The NASDAQ stock market, formed in 1971, trades more shares per day than any other United States equities market. It is the world’s largest electronic stock market, listing almost 4,000 companies in various business sectors. The NASDAQ trades more shares per day than any other U.S. equities market. Its listed companies include Microsoft Corporation, Apple Computer, Inc., Amazon.com, Inc., Yahoo! Inc., Starbucks Corporation and Intel Corporation.

In order to qualify for listing on the NASDAQ National Market, a company must meet all of the minimum requirements in one of three separate categories:

Standard 1:

• stockholders’ equity of $15 million
• $1 million in pre-tax income from operations
• 1.1 million shares publicly held shares with a market value of $8 million
• bid price of $5
• 400 shareholders each holding at least 100 shares each
• three market makers

Standard 2:

• stockholders’ equity of $30 million
• 1.1 million shares publicly held shares with a market value of $18 million
• bid price of $5
• 400 shareholders each holding at least 100 shares each
• three market makers
• two years of operating history

Standard 3:

• either:
a) market value of $75 million
b) total assets and revenue of $75 million each
• 1.1 million shares publicly held shares with a market value of $20 million
• bid price of $5
• 400 shareholders each holding at least 100 shares each
• four market makers

For more information, visit the NASDAQ’s website at www.nasdaq.com.

NASDAQ SMALLCAP MARKET

Companies that are unable to meet the listing requirements of the NASDAQ National Market may trade on the NASDAQ SmallCap Market if they meet the following initial criteria:

• one of:
a) stockholders’ equity of $5 million
b) market value of $50 million; or
c) net income from $750,000 in pre-tax income from
operations
• either:
a) one year operating history; or
b) market value of $50 million
• one million shares publicly held shares with a market value of $5 million
• bid price of $4
• 300 shareholders each holding at least 100 shares each
• three market makers

For more information, visit the NASDAQ’s website at www.nasdaq.com.