New industry classification and new indexes at the Helsinki Stock Exchange As part of the integration of the Nordic and Baltic securities markets, the Helsinki Stock Exchange will introduce a new industry classification standard for listed companies, the Global Industry Classification Standard (GICS) as of July 1, 2005. Common Nordic and Baltic industry classification increases the international comparability of Helsinki listed companies and provides companies with a clearly defined and larger peer group. At the same time, the Helsinki Stock Exchange will introduce new sector indices and a new benchmark index based on the industry classification. As of July 1 when the exchanges in Tallinn, Riga and Vilnius will also adopt the GICS classification, all eight Nordic and Baltic exchanges will use the same classification standard. The GICS classification is already in use at the exchanges in Stockholm, Oslo, Copenhagen and Iceland. The Global Industry Classification Standard (GICS) has been developed by Morgan Stanley Capital International (MSCI) and Standard & Poor's (S&P), who estimate that it covers approximately 95 percent of the worlds equity market capitalization. GICS facilitates industry analysis by classifying companies on four different levels: sectors, industry groups, industries and sub-industries. The classification is based on the business area that generates the majority of the companys revenues. The ten sectors in the GICS classification are: Energy, Materials, Industrials, Consumer Discretionary, Consumer Staples, Healthcare, Financials, Information Technology, Telecommunication Services and Utilities. The new classification will replace the current sector classification of the Helsinki Stock Exchange. To coincide with the adoption of GICS, the Helsinki Stock Exchange will launch its new independently developed GICS-based industry indexes. As a step in creating a Nordic index family, the Helsinki Stock Exchange will introduce a new benchmark index on July 1, 2005, and the index rules of the current non-tradable indexes will be harmonized with NOREX index rules. The OMX Helsinki Benchmark Index (OMXHB) will be an investable index that corresponds to the benchmark indexes at the exchanges in Stockholm, Copenhagen and Oslo. Utilizing the common industry classification, the new index will function as an indicator of the overall performance of the Helsinki Stock Exchange. OMXHB will be free-float adjusted and will take into account both stock price movements and reinvested dividends to minimize transaction costs. For more information about the new industry classification, the benchmark index or the changes in index calculation rules, visit www.omxgroup.com/helsinkistockexchange. For more information, please contact: Pekka Peiponen, SVP Cash Markets Finland, equities +358 9 6166 7290 About OMX Exchanges | OMX is a leading partner for more efficient securities transactions. OMX consists of two divisions: OMX Technology and OMX Exchanges. Through the OMX Exchanges division, OMX owns and operates the equity and derivatives exchanges in Copenhagen, Stockholm, Helsinki, Tallinn, Riga and Vilnius as well as the central securities depositories in Estonia and Latvia. Through OMX Exchanges, OMX offers access to approximately 80 percent of the Nordic and Baltic Securities market. For more information, please visit www.omxgroup.com. About GICS In 1999, MSCI and Standard & Poors jointly developed the GICS to establish a global standard for categorizing companies into sectors and industries, thereby enabling asset owners, asset managers and investment research specialists to make seamless company, sector and industry comparisons across countries, regions, and globally. The GICS methodology has been widely accepted as an industry analysis framework for investment research, portfolio management and asset allocation. The GICS classification system consists of 10 sectors, 24 industry groups, 64 industries (as of April 30, 2005) and 139 sub-industries (as of April 30, 2005). The GICS sectors are: Energy, Materials, Industrials, Consumer Discretionary, Consumer Staples, Health Care, Financials, Information Technology, Telecommunication Services and Utilities. GICS DirectSM, a joint product of MSCI and S&P, was introduced in 2001. GICS Direct provides industry classifications for more then 25,000 companies and 28,000 securities. MSCI and S&P estimate that GICS Direct covers approximately 95% of the worlds equity market capitalization. GICS was designed to classify a company according to its principal business activity. To make this determination, Standard & Poors and MSCI use revenues as a key measure of a companys business activity. Earnings and market perception, however, are also recognized as important and relevant information for classification purposes and are taken into account during the review process. For a detailed description of the GICS, please refer to the Standard & Poor's web sites at www.gics.standardandpoors.com and the MSCI website at www.msci.com PDF
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