Erste Bank JPMorgan Merrill Lynch International

The Prague Stock Exchange Committee on Listing (the “Prague Stock Exchange Listing Committee”)
decides whether to admit a security to trading and has certain discretion to deviate from the
admission requirements described above. Application for admission of a security to trading on Prague
Stock Exchange can be filed by an issuer or by a member of the Prague Stock Exchange. The
application must provide certain basic data with regard to the issuer and the issue, and the prospectus
must be approved by the Czech National Bank or another EU member state regulator. The Prague
Stock Exchange Listing Committee reviews and approves the application.
A company admitted to an official market is required to make certain financial information publicly
available. In particular, such company must file with the Czech National Bank and Prague Stock
Exchange audited annual financial statements, unaudited semi-annual statements, information about
convocation of a general meeting and certain corporate resolutions. In addition to the above, company
whose shares have been admitted to the main market must also submit to the Prague Stock
Exchange unaudited quarterly and preliminary annual financial statements and report certain changes
in its financial or business condition, including: (i) information about any default with monetary
obligations exceeding 5% of the issuer’s equity capital; (ii) any legal or commercial dispute involving
an amount of 5% or more of the issuer’s assets; (iii) the issue of a bankruptcy order against the issuer
or any of its significant subsidiaries; (iv) information about any significant monetary obligation
becoming due and payable based on a creditor’s decision or automatically due to cross-default;
(v) change in the shareholder structure or holdings by major shareholders; and (vi) any changes of
members of the statutory and/or supervisory body of the company. The official free market imposes
lower disclosure standards and thus enables companies to have their securities publicly traded without
having to comply with the extensive disclosure requirements applicable to companies whose securities
are admitted to the Prague Stock Exchange main market.
According to the Capital Market Trading Act, the BCPP can organize an unregulated free market.
In order to be listed on the Unregulated Free Market, a company must publish a prospectus. The
requirements for being listed on the Unregulated Free Market are set out in the Exchange Rules.
The Main Market as well as the Official Free Market and the Unregulated Free Market of the
Prague Stock Exchange are recognized as regulated markets under the Directive No. 2004/39/EC on
Markets in Financial Instruments (MiFID). In May 2004, the U.S. Securities and Exchange Commission
recognized the Prague Stock Exchange as a “designated offshore securities market” under the
U.S. Securities Act.
Wiener Städtische AG’s shares have been traded in the Main Market part of the Official Market of
the Prague Stock Exchange since February 5, 2008. Five members of the Exchange are already
market makers for the shares of Wiener Städtische AG on the Prague Stock Exchange.
Trading and Settlement
The Prague Stock Exchange is an electronic exchange and trades are effected through its
automated trading system. The exchange trading and information system is based on the automated
processing of buy and sell orders entered into the system by member firms.
Securities traded on the Exchange are divided into three trading groups. The first trading group
comprises all securities except for securities issues traded within the SPAD system (Systém pro
Podporu Akcií a Dluhopisu˚ , which means “System Supporting the Trading of Shares and Bonds”
(“SPAD”)) and securities issues in certificated form; the second trading group comprises all securities
issues traded in certificated form; and the third trading group consists of securities traded within the
SPAD.
Trading in shares can be currently undertaken in the following ways:
(i) trades with the participation of market makers within the SPAD;
(ii) automatic trades;
(iii) block trades.
SPAD is based on the participation of market makers. A market maker is a Prague Stock
Exchange member who has entered into an official contract with the Prague Stock Exchange to act as
a market maker for selected issues. Trading is divided into either an open or closed phase. During the
open phase, market makers are obliged to make their quotations and the price is set according to the
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