Following the "Agreement on Mutual Cooperation" signed in November 2000, TSE and TSEC held several working-level meetings to discuss potential joint cooperation activities for the purpose of enhancing cross-border trading between the two markets.

During the working-level meetings, TSE and TSEC reached a consensus that signing an "MOU on Market Alliance Project" will pave the way for further promotion, and will also ensure that concrete action is taken to reach our goals. In this MOU, the two exchanges agree to develop and foster a favorable environment for cross-border trading between Japan and Taiwan, with benefits for both exchanges.

Based on this MOU, TSE and TSEC will cooperate in the following areas:

• Supporting PR activities for each others' markets
• Supporting IR seminars held for listed companies
• Continuing with a feasibility study into Co-trading Links
• Conducting studies into additional ways of promoting and enhancing cross-border trading

TSE President & CEO, Mr. Taizo Nishimuro, commented, "through the conclusion of this MOU, I look forward to a strengthening of the cooperative relationship between our two exchanges and a stimulation of securities transactions between Taiwan and Japan. Tokyo Stock Exchange will continue to work to enhance alliances with securities exchanges in the North-east Asia region, and further improve convenience for investors and other market participants."

Dr. Gordon S. Chen, TSEC Chairman, commented: "I am delighted that the Tokyo Stock Exchange is granting assistance to our first IR seminar in Tokyo this coming September. This will be the first cooperative event to be conducted under this new MOU. Both exchanges plan to further investigate the possibility of listing ETFs which track each others' market indexes. The Taiwan Stock Exchange looks forward to advance collaboration with the Tokyo Stock Exchange, one of the preeminent exchanges not only in the region, but in the world. We believe this cooperation will provide investors on both sides with greater value."