NETeller Removed From London FTSE Index

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Little surprise at decision after shares suspended from trading for six months

Neteller investors will no doubt be concerned at an announcement from FTSE late Wednesday afternoon which advised that the e-wallet will be deleted from the FTSE AIM All-Share index, FTSE AIM 100 index and FTSE AIM UK 50 index with effect from July 16 following the continued suspension of trading of its shares on the AIM for a period of six months.

Neteller's shares were suspended on January 16 pending clarification after the detention of its former directors and founder shareholders Stephen Lawrence and John Lefebvre by the US authorities.

The FTSE 100 Index is a share index of the 100 most highly capitalised companies listed on the London Stock Exchange. Component companies must meet a number of requirements set out by the FTSE Group, including having a full listing on the London Stock Exchange with a Sterling or Euro denominated price on SETS, and meeting certain tests on nationality, free float, and liquidity. Trading lasts from 08h00-16h29.

The index is seen as a barometer of success of the British economy and is the leading share index in Europe. It is maintained by the FTSE Group, an independent company which originated as a joint venture between the Financial Times and the London Stock Exchange (hence the abbreviation Financial Times Stock Exchange). The FTSE 100 companies represent about 80 percent of the UK share market.

Related indices are the FTSE 250 Index (which lists the next largest 250 companies), FTSE SmallCap Index., FTSE Fledgling, the FTSE 350 Index (which is the aggregation of the FTSE 100 and 250), and the FTSE All-Share Index (which aggregates the FTSE 100, FTSE 250 and FTSE SmallCap).

The constituents of the index are determined quarterly; the largest companies in the FTSE 250 Index are promoted if their market capitalisation would place them in the top 90 firms of the FTSE 100 Index. Most of the companies listed on this index usually include the abbreviation 'plc' at the end of their name, indicating their status of public limited company.

Neteller issued a press release dated 12 July, which concerned itself mainly with the recent pleas of guilty to US conspiracy charges by its founders Stephen Lawrence and John Lefebvre and pointed out that other than as shareholders, neither Lawrence nor Lefebvre has any current position with or connection to Neteller.

The company informed that as stated in a previous press release on 2 July, it continues to "....cooperate with the investigation being conducted by the US Attorney's Office, under the advice of its legal advisers and in accordance with court orders in the Isle of Man.
"The Company remains in discussions with the USAO for the purpose of resolving the investigation and has advised the USAO that it will use its best efforts to resolve the investigation on or soon after 13 July 2007."

The addition of a further sentence to the release may hint at further delays in paying out US player funds that have been frozen since January this year, commenting: "However, the Company believes that these and other recent developments will likely delay its efforts to resolve the investigation by a short period. A further update will be given on 13 July 2007."