Deutsche Börse expects economic growth to slow slightly in both 2008 and 2009 in the regions relevant to the Company’s business. Given the fall in property prices, the deteriorating situation in the labour market and the decline in investment, economic growth in the US is expected to decrease sharply to less than 2 percent. The US Federal Reserve has already lowered the federal fund rate from 4.25 percent to 3.00 percent in two separate moves in January 2008, in an effort to counter this slowdown. Should US economic growth stagnate, the federal fund rate is expected to be cut further.

A slowdown in US economic growth is likely to impact negatively on growth in the euro zone as well. In addition, the strong euro could lead to a decline in exports and private consumption could stagnate. In light of this combination of factors, the Company expects growth in Europe to fall to around 2 percent.

Given the deterioration in economic fundamentals, Deutsche Börse anticipates high volatility in the financial markets, i.e. sharp fluctuations in equity prices or index levels. However, as corporate profits remain high and equity market valuations are attractive from a longterm perspective, a protracted downturn in the markets is not expected. Coupled with temporary uncertainty in the financial markets, the business environment for Deutsche Börse appears to be positive overall. This was already in evidence at the beginning of 2008: in January, the number of transactions on the electronic Xetra trading system doubled compared with the prior-year month (+106 percent), when trading had already been very brisk. In the same period, Eurex increased the number of contracts traded in the derivatives market by 57 percent to around 207.4 million, a new monthly record. However, trading volumes are expected to normalize in the course of financial year 2008.

The risks to the financial market developments outlined above include a long-term recession and a slump in corporate profits. The Company currently considers the likelihood of these risks occurring, either individually or together, and negatively impacting the development of the financial markets during the forecast period to be low.

The Company is not expecting any significant change in its business policy in the forecast period. On the basis of its successful business model that covers the entire process chain for securities transactions and the most prominent investment classes, Deutsche Börse will continue to observe trends in the financial markets worldwide and leverage them in order to continue developing its products and services. The Company’s key strategic goal is to provide all customers with outstanding services. With its scalable trading platforms, Deutsche Börse believes it is also very well positioned to compete with other providers of trading and settlement services. Furthermore, the Company does not expect the various steps towards consolidation that have already been undertaken or targeted in the stock exchange sector to impact negatively on its market position.