Press Office

Auckland, 13 June 2007 - MasterCard Worldwide today announced the first set of findings of a groundbreaking research effort, the MasterCard Worldwide Centers of Commerce™ program, designed to provide insights and knowledge on how leading cities influence the global economy. Central to this new research platform and unveiled today is the first annual MasterCard Worldwide Centers of Commerce Index™, the most comprehensive analysis to date of how major cities compare in performing critical functions that connect markets and commerce globally.

The Index, developed by a panel of leading experts in economics, urban development and social science from around the world, lists and ranks the top 50 Centers of Commerce based on six measurement dimensions consisting of over 100 data points. It places London first, followed by New York, Tokyo, Chicago and Hong Kong in the top five. Completing the top 10 are Singapore, Frankfurt, Paris, Seoul and Los Angeles. The full report is available at www.mastercardworldwide.com.

Asia/Pacific was well represented in the Index, with 11 of its cities ranked as top 50 Centers of Commerce. Dubai and Tel Aviv were the Middle East cities that made the list; and Johannesburg for the Africa region.

"The MasterCard Worldwide Centers of Commerce Index shows that Asia/Pacific cities are crucial lynchpins in the transactional flow of global commerce, with four out of the top 10 cities coming from this region," said Andre Sekulic, president, Asia/Pacific, Middle East & Africa, MasterCard Worldwide. "The Index provides an in-depth understanding of how these cities contribute and connect to the rest of the world, which is critical for success in today's global marketplace. The research shows that successful companies of the future will be transnational, operating seamlessly as a single global entity employing people and positioning resources wherever appropriate, in accordance with location advantages on a global basis."

Tokyo emerged the leader in Asia/Pacific, topping the region in the dimensions measuring financial flow, and knowledge creation and information flow.

"I believe that these results were achieved by Tokyo possessing, among a spectrum of commercial attractions, an advanced urban infrastructure, and one of the safest and most secure living environments in the world," commented Shintaro Ishihara, Governor of Tokyo. "Tokyo will achieve even higher levels of growth and development in metropolitan infrastructure and other key areas moving forward through the execution of its new urban strategy 'Tokyo's Big Change: The 10-Year Plan' Through such initiatives, I am confident that by 2016 – the year we are aiming to host the Olympic and Paralympic Games –Tokyo will be one of the world's most efficient Centers of Commerce as well as alluring cities, possessing the lowest environmental load in the world."

The transformation of cities into global centers of commerce has been fueled in part by rapid urbanization. In terms of population size and economic activities, many cities today are far larger than a significant number of sovereign states and more important than ever before. The research report establishes that today, many of these metropolises are "global cities" that perform critical functions connecting markets and commerce globally. In essence, they are nodes of connectivity through which global commerce can take place.

"The old paradigm was the sovereign state; this is now the age of the city," said Dr. Yuwa Hedrick-Wong, economic advisor, MasterCard Worldwide, who led the expert knowledge panel for the MasterCard Worldwide Centers of Commerce Index. "The trend of commerce becoming more knowledge-driven and less tangible has actually elevated the role of today's cities, positioning them as the hubs of complex circuits that fuel the globalized economy and provide connections through which true global commerce takes place. This research provides valuable insight into the cities that sit at the center of global commerce as well as the factors that are fuelling commerce in each."

Key highlights from the Index include:

• London: The world's leading Center of Commerce. With a flexible operating environment for business, strong global financial connections and exceptionally high levels of international trade, travel and conferences, London secures the top spot in the Centers of Commerce Index. The city outperforms New York in four of the six measurement dimensions, and scores significantly higher than other European cities.
• National economic factors, market regulations place New York behind London. Once considered the unchallenged financial capital of the world, New York cedes to London a key dimension measuring financial transactions primarily because bond market regulations in New York affect the volume of listed sales. New York's score is also impacted by the less stable US economy and the more volatile US dollar.
• Tokyo's powerhouse economy leads to top ranking in Asia Pacific. Tokyo, the leader in its region and number three overall, boasts the Nikkei 225 Index, the most patents and daily newspapers per person, and an air traffic hub second only to Hong Kong.
• Three onetime "Asian Tigers" make the top ten. Hong Kong, Singapore and Seoul all rank among the top 10 Centers of Commerce, with Seoul scoring high marks for its higher education system and patent output, while Hong Kong and Singapore boast top rankings for the strength of their business climate and their prominence in the global financial network. Singapore also rates high for government policies that favor international business and trade.
• Hong Kong & Singapore maintain tight economic rivalry. Hong Kong edges out traditional economic competitor Singapore for fifth placing in the Index. Singapore, which ranks sixth in the Index, had an Index value only 0.37 points less than Hong Kong. This was partly because of the smaller number of equity transactions that took place in the Republic as compared to Hong Kong. Hong Kong also scores better in measures related to its business climate.
• Emerging growth engines, China and India, make their mark. China cements its growing regional importance with three cities represented in the Index - Hong Kong #5, Shanghai #32 and Beijing #46. This is the largest representation of cities from one country in Asia/Pacific. The Indian city of Mumbai shone in the dimension concerning financial transactions, coming in 10th globally.
• Strong business climate makes Dubai the Middle East leader. The region's air and cargo traffic hub, Dubai also claims a flexible business climate that makes it optimal for growing companies. The city ranked 37 in the Index.
• Key nodes of commerce "Down Under". Sydney and Melbourne, two of Australia's most vibrant cities prove that they are not just great places to live but are also key centres of commerce. Sydney, home to Australia's stock exchange, ranked 14 overall in the Index, while Melbourne ranked 34.

The Worldwide Centers of Commerce Index is compiled from research by a panel of eight independent economic, urban development and social-science experts from leading academic and research institutions around the world, led by Dr. Hedrick-Wong. To form the index, the panel first identified 63 cities around the world that met their initial criteria.

Cities were then rated on the six dimensions:

• Legal and political framework
• Economic stability
• Ease of doing business
• Financial flow
• Business center
• Knowledge creation/information flow

This entailed measuring a number of equally weighted, relevant indicators and sub-indicators that aggregate available data on region-specific procedures, costs and ratings, as well as criteria related to quality of life, access to technology, city livability, logistics and knowledge creations and creativity. In total, over a period of four months, the panel evaluated six dimensions, 41 indicators and more than 100 sub-indicators to derive an Index ranking for each city, a process that exceeds traditional measures used to gauge worldwide financial and business activity.

Leading the Worldwide Centers of Commerce program is Dr. Yuwa Hedrick-Wong, economic advisor, MasterCard Worldwide. With more than 25 years experience as an economist, business strategist and writer, Hedrick-Wong is one of the foremost experts on Asian economic trends and has counseled senior executives and board members at more than 50 global companies. To assist him in this research, Hedrick-Wong assembled a panel of leading experts in economics, urban development and social science from around the world, including:

• Professor Fan Gang, Director, National Economic Research Institute, Beijing
• Manu Bhaskaran, Partner/Head, Economic Research, Centennial Group, Singapore
• Dr. Michael Goldberg, Professor Emeritus, Sauder School of Business, University of British Columbia
• Professor William Lever, Emeritus Professor of Urban Studies, University of Glasgow
• Professor Maurice D. Levi, Bank of Montreal Professor of International Finance, University of British Columbia
• Dr. Anthony Pellegrini, Partner/Director of the Urban and Infrastructure Policy and Finance Practice, Centennial Group, Washington, DC
• Dr. Saskia Sassen, Ralph Lewis Professor of Sociology, University of Chicago and Centennial Visiting Professor, London School of Economics
• Professor Peter J. Taylor, Co-Director, Globalization and World Cities Research Group and Network, Loughborough University, UK

Note to Editors: Full details of the Index composition, including indicators and sub-indicators used for calculating the index value, are detailed in the Index report titled, MasterCard Worldwide Centers of Commerce Index™, 2007. A study on the significance of cities is found in the Insights report, titled, MasterCard Worldwide Global Centers of Commerce™ Insights 2Q, 2007: The Dynamics of Global Cities and Global Commerce. Both these reports are available at www.mastercardworldwide.com.

The ranking of the top 50 MasterCard Worldwide Centers of Commerce are found on the following pages.

* 1: Legal and Political Framework
2: Economic Stability
3: Ease of Doing Business
4: Financial Flow
5: Business Center
6: Knowledge Creation and Information Flow

MasterCard Worldwide advances global commerce by providing a critical economic link among financial institutions, businesses, cardholders and merchants worldwide. As a franchisor, processor and advisor, MasterCard develops and markets payment solutions, processes over 16 billion transactions each year, and provides industry-leading analysis and consulting services to financial institution customers and merchants. Through its family of brands, including MasterCard®, Maestro® and Cirrus®, MasterCard Worldwide serves consumers and businesses in more than 210 countries and territories. For more information go to www.mastercard.com.

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Eugenia Koh, Weber Shandwick, ekoh@webershandwick.com, (65) 6825 8029
Priyia Paramajothi, Weber Shandwick, pparamajothi@webershandwick.com, (65) 6825 8064