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Index Products

Barclays Euro Government Bond 5yr Term Index

The Barclays Euro Government Bond 5yr term index measures the performance of 5 year government bonds issued by EMU member states. The index includes bonds issued by Germany, Italy, France, Netherlands and Spain. Term Indices are a new concept in bond indexing developed by Barclays Capital. They have very similar yield, duration and risk/return characteristics to standard maturity based indices but are more compact and more liquid. Term indices use a standard market capitalisation weighting methodology but include only bonds near to their original term rather than selecting all bonds in a maturity range. Index characteristics on 31 Aug 2008
5yr Term Average Yield Average Duration Average Life Average Price Average Coupon No. of Bonds Weight (%) AAA AA A BBB Note. 3-5yr maturity data is for comparison only 34 66 66 8 26
Italy 34%

Euro Govt 5yr Term index historical Returns

10 9 8 Period Return (%) 7 6 5 4 3 2 1 0 2001 2002 2003 2004 2005 2006 2007 YTD

Breakdown by issuer and rating on 31 Aug 2008

100% 90% 80% 70% 60% 50% Germany 38% 40% 30% 20% 10% 0% Rating AAA A

3-5Yr Maturity 4.28% 3.54 4.04 101.09 4.59% 45

France 28%

4.27% 3.43 3.88 98.97 3.95% 12

Top 10 Index constituents by weight on 31 Aug 2008

Issuer Bundesobligation Bundesobligation Bundesobligation Buoni Poliennali Del Tesoro Bundesobligation France - Btan Buoni Poliennali Del Tesoro Buoni Poliennali Del Tesoro France - Btan France - Btan Ticker OBL OBL OBL BTPS OBL BTNS BTPS BTPS BTNS BTNS Coupon 3.5 3.5 4.25 4.25 4 3.75 3.75 4 3.75 4.5 Maturity Date 14-Oct-11 12-Apr-13 12-Oct-12 15-Oct-12 13-Apr-12 12-Jan-13 15-Sep-11 15-Apr-12 12-Jan-12 12-Jul-12 Issuer Country Germany Germany Germany Italy Germany France Italy Italy France France Country Rating AAA AAA AAA A AAA AAA A A AAA AAA Weight (%) 9.9 9.7 9.6 9.5 9.3 9.1 8.7 8.5 8.0 7.9

Source for all charts: Barclays Capital.

Barclays Bank PLC is registered in England No. 1026167. Registered Office: 1 Churchill Place, London E14 5HP. Copyright Barclays Bank PLC, 2005 (all rights reserved). This document is confidential, and no part of it may be reproduced, distributed or transmitted without the prior written permission of Barclays. Barclays Capital is the investment banking division of Barclays Bank PLC, which is authorised and regulated by the UK Financial Services Authority and a member of the London Stock Exchange.

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General Characteristics and Index Rules

Criteria for inclusion in the index Issuer Bond type Rating Term Maturity Issue date Min issue size Base date Pricing Methodology Settlement conventions Index frequency and reinvestment Issuers included in the index are the major issuers of debt from EMU member states. Issuers are restricted to France, Germany, Italy, Netherlands and Spain. Bonds must be fixed rate coupon and bullet maturity. They should be denominated in euros and pay coupon and principal in euros. Zero coupon bonds and callable bonds are excluded. The index uses the lower of the Standard & Poors and Moodys rating to determine the index rating for each bond. All issues must have a rating of Baa3/BBB- or above. Bonds must have original term of between 4.5 and 5.5 years. Bonds must have a calculated life of 3 years or more on the rebalancing date. Bonds must settle on or before the rebalancing date to be eligible for the index. Bonds must have amount outstanding equal to or in excess of 2bn on the rebalancing date to be eligible for the index. 31 December 1998. The index uses mid-market prices from the Barclays Capital market makers at 4.15pm London time. The index uses standard settlement conventions for all calculations. Market calendars most appropriate for international investors are used. The index is calculated daily and has a value for each calendar day. This allows for simple calculation of returns without going to the bother of adjusting start and end dates according to the business calendar. Income from coupon is reinvested monthly at re-balancing. Income received during the month is invested until the end of month at a 1M Euro LIBOR -15bp set at the end of the month for the next month. The index is reviewed and rebalanced once a month, on the last calendar day of the month. New bonds and taps/increases entering the index must have settled on or before the rebalancing date. The index holding of each bond for the next month is set to the amount outstanding on the review date. The full outstanding amount of each issue is used including amounts held by the issuer for debt management purposes. The indices are weighted using the market capitalisation as standard. The index will contain at least six bonds at re-balancing. In the event that there are not enough eligible bonds, the index minimum life will be relaxed until six bonds are included. In the event that several bonds have the same life, younger bonds will be preferred. The maximum weight of any one bond in the index is 30%. If any bond has higher weight on re-balancing date its weight will be capped at 30%.

Index calculation and monthly review

Review procedure Index Holdings

Minimum index size Maximum weight

Data Publication and Distribution

Publication Distribution The Barclays Euro Government 5Yr Term Index is calculated daily on Target business days and published on the Barclays Capital Indices Website. Index data is available via the Barclays Capital Indices website and other data vendors: Barclays Capital Global Inflation-Linked Bond Index Website: www.barcap.com/indices Bloomberg: The index data is available on BCEX2 Index <GO> The indices designed, calculated and published by Barclays Capital are registered trademarks. The right to use one or more of these indices as underlying for OTC or exchange tradable structured products (warrants, certificates, ETFs, swaps) is granted only upon completion of a license agreement. For further information please contact us.

Licensing

Barclays Capital Index Products Team

For further info please contact the Barclays Capital Index Products team: Telephone Email Website +44 207 773 3744 index@barclayscapital.com www.barcap.com/indices

This document has been prepared by Barclays Capital, the investment banking division of Barclays Bank PLC ("Barclays"), for information purposes only. Barclays is not acting as advisor or fiduciary. Accordingly you must independently determine, with your own advisors, the appropriateness for you of the index. Barclays and its affiliates accepts no liability whatsoever (i) for the accuracy, completeness or currency of the index, or for delays or omissions therein, or for interruptions in the delivery of the index, or (ii) for any indirect, incidental or consequential losses arising from the use of this document or reliance on the index referred to, or other information contained, herein. Barclays has no obligation to take the needs of investors into consideration in determining, composing or calculating the index. Barclays does not guarantee the accuracy or completeness of information which is contained in this document. Any data on past performance, modelling or back-testing contained herein is no indication as to future performance. No representation is made as to the reasonableness of the assumptions made within or the accuracy or completeness of any modelling or back-testing. All opinions and estimates are given as of the date hereof and are subject to change. The information in this document is not intended to predict actual results and no assurances are given with respect thereto. Barclays makes no warranty, express or implied, as to results to be obtained for the use of the index or any other information contained herein. Barclays makes no warranties, express or implied, and hereby expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to the index or any data contained herein. In the UK, this document directed only at persons who are investment professionals as defined in Article 19 of the FSMA 2000 (Financial Promotion Order) 2001. Outside of the UK, it is directed at persons who have professional experience in matters relating to investments. Any service to which this document relates will be provided only to such persons. This document is not intended for distribution to retail customers.