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JPMorgan Adds Depositary Receipts Staffing In Asia & Latin America


New DR specialists in Argentina, Brazil and Singapore JPMorgan says DR trading volumes increased nearly 70% in 1Q’08

New York.- JPMorgan announced today the expansion of Depositary Receipts (DR) staff in Asia and Latin America anticipating growth in global and local DRs. The firm also reported significant increases in DR trading volumes and values compared to the same period last year.

JPMorgan’s new DR specialists in Argentina, Brazil and Singapore will provide a full range of services to companies that want to have their equity traded on exchanges beyond their home markets. The team includes three vice presidents: Bettina Garcia, who will head the local DR sales office in Buenos Aires and is also responsible for DR sales in Chile and Peru, Marcos Yokota, who will head local DR sales in Sao Paulo, and Sharon Tang, who will head the DR sales office in Singapore.

JPMorgan’s newest team members join a global team of more than 100 people in DR sales, client relationship management and investor relations and shareholder advisory services specialists located in Amsterdam, Beijing, Delhi, Hong Kong, London, Mumbai, New York, Seoul, Shanghai, Singapore, Taipei and Tokyo.

“We are adding specialists in Argentina, Brazil and Singapore to deepen our global reach, strengthen our local presence and continue to expand our leadership in the DR industry,” said Claudine Gallagher, global head of JPMorgan’s Depositary Receipts business. “We anticipate an increase in DR issuances and stand ready with our market-leading investor relations and shareholder advisory services to provide companies with everything they need to launch a successful DR.”

Meanwhile, the firm reported that trading volumes and values of DRs increased globally in the first quarter 2008, according to figures from JPMorgan and Bloomberg:

* 1Q08 Trading volumes totaled 30.3 billion shares, a 69% increase from the same period in the prior year (17.9 billion)
* 1Q08 Trading values amounted to $1,211 billion, more than double the value for the same period in the prior year ($585 billion)

Regionally, the bulk of DR activity still comes from issuers in Europe, the Middle East and Africa, however, the total share of trading activity in Asia Pacific and Latin America has increased.

China is expected to have an active DR market in 2008, following the establishment of a number of DR programs by Chinese companies in 2007, including the establishment of DR programs for China Sunergy, LDK Solar, Linktone, WuXi PharmaTech and Yingli Green Energy, among others.

JPMorgan acted as depositary for 45% of all new DR programs for Chinese based issuers in 2007.

“Asia’s economies have been growing very rapidly over the past few years, with strong capital needs across the region. The DR team will continue to expand its footprint and resources in the region to ensure that corporate issuers are well supported in their overseas fund raising activities,” said Kenneth Tse, Head of JPMorgan’s Asia Pacific Depositary Receipts business.

William Kirst, the new head of JPMorgan’s Latin America DR business, added: “Equity markets in Latin America are rapidly evolving and more local companies want to have access to investors beyond their home markets. At the same time, there is growing interest from a broader universe of investors to invest in Latin America. JPMorgan’s new local staff adds to our ability to marshal the resources of a global firm to help build clients’ DR market capitalization, trading liquidity and investor ownership.”

JPMorgan launched the first DR in Latin America in 1960 (Teléfonos de México) and serves as depositary for the largest DR program in Latin America (Petrobras). In 2007, the firm launched a global depositary shares (GDS) program for Grupo Clarín, the first Argentine company to have a DR listing on the London Stock Exchange and global depositary receipt (GDR) program for Almacenes Exito S.A., the first primary offering of equity securities by a Colombian company outside of the home market in over 10 years.

JPMorgan created the first-ever DR in 1927 (Selfridges). Today the overall DR market comprises more than 1,800 companies from over 75 countries which sponsor over 2,200 DR programs in the form of American Depositary Receipts (ADRs) that list on U.S. exchanges or Global Depositary Receipts (GDRs) which typically list in London or Luxembourg.

JPMorgan provides a full complement of ADR and GDR services to issuers seeking to have their equity traded on exchanges beyond their home markets. JPMorgan’s primary services include DR Issuances and Cancellations, Stock Transfer, Tender and Exchange Offer and Subscription Rights Agency services, and Tax Reclamation services for investors.


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