Sarajevo SE Future Outlook 2007

Our trading turnover projection for 2007 is in the framework of accomplished results in 2006. We expect that 2007 will not bring greater increase in turnover when compared with 2006, and we are projecting 660 million Convertible marks (338 million Euros). In these careful estimates we had to consider decrease in projected number of block trades for 2007 due to new stricter reporting regulation. In 2006 block trades represented 30% of annual turnover.

On the other hand SASE plans to introduce new trading stimulants.

In 2007 we are introducing Friday as a fifth trading day. We have purchased source code for our new trading software and now we will be able to offer new software solutions for our members. Also SASE is trying to decrease transaction costs for investors and in 2007 is lowering stock exchange commission to 0.08% of transaction value.

We are currently working on intraday trading project which will enable same day purchase and sale of any shares. The start of intraday trading is expected for early 2007. Parallel to this we are working on electronic order book which will be of crucial importance for intraday trading. All these plans for more efficient trading on our stock exchange in 2007 give a clear signal to investors that capital market institutions are working on more open and flexible market in Bosnia and Herzegovina.

We are expecting bond trading to start in 2007 first with government bonds. The government has announced them for April of 2007, but more realistic forecast would be for late 2007.

The capital market in the Federation of Bosnia and Herzegovina will host some new domestic open investment funds which will contribute to further growth of our market.

Cooperation with stock exchanges in the region will continue in 2007. SASE has made arrangements with the Vienna Stock Exchange for the live data feed and data dissemination to the wide range of providers. Also SASE is continuously working with the Vienna Stock Exchange on creation of single Bosnian index. SASE together with the Banja Luka Stock Exchange will receive technical assistance from the Vienna Stock Exchange in this matter.

Furthermore we are planning joint presentations to investors. This cooperation with the Vienna Stock Exchange and other stock exchanges in the region would promote our region on the global market. This way investors would be able to choose what they like the most, and we hope they will choose the Sarajevo Stock Exchange.