ftse rules

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BEIJING FRANKFURT HONG KONG LONDON MADRID NEW YORK PARIS SAN FRANCISCO TOKYO

Ground Rules for the Management of the

FTSE Global Equity Index SeriesVersion 1.7 October 2005

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Contents

SECTION ONE: GROUND RULES

1 Introduction

1.1 The FTSE Global Equity Index Series1.2 These Ground Rules1.3 Index Objective1.4 Index Construction Methodology1.5 How we Calculate our Indices1.6 Index Regions and Reviews1.7 The FTSE Global Classification System

2 Eligible Countries2.1 Criteria for Inclusion2.2 Adding New Countries2.3 Criteria for Changing Country Classifications2.4 Deletion or Suspension

3 Treatment of Eligible Securities3.1 Determining Nationality3.2 Classes Included3.3 Eligible Securities3.4 Stapled Units3.5 Treatment of Tracking Stocks

4 FTSE Global Classification System4.1 Classification Structure4.2 Classification Changes

5 Algorithms and Calculation Method5.1 Prices5.2 Shares In Issue5.3 Calculation Frequency5.4 Algorithm

6 Qualification Criteria and Periodic Review of Constituents6.1 Country Groups6.2 Index Reviews6.3 Review Process6.4 Screen One Size6.5 Screen Two Liquidity

6.6 Screen Three Free Float6.7 Adjustments Applied to Eligible Securities6.8 Steps for Conducting a Review6.9 Determining Constituents for the Indices6.10 Fast Exit Rule

7 Changes to Constituent Companies7.1 Definition of Fast Entry Level7.2 Additions Outside a Review7.3 Deletions7.4 Mergers and Take-overs7.5 Suspension of Dealing7.6 Relisting of Suspended Constituents

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Contents

8 Amendments and Appeals8.1 Amendments8.2 Exceptions8.3 Changes8.4 Appeals Against Decisions of the Committees

9 Announcing Changes9.1 Changes to Constituents9.2 Policy Changes9.3 Other Announcements9.4 Error Correction Policy9.5 Re-calculations

SECTION TWO: MANAGEMENT RESPONSIBI LITES AND CONTACT DETAILS

10 Management Responsibilities

10.1 FTSE Policy Group10.2 FTSE Equity Indices Committee10.3 FTSE Regional Committees10.4 FTSE Global Classification Committee10.5 Committee Membership10.6 Secretary to the FTSE Policy Group, FTSE Equity Indices and FTSE Regional Committees10.7 FTSE10.8 Status of these Ground Rules

11 Contact Us

SECTION THREE: APPENDI CES

A Markets eligible for the FTSE Global Equity Index Seriesand Sources of Trading Volumes

B Classes of Securities included in the FTSE All-World Index Series and FTSE Global Small CapIndex Series

C Treatment of DividendsD Foreign Exchange RatesE Price Sources per MarketF Country and regional indices currently calculated for the FTSE All-World Index Series and FTSE

Global Small Cap Index SeriesG Dates of admission and deletion of countries to the FTSE Global Equity Index SeriesH FTSE Global Equity Index Series Calculation ScheduleJ FTSE Global Equity Index Series Index Review ScheduleK Treatment of stapled unitsL Treatment of Tracker stocks

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Introduction - Ground Rule 1

1 Introduction

1.1 The FTSE Global Equity Index Series

1.1.1 The FTSE All-World Index SeriesTM/SM

was launched in 1987. In September 2003 FTSE Groupwill widen our product offering with the addition of FTSE Global Small Cap Indices and broaderglobal benchmarks. To provide a consistent, seamless universe, a single set of ground rules areapplied to FTSE Global Equity Index Series (Large, Mid & Small Cap), FTSE All-World IndexSeries (Large and Mid Cap) and FTSE Global Small Cap Indices. All three are owned by FTSEInternational Ltd. This document sets out the Ground Rules for the construction andmaintenance of the Indices,as adopted by the FTSE Equity Indices Committee.

1.2 These Ground Rules1.2.1 This document sets out the Ground Rules for the construction and maintenance of the FTSE

Global Equity Index Series,as adopted by the FTSE Equity Indices Committee. The Indices arebased on, and are a successor to, the FTSE All-World Indices and the FT/S&P Actuaries WorldIndices, which have been calculated since 1987.

1.2.2 Copies of these Ground Rules are available from FTSE (see Contact Us Section 2).

1.3 Index Objective1.3.1 The objective is to create and maintain a series of high quality indices for the international equity

markets for use as a benchmark by the global investment community. To achieve this, we havesought to establish the Index Series as:

Comprehensive Consistent Flexible Accurate

Investable Transparent Predictable Representative User-driven

1.4 Index Construction Methodology

1.4.1 Screening process for country reviews

1.4.2 All eligible securities (as specified in Ground Rules 2.1.1 and 3.3) are subject to three screens asshown in the diagram above Size, Liquidity and Free Float. Please refer to Ground Rule 6 forfurther details.

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1.4.3 Determining constituents for the indices

To minimise turnover, existing and non-existing constituents are subject to a series of bufferzones to determine the cut off points between Large, Mid and Small Cap the buffers aredetailed below. For further details on Index Construction please refer to Ground Rule 6.

Turnover BandsEligible for Inclusion Eligible for Exclusion

Large Cap 68%* 72%*Mid Cap 86%* 92%*Small Cap 97%* 99%*

* See Ground Rule 6 for full details.

1.5 How we calculate our indices Benchmarks are calculated at the following levels:

GlobalRegionalCountryEconomic GroupIndustry Sector

Capital and total return indices are calculated (please refer to our Guide to CalculationMethods available from FTSE see Contact us Section 2). Fully customised indices arealso available.

Large, Mid and Small Cap indices are calculated. The FTSE All-World Index consists of

the Large + Mid Cap indices. The FTSE Global Small Cap Index Series provides small capcoverage that joins seamlessly with the FTSE All-World Index. For full details of thebreakdown between Large, Mid and Small Capitalisation indices please see Ground Rule 6.

Selected indices of the FTSE All-World Index Series are calculated and disseminated on areal time basis (see Appendix H). Reuters real time cross exchange rates are used in allcalculations during the calculation period, other than for the closing value for each index.The WM/Reuters Closing Spot Rates are used in calculating the closing value for each ofthese indices. Corporate actions for these indices are based on the price and exchange ratesas applied within the main FTSE All-World Index Series.

All indices are calculated in US Dollars and local currency. The index values are also

published in Euros, Pounds Sterling, and Japanese Yen.

Full technical details of calculations and statistical procedures are contained in theAppendices to these Ground Rules and the Guide to Calculations and Methods, available fromFTSE (see Contact Us Section 2).

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1.6 Index regions and reviews1.6.1 Countries are grouped into regions (detailed below) for the purpose of reviews. The review of

each region takes place once a year, and is designed to minimise turnover and reflectinternational portfolios. For further details on Index Reviews please see Ground Rule 6. Thereview schedule is detailed below, for further details please see Appendix J.

Date of Meeting Region(s) to be Reviewed

March Asia Pacific ex JapanJune Latin America

Emerging EuropeMiddle East & Africa

September Developed EuropeJapan

December North America

1.7 FTSE Global Classificati on System1.7.1 The FTSE Global Equity Index Series constituents are classified into:

Economic Groups Industrial Sectors and Industrial Sub-sectors

1.7.2 The classification system allocates companies to the sub-sectors whose definition most closelydescribes the nature of its business. The nature of a companys business is determined bystudying the proportion of overall profit arising form each of its business areas. For more detailson the FTSE Global Classification System please see Contact Us - Section 2, or visitwww.ftse.com

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Eligible Countries - Ground Rule 2

2.1 Criteria for inclusion2.1.1 The following criteria must be met before a country can be included in the FTSE All-World Index

Series or FTSE Global Small Cap Index Series:

Permission for direct equity investment by non-nationals Availability of accurate and timely data Non-existence of any significant exchange controls which would prevent the timely

repatriation of capital or dividends The demonstration of significant international investor interest in the local equity market Existence of adequate liquidity in the market

2.1.2 A countrys classification as Developed, Advanced Emerging or Secondary Emerging is dependenton the following:

Primary Factors Secondary Factors Data quality: availability & timeliness Free flow of foreign exchange GDP (per capita) Market breadth: number of eligible

constituents Market depth: number of industrial sectors Reliable price information Stock market capitalisation vs GDP Unrestricted/low restrictions on foreign

investment

Efficient settlement systems Liquidity minimum stock market turnover Market maturity Membership of economic group or common

currency block Total stock market capitalisation

2.2 Adding new countries2.2.1 New countries, which in the view of the FTSE Regional and FTSE Equity Indices Committees

comply with these Ground Rules, may be added at any time after a prior announcement.

2.2.2 New regional indices may be added at any time after a prior announcement.

2.2.3 Countries and markets currently eligible for the FTSE Global Equity Index Series are shown inAppendix A.

2.2.4 The country and regional indices currently calculated for the FTSE Global Equity Index Series areset out in Appendix F.

2.3 Criteria for changing country classifications

2.3.1 The FTSE Regional Committees will review the classification of countries between Developed,Advanced Emerging and Secondary Emerging on a regular basis.

2.3.2 Countries can move between Developed, Advanced Emerging and Secondary Emergingdepending on the criteria in Ground Rule 2.1.2. The FTSE Equity Indices Committee will publisha watch list of countries being monitored for promotion or demotion and will normally give atleast three months notice before changing the classification of any country.

2.4 Deletion or suspension

2.4.1 If one or more of the eligibility criteria as defined under Ground Rule 2.1.1 are not met by aconstituent country, the deletion or suspension of all related index calculations may beimplemented after consideration by the appropriate FTSE Regional Committee and approval bythe FTSE Equity Indices Committee.

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Treatment of Eligible Securities - Ground Rule 3

3.1 Determining nationality

3.1.1 A company will be allocated to a single country and this allocation shall be consistent across allFTSE indices.

3.1.2 FTSE will normally allocate the country in which the company is incorporated and listed at thetime of the companys listing. However, FTSE reserve the right to defer an allocation decision.

3.1.3 If a company is incorporated in a developed country, and solely listed in another developedcountry, FTSE will normally allocate the company to the country of listing.

3.1.4 In circumstances other than those described above, FTSE will make a recommendation to theNationality Working Party (NWP) who will decide a companys country allocation based on thefollowing considerations:

o If a company is incorporated in a country other than a developed country and is

solely listed in another country : the NWP will normally allocate the company to thecountry of listing. However, the NWP may also take other factors into account including, butnot limited to, the investor protection regulations under which the company is governed, thecountry in which the company is resident for tax purposes, market perception and currencyof trading.

o If a company is incorporated in a country represented by a FTSE index and hasmultiple listings: the NWP would normally decide on its inclusion in the country of listingwhere it is most liquid. However, the NWP may also take into account factors including, butnot limited to, the country in which the company is resident for tax purposes, marketperception and currency of trading.

o If a company is in corporated in a country not represented by a FTSE index andhas multiple listings: the NWP would normally decide on its inclusion in the country oflisting where it is most liquid. However, the NWP may also take into account factorsincluding, but not limited to, the investor protection regulations under which the company isgoverned, the country in which the company is resident for tax purposes, market perceptionand currency of trading.

3.1.5 The NWP will decide the country allocation of each company on its merits having regard to itsparticular circumstances.

3.1.6 The country allocation of any FTSE index constituents may be reassessed at any time at FTSEsdiscretion.

3.1.7 An appeal against a decision of the NWP can only be made to the FTSE Equity IndicesCommittee.

3.2 Classes included3.2.1 We will review the classes of securities to be included in each country periodically (see Appendix

B).

3.3 Eligible Securit iesA) Companies included

Most equities are eligible for the Index. For a full list of eligible securities, please see AppendixB. Companies whose business it is to hold equity and other investments are eligible for inclusion.

B) Companies excluded

Exchange Traded Funds (ETFs) and companies whose share price is a direct derivation of thevalues of underlying holdings (e.g. mutual funds) are excluded.

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Treatment of Eligible Securities - Ground Rule 3

C) Securities included

Shares listed on a stock exchange or recognised market are eligible for inclusion.

All companies in the top 98% of each region by full market capitalisation in all eligible marketsare selected for the FTSE All-World Index Series or FTSE Global Small Cap Index Series. For fulldetails of the breakdown between Large, Mid and Small Capitalisation indices please see GroundRule 6. For a list of regions and their component countries please see Appendix A.

D) Securities excluded

Convertible preference shares and loan stocks are excluded - until converted.

Where a company does not list all its shares in an eligible class, or does not list an entire class,the unlisted shares are not eligible for the Index, but they may be included in the ReviewUniverse.

3.4 Stapled Units3.4.1 For details of the treatment of stapled units within the indices, please see Appendix K

3.5 Treatment of Tracking Stocks3.5.1 For details of the treatment of Tracking Stocks within the indices, please see Appendix L

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FTSE Global Classification System - Ground Rule 4

4.1 Classification structure4.1.1 The FTSE Global Equity Index Series constituents are classified into Economic Groups, Sectors

and sub-sectors, as defined by the FTSE Global Classification System.

4.1.2 Details of the FTSE Global Classification System are available from FTSE (see Contact Us -Section 2) and published on the FTSE web site (www.ftse.com).

4.2 Classificati on changes4.2.1 Changes to the classification of a company within the FTSE Global Equity Index Series will be

advised by the FTSE Global Classification Committee.

4.2.2 Where a constituent is the subject of a: merger restructure or complex takeover which results in a constituent (or part of a constituent) being absorbed by

another

the industry classification of the resulting constituent(s) will be reviewed by the FTSE GlobalClassification Committee.

4.2.3 Any adjustment resulting from a change in a companys classification under Ground Rule 4.2.2will be implemented at the same time that any relevant constituent changes are implemented inthe Index.

4.2.4 Periodic changes to the industry classification of a company are agreed and announced by theFTSE Global Classification Committee. Such changes will either be implemented on a monthlybasis or after the close of the index calculation on the third Friday of March, June, Septemberand December as permitted by the Ground Rules for the Management of the FTSE GlobalClassification System.

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Algorithms And Calculation Method - Ground Rule 5

5.1 Prices5.1.1 The FTSE Global Equity Index Series use actual closing mid-market or last trade prices, where

available, for securities with local bourse quotations, as detailed in Appendix E.

5.1.2 Reuters real time exchange rates are used in the index calculations which are disseminated inreal-time. Exchange rates used in the End of Day calculations are WM/Reuters Closing SpotRates, collected at 16:00 hrs London time (see Appendix D).

5.2 Shares in Issue5.2.1 For the purposes of computing the FTSE Global Equity Index Series, the number of shares in

issue for each constituent security is expressed to the nearest share and, to prevent a largenumber of insignificant weighting changes, the number of shares in issue for each constituentsecurity is amended only when the total shares in issue held within the index system changes bymore than 1% on a cumulative basis. Changes will be made quarterly after the close of businesson the third Friday of March, June, September and December (subject to 5.2.2 and 5.2.3).

5.2.2 If a corporate action is applied to an index constituent which involves a change in the number ofshares in issue, the change in shares will be applied simultaneously with the corporate action.

5.2.3 If accumulated changes in the number of shares in issue add up to 10% or more, or when anaccumulated share change represents USD 2bn of a companys total market capitalisation, theyare implemented between quarters. A minimum of 4 days notice will be given to users of theindex. WM/Reuters Spot Rates will be used to convert the market capitalisation into USD. TheUSD 2bn threshold may be adjusted annually in December, by the FTSE Equity IndicesCommittee. If an adjustment is made, it will be applied for the first time at the next review inMarch of the following year.

5.2.4 Any exceptions to the above arrangements will be agreed with the Chairman of the relevantRegional Committee and notified to all users in advance of being implemented.

5.2.5 All adjustments are made before the start of the index calculation on the day concerned, unlessmarket conditions prevent this.

5.3 Calculation frequency5.3.1 Please see Appendix H for the calculation schedule for the FTSE Global Equity Index Series.

5.4 Algorithm5.4.1 The FTSE Global Equity Index Series is calculated using the chained Paasche methodology.

5.4.2 The performance of the FTSE Global Equity Index Series on a given day is determined bycalculating the percentage difference between:

the indexs market capitalisation as at the close of that day and the market capitalisation at the start of that day

Start of the day is defined as the previous day's close adjusted for capital changes,investability weight changes, additions and deletions.

5.4.3 Adjustments are applied whenever capital changes take place, so that the performance of theFTSE Global Equity Index Series reflect the experience of investors. The Guide to CalculationMethods available from FTSE (see Contact Us Section 2) - contains descriptions of thestatistical procedures and algorithms used in the compilation of the Index Series.

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Qualification Criteria and Periodic Review Of Constituents -Ground Rule 6

6.1 Country Groups6.1.1 Countries are grouped into the following regions, to form the investable universe for each region:

o Asia Pacifc ex Japano Developed Europeo Emerging Europeo Japano Latin Americao Middle East and Africao North America

Advanced Emerging markets are treated as Emerging for the purposes of Ground Rules 6 and 7.See Appendix A for the eligible markets within each region.

6.2 Index Reviews6.2.1 Countries are usually reviewed annually, on a region by region basis. For details of the reviews

schedule, please refer to Appendix J.

6.2.2 The review process is designed to minimise turnover.

6.2.3 Timings of announcements about changes to the Index Series resulting from the review, can befound in Ground Rule 9.1.2 .

6.3 Review process

6.3.1 Select all companies that satisfy Ground Rules 2.1.1 and 3.3. This is the Regional Universe.

6.3.2 Discard companies in the bottom two percent by market capitalisation, when ranked by fullmarket capitalisation in descending order.

6.3.3 Eligible securities are subject to the three screens detailed below. The remaining securities formthe Index Universe

6.4 Screen One - SizeOnly companies valued at more than USD 100m (at the date at which the data for the review istaken) will be included in the index. For further information please refer to the Guide toCalculation Methods see Contact Us Section 2.

6.5 Screen Two - Liquidity

A Securities which do not turnover at least 0.5% of their shares in issue (after the applicationof any investability weightings (see Ground Rule 6.7.1), per month for ten of the twelvemonths prior to a full market review, will not be eligible for inclusion to the Index Series.

An existing constituent failing to trade at least 0.5% of its shares in issue (after theapplication of any investability weightings) per month for more than four of the twelvemonths prior to review will be removed.

B Securities added to the Index Series other than as a result of a full market review mustturnover at least 0.5% of their shares in issue (after the application of any investability

weightings) per month in ten of the twelve months prior to the date of inclusion to theIndex.

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C New issues which do not have a twelve month trading record at the time of a full marketreview must turnover at least 0.5% of their shares in issue (after the application of any

investability weightings) per month in each month since their listing. This rule will not applyto new issues added under the Fast Entry Rule (see Ground Rule 7.1)

D In assessing liquidity, data will be obtained from a constituents exchange in the country inwhich the company is classified by FTSE. If the constituent fails the liquidity screen on thisbasis, data may also be reviewed from other markets (including trading in ADRs and GDRs)and the trading volumes aggregated for the purpose of this Rule. Trading volumes fromother markets will not normally be considered unless the majority of the liquidity is met fromthe constituents exchange in the country in which the company is classified. Whenconsidering whether to include liquidity from other markets, the Regional Committee willtake into account factors such as currency risk and timezone difference.

E In exceptional market conditions, if trading volumes are very low, the relevant RegionalCommittee may reduce the percentage figure stated above in order to avoid a large amountof turnover in the Index. This discretion may only be exercised across the whole of amarket and may not be applied

6.6 Screen Three Free FloatA A Security that has a free float of less than 5% will be ineligible for the index.

B A security that has a free float greater than 5% but less than or equal to 15% will beeligible for the index providing the securitys full market capitalisation (before the applicationof any investability weight) is greater than USD 5.0bn.

C If the securitys nationality is within an Emerging country, the threshold level is reduced toUSD 2.5bn.

D The actual free float will be rounded up to the next highest whole percentage number. Forfurther details on free float calculation please see Ground Rule 6.7.1

6.7 Adjustments Applied to Eligible SecuritiesEligible companies may be subject to adjustment for free float and multiple lines; see below.

6.7.1 Free floatThe FTSE Global Equity Index Series are adjusted for free float, cross-holdings and foreignownership limits.

A. Free float restrict ions include: trade investments in an index constituent either by another constituent (i.e., cross-

holdings) or non-constituent company or entity significant long term holdings by founders, their families and/or directors employee share schemes (if restricted) government holdings foreign ownership limits portfolio investments subject to a lock-in clause, for the duration of that clause

B. The following are not considered as restricted free float:

portfolio investments nominee holdings (including those supporting ADRs & GDRs) unless they represent

restricted free float as defined by 6.7.1 above holdings by investment companies

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C. Bands for initial w eighting

Free float restrictions will be calculated using available published information. The initialweighting of a constituent in the index will be applied in the following bands.

a) free float less than or equal to 15% = see Ground Rule 6.6b) free float greater than 15% but less than or equal to 20% = 20%c) free float greater than 20% but less than or equal to 30% = 30%d) free float greater than 30% but less than or equal to 40% = 40%e) free float greater than 40% but less than or equal to 50% = 50%e) free float greater than 50% but less than or equal to 75% = 75%f) free float greater than 75% = 100%

D. Changes in free floatThe FTSE Global Equity Index Series will be periodically reviewed for changes in free float.These reviews will coincide with the quarterly reviews undertaken by the FTSE RegionalCommittees. Implementation of any changes will happen at the close of business on thethird Friday in March, June, September or December.

A constituents free float will also be reviewed and adjusted if necessary:

by identifying information which necessitates a change in free float weighting for furtherinformation please refer to Guide to Calculation Methods see Contact Us Section 2)

or following a corporate event

E. Corporate event s and actionsIf a corporate event includes a corporate action which affects the index, any change in freefloat will be implemented at the same time as the corporate action. If there is no corporateaction, the change in free float will be applied as soon as possible after the corporate event,subject to Ground Rule 6.7.1 F

F. Percentage point thresholdsFollowing the application of an initial free float restriction, a constituents free float will onlybe changed if its actual free float moves to more than 5 percentage points above theminimum or 5 percentage points below the maximum of an adjacent band.

This 5 percentage points threshold does not apply if the change is greater than one band

i.e. a movement of 10 percentage points for the bands between 20% and 50% and 25percentage points for the bands between 50% and 100% will not be subject to the 5percentage point threshold.

The 15% limit in Ground Rule 6.7.1 C will also not be subject to the 5 percentage pointthreshold

G. Foreign Ow nershipForeign ownership limits, if any, will be applied after calculating the actual free floatrestriction, but before applying the bands detailed in Ground Rule 6.7.1. If the foreignownership limit is more restrictive than the free float restriction, the precise foreign

ownership limit is applied.

If the foreign ownership limit is less restrictive or equal to the free float restriction, the freefloat restriction is applied, subject to the bands in Ground Rule 6.7.1 C.

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6.7.2 Multiple Lines

Where there are multiple lines of equity capital in a company, all are included and pricedseparately, provided that:

The line passes all screens (see Ground Rules 6.3 6.6).

The secondary lines full market value (i.e. before the application of any investabilityweightings) is greater than 25% of the full market capital of the companys main line.Should the market value of a secondary line that is already a constituent of the Index Seriesfall below 20% at the next review, the secondary line is deleted from the index.

All partly-paid classes of equity are priced on a fully-paid basis if the calls are payable atknown future dates. Those recognised as being "permanently partly-paid" are priced on a

partly-paid basis.

6.8 Steps for conducting a review

Define the 100% regional universe, including consideration of Ground Rules 2.1.1 and3.3

Value companies by full market capitalisation (shares in issue x price), groupsecondary lines, and rank companies (not securities) by full market value.Throughout the review process all of a companys eligible securities will remaingrouped, and companies as a whole, rather than individual securities are assigned toLarge, Mid or Small Cap

Calculate the total market capitalisation of the universe by totalling the fullcapitalisation of all stocks in the region that satisfy Ground Rule 2.1.1 and 3.3

This is the Regional Universe.

Exclude companies in the bottom two percent by market capitalisation, when rankedby full market capitalisation in descending order.

This is the Index Universe.

Apply Screen One - Size (see Ground Rule 6.4)

Apply Screen Two - Liquidity (see Ground Rule 6.5) to all remaining eligible lines ofstock. Measure liquidity based on the adjusted weighting after applying the free floatbands

Apply Screen Three Free Float - see Ground Rule 6.6

Apply the multiple lines rule and eliminate all secondary lines which fail

Assign investability weights to all companies in accordance with the free float rules(see Ground Rule 6.7.1) - the same investability weight will be applied to all lines of acompany, unless security specific data is available)

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6.9 Determining constituents for the indices

Companies currently not in the FTSE All-World Index Series or FTSE Global Small CapIndex Series:

Those companies at or above 68% of the Index Universe in the ranking described inGround Rule 6.8 will be included in the Large Cap index for the region under review

Companies ranked below 68% but within the top 86% of the Index Universe bycapitalisation will be included in the Mid Cap index for the region under review

Companies ranked below the top 86% of the Index Universe by capitalisation, but withinthe top 97% of the Regional Universe and

Valued at USD 100m or greater by full market capitalisation, will be included the SmallCap index for the region under review.

Existing FTSE All-World Index Series or FTSE Global Small Cap Index Seriesconstituents:

Existing Large Cap constituents will remain in the Large Cap Index if they fallwithin the top 72% of the ranking described in 6.8. If they are ranked between 72%and 92% of the Index Universe they will move to the Mid Cap. If they are rankedbelow 92% of the Index Universe but within the top 99% of the Regional Universe,they will move to the Small Cap. If they are ranked below 99% of the RegionalUniverse or are valued at less than USD 75m by full market capitalisation they will beexcluded from the index.

Existing Mid Cap constituents will move to the Large Cap if they fall within the top68% of the ranking described in 6.8. If they are ranked between 68% and 92% ofthe Index Universe they will remain in the Mid Cap. If they are ranked below 92% ofthe Index Universe but within the top 99% of the Regional Universe, they will move tothe Small Cap. If they are ranked below 99% of the Regional Universe or are valuedat less than USD 75m by full market capitalisation they will be excluded from theindex.

Existing Small Cap constituents will move to the Large Cap if they fall within the top68% of the ranking described in 6.8. If they are ranked between 68% and 86% ofthe Index Universe they will move to the Mid Cap. If they are ranked below 86% of

the Index Universe but within the top 99% of the Regional Universe, they will remainin the Small Cap. If they are ranked below 99% of the Regional Universe or arevalued at less than USD 75m by full market capitalisation they will be excluded fromthe index.

6.9.1 The $100m and $75m cutoffs referred to in 6.9, above and 7.2 and 7.3, below may beadjusted annually in December by the FTSE Equity Indices Committee. If anadjustment is made, it will be applied for the first time at the next review in March ofthe following year. Any adjustment to the capitalisation limit will aim to move thecutoffs in line with market trends.

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6.10 Fast Exit Rule

Existing constituents of all other regions not undergoing a full review will be tested on a quarterlybasis to identify any constituent meeting either of the following:

1. The constituent is valued at less than USD 75 million by full market capitalization for twoconsecutive quarters. This is assessed using data as at 11 February, 11 May, 11 August or11 November.Or

2. The constituent has fallen below 99% of the Regional Universe by full market capitalisationfor two consecutive quarters. This level is set at the time of the last review of the relevantregion and is index adjusted using data as at 11 February, 11 May, 11 August or 11

November, as appropriate, to reflect the change in performance of the regional index sinceits previous review.

Constituents whose full market capitalisation falls below either of the parameters will beconsidered to be ineligible and will be removed from the index. The deletion will be applied onthe next trading day following the third Friday in March, June, September and December.

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Changes to Constituents Companies - Ground Rule 7

7.1 Definition of Fast Entry Level

7.1.1 For Developed Markets:Twice the full market capitalisation of the smallest company that falls wholly within the top 68%of the Index Universe by market capitalisation of its home region - when ranked according toGround Rule 6.8.

7.1.2 For Advanced Emerging and Secondary Emerging Markets:The full market capitalisation of the smallest company that falls wholly within the top 68% of theIndex Universe by market capitalisation of its home region - when ranked according to GroundRule 6.8

7.1.3 The Fast Entry level for each region will be set at the time of the review and published by FTSE.Each quarter the Fast Entry levels will be adjusted using the performance of the region in theFTSE Global Equity Index Series as a whole, and an updated figure will be published by FTSE.

7.2 Additions outside of a review

7.2.1 A stock will be added to the list of constituents of an existing country outside a review when:

A. A new security becomes eligible when its full market capitalisation (i.e. before the applicationof any investability weightings) is greater than the Fast Entry Level for the relevant region(see Ground Rule 7.1). The addition of a new security to the index will be implemented afterthe close of business on the first day of trading, subject to qualification under Ground Rule6.7.1.

B. A security which does not qualify as an immediate fast entrant to the index, will be re-considered for inclusion at the following regular meeting of the FTSE Regional Committees.

However, its most recent full market capitalisation must be:

equal to or greater than the Fast Entry Level.

and it must qualify under Ground Rules 6.4 6.6.

C. In the case of a demutualisation where upon listing the entire free float of a new eligiblesecurity is immediately transferred to private shareholders the addition of the security willbe deferred for one month after trading has commenced - provided that adequate liquidity(as defined under Ground Rule 6.5) is demonstrated to the FTSE Regional Committee at thistime.

D. If a constituent company is split and forms two or more companies by issuing new equity toexisting shareholders, then the resulting companies will be eligible to continue asconstituents in the same benchmarks within the FTSE Global Equity Index Series as theirpredecessor company if:

they are larger than USD 75 million by full market capitalisation and

they fall within the top 99% of the Regional Universe. The 99% level for each regionwill be set at the time of the review and published by FTSE. Each quarter the 99%levels will be adjusted using the performance of the region in the FTSE Global EquityIndex Series as a whole, and an updated figure will be published by FTSE,

E. Changes in investability factors lead to a stock that qualifies on all other grounds being

eligible for inclusion.

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7.3 Deletions7.3.1 A stock will be deleted from the list of constituents when:

A constituent has declined in importance and falls below 99% of the Regional Universe bymarket capitalisation or is valued at less than USD 75m by full market capitalisation, beforethe application of any screens (see Ground Rules 6.4 6.9).

7.3.2 A stock will be deleted from the list of constituents of an existing country at other times when:

Evidence of a change in circumstances regarding investability as defined by the screens or byany of the other selection rules would make an existing constituent ineligible if a full reviewwas to be undertaken. The deletion may be applied after consideration by the FTSERegional Committee.

The constituent is delisted from its stock exchange or becomes bankrupt, insolvent or isliquidated.

Deletion on the effective date

If an existing constituent is acquired for cash, or ineligible paper, or by a non-quotedcompany in its own or another country, then the existing constituent is deleted on theeffective date of the acquisition.

Deletion after confirmation

Constituents will be deleted from the index when confirmation is received that acceptancelevels have reached a minimum of 75% and that any new shares of the bidding company (ifapplicable) are listed (exceptionally, for constituents of the U.K. index, the qualifying

announcement is that the offer has been declared wholly unconditional).

Deletions reconsidered for inclusion

Constituents which are deleted, but which continue to trade will be considered for re-inclusion to the index at the next review of that region, subject to Ground Rule 6.4 6.6 andthat at least 6 months has passed between deletion and the proposed implementation dateof the country review

7.4 Mergers and tak e-overs

7.4.1 Mergers between constituents7.4.2 If an existing constituent is acquired for eligible shares (or a combination of eligible shares and

cash) by another constituent in its own or another country, then the existing constituent isdeleted on the effective date of the acquisition. The enlarged company remains a constituent ofthe same benchmarks within the FTSE Global Equity Index Series as the acquired company.

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7.4.3 Mergers between a constituent and non-constituent

Within one countryIf an existing constituent is acquired for eligible shares (or a combination of eligible sharesand cash) by a quoted non-constituent in the same country, then the purchasing companyis added to the same benchmarks within the FTSE Global Equity Index Series as theacquired company on the effective date of the acquisition, if eligible in all other respects(see Rules 6.4 6.6). The existing constituent is deleted on the same date.

Cross borderIf an existing constituent is acquired for eligible shares (or a combination of eligible sharesand cash) by a quoted non-constituent in another country, then the relevant FTSE RegionalCommittee will include the purchasing company in its own country on the effective date,subject to its meeting the requirements of Ground Rules 2.1.1, 3 and 6.4 6.6. The existingconstituent is deleted on the effective date of the acquisition.

7.5 Suspension of Dealing7.5.1 If a constituent is suspended on its home exchange it may remain in the indices, at the price at

which it is suspended, for up to 10 business days. During this time, on advice from FTSE, theChairman and Deputy Chairman of the relevant Regional Committee (or their deputies) mayagree to delete the constituent immediately either at its suspension price, or at zero.

7.5.2 Where a suspension of a constituent lasts beyond noon on the tenth business day (and theoption to remove the constituent has not been exercised), the constituent will normally bedeleted from the indices on the eleventh trading day at zero or the suspension price. Wheresuspension is for a reason not to the detriment of the constituent, it may be retained or removedat its suspension price with the approval of the Chairman and Deputy Chairman (or theirdeputies) of the relevant Regional Committee.

7.6 Relisting of Suspended Constituents7.6.1 Securities which on relisting, are larger than the smallest constituent of the index, will be re-

instated in the index at the price at which they were removed. The re-instatement will happenafter the close of business on the first day after the stock is re-listed.

7.6.2 If a deleted constituent (that has been suspended at a price other than zero) is subsequentlydelisted and deemed to be of nil value, the stock will be included for one day's calculation in theindex (from which it was removed) to enable the fall in the stock's value to be reflected in theindex value.

7.6.3 In this situation, the stock will be re-included at the suspension price, and its price will be zerothroughout that day's calculation, including the closing price.

7.6.4 If a company relists after a continuous period of suspension lasting more than a year, therelevant Regional Committee reserve the right to treat the company as a new issue for thepurposes of index eligibility.

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Amendments to these Ground Rules - Ground Rule 8

8.1 Amendments8.1.1 Changes and exceptions to these Ground Rules can only be authorised by the FTSE Equity

Indices Committee. If the FTSE Regional Committee or any of those responsible for theoperation and administration of the FTSE Global Equity Index Series consider that an exceptionshould be made to any of the Ground Rules, the issue must be brought to the attention of theChairman or Deputy Chairman (or their deputies) of the FTSE Equity Indices Committee, who willnormally put the matter to the full members of the FTSE Equity Indices Committee for a decision.

8.1.2 Urgent MattersIf a matter is urgent, the Chairman and Deputy Chairman (or their deputies) are collectivelyempowered to authorise an exception on behalf of the FTSE Equity Indices Committee, but mustimmediately notify and subsequently refer the matter to a meeting of the Committee.

8.2 Exceptions8.2.1 Where an exception is granted to the Ground Rules under Ground Rule 8.1, it will not be deemed

to create a precedent for future decisions of the FTSE Equity Indices Committee or the FTSE

Regional Committees.

8.3 Changes8.3.1 Material changes to the Ground Rules are announced after the FTSE Equity Indices Committee's

quarterly meeting at which they are agreed. However, they will not come into effect until afterthey have been confirmed at the following quarterly meeting - to allow for comments from indexusers and the market in general.

8.4 Appeals against decisions of the Committees8.4.1 A constituent or prospective constituent company (or broker or advisor acting on behalf of the

company) may appeal against the decisions of the FTSE Committees on the following grounds:

The Committees acted outside of the Ground Rules for the Management of the FTSE GlobalEquity Index Series; or

The Committees, when reaching their decision, failed to take into consideration a substantialand material fact.

A substantial and material fact is defined as a fact that would have influenced the decision ofthe Committees if it had been considered.

8.4.2 A request for an appeal must be made in writing to the Secretary of the FTSE Committees andmust be received within six months of the application of the event giving rise to the appeal.

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Announcing Changes - Ground Rule 9

9.1 Changes to constituents9.1.1 Decisions regarding the addition of new, eligible constituents (which are unrelated to existing

index constituents or changes to the investable weighting of existing constituents) areannounced at the earliest possible time before their inclusion in the Index Series. However, theannouncement may be contingent upon the confirmation of the listing date of the security andpassing all the screens.

9.1.2 Quarterly changes are published after the close of business on the day after the meeting of theFTSE Regional Committee responsible for deciding the changes to give users of the indexsufficient warning of the changes before their implementation.

9.1.3 Implementation of any quarterly changes will happen after the close of business on the thirdFriday in March, June, September or December. Details of FTSE Regional Committee meetingdates are available from FTSE (see Contact Us Section 2).

9.1.4 Announcements made after the close of the index calculation within the individual country

market are normally made on the following business day.

9.2 Policy changes9.2.1 Users of the FTSE Global Equity Index Series are notified of policy changes by the FTSE Equity

Indices Committee through appropriate media before implementation.

9.3 Other announcements9.3.1 If the FTSE Equity Indices Committee gives special consideration to issues of particular

importance to users of the FTSE All-World Index Series and / or FTSE Global Small Cap IndexSeries, but a decision is taken not to implement a change, we will notify users that the issueshave been reviewed through appropriate media.

9.4 Error correction policy9.4.1 The objective is to maintain the FTSE Global Equity Index Series to the highest standards of

accuracy and integrity, using reliable data sources and following best practice in statistical andoperational procedures.

9.4.2 Where material errors occur in data or in calculation procedures, these are corrected promptlyand users of the FTSE Global Equity Index Series are notified through appropriate media.However, FTSE and the FTSE Equity Indices Committee are conscious of the risk of damagingthe confidence of users through the frequent publication of amendments where trivial statisticalerrors have occurred that do not materially affect the accuracy of the published Index Series.

9.5 Re-calculations9.5.1 The FTSE Global Equity Index Series are recalculated whenever errors or distortions occur that

are deemed to be significant. Users of the Index Series are notified through appropriate media.

9.5.2 Amended calculations are available from FTSE.

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SECTION 2: MANAGEMENT RESPONSIBILITES AND CONTACTDETAILS

Management Responsibilities Ground Rule 10

10.1 FTSE Poli cy Group10.1.1 The FTSE Policy Group, whose membership is representative of users of FTSE Indices, is

established by FTSE as an independent committee. The FTSE Policy Group is responsible fordetermining major policy issues and monitoring the activities of the FTSE Equity IndicesCommittee.

10.2 FTSE Equity Indices Committee10.2.1 The FTSE Equity Indices Committee (previously the FTSE World Index Policy Committee) is

responsible for maintaining the Ground Rules for the Management of the FTSE Global EquityIndex Series. Changes and exceptions to the Ground Rules may only be made as permitted byGround Rule 8.1

10.2.2 The Committee ensures that a consistent approach is applied to the selection of constituents andthe application of corporate events by the FTSE Regional Committees.

10.2.3 The Committee may establish sub-committees to undertake any of these duties or to considerparticular issues in depth.

10.2.4 The Committee meets quarterly or more frequently, if required.

10.3 FTSE Regional Committees10.3.1 The FTSE Equity Indices Committee has established three Regional Committees:

Americas Europe Middle East / Africa and Asia Pacific

10.3.2 The purpose of the Regional Committees is to undertake the reviews of FTSE Global Equity IndexSeries (see Ground Rule 6) and to ensure that constituent changes and index calculations aremade in accordance with the Ground Rules.

10.4 FTSE Global Classification Com mittee10.4.1 The FTSE Global Classification Committee is responsible for the industry classification of

constituents of the FTSE Global Equity Index Series, as defined by the FTSE Global ClassificationSystem. Details of the FTSE Global Classification System and Ground Rules for its application areavailable from FTSE (see Contact Us Ground Rule Section 11).

10.5 Committee Membership10.5.1 FTSE appoints the Chairman and Deputy Chairman of the FTSE Policy Group. The FTSE Policy

Group appoints the Chairman and Deputy Chairman of the FTSE Equity Indices Committee. Therelevant Chairman, or in his absence Deputy Chairman, will chair meetings of the respectivecommittee and will represent that committee outside meetings.

10.5.2 The Chairman and Deputy Chairman of the FTSE Equity Indices Committee are collectivelyresponsible for approving constituent changes to the FTSE Global Equity Index Series betweenmeetings of the Committee, on advice from the Secretary to the Committee and as permitted

and as specified by the Ground Rules.

10.5.3 Terms of Reference for all Committees are available from FTSE.

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Management Responsibilities Ground Rules 10

10.6 Secretary to the FTSE Policy Group, FTSE Equity Indices Committee and FTSERegional Committees

10.6.1 The Secretary to the FTSE Policy Group and FTSE Equity Indices Committee is appointed by FTSEto support the work of the FTSE Policy Group and FTSE Equity Indices Committee. TheSecretary will maintain a record of constituent changes to the FTSE Global Equity Index Seriesand is responsible for the timely publication of all constituent changes.

10.6.2 The Secretary is responsible for:

conducting the periodic country reviews of the FTSE Global Equity Index Series and

recommending (for the approval of the FTSE Regional Committees) which companies, if any,should be inserted and deleted at the periodic review (see Ground Rule 6).

10.6.3 Other than the periodic review, the Secretary will seek the approval of the Chairman and Deputy

Chairman of the appropriate FTSE Regional Committee before removing or inserting constituentsof the FTSE Global Equity Index Series.

10.6.4 The Chairman or Deputy Chairman (or their deputies) may request that a full meeting of theCommittee be convened to consider a proposed change of constituent should any one of themconsider it appropriate to do so.

10.6.5 The Secretary will inform the appropriate FTSE Regional Committee of all constituent changes assoon as possible after the change has been approved and he/she is responsible for the timelypublication of changes of constituents.

10.7 FTSE10.7.1 FTSE is responsible for the daily operation of the FTSE Global Equity Index Series. We will

maintain records of the market capitalisation of all constituents, and will make changes to theconstituents and their weightings in accordance with the Ground Rules. We will also carry outthe periodic country reviews of the FTSE Global Equity Index Series and implement the resultingconstituent changes as required by the Ground Rules.

10.7.2 Changes to constituent weightings are made by FTSE in accordance with the Ground Rules. TheSecretary will inform the FTSE Regional Committee of all changes to constituent weightings assoon as possible after the new weightings have been determined. We will also be responsiblefor publicising changes to constituent weightings.

10.8 Status of These Ground Rules10.8.1 These Ground Rules are a guide to the policies and procedures applying at the date of

publication to the operation and maintenance of the FTSE Global Equity Index Series. They havebeen prepared and approved by the FTSE Equity Indices Committee. However, these policiesand procedures, and their precise application, are subject to variation and periodic review.

10.8.2 The purpose of publishing this guide is to provide information about the general basis on whichdecisions relating to the construction and publication of FTSE Global Equity Index Series arecurrently made.

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Management Responsibilities Ground Rules 10

10.8.3 In light of the intended purpose of this guide, and the likely variation and periodic review of thepolicies and procedures it contains, no liability whether as a result of negligence or otherwise isaccepted by FTSE, The Institute of Actuaries, The Faculty of Actuaries or any members of theFTSE Equity Indices Committee or FTSE Regional Committees (or any other person concernedwith the preparation or publication of this guide) for any losses, damages, claims and expensessuffered by any person as a result of:

any reliance on this guide or the FTSE All-World Index Series or FTSE Global Small Cap IndexSeries or any constituent data; and/or

any errors or inaccuracies in this guide; and/or

any non-application or misapplication of the policies or procedures described in this guide;and/or

any errors or inaccuracies in the compilation or calculation of the FTSE All-World Index Series

or FTSE Global Small Cap Index Series or of any constituent data.

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Contact Us

For further information please visit www.ftse.com, e-mail [email protected] or contact one ofFTSEs offices:

FranceClient ServicesFTSE40 rue La Bote75008 ParisFRANCE+33 (0) 1 53 76 82 88+33 (0) 1 53 76 82 71 (fax)

Hong KongClient ServicesFTSE

Suite 609-612One International Finance CentreHong Kong+852 2230 5800+852 2230 5804 (fax)In Singapore please ring +65 223 3738

SpainClient ServicesFTSEPaseo de la Castellana 66,

28046 Madrid,Spain+34 (0) 91 411 37 87

USA East CoastClient ServicesFTSE1330 Avenue of the Americas,10th Floor,New York,New York 10019+(1) 212 641 6160

+(1) 212 641 6190 (fax)

GermanyClient ServicesFTSENibelungenplatz 360318 FrankfurtGERMANY+49 69 15685143+49 69 15976604 (fax)

JapanClient Services

FTSEYamato Seimei Building 21F,1-1-7 Uchisaiwaicho,Chiyoda-Ku,TokyoJAPAN+81 3 3581 2811+81 3 3581 1423 (fax)

UKClient ServicesFTSE

12th

Floor10 Upper Bank StreetLondonE14 5NP

+44 (0) 20 7866 1810+44 (0) 20 7866 8958 (fax)

e-mail: [email protected]

USA W est CoastClient ServicesFTSE Americas Inc.251 Post Street,Suite 200,San Francisco, CA 94108USA+1 415 445 5660+1 415 445 5666 (fax)

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SECTION THREE: APPENDICES

Appendix A Eligible Markets and Sources of Trading (1)

Please note: Datastream International Limited, the Primark Group, Reuters, London Stock Exchange,FTSE, the FTSE Equity Indices Committee and any other source of data cannot accept liability for anyincorrect information, including the consequences of relying on this information, detailed below.

For those markets, which disseminate double-counted volumes, the data will be normalised to single-counted values when screening securities in accordance with Ground Rule 6.5.

Asia Pacific ex Japan Country Exchange

LocationMarket Section(s) Source of Volume

DataNotes

Australia Sydney Australian Stock Exchange(ASX)Main Board

Primark Datastream Single Counted- Sell side only

China (the PeoplesRepublic of)

(China)

Shanghai &Shenzhen

Official Market Reuters Single Counted

Hong Kong SpecialAdministrative Regionof the Peoples Republicof China

(Hong Kong)

Hong Kong Total Main Market Primark Datastream Single Counted- Sell side only

India (the Republic of)

India

Mumbai Official MarketNational Stock Exchange

Reuters

Indonesia (the republic

of) and East Timor

(Indonesia)

Jakarta Main Board Reuters Single Counted

- Sell side only

Korea (the Republicof)

(Korea)

Seoul Official MarketKOSDAQ

Reuters Single Counted

Malaysia Kuala Lumpur Main Board

Second Board

Reuters Single Counted- Sell side only

New Zealand Wellington New Zealand Stock Exchange(NZSE)Main Board


Pakistan (the IslamicRepublic of)

(Pakistan)

Karachi Official Market Reuters

Philippines (theRepublic of the)

(Philippines)

Manila Main Board Reuters Single Counted- Sell side only

Taiwan (theRepublic of China)

Taipei Official MarketOTC Market


Thailand (the Kingdomof)

(Thailand)

Bangkok Main Board

Foreign board

Reuters Single Counted- Sell side only

Singapore (theRepublic of)

(Singapore)

Singapore Main BoardSESDAQ


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Developed EuropeCountry Exchange


DataNotes

Austria (the Republicof) (Austria) Vienna Official Market (AmtlicheNotierung) Primark Datastream Single Counted- Sell side only

Belgium/Luxembourg

Brussels

Luxembourg

Eurolist Brussels

Official Stock Exchange (Marchofficiel de la Bourse deLuxembourg)


Denmark (the Kingdomof) (Denmark)

Copenhagen Official List Primark Datastream Single Counted

Finland Helsinki Main List Primark Datastream Single Counted- Sell side only

France (the FrenchRepublic)(France)

Paris Eurolist Paris Primark Datastream Single Counted- Sell side only

Germany (the FederalRepublic of)(Germany)

Deutsche Brse(all exchanges)

Official Market (AmtlicherHandel)

Regulated Market (GeregelterMarkt)

Primark Datastream Single CountedSell side only counted.XETRA trades are alsosingle counted

Greece (the HellenicRepublic)

Athens Main MarketParallel Market


Ireland Dublin Full List Other Source

Italy (the ItalianRepublic)(Italy)

Milan Official List(Listino della Borsa)

Primark Datastream Double Counted

Netherlands Amsterdam Eurolist Amsterdam Primark Datastream Single CountedSell side only

Norway Oslo Main List Primark Datastream Single Counted- Sell side only

Portugal (thePortuguese Republic)(Portugal)

Lisbon Market with Official Quotations Primark Datastream Single Counted- Sell side only

Spain (the Kingdom of)(Spain)

Madrid First Market(Primer Mercado)


Sweden Stockholm A -listO list


Switzerland (the SwissConfederation)(Switzerland)

Swiss Exchange Main Market Primark Datastream Single Counted- Sell side only

United Kingdom (ofGreat Britain and

Northern Ireland, the)(United Kingdom)

London Official List The London StockExchange

Adjustment to 75% oftotal for stocks trading

on SETS and SETSmmanf to 50% for thosethat trade on SEAQ.

Secondary Emerging EuropeCountry Exchange


DataNotes

Czech Republic Prague Main Market Secondary Market Reuters Single Counted

Hungary (the Republic of)(Hungary)

Budapest Official Market Reuters Single Counted

Poland Warsaw Official Market Reuters Single Counted

Russia (the RussianFederation) (Russia)

Moscow Russian Trading System Classic Market


Turkey (the Republic of)(Turkey)

Istanbul Official Market Reuters Single Counted

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JapanCountry Exchange


DataNotes

Japan Tokyo

Osaka

First Section Second Section

First Section

PrimarkDatastream

Single Counted- Sell side only

Latin AmericaCountry Exchange


DataNotes

Argentina (theArgentine Republic)Argentina

Buenos Aires Official Market Reuters

Brazil (the FederativeRepublic of)(Brazil)

So Paulo

Rio de Janeiro

Official List

Official List


Chile (the Republic of)(Chile)

Santiago Official Market Reuters

Colombia (the Republicof)(Colombia)

Bogota &Medellin Official Market Reuters

Mexico Mexico City Capital Market Primark Datastream Single Counted

Peru (the Republic of)(Peru)

Lima Official Market Reuters Single Counted

Middle East & AfricaCountry Exchange


DataNotes

Egypt (the ArabRepublic of)

(Egypt)

Cairo Main Market Reuters Single Counted

Israel Tel-Aviv Official Market Reuters Single Counted

Morocco (the Kingdomof)

(Morocco)

Casablanca Official Market Reuters Single Counted

South Africa Johannesburg JSE Primark Datastream Single Counted- Sell side only

North AmericaCountry Exchange


DataNotes

Canada Toronto Official List Primark Datastream Single Counted- Sell side only

United States ofAmerica (the)

(United States)

New York American Stock Exchange(AMEX)

NASDAQ National MarketSystem

New York Stock Exchange


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Appendix B Classes of Securities Included in FTSE GEIS (1)

Asia PacificCountry Class Translation Abbreviation

Australia OrdinaryPreferred

OrdinaryPreferred

-

China B SharesH Shares (traded in Hong Kong)

Hong Kong Ordinary A & B Ordinary -

India Equity

Indonesia Ordinary Ordinary

Korea OrdinaryPreference

OrdinaryPreference

-

Malaysia Ordinary Ordinary -

New Zealand OrdinaryPreferred

OrdinaryPreferred

-PREF

Pakistan Ordinary Ordinary

Philippines Ordinary Ordinary

Singapore Ordinary Ordinary -

Taiwan Ordinary Ordinary -

Thailand OrdinaryPreferred

OrdinaryPreferred

-PREF

Developed EuropeCountry Class Translation Abbreviation

Austria NamensaktieInhaberaktiePartizipationsscheinVorzugsaktie

Ord RegisteredOrd BearerParticipation Cert.Preferred

-BRPCPREF

Belgium/Luxembourg

OrdinaireAction AFV

OrdinaryFiscal Advantage Share

-AFV & VVPR

Denmark A aktieB aktie

Ordinary Voting Limited Voting orNon- Voting

- / AB

Finland Vapaat Osakkeet

Etuoikeutetutvapaat osakkeet

Ordinary Voting

Limited Voting or Non-Voting

- / A

B orK

France ActionAction a` dividende prioritaireCertificat d'InvestissementTitre participatif

OrdinaryPreferredCert of InvestmentCert of Participation

-PREFCICIP

Germany StammaktieVorzugsaktieInhaberaktieNamensaktie

OrdinaryPreferredBearerOrd Registered

-PREFBRREGD

Greece

CommonRegisteredCommon RegisteredCommon BearerPreference Registered

Preference BearerPreferred Non-Voting RightRegisteredPreferred With Voting-RightRegistered

CRCRCBPR

PBPNVRPWVR

Ireland OrdinaryPreference

OrdinaryPreference

-PREF

Italy AzioneAzione di RisparmioAzione privilegiate

OrdinarySavings (CNV/Non-CNV)Preferred

-SVGSPREF

Netherlands Aandeel op naamCertificatenAandeelaantoonder

RegisteredDepository ReceiptBearer

-DEP RECBR

Norway A aksje B aksje

Ordinary VotingLimited Voting or Non-Voting

- / AB

Portugal Aces ordinriasAces preferenciaisAces registadas

BearerPreferredRegistered

-PREFREG

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Appendix B Classes of Securities Included in FTSE GEIS (2)

Developed Europe cont.Country Class Translation Abbreviation

Spain Acciones nominativasAcciones al portador

Acciones Preferentes

Ord RegisteredOrd Bearer

Preferred

-BR

PREF

Sweden A aktieB aktieC aktie

Ordinary VotingLimited Voting or Non- Voting

- / ABC

Switzerland NamensaktieInhaberaktiePartizipationsscheinGenusschein

RegisteredBearerParticipation Cert.Profit sharing Cert.

REGBRPCGEN

United Kingdom Ordinary Ordinary -

Secondary Emerging EuropeCountry Class Translation Abbreviation

Czech Republic SharesHungary Ordinary

Poland Ordinary

Russia Ordinary StocksPreferred

Turkey SharesBearer

JapanCountry Class Translation Abbreviation

Japan Common Common -

Latin AmericaCountry Class Translation Abbreviation

Argentina OrdinaryPreferred

Brazil OrdinaryPreferred

OrdinaryPreferred

Chile Shares

Colombia OrdinaryPreferred

Mexico Ordinary Ordinary -

Peru Ordinary

Middle East & AfricaCountry Class Translation Abbreviation

Egypt Ordinary

Israel Shares

Morocco Ordinary

South Africa Ordinary Ordinary -

North AmericaCountry Class Translation Abbreviation

Canada Common Common -

United States Common Common -

Notes: Partly paid shares are also included (see Ground Rule 6.7.2)

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Appendix C Treatment of Dividends

Dividends, using their ex dates, are used to calculate the Total Return Indices on the FTSE Global EquityIndex Series. All dividends are applied as declared, as per the table below:

Region Country Gross / Net (ofWithholding

Tax)

Asia Pacifc ex

Japan Australia (i) Net

China Gross

Hong Kong Gross

India Gross

Indonesia Gross

Korea GrossMalaysia (ii) Net

New Zealand (ii) NetPakistan Gross

Philippines Gross

Singapore (ii) NetTaiwan Gross

Thailand GrossDeveloped Europe Austria Gross

Belgium GrossDenmark Gross

Finland Gross

France Gross

Germany Gross

Greece Gross

Ireland Gross

Italy GrossLuxembourg Gross

Netherlands Gross

Norway GrossPortugal Gross

Spain Gross

Sweden Gross

Switzerland Gross

United Kingdom(iii)

Net

SecondaryEmerging Europe

Czech Republic Gross

Hungary Gross

Poland Gross

Russia GrossTurkey Gross

Japan Japan Gross

Latin America Argentina Gross

Brazil Gross

Chile GrossColombia Gross

Mexico GrossPeru Gross

North America Canada Gross

United States GrossMiddle East &

AfricaEgypt Gross

Israel Gross

Morocco Gross

South Africa Gross

(i) AUSTRALIA: Dividends paid out of taxedcorporation profits are franked with a taxcredit for domestic investors equal to thetax paid by the corporation. Foreigninvestors do not receive these taxcredits. The FTSE Global Equity IndexSeries therefore do not include the taxcredits associated with partially or fullyfranked dividends i.e. we apply the NETdividend. Unfranked dividends aresubject to the withholding rate thatapplies i.e. we include the withholdingtax rate and apply the GROSS dividend.

(ii) Dividends for MALAYSIA, NEW ZEALAND

and SINGAPORE are declared net of tax.

(iii) Dividends for the UK are declared netsince investors are generally unable toreclaim the 10% tax credit.

Every effort is made by FTSE to ensurethat the information contained in this

Appendix is accurate. However, owing tothe frequent changes in withholding tax

rates, no responsibility or liability can beaccepted by FTSE for any errors in thisinformation. Please contact FTSE if youhave a query regarding this information.

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Appendix D Foreign Exchange Rates

The foreign exchange rates used in the calculation of the FTSE Global Equity Index Series are theWM/Reuters Closing Spot Rates, compiled by The WM Company. The service, which was developed inconsultation with leading financial market practitioners, sets a daily standard for the foreign exchangerates required for index calculation, investment management and portfolio valuation.

At short intervals before and after 16:00 hrs London time, representative bid and offer rates against theUS dollar for some 112 currencies are selected from a wide range of contributing banks and foreignexchange dealers. Anomalous data are screened out, and a median rate selected for each currency.

The choice of 16:00 London time as the reference point for the rates captures a large selection of timelyquotes from Continental European contributors to the Reuters system and reflects the peak tradingperiod for the London and New York foreign exchange markets. The rates include contributions on aglobal basis, making them relevant for valuation purposes in all the world's time zones. In the event thatWM/Reuters Closing Spot Rates are not published by the WM Company, the previous days rates will beused to calculate the FTSE Global Equity Index Series.

The main FTSE Global Equity Index Series are based at 100 on 31 December 1986. Index values in anycurrency can therefore be obtained by applying exchange rate movements against the US dollar between31 December 1986 and the date required.

Foreign exchange rate values against the US dollar at the base date, 31 December 1986, are included inthe Guide to Calculations and Methods, available from FTSE.

Further information on The WM/Reuters Closing Spot Ratesservice is available from The WM Company,

World Markets House, Crewe Toll, Edinburgh, EH4 2PY. Tel: ++ 44 (0) 131 315 2000.

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Appendix E Closing Prices Used for Calculation (1)

All exchange closing prices are sourced from Reuters.

All times detailed are local except where otherwise stated.

Asia Pacific ex JapanCountry Price Used

Australia Auction Price (Official Close)

China Last trade at 15.00hrs.

Hong Kong Nominal Price (Official Close)

India Last trade price at 15:30hrs. NB: Indian constituents will be priced from the National Stock Exchange ofIndia. Existing constituents without a National Stock Exchange of India quote will continue to be pricedfrom the Mumbai Stock Exchange.

Indonesia Jakarta Stock Exchange Closing price at 16:00hrs.Malaysia Last trade at 17:00hrs.

New Zealand Last Trade (Official Close)Pakistan Last trade price at 16:30hrs.

Philippines Last trade price at 12:00hrs.

Singapore Auction Price (Official Close)

Korea Last trade price at 15:00hrs.

Taiwan Last trade price at 13:30hrs.

Thailand Last trade at 17:00hrs.

Developed EuropeCountry Price Used

Austria Wiener Boerse Auction Price at 17:30hrs.

Belgium/Luxembourg

Brussels Stock Exchange Last Trade at 17:30hrs. Luxembourg Stock Exchange Closing Price at 15:00hrs.NB: Prices for Luxembourgeois constituents may be sourced from the Brussels Stock Exchange whereappropriate.

Denmark Copenhagen Stock Exchange Closing price at 17:00hrs.

Finland Helsinki closing price at 18.30hrs.

France Closing Auction at 17:30hrs.

Germany XETRA Closing Auction Price.NOTE:The last trade price on XETRA will be used for those stocks not participating in the closing auction.

Greece Athens Official Close price at 16:15hrs.

Ireland Last trade price at 16:30hrs.

Italy Italian Stock Exchange closing auction at 17:35 - 17:40.

Netherlands AEX Closing Auction at 17:30hrs.

Norway closing auction prices at 16:00 - 16:10.

Portugal Last trade at 16:30hrs.

Spain Madrid auction price at 17.35hrs.Sweden Stockholm closing price at 17:30hrs.

Switzerland virt-x official close at 17.30

or SWX auction price as appropriateUnited Kingdom London Stock Exchange official closing price

Secondary Emerging EuropeCountry Price Used

Czech Republic Last trade at 16:00hrs

Hungary Last trade price at 16:30hrs.Poland Last trade price at 16:00hrs.

Russia Last trade at 17:15hrs.

Turkey Last trade at 16:00hrs

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Appendix E Closing Prices Used for Calculation (2)

JapanCountry Price Used

Japan Last Trade (Official Close)

Latin AmericaCountry Price Used Argentina Prices are downloaded from Reuters at 21:10hrs (UK Time).

Brazil Prices are downloaded from Reuters at 21:10hrs (UK Time).Chile Prices are downloaded from Reuters at 21:10hrs (UK Time).

Colombia Prices are downloaded from Reuters at 21:10hrs (UK Time).Mexico Prices are downloaded from Reuters at 21:10hrs (UK Time).

Peru Prices are downloaded from Reuters at 21:10hrs (UK Time).

Middle East & AfricaCountry Price Used

Egypt Last trade price at 15:30hrs.

Israel Last trade price at 17:00hrs.

Morocco Last trade price at 14:00hrs.

South Africa Johannesburg Stock Exchange Ruling Price

North AmericaCountry Price Used

Canada TSE Close Price

United States Prices are downloaded from Reuters at 21:10hrs (UK Time). As NASDAQ, AMEX and the New York StockExchange does not release its official close until several hours after this, the price used in the index maynot match this official close. If the downloaded price is subsequently cancelled, the cancelled price isretained in the index calculation

Every effort is made by FTSE to ensure that the information contained in this Appendix is accurate.However, owing to the frequent changes in the close times and types of world stock exchanges, noresponsibility or liability can be accepted by FTSE for any errors in this information. If you have a queryregarding this information, please contact FTSE. Our details can be found in Section 2 of this document.

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Appendix F Country and Regional Indices

Countries of the FTSE Global Equity Index Series

Argentina Finland Korea Russia

Australia France Malaysia Singapore

Austria Germany Mexico South Africa

Belgium/Luxembourg Greece Morocco Spain

Brazil Hong Kong Netherlands Sweden

Canada Hungary New Zealand Switzerland

Chile India Norway Taiwan

China Indonesia Pakistan Thailand

Colombia Ireland Peru Turkey

Czech Republic Israel Philippines UK

Denmark Italy Poland USA

Egypt Japan Portugal

FTSE All-World I ndex SeriesFTSE All-World Americas Index FTSE All-World Asia Pacific Index FTSE Developed Asia Pacific ex Japan

IndexFTSE All-World Asean Index FTSE All-World Asia Pacific ex Japan

IndexFTSE Developed Europe-Asia PacificIndex

FTSE All-World Eastern Europe Index FTSE All-World Asia Pacific ex Japan,India and Pakistan Index

FTSE Developed ex Japan Index

FTSE All-World Europe-Asia PacificIndex

FTSE All-World Asia Pacific ex Japan,Australia and New Zealand Index

FTSE Developed ex Eurobloc Index

FTSE All-World Europe Index FTSE All-World Asia Pacific ex Japan,India, Pakistan, Australia and NewZealand Index

FTSE Developed ex UK Index

FTSE All-World Europe ex UK Index FTSE Advanced Emerging Index FTSE Secondary Emerging IndexFTSE All-World Eurobloc Index FTSE Emerging Index FTSE All-World Ex South Africa IndexFTSE All-World Europe ex EuroblocIndex

FTSE Emerging Asia Pacific Index FTSE All-World Ex USA Index

FTSE All-World Europe ex Eurobloc exUK Index

FTSE Emerging Europe Index FTSE All-World Ex UK Index

FTSE All-World Greater China Index FTSE Emerging Latin America Index FTSE All-World Ex Japan IndexFTSE All-World Latin America Index FTSE Developed Index FTSE All-World Ex Eurobloc IndexFTSE All-World Middle East and AfricaIndex

FTSE Developed ex USA FTSE Global Equity Index Series

FTSE All-World Nordic Index FTSE Developed ex North America FTSE All-World North America IndexFTSE Developed Asia Pacific Index FTSE Developed Europe FTSE Developed Europe ex UKFTSE World Americas Index FTSE World Eurobloc Index FTSE World ex South Africa IndexFTSE World Europe-Asia Pacific Index FTSE World Europe ex Eurobloc Index FTSE World ex USA IndexFTSE World Europe Index FTSE World Europe ex Eurobloc ex UK

IndexFTSE World ex UK Index

FTSE World Europe ex UK Index FTSE World Nordic Index FTSE World ex Japan IndexFTSE World Europe ex Germany Index FTSE World North America Index FTSE World ex Eurobloc Index

FTSE World Europe ex Sweden Index FTSE World Asia Pacific Index FTSE World IndexFTSE World Europe ex SwitzerlandIndex

FTSE World Asia Pacific ex JapanIndex

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Appendix G Country Addition and Deletions

Countries were added or deleted from the FTSE Global Equity Index Series on the following dates:

ADDITIONS

31 st December 1985 Original 23 countries

1st January 1988 30 th March 2000

Australia Finland Luxembourg * Austria Belgium 1st November 1994 ChileCanada Brazil ChinaDenmark Thailand ColombiaFrance Czech RepublicGermany (West) 1st July 1996 EgyptHong Kong Indonesia HungaryIreland Philippines IndiaItaly IsraelJapan 1st November 1994 KoreaMalaysia Brazil MalaysiaMexico Thailand MoroccoNetherlands PakistanNew Zealand 1st May 1998 PeruNorway Greece PolandSingapore Portugal RussiaSouth Africa TaiwanSpain TurkeySweden Venezuela **SwitzerlandUnited KingdomUnited States

* Added to create Belgium/Luxembourg country index.

Malaysia was deleted from the then FTSE World Index on 1

st

October 1998, and was re-included in theFTSE All-World from inception on 30th June 2000.

** Venezuela was deleted from the Index at zero value after the close of business on Friday 20 th June2003.

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Appendix H Calculation Schedule

1.0 Normal schedule1.1 The Index Series are calculated once daily at approximately 21:30 - 22:00 London time,

shortly after the close of North American securities markets. Selected indices within theseries are calculated on a real time basis, see below.

1.2 The Index Series are calculated every weekday, when one or more of the constituent marketsare open, however on January 1st. the indices may not be disseminated. There is no separatecalculation to accommodate the Saturday opening of any market.

1.3 The FTSE Global Equity Index Series Tables are published daily in the Financial Timesnewspaper of the following day's date. Early editions may carry the latest previouslycalculated version of the Index Series.

2.0 Summer timeDuring periods of the year when some countries switch from winter to summer time, or vice-versa, some editions of the Financial Timesmay show an earlier or later dated version of the

FTSE Global Equity Index Series Table than normal.

3.0 Real Time IndicesThe following indices are calculated in real time, between the hours shown in the table.Closing values using the WM/Reuters Spot Rates at 16.00 UK time are disseminated afterthese exchange rates have been applied to the close price for constituent stocks.

Index Calculation Times*

FTSE Global All-Cap Index 00:30 to 21:10

FTSE Global All-Cap ex US Index 00:30 to 21:10

FTSE Global All-Cap ex UK Index 00:30 to 21:10

FTSE Global All-Cap ex Japan Index 00:30 to 21:10

FTSE Global All-Cap ex South Africa Index 00:30 to 21:10

FTSE Asia Pacific All-Cap Index 00:30 to 13:30

FTSE Asia Pacific All-Cap ex Japan Index 00:30 to 13:30

FTSE Asia Pacific All-Cap ex Japan, India & Pakistan Index 00:30 to 11:00

FTSE Asia Pacific All-Cap ex Japan, India, Pakistan, Australia & New Zealand Index 00:30 to 11:00

FTSE Greater China All-Cap Index 00:30 to 09:15

FTSE Europe All-Cap Index 08:00 to 16.30

FTSE Europe All-Cap ex UK Index 08:00 to 16.30

FTSE Europe All-Cap ex Eurobloc Index 08:00 to 16.30

FTSE Eurobloc All-Cap Index 08:00 to 16.30

FTSE Developed All-Cap Index 00:30 to 21:10

FTSE Developed All-Cap ex US Index 00:30 to 16.30

FTSE Developed All-Cap ex North America Index 00:30 to 19:00

FTSE Developed All-Cap ex UK Index 00:30 to 21:10

FTSE Developed All-Cap ex Japan Index 00:30 to 21:10

FTSE Developed Europe All-Cap Index 08:00 to 16.30

FTSE Developed Europe All-Cap ex UK Index 08:00 to 16.30

FTSE Japan All-Cap Index 00:30 to 13:30

FTSE Emerging All-Cap Index 00:30 to 21:10

FTSE Emerging Latin America All-Cap Index 14:30 to 21:10

FTSE Emerging Asia Pacific All-Cap Index 00:30 to 13:30

FTSE Advanced Emerging All-Cap Index 00:30 to 21:10

FTSE Secondary Emerging All-Cap Index 01:00 to 21:10

*Note: all times are UK time.

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Appendix J Review Schedule

Below is an indicative timetable for the review of regions within the Index Series. Any change to thisschedule will be publicised after the Committee meeting in the preceding quarter.

MarchAsia Pacific ex Japan:

Australia

China

Hong Kong

India

Indonesia

Malaysia

New Zealand

Pakistan

Philippines

Singapore

Korea

Taiwan

Thailand

JuneLatin America

Argentina

Brazil

Chile

Colombia

Mexico

Peru

Secondary Emerging Europe

Turkey

Czech Republic

Hungary

Poland

Russia

Middle East & A frica

Egypt

Israel

Morocco

South Africa

SeptemberJapan

Japan

Developed Europe

UK

Austria

Belgium & Luxembourg

Finland

France

Germany

Denmark

Greece

Ireland

Italy

Netherlands

Norway

Portugal

Spain

Sweden

Switzerland

DecemberNorth Americas

Canada

USA

* Please note, exceptionally, in 2003, thesereviews were carried out in June.

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Appendix K Treatment of Stapled Units

1 Definition of a stapled unit1.1 For the purposes of these Ground Rules, a stapled unit means:

a unit which comprises shares in two companies which are twinned in the form of a single,indivisible unit for the purposes of trading, and for which a price quotation is only available forthe unit - not for each of the shares of each of the companies comprised within the unit.

1.2 If a stapled unit is comprised of more than two companies or securities of which at least one iseligible, the appropriate FTSE Regional Committee will determine the weighting of the eligiblecompany or security by applying the same criteria as set out in this Ground Rule.

2 Inclusion and weighting of the eligible company2.1 A company whose securities are eligible, and whose securities are comprised within, and traded

as part of a stapled unit, will be eligible for inclusion in the FTSE Global Equity Index Series.

2.2 The appropriate FTSE Regional Committee will determine the weighting of the eligible company

for inclusion in the indices by reference to the value of the stapled unit against the followingcriteria:

Criterion AWhere the attributable earnings and/or dividend flows substantially match the equity capitalstructure of

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