ISDA®

INTERNATIONAL SWAPS AND DERIVATIVES ASSOCIATION

NEWS RELEASE

For Immediate Release Thursday, April 5, 2001

For More Information, Please Contact:

Robert Pickel, ISDA New York, (212) 332-1200; Fax (212) 332-1212; rpickel@isda.org

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

ISDA CREDIT DERIVATIVES MARKET PRACTICE COMMITTEE FINDS CONSENSUS ON ‘RESTRUCTURING ISSUE’

WASHINGTON, D.C., Thursday, April 5, 2001 – The International Swaps and Derivatives Association announced today that its Credit Derivatives Market Practice Committee has reached consensus on how to address issues arising in the event of a debt restructuring under credit default swaps using ISDA documentation. A framework, including the terms of a supplement to its 1999 ISDA Credit Derivatives Definitions, was presented by ISDA to its members at its Annual General Meeting in Washington, DC.

There is consensus that the new approach will achieve broad market acceptance for liquid transactions where restructuring is included as a credit event. It is not presumed as a standard for all credit derivative contracts. Credit swaps can still be traded both with and without restructuring, and a contract may be tailored to meet special requirements, such as regulatory, rating agency, or other objectives of hedgers or investors.

For credit swaps including restructuring using the new supplement, the new provision would, in certain circumstances, limit the maturity of the obligations that are deliverable after the occurrence of a restructuring credit event, thereby limiting the so-called cheapest-to-deliver option that has caused problems following recent restructuring events.

A group representing various constituencies, including dealers, portfolio managers and credit protection sellers in Europe and North America, was formed to accelerate resolution. This process was set in motion at the inaugural March 12 meeting of the new Credit Derivatives Market Practice Committee, and has entailed a period of intense discussion.

“The new provision represents common ground on this issue and the greatest potential for broad market consensus on the restructuring issue,” said Robert Pickel, Executive Director and CEO of ISDA. “This reflects a concerted effort to achieve enhanced default swap liquidity across the market,” added Mr. Pickel, speaking from the Association’s AGM in Washington DC.

Formal publication of the restructuring supplement is expected on or about April 20, 2001.

^®ISDA is a registered trademark of the International Swaps & Derivatives Association, Inc.