Press releases 2006

London Stock Exchange Group plc (the “Group”) became the new holding company of London Stock Exchange plc (the “Exchange”) with effect from 15 May 2006 as a result of the scheme of arrangement approved by shareholders at the Court Meeting and Extraordinary General Meeting held on 19 April 2006. Following the scheme of arrangement, previous shareholders of the Exchange are now shareholders of the Group. The results set out below relate to the Exchange for the year ended 31 March 2006.

Financial highlights:

• Revenue before exceptional items up 19 per cent to £291.1 million
• Operating profit before exceptional items up 42 per cent to £120.1 million
• Adjusted basic earnings per share up 55 per cent to 37.4 pence
• Operating profit including exceptional items up one per cent to £85.4 million and basic earnings per share up 15 per cent to 27.8 pence
• Cash generated from ongoing operating activities up 45 per cent to £146 million
• Total dividend for the year of 12 pence per share, up 71 per cent

Operational highlights:

• Total new issues up 21 per cent to 622, including 409 IPOs representing 67 per cent of all Western European IPOs
• Total money raised by new and further issues increased 81 per cent to £34.1 billion
• 31 per cent increase in average daily SETS bargains to 223,000, reflecting accelerated growth in the fourth quarter with SETS average daily bargains up 38 per cent
  34 per cent increase in average daily SETS value traded to £4.7bn
• Total terminals up 9,000 to 104,000, of which terminals attributable to professional users up 5,000 to 88,000

Capital return:

• £510m to be returned to shareholders on 26 May 2006 to increase balance sheet efficiency and enhance shareholder returns
• Exchange is at forefront of good capital management in exchange sector
• Intention to implement ongoing share buyback programme of up to £50 million per annum

Commenting on the results, Chris Gibson-Smith, Chairman of the London Stock Exchange, said:

“The growing strength of our business underpins the excellent financial performance delivered by the Exchange this year – revenue increased 19 per cent and adjusted earnings per share were up 55 per cent. The Board has increased the total dividend for the year by 71 per cent to 12 pence per share, reflecting our ongoing confidence in the Group’s future growth prospects.

“We remain focussed on driving the business forward, while continuing to explore options to create additional value for shareholders and customers.”

Clara Furse, Chief Executive of the Exchange, said:

“The Exchange has delivered an outstanding result for 2006, increasing value for shareholders and customers. The internationalisation of our market and very strong technology led and derivatives linked growth on SETS reflect our increasing customer focus and efforts to build our growth story around our customers’ rapidly developing global businesses.

“We have made a very good start to the current financial year. We expect to deliver another very strong performance in 2007 as the secular change in the trading of UK equities continues. Our unique strategic position underpins the step change in our growth prospects.”

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