Presentation Dead Sea , October 25 th 2007 Samir Jaradat CEO

1. Overview PresentationDead Sea , October 25th 2007 Samir JaradatCEO

2. Construction Blocks • Foundation • Fundamentally Sound Building Blocks • Quality Materials • Constructed According to Standard Code • Materials • Legislative Blocks: Strong & Dynamic Rule of Law • Regulatory Blocks: Securities Regulator • Technical Blocks: Robust & Globally Compliant Technology Systems • Operational Blocks: Exchange, Registry & Depository

3. Establishment • Public utility institution • Established in the Kingdom by virtue of the Securities Law • A legal entity with financial & administrative autonomy • Subject to the Jordan Securities Commission’s monitoring & supervision • Commenced operation in May 1999

4. Goals & Objectives • Enhance the confidence of investors in securities & enable them to follow-up their investments in securities with ease by establishing a central registry to safe-keep the ownership of securities • Reduce risks related to settlement of trading transactions executed through the Market by implementing by-laws, instructions & procedures that are fair, fast & safe

5. Functions & Responsibilities • Unique identification number for investors • Central registry system • Central depository system • Safekeeping via Book-Entry • Registered ownership • Centralization of ownership restrictions • Authenticated corporate actions • Clearing & settlement • Account level structure

6. Risk Management Markets have procedures, rules & regulations to protect market-participants from loss to assure the smooth functioning of the market & to maintain the confidence of investors • Settlement Guarantee Fund • Separate legal entity with financial autonomy • Fund membership is compulsory for brokers & dealers • Settlement cap for market participants commensurate with posted collaterals • Settlement bank • Buy-in & sell-out measures • Immediate suspension of trading for defaulting brokers • Strict licensing protocol for market participants (Zero Tolerance)

7. Risk Management • Unbiased corporate governance • Transparent, automated information dissemination • Established business continuity & contingency plans • Robust risk controls in the SDC operations • Movements are final & irrevocable (zero failed trades) • Compliance to G30 recommendations & best practices • State of the art Electronic Systems SCORPIO® • Clearing & Settlement SystemRegistry System • Securities & Funds  Shareholder Ownership Registry • Delivery versus Payment  Authentication of Ownership • Final & Irrevocable Settlement  Non-Trade Transfers (OTC)

8. Investment Made Secure • Regulation • Sound regulatory framework & binding enforcement, with continued progress • Accessibility • Jordan Capital Market is open to all international investors • Repatriationof capital • No restrictions on repatriation of funds into or out of Jordan • Taxation • No capital gains tax, this includes cash & stock dividends • Currency • The unit of currency in Jordan is the Jordanian Dinar (JOD), & the JOD exchange rate is pegged to US Dollar • Registration • No physical certificates • Dematerialized shares • Settlement is effected on the basis of Delivery versus Payment • Ownership is updated on T+2 & backdated to T

9. Investment Made Secure • Ownership • Registered under the name of beneficial owner name • Nominee & street names does not apply • Execution Local brokers execute in the name of • Beneficial owner International broker • Accounts • Depository Account Custody Account • Trading Accounts  Segregated Securities Accounts • SettlementCycle • T+2 rolling settlement with multilateral netting • Settlement Method • Book-entry at the SDC

10. Investment Made Secure • Cash & Clearing system • Payments are processed through the "Real Time Gross Settlement System-Jordan" (RTGS-JO), using SWIFT instructions to effect transfers with immediate value • Blocking • Securities are blocked in the buyer’s & seller’s accounts on T+0 pending successful cash settlement on T+2 • Turnaround Trades • Allowed, provided the same broker is used in the same settlement cycle • Numbering • ISIN CODE • CFI CODE • Overdraft Restrictions • Overdraft facility in Jordan can be offered to foreign investors for a period not exceeding 15 days for settlement purposes • Corporate actions • Voluntary (Right Issue, Tender Offer) • Non-voluntary (Dividends, Bonus, Stock split, … etc)

11. Cooperation with Regional & International Organizations • International Organization of Securities Commissions (IOSCO) • World Federation of Euro-Asian Stock Exchanges (FEAS) • Association of National Numbering Agencies (ANNA) • Union of Arab Stock Exchanges • Africa & Middle East Depositories Association (AMEDA) • 9th Conference of Central Securities Depositories (CSD9) • Association of Global Custodian • Thomas Murray

12. Vision • Build World-Class Depository in the Middle East • Book-entry Clearing & Settlement • Implement True Delivery-versus-Payment (DvP) • Adhere to best International Standards & Practices • Contribute to Better & Enhanced Surveillance • Introduce Risk Management Measures • Promote Domestic & Foreign Indirect Investment in Jordan

13. Future Plans In Progress Planned • Introduction to Securities Lending • e-Payment System • Advanced Accounting System • Order Verification (Tight Coupling) • SCORPIO® Web-Enabled • Revise By-Laws • Electronic Initial Public Offering e-IPO • Members’ Area • Some Required Enhancements • Disaster Recovery Site • Business Continuity Plan • Membership Structure • SCORPIO®System • Advanced Settlement System • Develop value added services • Bonds Processing

14. JORDAN Vote of Confidence

15. Thank You www.sdc.com.jo