JPMorgan Report Says DRs Hit Record Levels In 2007

New York, December 19, 2007 - Depositary receipts hit record levels of liquidity in 2007 and will continue to be strong internationally in 2008, according to a JPMorgan report issued today on the global depositary receipt marketplace.

JPMorgan's Depositary Receipts (DR) group said that 2007 saw record levels with DR trading volumes increasing 55% to 85 billion shares and values increasing 92% to $3.1 trillion, according to JPMorgan's DR "Year in Review 2007" report. The rise in DR activity also triggered a new peak in capital raised in DR form, reaching $53.2 billion, as compared to $42.6 billion in 2006 and $21.6 billion in 2005.

"The figures for 2007 make it clear that companies continue to rely on depositary receipts to increase trading liquidity, diversify their shareholder bases, tap new capital markets and raise their corporate profiles abroad," said Claudine Gallagher, global head of JPMorgan's DR business. "Now, 80 years after we invented the ADR (American Depositary Receipt), companies want us to provide an even broader suite of products and services worldwide."

One of the strongest trends has been the shift to global depositary receipts (GDRs) that typically list in London or Luxembourg. In 2007, GDRs represented 74% of IPO (initial public offering) capital raisings, while ADRs (New York-listed) represented 26% of the market. Not withstanding the shift to GDRs, capital raising for ADRs was at record levels this year. U.S. institutions increased their investments in DRs to more than $850 billion, up from about $600 billion during 2006 and more than doubling their activity since 2004, when it was only $400 billion.

Overseas markets will continue to be front and center for 2008, Gallagher said, adding: "The center of gravity in the DR market continues to shift South and East, with a focus on Brazil, Russian, India and China, the 'BRIC' countries. We should also see more interest from emerging markets such as Pakistan and Vietnam. In addition, we expect to see a rise in 'local DRs,' which are designed to create liquidity in the home market in countries such as Brazil and Russia."

Other notable regional trends in 2007 included:

• Asia - DRs continued to be an instrument of choice, with significant listings from established DR markets such as India and China.
• Europe, Middle East & Africa - DR capital raisings were dominated by Russian issuers and saw the first Nigerian company to list on the London Stock Exchange.
• Latin America - Brazil was the major player, but the marketplace found renewed interest from Argentina, which had three new IPOs.

DR market trends were also reflected in the performance in JPMorgan's new DR index program. The set of 12 indexes, which were launched in March, showed strong performance year to date with the majority outperforming industry benchmarks.

JPMorgan recently celebrated the 80th anniversary of the ADR, having created and launched the first-ever ADR on April 29, 1927 for British retailer Selfridges. Today, more than 1,800 companies from over 75 countries sponsor over 2,200 DR programs in the form of ADRs that list on U.S. exchanges or GDRs, which typically list in London or Luxembourg.

For market information on Depositary Receipts (DRs) and international equities go to JPMorgan's award-winning web site www.adr.com. For more information on JPMorgan's Depositary Receipt services go to http://www.jpmorgan.com/visit/adr

The JPMorgan Depositary Receipts business is part of JPMorgan Worldwide Securities Services.

About JPMorgan Worldwide Securities Services
JPMorgan Worldwide Securities Services, a division of JPMorgan Chase Bank, N.A., is a global industry leader with $15.6 trillion in assets under custody. JPMorgan provides innovative custody, fund accounting and administration and securities services to the world's largest institutional investors, alternative asset managers and equity issuers. JPMorgan Worldwide Securities Services leverages its scale and capabilities in more than 90 markets to help clients optimize efficiency, mitigate risk and enhance revenue through a broad range of investor services as well as securities clearance, collateral management and alternative investment services.

About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $1.5 trillion and operations in more than 50 countries. The firm is a leader in investment banking, financial services for consumers, small business and commercial banking, financial transaction processing, asset and wealth management, and private equity. A component of the Dow Jones Industrial Average, JPMorgan Chase serves millions of consumers in the United States and many of the world's most prominent corporate, institutional and government clients under its JPMorgan and Chase brands. Information about the firm is available at www.jpmorganchase.com.