Singapore Exchange Ltd (SGX) today announced that it has signed a memorandum of understanding (MOU) with State Street Global Advisors (SSgA) to develop Singapore's first indigenous exchange traded fund (ETF).

This new ETF will list and trade on SGX Securities Trading (SGX-ST) by the first half of 2001.
Mr Thomas Kloet, SGX CEO said, "This announcement is significant of SGX's aim to constantly introduce innovative and groundbreaking products into the marketplace. This ETF is the first of its kind and should serve as a catalyst for more industry participants to develop and list other local and regional ETFs here."

Mr Nicholas A. Lopardo, CEO of SSgA and Vice Chairman of State Street Corporation, said: "We are extremely pleased to be given the opportunity to apply our experience as the world leader for ETFs to enhance investor choice in Singapore."

Mr Hon Cheung, Managing Director of SSgA Singapore, commented, "We are excited with the prospect of working with the SGX to develop instruments that enable investors to gain broad, cost-effective exposure to Singapore equities."

- ENDS -

Exchange Traded Funds (ETFs)
ETFs are index funds that are listed and traded on stock exchanges. They are mainly structured as diversified investment vehicles that track a specific benchmark index, allowing investors to track the performance of their investments easily. By buying a single ETF, investors are essentially investing in a basket of securities which make up the index. ETFs have gained in popularity in various markets where they have been introduced, owing to their low management costs and the ease and cost-efficient manner of trading them on stock exchanges.

Singapore Exchange Ltd (SGX)
Inaugurated on 1 December 1999, Singapore Exchange Ltd (SGX) is the first demutualised, integrated securities and derivatives exchange in Asia Pacific.

On 1 June 2000, SGX and The American Stock Exchange® (Amex) announced plans to establish a joint venture to list and trade Amex-listed exchange-traded funds (ETFs) and structured products on SGX Securities Trading (SGX-ST). The proposed joint venture is the first step in the development of a global and fungible exchange-traded fund trading system. It will provide both retail and institutional investors the opportunity to trade ETFs across the North American and Asian time zones.

State Street Global Advisors (SSgA)
SSgA is the investment management group of State Street Corporation. With assets under management of US$729 billion, SSgA is one of the largest investment management firms in the world. SSgA operates investment centers out of Boston, Hong Kong, London, Paris, Montreal, Munich, Singapore, Sydney and Tokyo.

SSgA has been involved in the exchange-traded fund market since its beginnings, having worked with the American Stock Exchange to bring the first exchange-traded fund, the SPDR, to market in 1993 in the United States. Presently, SSgA is the market leader in exchange-traded funds, managing more than $33 billion in 22 exchange-traded funds worldwide.

For more information, please contact:
Singapore Exchange
Raymond Chow, Tel +65 236 8135, raymond_chow@sgx.com

State Street Global Advisors
Hon Cheung, Tel +65 329 0505, hon_cheung@ssga.com

Investors have no right to request SSgA to redeem their Units while the Units are listed. It is intended that holders of Units may only deal in their Units through trading on the Singapore Exchange Securities Trading Limited ("SGX-ST"). Listing of the Units on the SGX-ST does not guarantee a liquid market for the Units.

The streetTRACKS® Straits Times Index Fund (the "Fund") is not in any way sponsored, endorsed, sold or promoted by SPH Data Services Pte Ltd or Singapore Press Holdings Ltd (collectively "SPH") or FTSE International Limited ("FTSE"). SPH and FTSE make no warranties or representations whatsoever, either expressly or impliedly, either as to the results to be obtained from the Straits Times Index ("STI") and/or the figure at which the STI stands at any particular time on any particular day or otherwise. SPH and FTSE do not warrant or represent or guarantee to any broker or holder of any units in the Fund sold or marketed by State Street Global Advisors Singapore Limited or any member of the public as to the accuracy or completeness of the STI and its computation or any related information. No warranties, representations or guarantees of any kind are made in relation to the STI or the Fund by FTSE or SPH. The units in the Fund are not issued, endorsed, sold or promoted by FTSE or SPH and neither FTSE nor SPH bear any liability in connection with the administration, marketing or trading of the units in the Fund. The STI is calculated by FTSE and neither FTSE nor SPH accept any liability (whether in negligence or otherwise) towards any person for any error in the STI and shall not be under any obligation to advise any person of any error therein. The compilation or composition of the STI or the constituent stocks and factors may be altered or changed by FTSE without notice. All intellectual property rights in the STI vest in SPH.

Each of Singapore Exchange Securities Trading Limited, its subsidiaries, related corporations, and holding company, and their respective directors or employees, and any other party involved in, or related to, making or compiling the STI (together, the "Relevant Persons") makes no guarantee, warranty, representation or undertaking, express or implied, as to the accuracy, correctness, timeliness, completeness, originality, satisfactory quality, merchantability or fitness for any particular purpose of any of the values of the STI, the indicative optimum portfolio value of the Units, or any information or data included in or referable to such values. Investing in the Units involves risks, which in any case, are disclaimed by the Relevant Persons and described more fully in the Prospectus. The Units are also subject to the terms and conditions (and disclaimers by the Relevant Persons) set out in the Trust Deed constituting the Units.