SEC Announces Reduction in Securities Registration, Transaction Fees

Washington, DC, May 4, 2006 - The SEC recently announced that fees on securities transactions and registrations will be reduced by $1 billion in the fiscal year beginning October 1, 2006.

Background
The reductions are pursuant to the Investor and Capital Markets Fee Relief Act, which requires that the Commission, in consultation with the Congressional Budget Office and the Office of Management and Budget, make annual adjustments to the rates for fees paid under the Securities Act of 1933 and the Securities Exchange Act of 1934.

Effective the later of October 1, 2006 or five days after the Commission receives its regular fiscal year 2007 appropriation, the fee rate applicable to the registration of securities, the repurchase of securities, and proxy solicitations and statements in corporate control transactions will decrease from the current rate of $107.00 per million to $30.70 per million.

In addition, effective the later of October 1, 2006 or 30 days after the Commission receives its regular fiscal year 2007 appropriation, the fee rate applicable to securities transactions on the exchanges and certain over-the-counter markets will decrease from the current rate of $30.70 per million to $15.30 per million. Self-regulatory organizations collect these fees from their member funds pursuant to their rules.