The Bank of New York Issues Year-End Depositary Receipts Analysis; Depositary Receipt Trading Volume, Trading Value and Total Investment are Higher.

NEW YORK -- The American and global depositary receipt (DR) market will post higher levels of trading volume, trading value and total investment for 2004, according to an analysis released today by The Bank of New York.

"The year's activity demonstrates the strength and resiliency of the DR marketplace, particularly taking into account the uncertain global macroeconomic climate and concern over increased regulatory issues," said Christopher Sturdy, managing director and Head of The Bank of New York's Depositary Receipt Division. "Clearly, investors recognize that DRs provide access to many companies in attractive industries and countries. Non-U.S. companies likewise continue to demonstrate confidence in the significant value and benefit of using DRs to access the global capital markets."

DR Trading Volume Reaches a New High

DR trading volume in 2004 will substantially exceed 2003 levels and reach an all-time high. The Bank projects that a record 39.1 billion DRs, valued at $885 billion, will have traded on the New York Stock Exchange (NYSE), the American Stock Exchange (Amex) and Nasdaq by year-end. Compared with 33.1 billion DRs, valued at more than $632 billion in 2003, this represents increases of 18.1 percent and 40.0 percent in DR trading volume and trading value, respectively. Annual DR trading volume has now increased each year since 1990, while this year's DR trading value is second only to 2000's record.

DR programs from many countries and sectors were actively traded during the year. Energy sector DRs were among the most active, led by U.K.'s BP and The Netherlands's Royal Dutch Petroleum, followed closely by pharmaceutical sector DRs, led by Ireland's Elan and Israel's Teva. Both sectors saw more than $100 billion of DR trading value.

Non-U.S. Equities and Depositary Receipts Up 26%

The total value of U.S. investment in non-U.S. equities (both DRs and non-U.S. shares) increased to $2.1 trillion as of September 30, 2004, an increase of 26 percent from the same time last year and a record high, according to the latest U.S. Federal Reserve statistics.

The total value of investment in U.S.-listed DR programs showed a similar rise, increasing to $490 billion at the end of the third quarter, a jump of 30 percent from the same time last year and an all-time high. Companies with significant DR investment include the U.K's Vodafone at $21.4 billion, Russia's Lukoil at $17.2 billion and the U.K's GlaxoSmithKline at $16.3 billion.

The Bank of New York's ADR Index Outperforms Major U.S. Indices

Overall DR performance, as tracked by The Bank of New York ADR Index(SM), has shown solid gains during 2004. On December 15, 2004, The Bank of New York's Composite ADR Index closed at 120.0, up 12.0 percent year-to-date, and traded at levels not seen since June 2001. All three of the regional sub-indices were higher year-to-date, led by the Latin America Index which increased 28.0 percent. All 14 market, sector and select sub indices were also up, led by the Latin America Telecom Index which gained 26.2 percent. More broadly, 34 of 39 country indices were higher with Austria, Belgium, Colombia, Turkey and Venezuela all gaining more than 50 percent. More than two dozen ADR Index constituents, including The Netherlands' Ispat International, Brazil's AmBev, South Africa's Naspers and Mexico's Grupo Elektra, increased more than 75 percent year-to-date.

In contrast, the U.S. domestic equity markets did not perform as well. As of December 15, 2004, the Dow Jones Industrial Average was up only 2.3 percent year-to-date while the broader Standard & Poor's 500 Index gained 8.4 percent.

Index Name                                                   Y-T-D
                                                             Increase
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 The Bank of New York Composite ADR Index                        12.0%
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 The Bank of New York Latin America ADR Index                    28.0%
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 The Bank of New York Europe ADR Index                           13.3%
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 The Bank of New York Asia ADR Index                              5.6%
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 The Bank of New York Emerging Markets ADR Index                 14.1%
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 The Bank of New York Developed Markets ADR Index                11.8%
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The Bank of New York ADR Index(SM) is the only real-time index to track all depositary receipts, New York shares and global registered shares traded on the NYSE, Amex and Nasdaq. The Bank of New York ADR Index currently has 440 constituents and a free float market capitalization, as defined by Dow Jones & Company, in excess of $4.7 trillion.

Number of Available DR Programs Grows, DR Capital Raisings and U.S. Listings are Lower and Emerging Market Issuers Gain Prominence

Industry wide, The Bank of New York projects a record 1,870 sponsored DR programs from 73 countries will be available to investors at the end of 2004. During the year, companies from 29 countries established 121 new DR programs, a 48 percent jump from last year's 82 programs from 25 countries, but still lower than the high of 199 new programs established in 2000. Overall, non-U.S. companies and governments raised more than $8.4 billion with 46 new DR offerings during the year. This figure is 18.5 percent lower than last year's $10.3 billion and 72 percent off the high of $30.1 billion raised in 2000.

Emerging market issuers favored European listed, over-the-counter traded and unlisted DRs, rather than U.S. listings. Emerging markets issuers from countries led by China, India and Brazil established 62 percent of all new DR programs and 96 percent of all DR capital raising transactions.

Of note in the Asian emerging markets were the initial public offerings of China's Linktone and Shanda Interactive Entertainment, India's LIC Housing and Amtek Auto, Taiwan's Far EasTone Telecommunications as well as Korea's LG Phillips LCD. Secondary offerings by Taiwan's Cathay Financial Holdings, AU Optronics and Powerchip Semiconductor as well as China's China Telecom were also successfully completed. In the European emerging markets, Turkey's Efes Breweries, Czech Republic's Zentiva and Egypt's Lecico all completed IPOs with DRs. In Latin America, DR capital raising was dominated by Brazilian issuers with Gol Linhas Aereas Inteligentes and CPFL Energia successfully completing IPOs while Braskem and SABESP tapped the DR markets with follow-on offerings.

The developed markets saw only two capital raising transactions. Germany's GPC Biotech completed an IPO with DRs while the U.K.'s Royal Bank of Scotland completed a secondary DR offering, the year's largest, with a $925 million preference DR issuance.

Only 25 of this year's new programs were new U.S. stock exchange or Nasdaq listings, a significant increase over 13 last year but substantially lower than 2000 when 95 new programs listed in the U.S. Overall, 510 DR programs are now listed on the NYSE, Amex and Nasdaq, a 1% increase from last year.

The Bank of New York's Role With M&A Transactions and Successorships

New DR programs were also created as a result of two significant mergers. In France, Sanofi and Aventis combined to create an NYSE-listed DR program for Sanofi-Aventis, the global pharmaceutical company, while in Japan, Sega and Sammy merged to create an over-the-counter-traded DR for the entertainment company Sega Sammy Holdings. The Bank of New York acted as depositary and in other agency roles for both transactions.

The Bank of New York continues to be the depositary of choice for experienced DR issuers. In 2004, companies from 10 countries appointed The Bank of New York as their successor depositary bank. Mexico's FEMSA, Germany's Hannover Re, Sweden's Electrolux, The Netherlands's VNU and Thailand's Shin Corp., joined five other companies and switched 13 DR programs to The Bank of New York. In total, 159 companies have switched 190 DR programs to The Bank of New York from our competitors since 1990.

In 2004, The Bank of New York solidified its depositary leadership position across a broad range of metrics acting for 63 percent of all new DR programs and 60 percent of all DR capital raisings. Overall, The Bank of New York remains the world's leading depositary bank with a sponsored market share in excess of 64 percent. The Bank's DR clients span a broad range, from small, dynamic issuers to some of the world's largest most established companies. The Bank's integrated depositary services help DR issuers, investors and intermediaries navigate the complexities of cross-boarder investing, drive global liquidity and maximize shareholder value.

The Bank of New York Company, Inc. (NYSE: BK) plays an integral role in the infrastructure of the capital markets, servicing securities in more than 100 markets worldwide. The Company provides quality solutions through leading technology for global financial institutions, asset managers, governments, non-profit organizations, corporations, and individuals. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has a distinguished history of serving clients around the world through its five primary businesses: Securities Servicing and Global Payment Services, Private Client Services and Asset Management, Corporate Banking, Global Market Services, and Retail Banking. Additional information on the Company is available at www.bankofny.com.