NYSE Committee Issues Recommendations to Strengthen Corporate Governance Standards

In response to the request of Harvey L. Pitt, Chairman of the Securities and Exchange Commission (the "SEC"), asking the New York Stock Exchange (the "NYSE") and the Nasdaq Stock Market, Inc. to review their corporate governance listing standards, the NYSE formed the Corporate Accountability and Listing Standards Committee to review current listing standards and to recommend changes to existing corporate governance rules. The Committee issued a report on June 6, 2002 recommending that the NYSE modify its current rules to strengthen corporate governance practices.

After a comment period, the NYSE approved the recommendations, and on August 16, 2002, submitted a formal rule filing to the SEC. The final proposals largely mirror the Committee's recommendations, but also incorporate modifications based upon comments received by the NYSE and provisions mandated by the Sarbanes-Oxley Act of 2002 ("Sarbanes-Oxley"), which was signed into law on July 30, 2002.

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