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Monday, December 03, 2007

ICB Enhances Classification System With Real Estate Supersector and Alternative Energy Sector

ICB Enhances Classification System With Real Estate Supersector and Alternative Energy Sector

NEW YORK, Dec. 3, 2007 -- The Industry Classification Benchmark (ICB), the joint classification system launched by Dow Jones Indexes and FTSE Group, today announced that they will be enhancing their four-tier industry classification system. ICB is a detailed and comprehensive structure for sector and industry analysis, facilitating the comparison of companies across four levels of classification and national boundaries.

Additions will be made to the supersector, sector and subsector levels, beginning with the elevation of real estate to the supersector level. Seven new subsectors will be added under real estate to include more detailed classification of REITs. Additionally, ICB will recognize alternative power sources by adding an alternative energy sector under the oil & gas supersector. These changes will be effective to the ICB system on March 1, 2008.

With the integration of the above enhancements, the structure will now be based on 10 industries, 19 supersectors, 41 sectors and 114 subsectors and offers broad, global coverage of over 50,000 companies and 55,000 securities. Prior to the revisions, the ICB Structure included 10 industries, 18 supersectors, 39 sectors and 104 subsectors.

ICB's changes to the classification of real estate companies will reflect the increasingly-recognized differences between real estate firms and financial services firms, and will provide more precise categorizations of real estate companies, particularly real estate investment trusts (REITs). The real estate sector will be elevated to a supersector with a new hierarchy of real estate sectors and subsectors including real estate holding & development companies, real estate services, and REITs involved in: industrial & office, retail, residential, diversified properties, specialty properties, mortgage companies, and hotels & lodging.

Expansions to oil and gas are being made to reflect the changing energy market, specifically the proliferation of companies involved in alternative energy and alternative utilities. The oil and gas industry group and supersector will be expanded to include an alternative energy sector with renewable energy equipment and alternative fuel subsectors. The electricity sector will now be separated into conventional electricity and alternative electricity subsectors and will continue to be classified under the utilities supersector.

ICB is now in use by major stock exchanges, data distributors, index providers, buy side and sell side institutions, custodians and media organizations globally. Global financial institutions have integrated ICB into their investment workflow and financial services, including NASDAQ, NYSE/Euronext, the London Stock Exchange, the Swiss Exchange, Aegon, the International Monetary Fund and the World Economic Forum, as well as media outlets including The Wall Street Journal, the Financial Times, CNBC and Dow Jones Newswires.

James Cemprola, Managing Director, ICB commented, ``The rapid adoption of ICB is a testament to the product's comprehensive global coverage, which is increasingly becoming the industry standard. Its balanced structure makes ICB attractive to financial institutions on the buy side, sell side, independent research, custodial banks and global distributors.''

More information about ICB is available at

For more information, journalists should contact:

Dow Jones Indexes Press Offices
New York: Tel: +1 212 597 5720
Frankfurt: Tel: + 49-69-2972590

FTSE Group
New York
Jill Mathers
Tel: +1 212 641 6166

About ICB

ICB is the new global solution for industry classification. A joint effort of FTSE Group (FTSE) and Dow Jones Indexes, ICB is a comprehensive system for sector and industry analysis, facilitating the comparison of companies across four levels of classification. The system is supported by the ICB global database which contains over 50,000 companies and 55,000 securities worldwide. ICB has been adopted by stock exchanges, data distributors, index providers, buy side and sell side institutions, custodians and media organizations globally. For more information about ICB, visit

The Industry Classification Benchmark logo is available at

About Dow Jones Indexes

A full-service index provider, Dow Jones Indexes develops, maintains and licenses indexes for use as benchmarks and as the basis of investment products. Best known for the Dow Jones Industrial Average, Dow Jones Indexes also is co-owner of the Dow Jones STOXX indexes, the world's leading pan-European indexes, and together with Wilshire Associates, provides the Dow Jones Wilshire Global Index family, which is anchored by the Dow Jones Wilshire 5000 and covers more than 12,000 securities in 59 markets. Beyond equity indexes, Dow Jones Indexes maintains a number of alternative indexes, including measures of the hedge fund and commodity markets. Dow Jones indexes are maintained according to clear, unbiased and systematic methodologies that are fully integrated within index families.

Dow Jones Indexes is part of Dow Jones & Company (NYSE:DJ - News) (, which is a leading provider of global business news and information services. Its Consumer Media Group publishes The Wall Street Journal, Barron's,, eFinancialNews and the Far Eastern Economic Review. Its Enterprise Media Group includes Dow Jones Newswires, Factiva, Dow Jones Client Solutions, Dow Jones Indexes and Dow Jones Financial Information Services. Its Local Media Group operates community-based information franchises. Dow Jones owns 50% of SmartMoney and 33% of STOXX Ltd. and provides news content to CNBC and radio stations in the U.S.

About FTSE Group

FTSE Group is leader in the creation and management of indexes and related market data services. FTSE's flagship index, the FTSE Global Equity Index Series (GEIS), covers 98% of the world's total investable market capitalization and includes a broad range of traditional and alternative asset class indexes such as multinationals, style, socially responsible investment, real estate and hedge funds. Custom indexes are designed and created regularly to meet a wide variety of investment strategies for clients. FTSE also manages and calculates non-market capitalization weighted indexes, which offer investors an alternative way to benchmark performance.

FTSE has partnered with notable financial industry leaders in key regions to create unique and innovative products for the investment community, including NASDAQ, Dow Jones Indexes, NAREIT, Institutional Shareholder Services (ISS), and Research Affiliates (RAFI) in the U.S.; Xinhua Financial Network of China, Nikkei of Japan (Nihon Keizai Shimbun, Inc), and the ASEAN stock exchanges in Asia; and Euronext, the London Stock Exchange, EPRA, and Global Wealth Associates in Europe. Partnerships with the Athens, Cyprus, Johannesburg, Luxembourg and Madrid stock exchanges round out FTSE's global coverage of markets worldwide.

Dow Jones Indexes
New York:
+1 212 597 5720
+ 49-69-2972590

Source: Dow Jones Indexes

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