memorandum tokyo

May 30, 2005 - Tokyo Stock Exchange, Inc. and Borsa Italiana SpA today signed a memorandum of understanding. Cooperation between the two Exchanges will facilitate the development and efficient operation of both markets and contribute to the investor protection.

Under the agreement, the two Exchanges will consult and cooperate on issues of mutual interest in order to strengthen the both markets. The two Exchanges also agreed to exchange information deemed to be beneficial to maintain the efficiency and integrity of the Markets.

Mr. Takuo Tsurushima, President and CEO of Tokyo Stock Exchange, Inc. comments "This MOU is an opportunity to further strengthen the relations between our Exchanges, and to work for the development of both markets. I hope the two Exchanges can work together to enhance the cross-border flow of capital between Europe and Asia."

Mr. Massimo Capuano, President and CEO of Borsa Italiana SpA says " This agreement will promote broader cooperation, exchange of information and an ongoing relationship between both Exchanges and strengthen our business relationships in the years ahead. Through this MOU, we hope to build on our efforts to pave the way to the expansion of the reach of our markets and products to both our regions".

Tokyo Stock Exchange, Inc. (http://www.tse.or.jp) is the premier exchange of Japanese cash equities and derivative products both in Japan and from a global perspective. The stock trading volume of TSE in 2004 boasted 378 billion shares, an increase of 20 percent from the previous year, which positioned the TSE as the central market of Japan, occupying 95.4 percent of the total volume of stock trading in Japan. In 2004, the TSE also recorded the daily average of trading volume of 1,539.7 million shares, and the daily average of trading value of JPY 1,394.8 billion. At the end of March 2005, the number of listed Japanese companies is 2,288, and their market capitalization reaches JPY 377 trillion. In order to meet diversified needs of investors, the TSE started trading of ETFs and REITs in July and September 2003, respectively. In addition to its core Japanese equity market, TSE provides markets for derivatives products such as long-term Japanese government bond futures and TOPIX index futures. With respect to these cash and derivative products, the TSE, as a self regulative organization, continuously makes every effort for providing a fair, transparent, and efficient market.

Founded in 1997 following the privatisation of the exchange, Borsa Italiana is responsible for the organisation and management of the Italian securities markets. It carries out activities to ensure the development of the markets it manages, to maximise their liquidity, transparency and competitiveness, and, at the same time, to pursue high levels of efficiency and profitability.

Borsa Italiana leads a Group which includes BIt Systems S.p.A. (Information Technology), Cassa di Compensazione e Garanzia S.p.A. (Clearing & Central Counterparty), Monte Titoli S.p.A. (Custody & Settlement), Piazza Affari Gestione & Servizi S.p.A. (Facility & Property Management), thus offering a wide range of high value-added services to the domestic and international financial community.

Media Contact:

Yasuyuki KONUMA, Corporate Planning +81-3-3665-1058

e-mail: kohou@tse.or.jp

Francesca Palermo-Patera, Media Relations +39.02.72426212

e-mail: francesca.palermo-patera@borsaitaliana.it