Succursale de Genve, Genve; Banque Diamantaire (Suisse), Genve; Banque Franck, Galland & Cie SA, Genve; Banque Galland & Cie SA, Lausanne; Banque IPPA

in CHF 1 000 Note 2004 2003

ASSETS

Cash 159 538 123 889

Marketable securities 170 218 149 438

Total cash and marketable securities 4 329 756 273 327

Accounts receivable 5 33 438 29 577

Deferred tax assets 290 696

Prepaid expenses and accrued income 6 4 898 4 145

Total current assets 368 382 307 745

Fixed assets 7 15 459 24 518

Investments in subsidiaries 8 8 786 17 631

Intangible assets 9 23 230 31 164

Total non-current assets 47 475 73 313

TOTAL ASSETS 415 857 381 058

LIABILITIES AND EQUITY

Other liabilities 10 40 540 39 451

Accrued expenses and deferred income 11 23 268 26 208

Total short-term liabilities 63 808 65 659

Deferred tax liabilities 1 039 2 398

Provisions 12 3 166 18 614

Total long-term liabilities 4 205 21 012

Total liabilities 68 013 86 671

Share capital 10 000 10 000

Capital reserve 242 535 242 535

Foreign currency earnings (255) (459)

Retained earnings 95 564 42 311

Total equity 13 347 844 294 387

TOTAL LIABILITIES AND EQUITY 415 857 381 058

CONSOLIDATED BALANCE SHEET

Consolidated annual financial statements for 2004 53

& Associs, Luxembourg, Succursale de Lausanne, Lausanne; Banque Jenni & Cie. SA, Basel; Banque MeesPierson BGL SA, Nyon; Banque Pasche S.A., Genve;

in CHF 1 000 Note 2004 2003

INCOME STATEMENT

Revenue 14 358 821 344 532

Personnel expense 15 (92 404) (88 990)

Depreciation and amortization of fixed and intangible assets 7/ 9 (31 231) (75 918)

Other operating expenses 16 (158 169) (144 990)

Operating income 77 017 34 634

Net financial income 17 (6 608) 6 923

Other expense/revenue 18 (2 694) 15 236

Profit before taxes 67 715 56 793

Taxes 19 (14 463) (14 482)

PROFIT FOR THE YEAR 53 253 42 311

CONSOLIDATED INCOME STATEMENT

Banque Safdi SA, Genve; Banque Syz & Co. SA, Genve; Banque Thaler SA, Genve; Banque Vontobel Genve SA, Genve; BanSabadell Finance SA, Genve;

in CHF 1 000 2004 2003

CASH FLOW STATEMENT

Profit for the year 53 253 42 311

Depreciation and amortization of fixed and intangible assets 31 231 75 918

Decrease (increase) in provisions (15 448) (8 275)

Reclassification of tax provisions 15 854 0

Deferred income taxes (953) 5 182

Income from non-consolidated holdings 10 969 (887)

Cash flow 94 906 114 249

Decrease (increase) in accounts receivable for goods and services (3 861) (11 286)

Decrease (increase) in prepaid expenses and accrued income (753) 62 565

Decrease (increase) in other accounts payable (14 765) (13 986)

Decrease (increase) in accrued expenses and deferred income (2 940) 10 872

Net cash provided by (used in) operating activities 72 587 162 414

(Decrease) increase in long-term liabilities (0) (11 540)

Net cash provided by (used in) financing activities (0) (11 540)

CONSOLIDATED CASH FLOW STATEMENT

Consolidated annual financial statements for 2004 55

Bantleon Bank AG, Zug; Barclays Bank (Suisse) SA, Genve; Basellandschaftliche Kantonalbank, Liestal; Baumann & Cie Banquiers, Basel; BBO Bank Brienz Ober-

in CHF 1 000 2004 2003

Increase in fixed assets (8 068) (14 695)

Net increase in intangible assets (6 170) (52 622)

Increase in holdings (2 124) (3 923)

Changes in scope of consolidation 0 8 784

Net cash flow provided by investing activities (16 362) (62 456)

Unrealized exchange differences 204 (1 277)

Net increase in cash and marketable securities 56 429 87 141

Cash and marketable securities at 1 January 273 327 186 186

Cash and marketable securities at 31 December 329 756 273 327

of which marketable securities 170 218 149 438

Notes to the consolidated annual financial statements

hasli, Brienz; BBVA Privanza Bank (Suiza) SA, Zurich; BDL Banca di Lugano, Lugano; BEKB | BCBE, Bern; Berenberg Bank (Schweiz) AG, Zurich; Bernerland Bank,

1 Summary of significant accounting policies

IntroductionThe consolidated financial statements of the SWX Grouphave been prepared in accordance with the Swiss Accountingand Reporting Recommendations FER/ARR (Swiss GAAP),and using historic acquisition costs.

Scope of consolidationCompanies in which the SWX Group holds a majority of theshare capital and voting rights, or in which it holds 50%of the voting rights and exerts a significant influence, arefully consolidated. Companies included within the scope of consolidation are listed under note 2. Associated companies, i.e. those in which the SWX SwissExchange owns between 20% and 50% of the sharecapital, are accounted for using the equity method. Hold-ings of less than 20% are stated at acquisition cost lessvaluation adjustments.

Principles of consolidationThe consolidated financial statements are based on thefinancial statements of the individual companies, which are drawn up at 31 December using uniform accountingpolicies.Equity is consolidated using the purchase method. Intragroup expenses and income, intragroup accountsreceivable and liabilities, as well as unrealized gains on intragroup transactions have been eliminated.The figure for revenues corresponds to billings for servicesand products provided to third parties, net of sales taxesand reductions in remuneration.

Currency translationBalance sheets of Group companies that are drawn up in aforeign currency are translated using year-end exchangerates, while income statements are translated using averageexchange rates for the year. Any translation difference isaccounted for under equity as a separate item. Transactions in foreign currency are translated using dailyexchange rates. Translation differences are recognized asincome.

The following exchange rates of the most important curren-cies were used for the consolidated financial statements:

Fixed assetsFixed assets are stated at acquisition or production costless depreciation charged over the useful life of theassets, using the straight-line method. Purchases of fixedassets exceeding CHF 10 000 are capitalized. The usefullife is estimated to be as follows:

IT hardware 3 yearsEquipment, fixtures and fittings 3 yearsMotor vehicles 3 yearsLeasehold improvements Duration of rental agreement

Investments in subsidiaries and loansAssociated companies are consolidated in proportion to thepercentage of capital owned. Other minority holdings arestated at cost, and loans at their nominal value. In the eventof non-temporary impairment of an investment, a valuationadjustment is made. The net result of this position isincluded in the income statement under net financialincome.

Intangible assetsSoftware which is purchased from or developed by a thirdparty and costs more than CHF 10 000 is capitalized anddepreciated over no more than three years.Software produced inhouse is capitalized at production costand depreciated over an estimated useful life of 58 years.

Goodwill is depreciated over five years using the straight-line method, and its value is re-assessed each year. Otherintangible assets such as patents, trademarks and otherrights are capitalized at their historical cost and amortizedover their estimated useful life (but not more than tenyears) using the straight-line method. The amortization ischarged to the income statement.

Currency Year-end rate Average rate

31.12.04 31.12.03 2004 2003

EUR/CHF 1.5457 1.5595 1.5441 1.5208

GBP/CHF 2.1834 2.2092 2.2788 2.1982

USD/CHF 1.1371 1.2351 1.2429 1.3463

Consolidated annual financial statements for 2004 57

Sumiswald; Bezirkssparkasse Dielsdorf, Dielsdorf; Bezirkssparkasse Uster, Uster; BGG Banque Genevoise de Gestion, Genve; BGP Banca di Gestione Patrimo-

Accounts receivable The figure for accounts receivable corresponds to billingsless necessary valuation adjustments.

Cash and marketable securitiesThe cash position comprises liquid assets, credit balanceswith banks and the post office, and fixed-term deposits up to 90 days. Cash is carried at its nominal value.Securities with a market value are carried at market valueand those with no market value are shown at their netinvestment value or at cost, less the necessary depreciation.Revenue from this item is included in the income state-ment under net financial income.

Valuation adjustments and provisionsAppropriate valuation adjustments are made for identifiableindividual risks.Provisions serve to cover risks of loss and performancecommitments. They are calculated on the basis of uniformand invariable business management principles.

2 Scope of consolidation

The following companies are fully consolidated:

SWX Group, Zurich (formerly SWX Holding AG; parentcompany; share capital CHF 10 000 000).

SWX Swiss Exchange, Zurich (wholly owned; share capitalCHF 10 000 000; securities exchange and securitiesexchange services).

virt-x Ltd., London (formerly virt-x plc; wholly owned; sharecapital GBP 2 793 000; holding company of virt-x group).

virt-x Exchange Ltd., London (wholly owned; share capitalGBP 100; securities exchange).

EXFEED AG, Zurich (wholly owned; share capital CHF 1100 000; financial information distributor).

New Soffex AG, Zurich (wholly owned; share capital CHF 100 000; dormant).

SWX Swiss Exchange (UK) Ltd., London (wholly owned;share capital GBP 1; dormant).

Holdings in the following companies are accounted forusing the equity method:

Eurex Zrich AG, Zurich (50% stake; share capital CHF 10 000 000; European derivative