Chicago Climate Exchange Founding Members Make Unprecedented Voluntary Binding Commitment to Reduce and Trade Greenhouse Gas Emissions.

Business Editors/Energy Writers

CHICAGO--(BUSINESS WIRE)--Jan. 16, 2003

Leaders from Automotive, Chemical, Commercial Real Estate, Environmental Services, Electric Power Generation, Electronics, Forest Products, Municipal and Pharmaceutical Sectors to join North American Voluntary Private Sector Program to Reduce and Trade Greenhouse Gases

Efforts to develop market-based solutions to global warming reach a milestone today as leading U.S. and international companies and the City of Chicago announce they will be the Founding Members of Chicago Climate Exchange (CCX), a voluntary cap-and-trade program for reducing and trading greenhouse gas emissions. In an unprecedented voluntary action, these entities have made a legally binding commitment to reduce and trade their emissions of greenhouse gases. The names of the Founding Members will be announced today at 2 p.m. (CDT) at a press conference with the Mayor's Office of Chicago, 121 N. LaSalle, room 201A.

Today's announcement marks the first time major companies in multiple sectors have made a voluntary binding commitment to use a rules-based market for reducing their greenhouse gas emissions. CCX will enable them to receive credit for such reductions and to buy and sell credits in order to find the most cost-effective way of achieving reductions. Trading is targeted to begin in the spring of 2003.

"The private sector's response to the proposal has been incredible," says internationally known financial innovator and Chairman and CEO of CCX, Dr. Richard L. Sandor. "These companies have demonstrated tremendous leadership. They really believe that a proactive approach to climate change advances everyone's long-term interests. It's simply good business."

CCX will administer this pilot program for emission sources, carbon sinks, offset projects and liquidity providers in North America. To foster international emissions trading, offset providers in Brazil can also participate. The development of CCX resulted from feasibility and design studies that were funded by grants from the Chicago-based Joyce Foundation and administered by Northwestern University's Kellogg Graduate School of Management. Environmental Financial Products LLC conducted the research and development effort.

CCX selected NASD to provide regulatory services and Rothschild Inc., an affiliate of the prestigious London-based bank N. M. Rothschild & Sons Limited, to provide investment banking services. Additional corporations have expressed interest in joining the Exchange and a second group of members is expected to be announced in the next 90 days.

CCX market architecture incorporates input from a wide range of economic sectors as well as technical experts in the engineering, forestry, agricultural, academic, NGO and public sectors. In total, more than 50 corporate entities and hundreds of experts have contributed to the design phase.

Dr. Richard L. Sandor is the chairman of Chicago Climate Exchange. He is also a research professor at the Kellogg Graduate School of Management at Northwestern University. Dr. Sandor was honored by the City of Chicago and the Chicago Board of Trade for his contribution to the creation of financial futures and his universal recognition as the "father of financial futures".

Chicago Mayor Richard M. Daley is the Honorary Chairman of CCX. Members of CCX Advisory Board include Donald Jacobs, Dean Emeritus of Northwestern University's Kellogg Graduate School of Management; Warren Batts, Adjunct Professor at the University of Chicago Graduate School of Business; Thomas Lovejoy, a world-renowned conservation biologist; Maurice Strong, the former Under-Secretary General of the United Nations; Les Rosenthal, former Chairman of the Chicago Board of Trade; and Sir Brian Williamson, Chairman of the London International Financial Futures Exchange (LIFFE).