New York, N.Y.—The Nasdaq Stock Market, Inc. (NASDAQ^®; OTCBB: NDAQ), today announced the redemption of its $150 million outstanding principal amount of 5.83% Senior Notes due May 9, 2007 ("Senior Notes") on September 30, 2003. Under the terms of the Senior Notes, NASDAQ paid the holders of the Senior Notes $150 million in outstanding principal amount, accrued interest of $1.2 million and an aggregate "make-whole" payment of approximately $12.6 million (representing the net present value of future payments). NASDAQ used funds from available cash to finance the redemption.

"As part of the on-going strategic review, NASDAQ decided to use some of its cash to redeem this outstanding debt. This action reduces interest expense by $8.7 million per year on a pre-tax basis," noted David Warren, chief financial officer.

NASDAQ anticipates taking a pre-tax charge in the third quarter of approximately $13.3 million related to the redemption of the Senior Notes. This charge includes the make-whole payment and capitalized costs related to the issuance of the Senior Notes.

NASDAQ is the world's largest electronic stock market. With approximately 3,400 companies, it lists more companies and has an average daily trading volume higher than any other U.S. market. It is home to category-defining companies that are leaders across all areas of business including technology, retail, communications, financial services, media and biotechnology industries. For more information about NASDAQ, visit the NASDAQ Web site at www.NASDAQ.com or the NASDAQ Newsroom^SM at www.nasdaq.com/newsroom.

Cautionary Note Regarding Forward-Looking Statements

The matters described herein may contain forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of risks, uncertainties or other factors beyond the control of The Nasdaq Stock Market, Inc. (the "Company"), which could cause actual results to differ materially from historical results, performance or other expectations and from any opinions or statements expressed or implied with respect to future periods. These factors include, but are not limited to, the Company's ability to implement its strategic initiatives, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition, and other factors detailed in the Company's annual report on Form 10-K, and periodic reports filed with the U.S. Securities and Exchange Commission. We undertake no obligation to release any revisions to any forward-looking statements.



[Top]