FAQ Reverse Stock Split

What is a reverse stock split?

A reverse stock split (or consolidation of shares) is an operation which reduces the number of outstanding shares without any modification of the Company’s capital. In practice, the operation substitutes one new share for a number of outstanding shares. In the present case, BULL proposes to exchange one new share for every 10 existing shares.

Why has BULL decided to consolidate its shares?

BULL has decided to consolidate its shares in order to return to a level of price more consistent with market standards and to reduce the volatility of the share price.

What is the consolidation ratio?

BULL is proposing a consolidation ratio of 1 new share for every 10 existing shares.

When is the consolidation of shares effective?

The consolidation is effective from December 19, 2005 .

Does the consolidation of shares modify the nominal value of the BULL share?

Yes, the nominal value of the BULL consolidated share is €0.10 (i.e. €0.01 nominal value of share before consolidation x 10).

Does the consolidation of shares modify the share price?

Yes, the share price increases automatically in proportion with the reduction of the number of outstanding shares. As an example, the closing price on December 8, 2005 at € 0.92 would correspond to a new price at € 9.20. However, there is neither assurance nor obligation that the post-consolidation share price will be at least equal to or greater than the consolidation ratio multiplied by the pre-consolidation share price.

Does the consolidation of shares modify BULL’s capital?

No, BULL’s capital remains the same after the consolidation.

Does the consolidation of shares modify the shareholders’ portfolio value?

No, shareholders’ portfolio value remains the same after the consolidation, as they hold fewer shares, but the value per share increases. E.g.: holding 10 shares at € 0.92 each is the equivalent of holding one share at € 9.20.

How the operation is completed in practical?

It happens as a matter of course, any shareholder being automatically attributed by its financial intermediary a new share for each lot of 10 old shares held.

What happens for shareholders that do not hold at least 10 shares or a multiple of 10?

Shareholders will have a two-year period in which to ask for the consolidation of their shares, during which they are responsible for dealing with left-over shares (number of shares lower than 10). In order to let the shareholders deal with these shares, the old shares remain separately (on the “compartiment des valeurs radiées d’Euronext”) for 2 years, i.e. the same time period than for the consolidation, allowing shareholders to buy or sell shares to complete their lots of 10. As of the end of this two-year period, the old shares will be definitely delisted.

What happens with the left-over shares that have not been dealt with after 2 years?

After two years, post consolidation shares corresponding to any shares that have not been consolidated will be sold automatically. The proceeds of the sale will be redistributed to indemnify holders of non-consolidated shares. In case this repayment is not immediately feasable, the corresponding amount will be held by Credit Agricole Investor Services (CAIS) CT for a period of 10 years, in an account for the benefit of the shareholder.

What impact does the consolidation of shares have on the number of votes held by each shareholder?

During the two year period following the share consolidation, any share which is not consolidated will be entitled to 1 vote and any consolidated share will be entitled to 10 votes.

How many shares will there be after the operation?

Based on the number of shares in circulation on November 30, 2005 , there would be approximately 97 million consolidated shares.

What procedure should be applied to the shares held in a nominee form (pure or registered)?

There is no specific procedure, the consolidation is implemented in the same way than for shares in bearer form.

What are the ISIN codes for the old and new shares?

Old shares FR0000052607

New shares FR0010266601