ISDA®

INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION

NEWS RELEASE

For Immediate Release, Wednesday, April 4, 2001

For More Information, Please Contact:

Richard Metcalfe, ISDA or Jennifer Iannibelli, Kennedy & Company, ISDA AGM Pressroom in Washington, D.C., (202) 756-5243

ISDA WELCOMES EU COLLATERAL DIRECTIVE

WASHINGTON, D.C., Wednesday, April 4, 2001 – At its 16^th Annual General Meeting today, the International Swaps and Derivatives Association announced its support for the European Commission’s recently published proposed EU Directive on financial collateral arrangements. Published on March 27^th, the proposal aims to protect the provision of collateral on a bilateral basis between two parties to a collateral arrangement. Robert Pickel, Executive Director and CEO of ISDA, noted: “This Directive promises to support the growing use of collateral in the EU, removing many unnecessary obstacles.”

ISDA had advocated the revision of collateral regimes in the EU, which are subject to a number of outdated and cumbersome procedures, in some instances leading to legal uncertainty. In March 2000, ISDA published a paper analyzing these impediments to the use of collateral and suggested nine key principles that an efficient modern collateral regime should embody. The proposed Directive is substantially in keeping with these recommendations.

“We will continue to work with the European authorities as this legislation progresses through EU and national procedures,” commented Mr. Pickel. “This Directive is of great importance to financial markets, including derivatives, and ISDA views its publication as a major step forward.”

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