Depositary Receipts Remain Popular with Issuers and Investors According to J.P. Morgan Mid-Year Report

New York, September 14, 2010 – Despite uncertainty and volatility in the global equity markets in the first half of 2010, depositary receipts (DRs) continue to prove popular with both issuers and investors, according to J.P. Morgan’s DR 2010 Mid-Year Review report.

In the first half of 2010, the value of DRs traded increased 42% compared with the first half of 2009 – $1.8 trillion in 1H 2010 compared with $1.3 trillion in 1H 2009. Additionally, capital raising more than doubled when comparing the same periods. DR issuers raised more than $4.1 billion in 1H 2010 compared to $1.8 billion in 1H 2009, a more than two-fold increase.

“Although the past year has continued to be difficult for equity markets overall, it has been extremely encouraging to see that issuers and investors have maintained high levels of interest in DRs,” said Claudine Gallagher, global head of J.P. Morgan’s DR business. “Despite significant headwinds, DRs have continued to perform extremely well, evidenced by the higher levels of DR trading and capital raising that we’ve seen in the first half of 2010.”

Other key findings from J.P. Morgan’s DR 2010 Mid-Year Review include:

• 42 issuers from 11 countries created new DR programs during the first half of 2010, increasing the total number of sponsored DR programs to 2,158.
• More than one-third of capital raised in 1H 2010 was through IPOs. Twenty-nine new issuers raised $1.4 billion through DR IPO listings in the U.S., Luxembourg, London and Paris, or through private placements. In the same period of 2009, eight IPOs raised $400 million.
• 13 existing issuers from across the globe raised $2.6 billion in the U.S., Europe or Asia through follow-on offerings in 1H 2010, as compared to $1.4 billion raised by seven issuers through follow-on offerings in the same period in 2009.

DR Capital-Raising
Total DR capital-raising was more than $4.1 billion in 1H 2010, with approximately 65% of this capital being raised in follow-on offerings. Of the 42 issuers raising capital in 1H 2010, 37 of these were from Brazil, Russia, India or China (“BRIC” countries). The collective BRIC markets accounted for approximately 46% and 44% of 1H 2010 DR trading value and volume, respectively. BRIC-market trading value was $831 billion on volume of 35.4 billion shares.

Local DRs
A global trend in local DR market establishment accelerated in 1H 2010.

• Markets and regulators in India, Brazil, Egypt and Hong Kong facilitated the creation of new local DR programs and more issuers listed Taiwan Depositary Receipts (TDRs).
• In May, Standard Chartered PLC raised $530 million by launching the first-ever Indian Depositary Receipt (IDR) offer.

Alternative Trading Venues
As stock exchanges continue to compete for market share, alternate trading venues are emerging to enable ADR/GDR investments on electronic markets.

• The Singapore Exchange (SGX) is launching a Bulletin Board to allow trading of Asian companies’ ADRs in Singapore in an effort to attract new investors and boost trading volumes.
• NYSE Euronext launched its new stock market, NYSE Euronext London, which offers international issuers the opportunity to list shares and DRs on the Official List of the UK Listing Authority.

Themes to Watch in 2H 2010
Depositary receipts continue to be a popular alternative for investors to gain exposure to foreign issuers. J.P. Morgan expects DR trading to strengthen in 2H 2010 relative to the first half of the year.

J.P. Morgan expects capital market issuance activity in China and India to continue, with increased IPO activity from Russia, CIS and the Middle East. In addition, there may also be a DR IPO from a South American issuer.

J.P. Morgan Continues DR Industry Leadership
Having created the first-ever ADR in 1927, J.P. Morgan continued its industry innovation and leadership in 1H 2010. Programs managed by J.P. Morgan, on average, continue to be much more liquid relative to those with other depositary banks.

To view the full “J.P. Morgan Depositary Receipts 2010 Mid-Year Review,” please visit
http://www.jpmorgan.com/visit/2010midyearreview. For market information on DRs and international equities go to J.P. Morgan’s award-winning web site www.adr.com. For more information on J.P. Morgan’s DR services please visit http://www.jpmorgan.com/visit/adr.

About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.0 trillion and operations in more than 60 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset management and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of consumers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.