General Information

ISE Stock Market Indices

ISE indices are composed in order to measure price and return performances of all shares as well as on the basis of relative markets and sectors.

Until the end of 1996, the ISE used to compute only the ISE 100, Financials and Industrials price indices. As from 1997, the ISE began to calculate sector and sub sector indices on the basis of prices and total return.

ISE price indices are computed and published throughout the trading session while the return indices are calculated and published at the close of the session only. The ISE National 100 Index is used as a main indicator of the National Market.

ISE National 100 Index, which has been calculated since the inception of the ISE, is composed of National Market companies except investment trusts. The constituents of the ISE National 100 Index are selected on the basis of pre-determined criteria directed for the companies to be included in the indices. ISE National 100 Index contains the ISE National 50 and ISE National 30 Index companies.

ISE National 50 Index is composed of National Market companies except investment trusts. The constituent 50 companies are selected on the basis of pre-determined criteria directed for the companies to be included in the indices. ISE National 50 Index contains the ISE National 30 Index companies.

ISE National 30 Index is composed of National Market companies except investment trusts. The constituent 30 companies are selected on the basis of pre-determined criteria directed for the companies to be included in the indices.

ISE National 100-30 Index is composed of  ISE National 100 Index companies except the ISE National 30 index companies.

ISE Corporate Governance is composed to measure the price and return performances of the companies traded on the ISE markets (excluding the Watch List Companies Market) having corporate governance rating grades determined according to the "Corporate Governance Principles" issued by the Capital Markets Board.

ISE National All Shares Index is composed of all National Market companies except investment trusts.

ISE National All-100 Index is composed of   ISE National All  Shares Index companies except ISE National 100 Index companies.

Sector and sub-sector indices are composed of National Market companies excluding investment trusts.

ISE Second National Market Index (former name ISE Regional and New Companies Index) is composed of companies traded in the Second National Market.

ISE New Economy Market Index is composed of companies traded in the New Economy Market.

ISE Investment Trusts Index is composed of investment trust stocks traded in the National Market.

As from 1997, the Istanbul Stock Exchange calculated the values of all indices as an integer while two decimal numbers were added to the integer as from 1998.

The existing and the newly introduced stock market indices of the Istanbul Stock Exchange are shown below:

ISE also computes and maintains all indices in U.S. dollar terms and ISE National 100 Index in Euro terms.

Calculation of ISE Stock Market Indices

The ISE indices are weighted by the market capitalization of the tradable portion (the stocks registered as tradable by Central Registry Agency) of each constituent. In case of a tender offer, stocks owned by the shareholder who make the tender offer are excluded in calculation of the indices begining from the second day following the disclosure of the tender offer result in the ISE daily bulletin.

The basic formula for calculating ISE's float capitalization-weighted indices is as follows:

n   Σ Pit * Nit * FWit     i=1   ISE Indext =     Dt
Pit	=	The closing price of the stock 'i' at period 't'
Nit	=	The total number of shares outstanding of the stock ‘i' at period ‘t' (=Paid-in capital)
FWit	=	The flotation weight (the ratio of stocks registered as tradable by Central Registry Agency ) of the stock ‘i' at period ‘t'
Dt	=	The value of divisor at period ‘t' (Adjusted base market value)
n	=	Total number of stocks included in the index.

Prices of old and new stock certificates are taken into account separately.

Only registered prices are taken into account in the calculation of indices.

Maintenance and the continuity of the indices

All of the indices have varying base values and the continuity of the indices is maintained by adjusting these base values (the divisor of the index formula).

The formula for adjusting the base market value is as follows:

New Base Value = Former Base Value * (New Market Value / Former Market Value)

Corporate actions that necessitate an adjustment to the base values of the indices and the adjustment times are shown below:

Price Indices
Corporate Action	Adjustment Time
a) Capital increase through rights issues i. Exercising preemptive rights ii. Not-exercising the preemptive rights	Beginning date of subscription period Ending date of sales
b) Addition of a new stock to the Index	Date of entry
c) Exclusion of a constituent stock	Date of exclusion
d) Change in the ratio of stocks registered as tradable by Central Registry Agency	Quarterly
e) Mergers and acquisitions	Stock distribution date
f) Company splits	Stock distribution date
g) Tender Offer	Second day after the disclosure of the tender offer result in the ISE daily bulletin.

Return Indices
Corporate Action	Adjustment Time
a) Capital increase through rights issues i. Exercising preemptive rights ii. Not- exercising the preemptive rights	Beginning date of subscription period Ending date of sales
b) Addition of a new stock to the Index	Date of entry
c) Exclusion of a constituent stock	Date of exclusion
d) Change in the ratio of stocks registered as tradable by Central Registry Agency	Quarterly
e) Cash Dividend payment	Ex-dividend date
f) Mergers and acquisitions	Stock distribution date
g) Company splits	Stock distribution date
h) Tender offer	Second day after the disclosure of the tender offer result in the ISE daily bulletin.

Selection Criteria for the Companies to be included in the ISE National 30, ISE National 50 and ISE National 100 Indices

ISE Executive Council shall determine the stocks to be included in the ISE indices following the evaluation of market data on a quarterly basis.

The constituent companies of the ISE National 30, ISE National 50 and ISE National 100 indices must fulfill the following pre-requisites: The stocks of the company traded in the National Market should have been traded on the Exchange for at least 60 days in order to be included in the ISE National 30, ISE National 50 and ISE National 100 Indices. A company which starts to be traded in the National Market within the Evaluation Period and the market value of its stocks offered to the public is equal or greater than the 2% of the total market value of National Market stocks those registered as tradable by Central Registry Agency as of the date of public offering, is not subject to this rule.

For companies having more than one group of stocks (e.g. group A, group B, group C etc.) only one group is included.

Selection of the stocks that will constitute ISE National 30, ISE National 50 and ISE National 100 indices is made as shown below.

a) The stocks registered tradable by Central Registry Agency are ranked according to the highest market value (amount of stocks * closing price) at the end of the evaluation period. In the calculation of market values, daily average amount of the stocks, registered as tradable by Central Registry Agency in the evaluation period, is used. In case of tender offers, in the calculation of daily average amount of the stocks, the period after the end of tender offer is taken into account, excluding the stocks owned by the shareholder who makes the tender offer.

b) The stocks are ranked according to highest daily average traded values (Primary market, wholesale market transactions, special orders and the traded values of the first 20 trading days of the stocks those started to be traded within the Evaluation Period are excluded). In case of tender offers, period after the end of tender offer is taken into account in the calculation of daily average traded value. If a company is started to be traded in the National Market in the evaluation period and market value of its stocks offered to the public is equal or greater than the 2% of the total market value of National Market stocks those registered as tradable by Central Registry Agency as of the date of public offering, the daily average traded value of the stock is calculated from the beginning of its first trade date.

c) After making two lists according to the above requirements, final ranking is made as explained below:

If there is a stock that came first in both of the lists, it is placed first in the final list.

If there is not any stock came first in both of the lists, then it is looked for if there is a stock in the first two places of both lists. This process is continued for consecutive ranks until a stock satisfies the above requirement and it is repeated for every rank in the list. If there are two stocks which satisfy the above requirement for a rank in the final list, the one with the higher market value is chosen for that rank.

Periodic Review and Adjustments

The composition of the ISE National 30, ISE National 50 and ISE National 100 indices are reviewed and adjusted 4 times on a quarterly basis for the periods January-March, April-June, July-September and October-December.

Evaluation periods are last 12 months for daily traded values and last 3 months for the ratio of the stocks registered as tradable by Central Registry Agency. Evaluation periods end a month before each quarter.

Periodic adjustments are announced 15 days before each quarter.

The periodic adjustments to the constituent stocks of ISE National 30, ISE National 50 and ISE National 100 Indices are fulfilled according to the following pre-requisites:

a)At the end of the evaluation period, a nonconstituent stock will be included if its final rank rises above the position stated below for the relevant index.

- ISE National 30 : Risen to 25^th or above

- ISE National 50 : Risen to 45^th or above

- ISE National 100 : Risen to 90^th or above

b) At the end of the evaluation period, a constituent stock will be excluded if its final rank falls below the position stated below for the relevant index.

- ISE National 30 : Fallen to 36^th or below

- ISE National 50 : Fallen to 56^th or below

- ISE National 100 : Fallen to 111^th or below

c) In case the number of stocks included in the indices exceed or fall below the number of stocks excluded from the indices, necessary adjustments are made.

Reserve List: Two stocks for the ISE National 30, three stocks for the ISE National 50 and five stocks for the ISE National 100 are selected as reserve stocks to use for any nonperiodic changes stated below.

If a company changes it business line, it is included in the new sector and subsector indices at the beginning of the following week after the declaration of the registration date of its new sector.

Non-Periodic Changes

Stocks whose trading will be halted permanently will be excluded from all indices. In this case, reserve stocks will be included in the ISE National 30, ISE National 50 and the ISE National 100 Indices.

Stocks, whose trading were suspended for more than five consecutive trading days, will be excluded from the relevant indices. Stocks excluded from the ISE National 30, ISE National 50 or ISE National 100 indices will be replaced by the reserve stocks.

Stocks which have been excluded from the indices due to suspension of their trading for more than five consecutive trading days will not be reincluded in the ISE National 30, ISE National 50 and the ISE National 100 indices until the end of the quarter. Whereas, these stocks will be reincluded in the relevant market, sector and sub sector indices on the same day they begin trading.

Stocks, started to be traded on another market, will be included in the indices related to its new market and excluded from the old ones. Stocks excluded from the ISE National 30, ISE National 50 and ISE National 100 indices will be replaced by the reserve stocks. If, excluded stocks restart trading in the National Market, these will not be reincluded in the ISE National 30, ISE National 50 and ISE National 100 indices until the end of the quarter. Whereas, these stocks will be reincluded in the relevant market, sector and sub sector indices on the same day they restart trading in the National Market.

Stocks, started to be traded within the quarter, are included in the relevant market, sector and sub sector indices on the 11^th trading day.

Upon a merger activity of two constituent companies or an acquisition of a constituent company, the stocks of resulting company will remain within the relevant indices and the stocks of the acquired (Discontinued) company will be replaced by the reserve stocks.

If, in case a constituent company of the ISE National 30, ISE National 50 or ISE National 100 Index acquires a nonconstituent company or is acquired by a nonconstituent company, the stocks of the resulting new company will continue to be a constituent of the relevant indices provided that the new company remains within the National Market. If the new company's stocks are nonconstituents of the National Market, in this case, the underlying stocks will be excluded from the relevant indices and replaced by reserve stocks.

If a constituent company of the ISE National 30, ISE National 50 or ISE National 100 Index is split into two or more companies, only one of the resulting companies with the highest market capitalization will continue to be a constituent of the relevant indices until the end of the quarter while the other companies are excluded.

In the case of a tender offer for the stocks of a constituent company of the ISE National 30, ISE National 50 or ISE National 100 Index, if the market capitalization of the company calculated by using the stocks registered as tradable by Central Registry Agency excluding the ones owned by the shareholder who makes the tender offer is lower than the market capitalization of the first reserve company in the relevant list calculated by using the stocks registered as tradable by Central Registry Agency, the company will be excluded from the index on the second day after the disclosure of the tender offer result in the ISE daily bulletin and the first company in the reserve list will be included into the index.

ISE Stock Market Indices Expressed in U.S. Dollar Basis

Since stock trading operations in stock exchanges worldwide are carried out in local currencies in which the securities are issued, comparative studies of indices among countries is possible on the basis of a common currency unit. In general, the US dollar is used as a common currency unit for comparing stock exchange performances or alternative investment instruments.

For the convenience of foreign investors, all ISE indices are also expressed and published on US dollar basis. Turkish Central Bank's effective buying rates are being used in conversion to US dollar values.

An index can be expressed on US dollar basis as shown below:

(Current index value) * (TL/US$ exchange rate at base date)* 100 / (Current TL/US$ exchange rate)

The TL/US dollar exchange rate at base period (January 1986) is 581.91.