Paris, September 30, 1998 -- In December, Matif SA will be launching a new 2-year contract based on the most liquid government issues at the shorter end of the euro-zone yield curve.

Underlying assets for the first maturity traded, March 1999, will be French and German government issues, which currently offer yields at very similar levels. To date, deliverable securities represent an outstanding amount estimated at EUR 30 billion.

Adoption of a single monetary policy for the euro zone will accelerate convergence between sovereign issues, particularly at the shorter end of the yield curve. In view of this, the list of deliverable securities for the 2-year contract should quickly be extended to include other sovereign issues.

With the launch of this new product, Matif will offer a full range of interest-rate products covering the yield curve from three months to 30 years, allowing scope for diversified strategies to make the most of euro rate moves.

The range of maturities for the contract is from one and half years to two and a half years. Contract specifications drawn up with the assitance of a committee made up of experts from different countries include only the most liquid and recently issued securities on this section of the yield curve, all with an initial maturity at issue of less than six years.

Unless there is a major change in market conditions between now and the launch of the contract, the coupon will be set at 3.5%. The nominal amount per contract is 500,000 euro compared with 100,000 euro for 5, 10 and 30-year contracts, this being to take into account the lower sensitivity of this segment of the yield curve.

Appendix:
draft specifications for the 2-year euro contract

Contacts:
Nathalie Boschat - Tel: +44 171 332 59 20
Antoinette Bouvier-Darpy - Tel: +33 1 40 28 83 89