BSX Reports Completion of Technology build-out and Sees Continued Growth in New Listings

Hamilton, Bermuda: 4 January 2005 - The Bermuda Stock Exchange (BSX) today reported continued growth in the number of new listings on the Exchange in 2004 while trading volumes remained at comparable levels to that of 2003.

The BSX/RG Composite Index ended the year at 3,208.05, up 8.2% compared with 2003. Domestic trading volumes fell from 2.8 million shares to 2.6 million. However there was an increase in corresponding share value of $65 million.

The BSX International Crossing Market ended the year with 3.3 billion shares traded with an associated value of $119 billion. The total market capitalization of the BSX as at 31 December 2004 (excluding fund listings) stood at approximately $120 billion of which $1.85 billion represented the domestic market.

As at 31 December 2004, 381 issuers were listed on the BSX. Included in the new listings in 2004 were: HSBC Holdings plc, Aspen Insurance Holdings Ltd. and American Safety Insurance Holdings Ltd. to name a few. There were six new equities and 28 collective investment vehicles listed in 2004.

2004 will be marked by the full implementation of the Bermuda Securities Depository (BSD), the Exchange's fully electronic clearing, settlement and depository service and the completion of the Exchange's technology build out. Thus, all BSX related transactions are now executed electronically and in line with sophisticated, modern global market practices.

In making the year-end announcement, BSX President and Chief Executive Officer Greg Wojciechowski noted, "The Bermuda Stock Exchange is delighted to report the full implementation of the BSD.  Operationally, the completion of the BSD now places the BSX on the same footing as the world's modern stock markets in respect of transaction processing and risk control.  Today, the Exchange's operating environment is far safer than it ever has been which directly translates into a greater level of protection for investors in BSX listed securities.  We are extremely proud of the Exchange model that has been developed and implemented in Bermuda and grateful to the Government, BMA, investment community and listed issuers for supporting the move to modern market regulation and operations which of course ultimately benefits all users of the Bermuda market and the jurisdiction."

Mr. Wojciechowski went on to note: "I am generally pleased with the performance of the BSX this year, the BSX/RG Composite index, which is weighted on a market capitalization basis, closed at 3,208.05, up over 8% compared with 2003.  Interest in listing on the BSX strengthened internationally and locally, which resulted in the number of new listings reported while trading volumes remained steady.   These results emphasize the value that a modern, well regulated stock exchange and capital market brings to Bermuda."

"The BSX is eagerly looking forward to 2005 and the exciting developments that are anticipated and 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 as the world's premier offshore business jurisdiction is maintained."