NASDAQ and Reuters Launch New Venture

Jun 14, 2005

The Nasdaq Stock Market, Inc. and Reuters, a global information company, have announced the formation of a new company designed to help public companies obtain independent analyst coverage.

The Independent Research Network will attempt to aggregate independent research providers to procure and distribute equity research on behalf of under-covered companies in an effort to increase the market's understanding of a company's fundamental prospects. The service is intended to target all companies listed in the U.S. as well as private companies looking for research coverage. Neither NASDAQ, Reuters nor IRN will play a role in preparing the research or issuing recommendations.

IRN will be governed by a board made up of representatives selected by Reuters and NASDAQ and operated by a management team selected by the board. IRN will incorporate a Research Independence Panel made up of experts in the legal, research, and regulatory fields. The panel's mandate is to preserve the independent nature of IRN by ensuring the integrity and independence of the research being created. The IRN is designed to deliver multiple research opinions per issuer over a multi-year contract term.

Reuters will attempt to provide research aggregation and distribution technology to IRN, including a content management solution that was developed in connection with the Global Analyst Settlement.

Terms regarding the joint venture will not be released.