DTCC TO ACQUIRE LCH.CLEARNET

Posted October 22, 2008

NEW YORK – The Depository Trust & Clearing Corporation (DTCC) and LCH.Clearnet Group have announced plans for DTCC to acquire LCH.Clearnet in a merger that would create the world’s leading clearinghouse. The two securities clearance providers have signed non-binding terms under which LCH.Clearnet shareholders would receive up to 739 million euros (or 10 euros per share).

“The critical role and value of clearing houses has been highlighted by recent events,” says A. Chris Tupker, Chairman of LCH.Clearnet. “The merger of our companies will enable our users to benefit from a broader geographic footprint and a greater range of expertise, as well as realizing important efficiencies and economies of scale.”

LCH.Clearnet’s largest shareholder, Euroclear, which owns 15.8 percent of the company, will support the transaction and remain a shareholder.

“By combining DTCC and LCH.Clearnet’s natural synergies and complementary skills, we expect our customers will not only see significant cost savings in the clearance and settlement of the many securities and instruments we already service, but also greater access to a more diverse range of product offerings and support of emerging asset classes,” says Donald F. Donahue, Chairman and Chief Executive Officer of DTCC.