Amex Equity Fee Schedule Effective 10/27/1999

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Effective with the November 1999 billing cycle (which commenced on October 27, 1999) the American Stock Exchange^® has implemented a new Equity Fee Schedule to provide that orders up to 2,099 shares entered electronically into the Amex Order File from off the Floor ("System Orders") are executable on the Floor at no charge, subject to certain exceptions noted below. Such orders will not be assessed a share or value charge or a regulatory fee. In addition, specialist commissions for System Orders up to 2,099 shares have been eliminated (see New Specialist Commission Bill Codes for details). System Orders under 2,099 shares of a member or member organization trading as agent for the account of a non-member competing market maker will continue to be subject to share and value charges, the regulatory fee, and specialist commissions. Manually delivered orders, System Orders greater than 2,099 shares and all orders in Exchange-traded Funds (noted below) also will continue to be subject to specialist commissions.

The Exchange imposes a separate rate structure for Exchange-traded Fund products, previously applied only to SPDRs^® , MidCap SPDRs^TM, DIAMONDS^® , Select Sector SPDRs^® and the Nasdaq-100^® Index Trust. This rate structure (see notes 7 and 8 in Fee Schedule below) has been expanded to include, in addition to the specific Fund products noted above, all current and future Exchange-traded Funds, (Portfolio Depositary Receipts and Index Fund Shares) listed on the Amex^®, including WEBS^TM, as well as Trust Issued Receipts (e.g., Internet HOLDRS^SM). Amex does not impose transaction charges for such securities for System Orders up to 5,099 shares, and all orders in such securities are exempt from the regulatory fee, except for System Orders of a member or member organization trading as agent for the account of a non-member competing market maker. Note that the rate stucture for Exchange-traded Funds does not change with this notice.

Pending implementation of necessary programming changes to Exchange billing systems, members and member organizations will receive a bill in December (for the November period) based upon the Exchange's previous pricing schedule. As soon as the Exchange has completed updating its billing systems (expected in January for the December billing), the Exchange will bill based upon the new equity billing schedule and will issue credits for the excess amount billed for the prior month(s).

Questions concerning this circular may be directed to Brett Redfearn, Managing Director of Business Strategy and Equity Order Flow, at (212) 306-1943.

1. In calculating these charges, each order will be assessed on the first 25,000 shares only.
2. Amex specialist/REMM trades are 100% deductible.
3. Amex option specialist/ROT trades in paired securities are 100% deductible.
4. The value-based portion of the transaction charge (based on the value of shares traded) is subject to a maximum charge of $40 per trade.
5. Proprietary trades in Canadian securities are charged at 50% of the above rates.
6. Orders entered electronically into the Amex Order File from off the Floor ("System Orders") for up to 2,099 shares will not be assessed a share or value charge. This provision does not apply to System Orders of a member or member organization trading as an agent for the account of a non-member competing market maker. A "competing market maker" is defined as a specialist or market maker registered as such on a registered stock exchange (other than the Amex), or a market maker bidding and offering over-the-counter, in an Amex-traded security.
7. In lieu of the above transaction charge, a separate fee will be imposed for executing trades in Portfolio Depositary Receipts, Index Fund Shares and Trust Issued Receipts which will vary depending on for whom the trade is executed. Specialists will be charged a transaction fee of $.006 per share ($.60 per 100 shares), capped at $300 per trade (50,000 shares). Registered Traders will be charged a transaction fee of $.007 per share ($.70 per 100 shares), capped at $350 per trade (50,000 shares). Off-floor orders (i.e., customer and broker-dealer) will be charged a transaction fee of $.006 per share ($.60 per 100 shares), capped at $100 per trade (16,667 shares).
8. System Orders for up to 5,099 shares in Portfolio Depositary Receipts, Index Fund Shares and Trust Issued Receipts will not be assessed a transaction charge. This provision does not apply to System Orders of a member or member organization trading as an agent for the account of a non-member competing market maker.