The Standard & Poor's MidCap 400 Index - S&P MidCap Index - measures the performance of the mid-range sector of the U.S. stock market. The Index is based on 400 stocks chosen on the basis of market size (median market capitalization of about $843 million), liquidity and industry group representation. It is a market-value weighted index (share price multiplied by number of shares outstanding). The MidCap Index was introduced on June 19, 1991.

Already heralded as the performance benchmark of middle- capitalization range companies, Standard & Poor's MidCap 400 Index (S&P MidCap) was introduced on June 19, 199 1. This new index is designed to provide a barometer for measuring the U.S. stock market's broad mid-range niche between the largest companies - represented by the Standard & Poor's 500 Composite Stock Price Index (S&P 500) - and smaller companies. The MidCap is the first major index to be launched by Standard & Poor's since its creation of the S&P 500 in 1957.

Developed over nearly a five-year period, this unique Index arose from repeated requests from money managers and professional investors for a way to monitor the performance of mid-size stocks. The MidCap includes 4W companies representing a cross section of industries - all widely held, actively traded, successful companies with a strong potential for continued, even aggressive, growth. The same rigorous index management that is used for the S&P 500 Index is used also for the MidCap Index to compile, maintain, calculate and disseminate index information.

Since its creation, the MidCap Index has been used as the basis for indexing - buying a basket of stocks designed to duplicate the performance of the Index - a form of passive portfolio management. By the end of 199 1, an estimated $2 billion is believed to have been indexed to the MidCap by money managers. Standard & Poor's has projected that in 5 to 10 years, some $40 billion may be tied to the Index.

Now, investors also may participate directly in the performance of the MldCap through options based on the Index and traded exclusively on the American Stock Exchange under a licensing agreement granted by Standard & Poor's. The Amex also plans to list MidCap warrants in the near future. In addition, futures and futures options based on the MidCap are traded by the Chicago Mercantile Exchange, also under a licensing agreement.

The Standard & Poor's MidCap 400 Index measures the performance of the mid-range sector of the U.S. stock market. The Index is based on 400 stocks chosen on the basis of market size, liquidity and industry group.

Stocks in the Index range in capitalization from abou $170 million to $6 billion with a median market capitalization of about $700 million. Industry groups represented in the MidCap include industrials, 67%; utilities, 15%; financial, 16%; and transportation, 2%.

The MidCap is a capitalization weighted Index (share price multiplied by number of shares outstanding). The Index was set at a benchmark value equal to 100.00 on December 31, 1990.

The MidCap Index is updated continuously every business day and disseminated approximately every 15 seconds under the ticker symbol MM.