MSCI QUARTERLY INDEX REBALANCING
Geneva, August 17, 2000. MSCI announced today its regularly scheduled quarterly index rebalancing. The
following country indices were fully reviewed: Argentina, Brazil, Chile, Colombia, Egypt, Greece, Mexico,
Morocco, Pakistan, Peru, Sri Lanka, Thailand, and Venezuela. Partial reviews, focusing on specific sectors,
were conducted for the following country indices: Japan, South Africa and the USA. Resulting changes will takeeffect after the close of trading on Thursday, August 31, 2000.
On a pro forma basis, the net changes announced today will add USD 532 billion, or 2.5%, in market capitalization
to the MSCI All Country World Index (ACWI) FreeSM, which includes developed and emerging markets. The
majority of the increase in market capitalization will result from the net addition of USD 518 billion, or 5%, to the
MSCI USA Index, while the MSCI Emerging Markets Free (EMF) IndexSM will experience a net market
capitalization increase of USD 19 billion, or 1.6%. The following is a brief description of some of the more
important changes grouped by region.
NORTH AMERICA•

USA – A total of 23 securities will be added and one deleted as a result of a partial review of the index, focusing
on the Information Technology and Telecommunication Services Sectors. The last full review of the MSCI USA
Index was performed in August 1999. Due to their dynamic nature, several sub-industries within these two
sectors were under-represented. Of the 19 securities to be added to the Information Technology Sector, five arefrom the Technology Hardware & Equipment Industry Group, including JDS Uniphase and Broadcom, while
14 are from the Software & Services Industry Group, including Siebel Systems and Ariba. Four securities are to
be added to the Telecommunication Services Sector, including Nextel Communications.

LATIN AMERICA
All seven countries in the MSCI EMF Latin America Index were reviewed. On a pro forma basis, the net changes
announced today will add USD 8 billion, resulting in a 2.7% increase in the market capitalization of the MSCI EMF
Latin America Index. The most substantive changes in market capitalization will occur in the MSCI Brazil Free
Index.
•

Brazil – The net market capitalization of the MSCI Brazil Free Index will increase by USD 12 billion (+11.2%),
on a pro forma basis. The most significant change in the index will be an increase in the weighting of Petrobras
ON (Petrobras common shares) which will be included at 60% of its total market capitalization, up from 20%.
This is due to the increase in the float available to investors, as the government recently completed a secondaryoffering of Petrobras ON. The change will add USD 6 billion in market capitalization to the index on a pro
forma basis. In addition, there will be four securities added to the index and two deleted.

•

Mexico – On a net pro forma basis, the MSCI Mexico Index will decline by USD 3 billion (-2.8%). Twocompanies will be deleted due to industry group over-representation, one from the Materials Industry Group,and the other from the Banks Industry Group. Six additional companies will be deleted due to their small size.

______________________________________________________________________________________________________________________--1 of 5--•Argentina – In the MSCI Argentina Index, one company will be added and one deleted. In addition, Astra
Argentina Petroleo (Astra), which represents 7.5% of the MSCI Argentina Index, is expected to be acquired byits largest shareholder, Repsol YPF of Spain, one day before the implementation of the MSCI index rebalancing.
If the acquisition is successful, Astra will be deleted after the close of trading on August 30, 2000.

•

Chile, Colombia, Peru and Venezuela – In the MSCI Chile Index, two companies will be added and threedeleted. The review of the MSCI Colombia Index indicates that it continues to accurately reflect the market, andtherefore the composition of this index will not change. In the MSCI Peru Index, one company will be deleted.
One company will be added and four deleted from the MSCI Venezuela Index.

EUROPE•

Greece – On a net pro forma basis, the market capitalization of the MSCI Greece Index will increase by
USD 13 billion, or 27.6%. A significant part of this increase results from recent M&A activity affecting Greek
companies. Specifically, EFG Eurobank has acquired Ergobank, and Hellenic Bottling is issuing new shares for
its acquisition of UK based Coca-Cola Beverages. The impact in the indices from these events will be reflected
simultaneously with the country index rebalancing. In addition, a total of 17 companies will be added, includingHellenic Petroleum and Lambrakis Press, both at 60% of their market capitalization, while Viohalco Copper will
be added at 50% of its market capitalization. Six companies will be deleted from the index, mainly due to low
liquidity. As previously announced, the MSCI Greece Index will be reclassified by MSCI from an emerging
market to a developed market index and will fully join the MSCI Developed Market Index series after the closeof trading on May 31, 2001.

AFRICA•

Egypt, Morocco and South Africa – In the MSCI Egypt Index, two companies will be added and five deleted.
One company will be added and three deleted from the MSCI Morocco Index. One company will be deleted
from the MSCI South Africa Index. As previously announced, the MSCI Egypt and MSCI Morocco Indices will
be fully included in the MSCI EMF Index and the MSCI ACWI Free series after the close of trading on May 31,
2001.

ASIA PACIFIC•

Japan – The MSCI Japan Index was partially reviewed, with a focus on the Media Industry Group. Since thelast full review of the index in August 1999, Tokyo Broadcasting System (TBS) has reached the foreign
ownership limit for broadcasting companies. Therefore, the market capitalization of TBS will be reduced to40%, corresponding to MSCI’s partial inclusion schedule for companies with modest float or ownership
limitations. Simultaneously, Fuji Television Network will be added to the index at 40% of its market
capitalization, to enhance the representation of the Media Industry Group. The status of small and relatively
illiquid companies was also reviewed. As a result, 16 companies will be deleted. Following these changes theindex representation of the market remains virtually unchanged.

•

Pakistan, Sri Lanka and Thailand – In the MSCI Pakistan Index, nine companies will be deleted due to theirsmall size and low liquidity. The review of the MSCI Sri Lanka Index indicates that it continues to accuratelyreflect the market, and therefore the composition of this index will not change. In the MSCI Thailand Free
Index, one company will be added and eight deleted.

Note: All pro forma information uses data as of August 8, 2000.
____________________________________________________________________________________________________________--2 of 5--

Unless otherwise stated all comments concern MSCI’s Standard Indices.
For further information on the MSCI quarterly index rebalancing, including the full list of company
additions and deletions, please visit our web site at www.msci.com or contact:
Evert-Jan ten Brundel, MSCI, London+ 44 207 425 6660

Daniel Bacci, MSCI, New York+ 1 212 762 5790

John Fildes, MSCI, Hong Kong

+ 852 2848 5050

Emma Leeds/Catherine May, Luther Pendragon+ 44 207 353 1500

Note for editors: MSCI Index Methodology - All standard MSCI indices are market capitalization weighted andbuilt from the industry level up. In doing so, MSCI targets a 60% representation of the market capitalization of eachindustry group within each country. Industry groups are aggregated into countries and countries are aggregated into
regions. MSCI selects stocks with good liquidity and float, avoids cross-ownership and then applies a market
capitalization weight to each stock. New index additions with less than 40% float are included at a fraction of theirmarket capitalization in accordance with MSCI’s partial inclusion schedule.
The objective of the quarterly index rebalancing is to recognize changes in underlying country markets and realignthe indices with the relevant market, while minimizing unnecessary changes.
For a complete description of MSCI's methodology - including corporate actions, dividend treatment, exchange
rates and index maintenance - please refer to the MSCI Methodology & Index Policy, available from MSCI Client
Services or www.msci.com/method.
___________________________________________________________________________________________________________
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implied, as to the results to be obtained by any person or entity from any use of this information, and the user of thisinformation assumes the entire risk of any use made of this information. Neither MSCI nor any other party makes any express
or implied warranties, and MSCI hereby expressly disclaims all warranties of merchantability or fitness for a particular purpose
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any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) even if notifiedof the possibility of such damages.
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property of MSCI and may not be used in any way (except as otherwise expressly agreed) without the permission of MSCI.
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Stanley Dean Witter & Co., a global financial services firm and a market leader in securities, asset management, and credit
services, is the majority shareholder of MSCI, and The Capital Group Companies, Inc., a global investment management
group, is the minority shareholder.
MSCI Client Services can be reached on:
London+44 207 425 6660
Frankfurt+49 69 2166 5325
And at a further eleven global locations.

New York
San Francisco+1 212 762 5790
+1 415 576 2323

Tokyo
Hong Kong+813 5424 5470
+852 2848 6740____________________________________________________________________________________________________________--3 of 5--

Pro Forma Weights After August 31, 2000 Index Rebalancing(Figures as of August 08, 2000)

MSCI All Country World Index FreeCountry
Argentina
Australia
Austria
BelgiumBrazil Free
CanadaChile
China Free
Colombia
Czech Republic
Denmark
FinlandFranceGermany
GreeceHong Kong
Hungary
India
Indonesia Free
IrelandIsraelItaly
Japan
Jordan
Korea
Malaysia Free
MexicoNetherlands
New Zealand
NorwayPakistan
Peru
Philippines Free
PolandPortugal
RussiaSingapore Free
South Africa
Spain
Sri Lanka
SwedenSwitzerland
Taiwan Free
Thailand Free
TurkeyUnited Kingdom
USA
Venezuela
ACWI Free

Current
MKTCAP(US$ mm)19,162
262,825
19,95876,256
104,746
580,688
35,112
81,0482,891
7,329
77,664
233,919
1,072,172
812,285
47,278
222,639
10,99582,841
11,902
33,04460,883
411,265
2,375,949
1,322
136,697
79,466
118,146
501,182
13,28336,161
4,024
3,647
8,723
13,03848,017
32,95095,818104,213279,487398
305,692
572,514
155,559
19,552
42,132
1,936,887
10,372,126
5,438
21,529,322

Current
Weight
0.09%
1.22%
0.09%
0.35%
0.49%
2.70%
0.16%
0.38%
0.01%
0.03%
0.36%
1.09%
4.98%
3.77%
0.22%
1.03%
0.05%
0.38%
0.06%
0.15%
0.28%
1.91%
11.04%
0.01%
0.63%
0.37%
0.55%
2.33%
0.06%
0.17%
0.02%
0.02%
0.04%
0.06%
0.22%
0.15%
0.45%
0.48%
1.30%
0.00%
1.42%
2.66%
0.72%
0.09%
0.20%
9.00%
48.18%
0.03%
100.00%Pro Forma
MKTCAP(US$ mm)17,812
262,825
19,95876,256
116,469
580,688
35,627
81,0482,891
7,329
77,664
233,919
1,072,172
812,285
60,324
222,639
10,99582,655
11,902
33,04460,883
411,265
2,372,197
1,291
136,697
79,466
114,880
501,182
12,10536,161
3,850
3,700
8,723
13,86648,017
32,95095,818102,442
279,151398
305,692
572,514
155,559
19,13042,132
1,936,887
10,890,258
5,481
22,061,196

Pro Forma
Weight
0.08%
1.19%
0.09%
0.35%
0.53%
2.63%
0.16%
0.37%
0.01%
0.03%
0.35%
1.06%
4.86%
3.68%
0.27%
1.01%
0.05%
0.37%
0.05%
0.15%
0.28%
1.86%
10.75%
0.01%
0.62%
0.36%
0.52%
2.27%
0.05%
0.16%
0.02%
0.02%
0.04%
0.06%
0.22%
0.15%
0.43%
0.46%
1.27%
0.00%
1.39%
2.60%
0.71%
0.09%
0.19%
8.78%
49.36%
0.02%
100.00%THIS INFORMATION MAY NOT BE REPRODUCED OR REDISSEMINATED IN ANY FORM WITHOUT PRIOR WRITTEN PERMISSION
FROM MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI). THIS INFORMATION IS PROVIDED ON AN "AS IS" BASIS.
NEITHER MSCI NOR ANY OTHER PARTY MAKES ANY REPRESENTATION OR WARRANTY OF ANY KIND
EITHER EXPRESS OR IMPLIED, WITH RESPECT TO THIS INFORMATION (OR THE RESULTS TO BE OBTAINEDBY THE USE THEREOF) AND MSCI EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES OF ORIGINALITY,
ACCURACY COMPLETENESS, MERCHANTABILITY, AND FITNESS FOR ANY PARTICULAR PURPOSE. THE USER OF
THIS INFORMATION ASSUMES THE ENTIRE RISK OF ANY USE MADE OF THE INFORMATION. IN NO EVENT SHALLMSCI OR ANY OTHER PARTY BE LIABLE TO THE USER FOR ANY DIRECT OR INDIRECT DAMAGES,INCLUDING WITHOUT LIMITATION, ANY LOST PROFITS, LOST SAVINGS, OR OTHER INCIDENTAL OR
CONSEQUENTIAL DAMAGES ARISING OUT OF THE USE OF THIS INFORMATION.

____________________________________________________________________________________________________________--4 of 5--

Pro Forma Weights After August 31, 2000 Index Rebalancing(Figures as of August 08, 2000)

MSCI EMFCountry
Argentina
Brazil Free
Chile
China Free
Colombia
Czech Republic
GreeceHungary
India
Indonesia Free
IsraelJordan
Korea
Malaysia Free
MexicoPakistan
Peru
Philippines Free
PolandRussiaSouth Africa
Sri Lanka
Taiwan Free
Thailand Free
TurkeyVenezuela
EMF

Current
MKTCAP(US$ mm)19,162
104,746
35,112
81,0482,891
7,329
47,278
10,99582,841
11,90260,883
1,322
136,697
79,466
118,146
4,024
3,647
8,723
13,03832,950104,213398
155,559
19,552
42,132
5,438
1,189,492

Current
Weight
1.61%
8.81%
2.95%
6.81%
0.24%
0.62%
3.97%
0.92%
6.96%
1.00%
5.12%
0.11%
11.49%
6.68%
9.93%
0.34%
0.31%
0.73%
1.10%
2.77%
8.76%
0.03%
13.08%
1.64%
3.54%
0.46%
100.00%Pro Forma
MKTCAP
Pro Forma(US$ mm)
Weight17,812
1.47%
116,469
9.64%
35,627
2.95%
81,048
6.71%
2,891
0.24%
7,329
0.61%
60,3244.99%
10,9950.91%
82,655
6.84%
11,9020.98%
60,883
5.04%
1,291
0.11%
136,697
11.31%
79,466
6.58%
114,880
9.51%
3,850
0.32%
3,700
0.31%
8,723
0.72%
13,8661.15%
32,9502.73%
102,442
8.48%
398
0.03%
155,559
12.87%
19,1301.58%
42,132
3.49%
5,481
0.45%
1,208,500
100.00%THIS INFORMATION MAY NOT BE REPRODUCED OR REDISSEMINATED IN ANY FORM WITHOUT PRIOR WRITTEN PERMISSION
FROM MORGAN STANLEY CAPITAL INTERNATIONAL (MSCI). THIS INFORMATION IS PROVIDED ON AN "AS IS" BASIS.
NEITHER MSCI NOR ANY OTHER PARTY MAKES ANY REPRESENTATION OR WARRANTY OF ANY KIND
EITHER EXPRESS OR IMPLIED, WITH RESPECT TO THIS INFORMATION (OR THE RESULTS TO BE OBTAINEDBY THE USE THEREOF) AND MSCI EXPRESSLY DISCLAIMS ANY AND ALL WARRANTIES OF ORIGINALITY,
ACCURACY COMPLETENESS, MERCHANTABILITY, AND FITNESS FOR ANY PARTICULAR PURPOSE. THE USER OF
THIS INFORMATION ASSUMES THE ENTIRE RISK OF ANY USE MADE OF THE INFORMATION. IN NO EVENT SHALLMSCI OR ANY OTHER PARTY BE LIABLE TO THE USER FOR ANY DIRECT OR INDIRECT DAMAGES,INCLUDING WITHOUT LIMITATION, ANY LOST PROFITS, LOST SAVINGS, OR OTHER INCIDENTAL OR
CONSEQUENTIAL DAMAGES ARISING OUT OF THE USE OF THIS INFORMATION.

____________________________________________________________________________________________________________--5 of 5--