99/05

March 15, 1999

Vancouver, March 15, 1999 -- The Toronto Stock Exchange (TSE), Montreal Exchange (ME), Vancouver Stock Exchange (VSE) and Alberta Stock Exchange (ASE) have reached an agreement in principle to restructure the Canadian equities market along the lines of market specialization. The agreement contemplates that the VSE and ASE exchanges will merge to form a national junior equities market. The far-reaching initiative is designed to ensure a strong and globally competitive alliance of exchanges that will benefit Canada's capital markets and all participants.

The Toronto Stock Exchange will become the senior equities market, the Montreal Exchange will focus exclusively on futures and derivatives and the Vancouver and Alberta exchanges will serve emerging growth companies that require venture capital to expand and develop the strength needed to graduate to the senior equities market. The merged VSE/ASE entity also consolidates the operations of the Canadian Dealing Network (CDN). An invitation will be extended to the Winnipeg Stock Exchange to participate in the national junior equities market.

"Bringing together the Vancouver and Alberta exchanges to become a national junior equities market gives Canada a unique competitive advantage within the global marketplace," stated Michael Johnson, President and CEO of the Vancouver Stock Exchange.

Through market specialization, the introduction of uniform regulations and the pooling of expertise and resources, our members will be better positioned to support emerging growth companies in Canada, compete internationally and attract more institutional participation.

"The VSE/ASE merger partners our traditional strength in junior mining and oil and gas, respectively, with the exchanges developing expertise for the technology sectors. A stronger junior equities market translates into a significant contribution to the Canadian economy by supporting emerging growth businesses, the greatest source of job creation," Johnson added.

The benefits of streamlining Canada's capital markets will reach all of the VSE's market participants:

• Our listed companies will have improved access to capital through regional representation provided by all exchanges and harmonization of regulations, undertaken in coordination with the Canadian Securities Administrators (CSA). Listed companies will also benefit from elimination of overlapping fees, improved service levels and broader investor following.
• Our investors will benefit from a well-regulated, fair and accessible marketplace with enhanced protection through uniform regulatory standards, consistent enforcement and improved market information.
• Our member firms will benefit from common technology platforms between the exchanges, which will enable greater efficiencies and reduced costs within their own operations. There will also be opportunities for collaborative marketing programs to expand business in fields of niche expertise such as junior mining, telecommunications and technology within Canada and worldwide.

"By building on our strengths and reducing fragmentation we will be able to leverage the core competency of each exchange and create a system that is greater than the sum of its parts. Greater efficiency, less duplication of service and a clear focus for the future will deliver benefits to all participants in Canada's capital markets," Johnson stated. "The strong liquidity of the senior equities market in Toronto will be enhanced by the support of Montreal's derivatives market and graduates of the national junior equities market."

The boards of the four exchanges all voted today to proceed with the proposed restructuring, subject to the necessary due diligence, member, governmental and regulatory approvals.

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