for the BSX and Bermuda in promoting regulatory cooperation and transparency between the two jurisdictions.

In making the announcement BSX CEO Greg Wojciechowski stated, "The BSX is delighted by the Australian Treasury's decision to grant the BSX Approved Stock Exchange status. We have worked very hard to ensure that international standards of stock exchange operation and regulation have been adopted in Bermuda and feel that recognition by international securities regulators indicate that we have been successful in meeting this goal."

The essential function of the designation is to provide clear guidance to Australian taxpayers of when unrealized gains on investments held in a foreign country by Australian taxpayers may be exempt from the Foreign Investment Fund taxation measures. The most widely applied exemption from the FIF taxation rules occurs when the foreign company is principally engaged in an eligible (or active) activity, one that does not fall on the "black list" of activities which is detailed in Schedule 4 of the Australian Income Tax Assessment Act 1936. There are two methods by which to determine whether a foreign company is principally engaged in eligible activities, the first is if it is listed on an Approved Stock Exchange and the other is by reviewing the financial activities of the company as set out on the company's balance sheet.

Mr Wojciechowski went on to further explain, "Recognition by the Australian Authorities is a very important and exciting development for the BSX as we continue to seek and receive designations from national regulatory agencies. The BSX is very proud of the stock exchange solution that has been created and deployed in Bermuda and is very encouraged by the support, guidance and recognition shown to us by the international regulatory and financial services community. We anticipate that this development is the first of many exciting developments to come and are proud that the BSX and Bermuda continues to set the commercial and regulatory standard offshore."

Designations, recognitions and affiliations received to date by the BSX include:

--Recognised Investment Exchange by the Bermuda Monetary Authority;

--Designated Offshore Securities Market by the US Securities and Exchange Commission

--Full Membership of the World Federation of Exchanges;

--Affiliate Member of IOSCO 

--Approved Organization Status of the London Stock Exchange; and

--Approved Stock Exchange under the Australian Foreign Investment Fund taxation rules.

For more information on the BSX, contact Greg Wojciechowski at the Bermuda Stock Exchange 1-441-292-7212 or [e-mail]. Information is also available at www.bsx.com, on Bloomberg at BSX <Go>, and on Reuters at THE BSX.

The Bermuda Stock Exchange is a fully-electronic offshore securities market founded in 1971. The BSX lists more than 390 securities, trades daily and operates the Bermuda Securities Depository -- and is recognized by the U.S. SEC as a Designated Offshore Securities Market and a full member of the World Federation of Exchanges.