New York, December 9, 2005 — The Nasdaq Stock Market, Inc. (NASDAQ®; NASDAQ: NDAQ) announced today the annual re-ranking of the NASDAQ-100 Index®, effective with the market open on Monday, December 19, 2005.
“The re-ranking is a unique event in that investors ultimately determine which companies are members of one of the most closely followed indexes in the world,” said John L. Jacobs, executive vice president, NASDAQ. “The re-ranking process is objective, rules-based and transparent - one that ensures the NASDAQ-100 Index will continue to be an important benchmark by which you can invest in a diverse array of NASDAQ-listed companies.”
The following 12 issues will be added to the NASDAQ-100 Index: Google Inc. (NASDAQ: GOOG), NII Holdings, Inc. (NASDAQ: NIHD), Expedia, Inc. (NASDAQ: EXPE), Patterson-UTI Energy, Inc. (NASDAQ: PTEN), NVIDIA Corporation (NASDAQ: NVDA), Urban Outfitters, Inc. (NASDAQ:URBN), Cadence Design Systems, Inc. (NASDAQ: CDNS), Activision, Inc. (NASDAQ: ATVI), RedHat, Inc. (NASDAQ: RHAT), Monster Worldwide, Inc. (NASDAQ: MNST), CheckFree Corporation (NASDAQ: CKFR), and Discovery Holding Company (NASDAQ: DISCA).
The NASDAQ-100 Index is composed of the 100 largest non-financial stocks on The NASDAQ Stock Market® and dates to January 1985 when it was launched along with the NASDAQ Financial-100 Index®, which is comprised of the 100 largest financial stocks on NASDAQ. These indexes were originally designed to segment NASDAQ into two major industry groups to support media coverage and to act as benchmarks for financial products such as options, futures, and funds. The NASDAQ-100 is re-ranked each year in December, timed to coincide with the quadruple witch expiration Friday of the quarter.
On a cumulative price return basis, the NASDAQ-100 Index has risen over 1238.0% since inception, and it has outperformed several major domestic and international stock indexes for the ten-year period ended November 30, 2005, although past performance is not indicative of future performance. For the most recent one, five, and ten-year periods ended November 30, 2005, the cumulative return of he NASDAQ-100 Index was 6.4%, -33.3%, and 181.7% respectively.
Shares of each company in the Index are included in the NASDAQ-100 Index Tracking Stock® (QQQ® ) (NASDAQ: QQQQ), which is an exchange-traded fund (ETF) that trades like a stock. It is the most actively traded listed equity security in the U.S., and it is one of the world's most actively traded ETFs as measured by the average daily share trading volume. QQQ represents ownership in the NASDAQ-100 TrustSM. The Trust holds a portfolio of equity securities that comprise the NASDAQ-100 Index and aims to provide investment results that, before expenses, correspond with the NASDAQ-100 Index performance. Since its inception in March 1999, the Trust's total assets have grown to over $20 billion.
The NASDAQ-100 European Tracker Fund® (EQQQSM ) is listed on Borsa Italiana, SWX Swiss Exchange, Deutsche Boerse, virt-x, and London Stock Exchange and is designed to closely follow the NASDAQ-100 Index. EQQQ provides European investors with low cost access to the entire range of companies in the NASDAQ-100 Index in European hours, on European markets. Since its inception in November 2002, the Fund's total assets have grown to approximately $315 million. EQQQ is not available to U.S. investors.
There are also 22 domestic mutual funds and 9 international funds linked to the NASDAQ-100 Index. For more information about the NASDAQ-100 Index, including eligibility criteria, visit www.nasdaq-100.com.
As a result of the re-ranking of the NASDAQ-100 Index, the following 12 companies will be removed: Career Education Corporation (NASDAQ: CECO) Dollar Tree Stores, Inc. (NASDAQ: DLTR), Intersil Corporation (NASDAQ: ISIL), Invitrogen Corporation (NASDAQ: IVGN), Level 3 Communications, Inc. (NASDAQ: LVLT), Millennium Pharmaceuticals, Inc. (NASDAQ: MLNM), Molex Incorporated (NASDAQ: MOLX), Novellus Systems Inc. (NASDAQ: NVLS), QLogic Corporation (NASDAQ: QLGC), Sanmina-SCI Corporation (NASDAQ: SANM), Synopsys, Inc. (NASDAQ: SNPS), and Smurfit-Stone Container Corporation (NASDAQ: SSCC).
NASDAQ® is the largest electronic screen-based equity securities market in the United States. With approximately 3,200 companies, it lists more companies and, on average, trades more shares per day 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, transportation, media and biotechnology. For more information about NASDAQ, visit the NASDAQ Web site at www.nasdaq.com or the NASDAQ Newsroom at www.nasdaq.com/newsroom/.
To learn more about the criteria for inclusion to the NASDAQ-100, visit NASDAQ-100 Index .
Notes to editors:
The Trustee for the NASDAQ-100 Trust is required to adjust the composition of the Trust within three business days before or after the day on which a change to the composition of the NASDAQ-100 Index becomes effective at the close of the market.
The NASDAQ-100 Index Tracking Stock is subject to risks similar to those of stocks, including those regarding short selling and margin account maintenance. An investor cannot invest directly in the Index. Index performance does not reflect the fees and expenses associated with investing in the NASDAQ-100 Index Tracking Stock.
An investor should carefully consider investment objectives, risks charges and expenses before investing. For this and more complete information about NASDAQ-100 Index Tracking Stock®, a unit investment trust, obtain a prospectus from your broker, or call (888) 627-3837 or visit our Web site at www.nasdaq-100.com . Read it carefully before you invest.
While there is no assurance that the performance of the NASDAQ-100 Index can be fully matched, the NASDAQ-100 Index Tracking Stock is designed to provide investment results that generally correspond to the performance of the NASDAQ-100 Index before fees, expenses, and taxes. Past performance is not indicative of future performance.
ALPS Distributors, Inc., a registered broker-dealer, is distributor for the Trust.
The sponsor of the NASDAQ-100 Trust, a unit investment trust, is NASDAQ Global Funds, Inc. (“NGF”), a wholly owned subsidiary of The Nasdaq Stock Market, Inc. (“NASDAQ,” and collectively with its affiliates except NGF, the “Corporations”). Investment returns and principal value will fluctuate so that an investor's shares, when redeemed or sold, may be worth more or less than the original cost.
“NASDAQ” and related marks are trademarks or service marks of NASDAQ and have been licensed for use for certain purposes by NGF. The NASDAQ-100 Index is comprised and calculated by NASDAQ without regard to the NASDAQ-100 Index Tracking Stock. The Corporations make no warranty, express or implied, and bear no liability with respect to NASDAQ-100 Index Tracking Stock. The Corporations and NGF make no warranty, express or implied, and bear no liability with respect to the NASDAQ-100 Index, its use or any data included therein. The Corporations do not guarantee the accuracy or the completeness of the Index, or any data used to calculate the Index, or determine the Index components.
ALPS Distributors, Inc., a registered broker-dealer, is distributor for QQQ.
Company briefs:
The following are brief descriptions of the 12 companies to be added to the NASDAQ-100 Index in descending order based on market capitalization as calculated in the NASDAQ-100 Index annual re-ranking review. Securities listed on the NASDAQ Stock Market that meet the eligibility criteria were ranked by market capitalization using NOCP as of the end of October and total shares outstanding filed in a public SEC document through the end of November.
Google Inc. provides a web based search engine through its Google.com website. The Company offers a wide range of search options, including web, image, groups, directory, and news searches. The Mountain View, California, company had a market capitalization of $74.2 billion at the time of ranking.
NII Holdings, Inc. NII Holdings, Inc. provides mobile communications for business customers in Latin America. The Company has operations in Mexico, Brazil, Argentina and Peru, offering a fully integrated wireless communications tool with digital cellular service, text/numeric paging, wireless Internet access, Nextel DirectConnect, a digital two-way radio feature, and International Direct Connect(SM). The Reston, Virginia, company had a market capitalization of $6.3 billion at the time of ranking.
Expedia, Inc. provides branded online travel services for leisure and small business travelers. The Company offers one-stop travel shopping and reservation services, providing real-time access to schedule, pricing and availability information for airlines, hotels, and car rental companies. The Bellevue, Washington, company had a market capitalization of $6.0 billion at the time of ranking.
Patterson-UTI Energy, Inc. provides land-based drilling services to major and independent oil and natural gas companies. The Company conducts drilling operations in Texas, New Mexico, Utah, Oklahoma, Louisiana, and western Canada. Patterson-UTI is also involved in pressure pumping, oil and gas exploration and production, and drilling and completion fluids services. The Snyder, Texas, company had a market capitalization of $5.9 billion at the time of ranking.
NVIDIA Corporation designs, develops, and markets three dimensional (3D) graphics processors and related software. The Company's products provide interactive 3D graphics to the mainstream personal computer market. The Santa Clara, California, company had a market capitalization of $5.7 billion at the time of ranking.
Urban Outfitters, Inc. operates retail stores and direct response, including a catalog and Web sites. The Company's Urban Outfitters and Anthropologie retail concepts sell fashion apparel, accessories, and household and gift merchandise. Urban also designs and markets young women's casual wear which it provides to the Company's retail operations and sells to retailers worldwide. The Philadelphia, Pennsylvania, company had a market capitalization of $4.7 billion at the time of ranking.
Cadence Design Systems, Inc. provides software technology and comprehensive design and consulting services and technology. The Company licenses its elec-tronic design automation software technology and provides a variety of pro-fessional services. Cadence's design realization solutions are used to design and develop complex chips and electronic systems, including semiconductors. The San Jose, California, company had a market capitalization of $4.5 billion at the time of ranking.
Activision, Inc. publishes, develops, and distributes interactive entertainment software. The Company's software is used for Microsoft Windows compatible personal computers and console game systems such as Sony PlayStation and Nintendo 64. Activision maintains publishing and development operations in the US, Canada, the UK, France, Germany, Japan, and Australia. The Santa Monica, California, company had a market capitalization of $4.3 billion at the time of ranking.
Red Hat, Inc. Red Hat, Inc. develops and provides open source software and services, including the Red Hat Enterprise Linux operating system. The Company's Web site offers open source software downloads, information and news and provides an online community of open source software users and developers. The Raleigh, North Carolina, company had a market capitalization of $4.1 billion at the time of ranking.
Monster Worldwide, Inc., is the parent company of Monster®, a global online careers and recruitment resource. The company also owns TMP Worldwide, a recruitment advertising agency network. Monster Worldwide has approximately 4,500 employees in 26 countries. The N.Y., N.Y. company has a market capitalization of approximately $3.9 billion at the time of ranking.
CheckFree Corporation provides electronic commerce products and services as well as software and investment services. The Company designs, develops, and markets services that enable its customers to make electronic payments and collections, automate paper-based recurring transactions, and conduct secure transactions on the Internet. The Norcross, Georgia, company had a market capitalization of $3.9 billion at the time of ranking.
Discovery Holding Company , through its subsidiaries, provides media management and network services to the media and entertainment industries. The Company also provides non-fiction entertainment. The Englewood, Colorado, company's Series A common stock had a market capitalization of $3.8 billion at the time of ranking.
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Media Contact:
Wayne Lee
301.978.4875
Issuer & Investor Contact:
Lisa Chaney
301.978.8281
