Depositary Receipts Surpassed Trillion-Dollar Milestones in 2005, According to The Bank of New York Year-End Report

As part of its analysis, The Bank of New York also reported thatthe DR market had strong levels of capital raisings in 2005.

"The $1 trillion milestones underscore the significant and growingrole DRs play in broadening the market to both issuers and investorsalike, a trend which we expect to continue in 2006," said ChristopherSturdy, managing director and Head of The Bank of New York'sDepositary Receipt Division.

Growing Investment in Depositary Receipts

According to the Bank's analysis, the total value of investment inDRs exceeded $1 trillion at the end of the third quarter. Investmentvalues in U.S.-listed DRs totaled $657 billion on September 30, 2005,a jump of 36 percent from the same time last year. Overall value ofinvestment in European-listed DRs was estimated to be $225 billion andinvestment in over-the-counter-traded and other DRs was estimated tobe $120 billion.

Companies with more than $20 billion in DR investment as ofSeptember 30, 2005 included the U.K.'s BP ($82.7 billion), Royal DutchShell ($36.1 billion), Vodafone ($20.9 billion) and GlaxoSmithKline($20.9 billion), Russia's Lukoil ($31.6 billion), Mexico's AmericaMovil ($25.7 billion) and Brazil's Petrobras ($23.7 billion).

According to the latest U.S. Federal Reserve statistics as ofSeptember 30th, 2005, the total value of U.S. investment in non-U.S.equities (both DRs and shares) increased to $2.8 trillion, an increaseof 29 percent from the same time last year. The statistics show thatinvestment in non-U.S. equities now comprises 15.8 percent of all U.S.equity investment. Furthermore, U.S. net inflows into internationaland global stock funds were projected to reach nearly $150 billion in2005, outpacing inflows into U.S. domestic funds for the first time in15 years, according to Strategic Insight, a research firm.

Indeed, according to a report from The Investment CompanyInstitute/Securities Industry Association, nearly two-thirds of allU.S. equity investors now hold foreign equities through ownership ofindividual stock in foreign companies or ownership of international orglobal mutual funds, up from about half in 2002.

Depositary Receipt Trading Value and Volume Grow 17% and 5%,Respectively

The Bank reported that nearly $1.2 trillion of DRs traded on U.S.and non-U.S. markets and exchanges in 2005. In the U.S., 39.2 billionDRs, valued at a $1 trillion, traded on the New York Stock Exchange(NYSE), Nasdaq and the American Stock Exchange, representing increasesof 5 percent in DR trading volume and 17 percent in trading value.Annual U.S.-listed DR trading volume has increased each year since1990, while this year's DR trading value is second only to 2000'srecord of $1.1 trillion.

DR trading on exchanges outside the U.S. also showed growth. In2005, more than $130 billion in DRs, a 19 percent increase from 2004,traded on the London Stock Exchange's International Order Book, theprimary non-U.S. trading market for DRs.

At least 27 issuers from 16 countries posted annual DR tradingvalue in excess of $10 billion. Among these are China's Baidu.com andNetease.com, France's Total, Ireland's Elan, Israel's TevaPharmaceutical, Mexico's America Movil, Finland's Nokia, Russia'sGazprom and Lukoil and the U.K.'s BP, GlaxoSmithKline, Royal DutchShell and Vodafone.

The Bank of New York's ADR Index Outperforms Major U.S. Indices

Overall DR performance, as tracked by The Bank of New York ADRIndex(SM), posted solid returns during 2005. On December 31, 2005, TheBank of New York's Composite ADR Index closed at 134.56, up 9.7percent, trading at its five-year high. All three of the regionalsub-indices and 12 of 14 market, sector and select sub-indices endedhigher. More broadly, 30 of 39 country indices were up, led by theLatin American indices of Argentina, Brazil and Mexico which each hadgains in excess of 40 percent on the year.

Denmark's EuroTrust A/S was the year's best-performing ADR Indexconstituent, returning more than 165 percent. Other triple-digitincreases were posted by Russia's Tatneft and Japan's InternetInitiative Japan, among others.

In contrast, the U.S. domestic equity markets were generally flat.As of December 31, 2005, the Dow Jones Industrial Average was down0.61 percent while the broader Standard & Poor's 500 Index gained 3percent.

Index Name Y-T-D Increase
The Bank of New York Composite ADR Index 9.7 %

The Bank of New York Latin America ADR Index 47.6%
The Bank of New York Europe ADR Index 5.5%
The Bank of New York Asia ADR Index 16.9%

The Bank of New York Emerging Markets ADR Index 33.8%
The Bank of New York Developed Markets ADR Index 7.3%

The Bank of New York ADR Index(SM) is the only real-time index totrack all depositary receipts, New York shares and global registeredshares traded on the NYSE, Amex and NASDAQ. The Bank of New York ADRIndex currently has 441 constituents and a free float marketcapitalization, as defined by Dow Jones & Company, in excess of $5.8trillion.

Annual DR Establishment Grows; DR Capital Raisings Show Strength

The Bank reports that companies from 36 countries established 162new DR programs during the year, compared to 126 programs from 29countries during 2004. More than 20 percent of the year's new DRprograms were established by companies from India, including PatniComputer Systems, UTI Bank and Essar Projects and more than 10 percentwere established by companies from Australia, including MacquarieBank, Austal and Solbec Pharmaceuticals. Industry wide, the Bankreports a record 1,915 sponsored DR programs for issuers from 73countries were available to investors at year-end 2005.

During 2005, 106 new DR offerings by non-U.S. companies andgovernments raised $32.5 billion, a significant increase over 2004'sfull-year total of $11.3 billion in 53 new DR offerings. As expected,emerging market DR issuers dominated. Issuers from India, Taiwan andBrazil, accounted for the majority of all DR capital raisings bynumber of transactions while issuers from Taiwan, the U.K., Korea, andRussia accounted for the largest amounts of capital raised.

Asian emerging market issuers raised more than $17.4 billion usingDRs during 2005, led by the $2.6 billion follow-on offering byChunghwa Telecom, the single largest DR capital raising of all time.Four other follow-on offerings in excess of $1 billion in DRs werecompleted by LG Philips LCD, Hynix Semiconductor and SK Telecom inKorea and Taiwan Semiconductor Manufacturing. A number of initialpublic offerings (IPOs) were also completed by Asian companies. Amongthese were eight Chinese companies that successfully completed IPOsand listed on NASDAQ or the NYSE: Actions Semiconductor, Baidu.com,China Medical Technologies, China Techfaith Wireless, Focus Media,Hurray! Holding, Suntech Power Holdings and Vimicro. Baidu.com wasparticularly notable because it was the best performing foreign ordomestic IPO on all U.S. stock exchanges during 2005, soaring morethan 350 percent on its first day of trading.

In the European, Middle Eastern and African emerging markets, fourRussian companies dominated DR capital-raising with Sistema,Novolipetsk Metal Works, Pyaterochka Holding and Evraz Holding raisingmore than $3.4 billion combined in IPO transactions. In the MiddleEast, the privatization of Telecom Egypt was a successfully completedDR capital raising as were two other transactions, both the first DRprograms from their countries, Investcom from Lebanon and BankMuscatfrom Oman.

In Latin America, Brazil's Submarino, Chile's Inversiones AguasMetropolitanas and Mexico's AXTEL successfully completed IPOs usingDRs, while Mexico's Cemex and FEMSA and Brazil's UNIBANCO and GOLAirlines tapped the market with follow-on DR offerings.

Issuers from the developed markets completed only eight DR capitalraising transactions during the year. Six of these transactions,valued at $5.5 billion, were preference share issues by four largeU.K. banks, Barclays Bank, HBOS, HSBC and Royal Bank of Scotland.Belgium's RHJ International accounted for the only other sizable DRcapital raising transaction in the developed markets, raising morethan $1 billion.

DR Listings on U.S. Stock Exchanges Remain Flat While Listings onNon-U.S. Stock Markets Continue to Grow

Continuing a four-year trend, the number of new U.S. stockexchange listings of DRs remained relatively flat. During 2005, 29 newDRs were listed on the NYSE, NASDAQ and Amex, three more than during2004. Over the past year, several DR issuers left the U.S. listedmarkets for a variety of reasons including mergers, acquisitions,deregistration and financial difficulty. As a result, 490 DR programsare now listed on the NYSE, NASDAQ and Amex, a decrease from 496 atyear-end 2004.

Non-U.S. stock exchanges continued to challenge the major U.S.exchanges for emerging market DR listings. In 2005, 44 companiescompleted new DR listings on the London Stock Exchange (LSE) and theLuxembourg Stock Exchange (LuxSE), the two primary non-U.S. DR listingmarkets, bringing the total number of listed DRs on these exchanges to302. Three other non-U.S. stock exchanges saw DR listings for thefirst time in 2005. The Korean steel company POSCO listed DRs on theTokyo Stock Exchange, Lebanon's Investcom listed DRs on the DubaiInternational Financial Exchange and Bangladesh's Beximco Pharmalisted on London's AIM market.

The Bank of New York Proves Its Leadership

During 2005, the Bank had a strong year across a broad range ofmetrics, acting for 66 percent of all new DR programs and 60 percentof all DR capital raising transactions.

The Bank continues to attract experienced DR issuers as well.During 2005, the U.K.'s Royal Dutch Shell and Mexico's America Movil,two of the largest DR programs in the world as measured by total DRinvestment, switched to The Bank of New York. France's Thomson, theU.K.'s J Sainsbury, Mexico's Vitro and Egypt's Al-Ezz Steel Rebarsalso switched their DR programs to the Bank from other depositarybanks. The Royal Dutch Shell switch was particularly notable becauseit was the 200th DR program switched to the Bank from its competitorssince 1990.

In total, the Bank acts as sponsored depositary for more than1,200 American and global depositary receipt programs acting inpartnership with leading companies from 60 countries. With anunrivalled commitment to helping securities issuers succeed in theworld's rapidly evolving financial markets, the Bank delivers theindustry's most comprehensive suite of integrated depositary receipt,corporate trust and stock transfer services. Additional information isavailable at www.adrbny.com.

The Bank of New York Company, Inc. (NYSE: BK) is a global leaderin providing a comprehensive array of services that enableinstitutions and individuals to move and manage their financial assetsin more than 100 markets worldwide. The Company has a long traditionof collaborating with clients to deliver innovative solutions throughits core competencies: securities servicing, treasury management,investment management, and individual & regional banking services. TheCompany's extensive global client base includes a broad range ofleading financial institutions, corporations, government entities,endowments and foundations. Its principal subsidiary, The Bank of NewYork, founded in 1784, is the oldest bank in the United States and hasconsistently played a prominent role in the evolution of financialmarkets worldwide. Additional information is available atwww.bankofny.com.

Research Approach: The total value of investment in DR is derivedby multiplying DRs outstanding by DR price. All DR price figures arepublicly available from the applicable stock exchange or tradingmarket. The number of DRs outstanding for The Bank of New York DRprograms was derived from internal reporting sources. The number ofDRs outstanding from non-Bank of New York sponsored U.S.-listed issueswas derived from publicly available figures provided by the NYSE andNASDAQ. DRs outstanding for European-listed and OTC-traded issues thatare not The Bank of New York DRs were estimated by The Bank of NewYork using publicly available information including, but not limitedto, company reports and SEC 13-F shareholder data.

This information and data is provided for general informationalpurposes only. The Bank of New York does not warrant or guarantee theaccuracy or completeness of, nor undertake to update or amend, thisinformation or data. We provide no advice nor recommendation orendorsement with respect to any company or securities. Nothing hereinshall be deemed to constitute an offer to sell or a solicitation of anoffer to buy securities.
Depositary Receipts:
NOT FDIC, STATE OR FEDERAL AGENCY INSURED
MAY LOSE VALUE
NO BANK, STATE OR FEDERAL AGENCY GUARANTEE