Barclays Stockbrokers gives investors direct access to global markets through launch of China Supertracker and EURO STOXX 50 capital protected Investment Notes

14 November 2006

Barclays Stockbrokers today announces the launch of two new Investment Notes linked to the performance of the FTSE/Xinhua China 25 index and the EURO STOXX 50 (Price) index. The two Notes form part on Barclays Stockbrokers ongoing strategy to enable UK domiciled investors access to major global markets easily and cheaply while benefiting from the capital protection of Investment Notes. The EURO STOXX 50 Note is fully capital protected while the China Supertracker Investment Note has a degree of capital protection. Both Notes have enhanced upside.

As with all Investment Notes, Barclays Stockbrokers has tapped into Barclays Wealth’s investment expertise and institutional capability to give investors direct access to market leading structured products. Barclays Wealth has created the China Supertracker Note to enable investors to take advantage of the FTSE/Xinhua China 25 Index’s strong performance and stability. The Index is up 43% this year and has never fallen by more than 23% in its history – well within the soft capital protection threshold of 40%.

Although the EURO STOXX 50 Index has declined over the past six years, it is up 120% since March 2003, and the EURO STOXX 50 Capital Protected Note will give investors access to well-priced stocks with the reassurance of full capital protection at maturity. The nature of the protected Note is that any significant decline in a single stock compared to the Index will mean the stock is replaced within the Index, which is made up of Europe’s 50 largest companies1, thus guarding investors against the exposure to individual stocks.

The launches follow the successful introduction of the Nikkei 225 Supertracker and Energy-Linked Capital Protected Investment Note in October, which are listed on the London Stock Exchange (LSE) from 13 November 2006. The first two Investment Notes – the FTSE 100 Capital Protected Note and the Global Accelerator Investment Note – were launched in September 2006 and are currently available to trade on the LSE.

Today marks the first day of the offer period for the EURO STOXX 50 Investment Note and the China Supertracker Investment Note during which investors will have access to the product at a fixed price exclusively through Barclays Stockbrokers. These Notes will commence trading on the London Stock Exchange on 3 January, enabling investors to benefit from additional liquidity and flexibility similar to equities. At this point, there will be six Investment Notes available to trade in the secondary market on the London Stock Exchange.

Amy Nauiokas, Head of Barclays Stockbrokers says: “The launch of our two new Investment Notes is in response to the demands of our clients who are increasingly keen to explore different markets and asset classes. Investment Notes give our clients direct access to the markets linked to the Notes – in this case China and Europe – instantly and flexibly, and importantly in sterling currency. Through future launches of Investment Notes, we will continue to help investors to benefit from the market intelligence of professionals as we develop products that respond quickly to trends, thus narrowing the gap between the self directed investor and the institutions.”

The China Supertracker Investment Note is a five year growth investment linked to the performance of the FTSE/Xinhua China 25 Index and is designed to produce 125% of any rise in this Index. It has 100% capital protection if held for the full five year term as long as the Index has not fallen to less than 60% of its Initial Level. If the index does fall to less than 60% of its initial level at maturity, the capital returned will match the level of the fall in the index if the Final Level of the index is lower than its Initial Level. Capital protection only applies at maturity and if the note is sold early, the investor may get back less that the amount they invested. The note is ISA and PEP eligible during the book building period but cannot be purchased in these accounts when it begins trading on the London Stock Exchange.

The EURO STOXX 50 Capital Protected Note is a six year growth investment linked to the performance of the EURO STOXX 50 price Index. It is designed to produce 150% of any rise in this Index and it has 100% capital protection if held for the full six year term. If it is sold early, the investor may get back less than the amount they invested. The final level used to calculate the percentage growth on the Investment Note will be averaged over the final year of the Note. This averaging will limit the effect of the large rises and falls in that year on the returns investors will receive. The note is ISA and PEP eligible in both the book building period and when trading on the London Stock Exchange (up to 03/01/2008).

[1] By market capitalisation

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