Released on: February 18, 2008, 2:17 pm

Press Release Author: Shin Han Research

Industry: Financial

Press Release Summary: A growing number of large foreign companies, mostly from
Europe, are saying non, nein and nee to being listed on exchanges in the United
States and opt for the HKEx \"Hong Kong Stock Exchange\".

Press Release Body: SEOUL, R.O.K. Businesswire, February 18, 2008.

A surge of foreign companies are bidding adieu to United States markets and their
American depositary receipts, because lackluster trading of many foreign listings,
and a feeling that the costs of having a stock listed in the United States are not
worthwhile.

In 2007 more than 34 foreign companies delisted from the New York Stock Exchange,
and nine more had announced plans to do so, says the exchange. That tops the 21
foreign companies that joined the N.Y.S.E. Another 20 had said that they were
planning to leave the Nasdaq, or have done so already.

Most foreign companies will be much better off trading on local exchanges in their
own countries.

Currently the hottest IPO Exchange to list any company on is the HKEx or The Hong
Kong Stock Exchange.

\"There are companies lining up to exit U.S. capital markets,\" says James Angel,
professor of finance at Georgetown University.

The reasons for the foreign flight include:

.Easier to leave. The Securities and Exchange Commission in March eased the process
to \"deregister,\" or terminate securities, if average daily trading volume is less
than 5% of a company\'s worldwide average trading volume over the past 12 months.
This rule change was the excuse many companies were waiting for, Angel says.

.Lackluster interest. Trading of many European companies\' ADRs has been light, says
Susanne Kloess, a global markets expert for Accenture. Ahold, a Dutch grocery store
company that owns Giant and Stop & Shop, says average daily volume of the U.S.
shares has been less than 5% of its total. Most U.S. investors buy its shares on the
local Euronext Amsterdam exchange.

.Improved exchanges elsewhere. Foreign exchanges have become more effective in
raising capital, says Catherine Kinney, president of NYSE Euronext. Meanwhile, it\'s
getting easier for U.S. investors to trade on foreign exchanges. E-Trade recently
let U.S. investors trade stocks listed on foreign exchanges as easily as they can
trade on the NYSE or Nasdaq.

.Increased regulatory and other costs. The NYSE listing fee for most foreign
companies is $38,000 a year, Kinney says. But fees needed to comply with
Sarbanes-Oxley rules and convert books to meet U.S. accounting standards can add
millions of dollars in costs, Angel says.

Regulatory changes are needed, or the U.S. stands to lose its position as the
world\'s money-raising capital, says Rep. Tom Feeney, R-Fla. Feeney is co-sponsoring
legislation that will require the SEC to clarify the requirements of controversial
Sarbanes-Oxley rules.

Expect the exodus to continue, Kloess says. \"You will see more (foreign companies)
delisting from U.S. markets,\" she says. \"I\'m hearing everyone in Europe discussing
it.\"



GETTING OUT

A List of select foreign companies that voluntarily delisted from the New York Stock
Exchange in 2007, or said they were planning to:

Announcement of delisting

April 25 British Airways
April 26 Groupe Danone
May 14 Ducati
July 25 BG Group
July 26 BASF
July 26 Metso
July 27 Rhodia
July 31 Fiat
Aug. 2 Lafarge
Aug. 21 E.On
Aug. 23 Westpac Banking
Aug. 29 Suez
Aug. 30 Royal Ahold
Sept. 4 Bayer

Source: New York Stock Exchange



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