BSX Reports Increase in New Listings-Decline in Trading Volumes in 2002

The BSX/RG Composite Index ended the year at 2,240.40, down 17.43% compared with 2001. Domestic trading volumes fell from 16.7 million shares to 3.8 million, with a corresponding share value of $90 million.

The BSX International Crossing Market recorded an increase in volume on a year on year basis, rising from 10.6 billion shares to 14.2 billion in 2002 with a share value of $413.7 billion in 2002.

The number of listed issuers rose in 2002, from 349 to 383. Included in the new listings were, KeyTech 8% Preferred Shares (KEYP) on the domestic board and PartnerRe (PRE), IPC (IPCR) Holdings and Scottish and Annuity Life (SCT) which joined the Exchange's International Secondary Market. There were also two new international BSX Mezzanine Market companies and some 71 collective investment vehicles listed in 2002.

2002 saw the continued development of the Bermuda Securities Depository (BSD), the Exchange's fully electronic clearing, settlement and depository service. At year-end, 7 securities had been made depository eligible with over 75% of the transactions executed on the BSX being settled in a book-entry fashion within the BSD. Once all listed domestic securities have been made depository eligible, the Exchange will have completed its operational build-out, punctuating its commitment to introducing and maintaining international securities market standards in Bermuda.

In making the year-end announcement, BSX President and Chief Executive Officer Greg Wojciechowski noted, "The Bermuda Stock Exchange is pleased to announce the continued increase in the number of new listings in 2002. Like so many businesses and world markets, the BSX has felt the impact of the global economic slowdown this year, however in spite of this, I am delighted to report that the BSX continued to see growth in our listing product. This sustained growth clearly demonstrates a healthy niche-market that has been created and is being supported by the Bermuda Stock Exchange.

Mr. Wojciechowski went on to note, "Whilst the BSX saw growth in the number of new listings, domestic trading volumes and the index value fell compared to 2001. The decrease in trading volume can be attributed to the shift in the bulk of trading in the Bank of Bermuda's stock from the BSX to the NASDAQ market. In addition, the BSX/RG Composite index, which is weighted on a market capitalization basis, was directly impacted by the decline in the market price of the Bank of Bermuda, as this security constitutes approximately 55% of the overall index valuation. Despite the overall decline in the index, the broad market, excluding the Bank of Bermuda remained stable over the last year, modestly advancing 1.69%."

In respect of international trading volumes our crossing market remained strong in 2002 and we have every reason to believe that this trend will continue.

Although the global economic situation has created a challenging commercial environment for the BSX, I have every confidence that our dedicated team of stock exchange professionals is in a strong position to support the continued development of the Exchange and the domestic financial services industry to ensure that Bermuda's reputation and use as the world's premier offshore business jurisdiction is maintained."