TSE initiated this purchase recognizing the importance of having closer collaboration with SGX. It was announced on December 14, 2006 that TSE has agreed in principle to license TOPIX-related indices to SGX to create derivatives and ETF products for trading on SGX. It was also announced on that date, that SGX and TSE will explore the establishment of a trading and clearing link for both derivatives markets with initial focus on JGB and TOPIX products. TSE believes that there are other possible areas for collaboration between ourselves and SGX. TSE would like to hold further discussions with SGX on these other possible areas to determine the feasibility of such further collaboration. TSE will make further press releases when necessary if there are any developments arising from such discussions.

Depending on the outcome of the discussions with SGX on potential areas of collaboration and subject to the approval from the Monetary Authority of Singapore, TSE is keen to acquire additional shares so as to hold 5% stake in the total issued share capital of SGX. For the time being, TSE has no intention to purchase SGX shares in excess of 5% of the total issued share capital of SGX.