Tax Relief at Source Model Embraced by ISSA & The G30

• JPMorgan's Proposed Tax Relief Model for G30 Report Recommendation #8
• Group of Thirty Interim Report of Progress - April 2005

The Group of Thirty (G30), an industry group made up of senior representatives from international private and public financial institutions, is focused on increasing understanding of international economic and financial issues. One leading mission is to formulate recommendations toward the implementation of widespread reform relating to the global clearing and settlement of securities trades.

JPMorgan was a major contributor to the January 2003 Group of Thirty report, "Global Clearing and Settlement: A Plan of Action", which focused on the recommendations for creating global standardization of technological and operational performance, strengthening risk management and legal and regulatory compliance, and the achievement of an efficient, interoperable international system for the clearing and settlement of securities.

On April 12, 2005, The Group of Thirty's Monitoring Committee on global clearing and settlement released an interim report of progress on the 20 recommendations set forth in the original 2003 document.

JPMorgan's proposed Tax Relief Model for that component of the report's recommendation #8: "Automate and standardise asset servicing processes, including corporate actions, tax relief arrangements, and restrictions on foreign ownership" has been endorsed by both the International Securities Services Association (ISSA) and the G30. It is currently subject to review and comment by other industry groups and interested parties.

Our Tax Relief model, which we anticipate would require a phased implementation approach, proposes to satisfy the G30 recommendation by:

• standardizing tax relief arrangements
• creating a platform that facilitates the automation of associated procedures and the electronic communication of associated data; and by extension
• providing each party involved in the tax relief process with an opportunity to minimize associated costs.

JPMorgan remains committed to taking a leadership position when it comes to driving the implementation of these key industry initiatives.

Visit the G30 (www.group30.org ) and ISSA (www.issanet.org ) Web sites for more information their respective organizations.

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