Nyse Euronext plans $1bn buyback; signs cooperation deal with Abu Dhabi exchange

Source: NYSE Euronext

NYSE Euronext (NYX) announced today that its board of directors has authorized the repurchase of up to $1 billion of NYSE Euronext's common stock.

The Board of NYSE Euronext also approved a 20% increase in its annual dividend to $1.20 from $1.00 per common share as part of a new dividend policy to grow the dividend to its shareholders, with a target payout ratio of 35% to 45 % of net income, while maintaining high investment grade credit ratings.

NYSE Euronext plans to repurchase stock from time to time at the discretion of management in open market or privately negotiated transactions or otherwise, subject to applicable United States and European laws, regulations and approvals, strategic considerations, market conditions and other factors.

Under SEC rules, NYSE Euronext will not be able to repurchase shares during certain restricted time periods, including during the pendency of NYSE Euronext's business combination transaction with the Amex Membership Corporation and certain other periods.

The share repurchase plan does not obligate NYSE Euronext to repurchase any dollar amount or number of shares of its common stock. Any such repurchases will be made in compliance with the applicable provisions of Rules 10b-5 and 10b-18 and Regulation M of the Securities Exchange Act of 1934, as amended, and any other applicable laws and regulations, including any applicable European Union Regulations and Regulations of the Autorité des Marchés Financiers ("AMF").

The new annual dividend rate will be payable on a quarterly basis and will become effective with the second quarter 2008 dividend payment. The second quarter dividend of $0.30 will be paid on June 30, 2008 to shareholders of record as of the close of business on June 13, 2008.

The ex-date, or date on which the reference share price of NYSE Euronext will be adjusted for the amount of the dividend, for NYSE Euronext common stock listed on the New York Stock Exchange and Euronext Paris will be June 11, 2008.

NYSE Euronext and Abu Dhabi Securities Market Enter Strategic Cooperation Agreement

NYSE Euronext (NYX) and Abu Dhabi Securities Market (ADSM) have entered a cooperation agreement to jointly develop and explore new opportunities in trading systems and other related technology, investor and issuer services, and investment products.

As part of this alliance, NYSE Euronext will provide ADSM, by end 2008, with state-of-the-art information and market infrastructure systems and technology to host all financial instruments admitted to trading on ADSM. In addition, NYSE Euronext and ADSM will explore the development of new ventures, including the implementation of ADSM's derivatives market.

This agreement is consistent with ADSM's ambitions to become the leading global exchange in the Gulf region, on the basis of its market expertise, modeled after the diversity and international footprint of NYSE Euronext.

Duncan L. Niederauer, Chief Executive Officer of NYSE Euronext, said: "We welcome this unique opportunity to work more closely with ADSM and are committed to the success of this strategic alliance, which is consistent with NYSE Euronext's vision and strategic business objectives."

Jean-François Théodore, Deputy Chief Executive Officer of NYSE Euronext, added: "We are delighted that NYSE Euronext and ADSM have established a cooperative working relationship on key areas of mutual interest for the benefit of our respective customers. We look forward to actively participate in ADSM's global ambitions, on the basis of our state-of-the-art technology and strong expertise in financial products and services."

H.E. Nasser Ahmed Alsowaidi, Chairman of ADSM, commented: "This new alliance between NYSE Euronext and ADSM is very welcome, and is very much in line with our ambitions for the Abu Dhabi market."

Tom Healy, Director General of ADSM, said: "This strategic alliance, which will create new growth opportunities to our mutual benefits, represents a significant step in bringing our capital markets closer together. We see that, based on this agreement, receiving support and advice from NYSE Euronext will significantly enhance our systems operations, broaden our product offering, and assist our development of new businesses, thus supporting ADSM in becoming the premier financial market in the region."

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