Vilnius, Lithuania - On 11 February 2004, the National Stock Exchange of Lithuania (NSEL) in co-operation with the Partners for Financial Stability Program (PFS) conducted a seminar on corporate governance. About 90 participants attended the seminar including key executives from the NSEL listed companies, attorneys of the Lithuanian law firms, members of the Lithuanian Securities Commission, Central Securities Depository of Lithuania, foreign experts on corporate governance, guests from the Latvian and Estonian securities market institutions and representatives of Lithuanian brokerage firms.

The aim of the seminar was to introduce the concept of corporate governance, best practices, international standards and an overview of the recent application of Corporate Governance Codes across Europe. The seminar focused on common practices in governance, compliance with legal requirements and disclosure of information in Central and Eastern Europe, internationally accepted standards for fair and responsible corporate governance, corporate governance ratings, rights of shareholders and corporate social responsibility. Presentations were given by local and foreign experts of corporate governance from Belgium, Germany, Lithuania, Poland, the UK and the US.

"Ongoing press coverage of the dramatic situations at Ahold, Enron, Parmalat, Skandia, WorldCom, Tyco and other companies demonstrate the severe consequences of poor governance, for company managers, board members, investors, shareholders and stakeholders. Conversely, there is a wealth of data from across the globe that highlights the benefits of good governance. The PFS Program is proud to be a partner of this Corporate Governance Seminar, one in a series of many activities undertaken over a long-term relationship with the National Stock Exchange of Lithuania, that enables the sharing of experiences from a variety of jurisdictions." - said Mr. Geoffrey Mazullo, Director of PFS Program.

Following an example set internationally by other stock exchanges and having Lithuania on the threshold of the European Union, the NSEL took initiative in developing knowledge in corporate governance issues in the Lithuanian market and drafted together with the Lithuanian law firms and issuers the first draft of the Corporate Governance Code for Lithuanian Listed Companies. The draft was presented at the seminar and followed by a roundtable discussion. The opinions heard will be used for improving of the draft before the adoption of its final version in spring 2004.

"Corporate governance issues are crucial in ensuring investor protection and building investors' confidence in the information that companies provide to the market. Therefore, we believe that stock exchanges can play a significant role in providing corporate governance guidelines to companies and promoting adherence to them." - said Ms. Dalia Jasulaityte, NSEL Vice President.

The PFS Program established at the end of 1999, is a co-operative programme of the United States Department of State and East-West Management Institute, Inc., a New York based non-profit organisation. The goal of the PFS Program, active in the three Baltic Republics, is to promote regional co-operation in the financial sector through selective technical assistance programs and practical application of lessons learned in neighbouring countries. The substantive areas covered under the PFS Program are accounting, auditing banking, capital markets, insurance and pension reform.

NSEL is an associate member of the Federation of European Securities Exchanges. NSEL holds trading in shares, bonds, and Government securities. Currently there are 45 companies listed as well as 37 issues of debt securities at the NSEL. On 10 February 2004, total NSEL capitalisation stood at LTL 19,09 billion (Euro 5,52 billion). The NSEL total turnover for 2003 almost reached LTL 2 billion (Euro 580 m). The dynamics of the securities market in Lithuania are reflected by the official NSEL indices LITIN-10, LITIN and LITIN-G.

For more information, please contact NSEL Public relations manager Ms. Diana Sokolova at (+370 5) 272 13 71, diana@nse.lt.

National Stock Exchange of Lithuania

National Stock Exchange of Lithuania

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