Rule 144A

Rule 144A, adopted pursuant to the U.S. Securities Act of 1933, as amended (the "Securities Act") provides a safe harbor from the registration requirements of the Securities Act of 1933 for certain private resales of restricted securities to QIBs (qualified institutional buyers), which generally are large institutional investors with over $100 million in investable assets. When a broker or dealer is selling securities in reliance on Rule 144A, it is subject to the condition that it may not make offers to persons other than those it reasonably believes to be QIBs.

Since its adoption Rule 144A has greatly increased the liquidity of the securities affected. This is because the institutions can now trade these formerly restricted securities amongst themselves, thereby eliminating the restrictions that are imposed to protect the public. Rule 144A was implemented in order to induce foreign companies to sell securities in the US capital markets. For firms registered with the SEC or a foreign company providing information to the SEC, financial statements need not be provided to buyers.

Since 1990, the Nasdaq Stock Market offers a compliance review process which grants Depository Trust & Clearing Corporation (DTCC) book-entry access to 144A securities. Nasdaq also hopes to launch an Electronic Trading Platform for 144A securities in late 2007 and has a pending [http://www.sec.gov/rules/sro/nasdaq/2007/34-55669.pdf Rule Filing] with the SEC.


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