Bangkok--19 Jun--SET The Stock Exchange of Thailand (SET)’s recommendations aimed at improving the liquidity of listed firms with insufficient free-float, or minority shareholding, have been approved by Securities and Exchange Commission .The measures are intended to enhance the attractiveness of listed companies in terms of their liquidity and enable them to better cope with future fundraising needs. The names of those firms falling short of the free-float requirement for more than one year will be published on July 2, 2007. The ‘call-market’ trading method, introduced in 2002 to help ease the free-float problem, will cease from July 4, 2007. Securities of listed companies which have not met SET’s free-float requirement will then be traded normally, and the firms required to submit a progress report every six months. Companies not fixing the problem within one year from the date of first notification of the shortfall will be charged additional listing fees in proportion to their free-float deficit. The minority shareholder requirement is that listed firms must have no less than 150 minority shareholders of ordinary shares, holding in aggregate no less than 15% of paid-up capital. Until July 4, those firms which do not meet this obligation must trade their securities on a call-market, or single-price auction, basis, SET President Ms. Patareeya Benjapolchai stated.“Removal of the call-market and allowing illiquid securities to be traded as normal by the automatic order matching (AOM) system will boost their liquidity and improve their share distribution to retail shareholders.” “We will publish the names of companies that haven’t met SET’s free-float requirement to encourage them to quickly rectify the problem and reduce the expense of extra fees. Lifting their liquidity will be good for the firms, investors and the overall market,” Ms. Patareeya said. A listed company’s free-float will be reviewed as at the company’s book closing date. The firm will be given a period of time to adjust their share distribution to retail shareholders. During the first year of non-compliance, SET will instruct the company to fix the situation. The liquidity of listed firms has implications for the market’s liquidity and reputation. SET will continue to work with the Investment Banking Club and the Association of Securities Companies (ASCO) to advise firms which have inadequate free-float or distribution of minority shareholders. Under the call market, trading orders of a listed firm’s securities will be randomly matched during three specified periods: in the morning session from 09:55 - 10.00 hours, the afternoon session at 14:25 — 14.30 hours, and around the close of trading at 16:35 — 16:40 hours For more information, please contact the Corporate Communications Dept.: Ladawan Kantawong Tel: 0-2229-2036 / Sarinluck Jitkawong Tel: 0-2229-2037 / Nattaporn Boonprapa Tel: 0-2229-2049 / Watsamon Saowakhonsathien Tel: 0-2229-2797