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IEM PROSPECTUS: GOOGLE_WTA GOOGLE IPO MARKET CAPITALIZATION WINNER-TAKES-ALL Market

On Tuesday, June 29, 2004, at 1:00pm CDT, the Iowa Electronic Market (IEM) will open trading in a market based on the market capitalization value (closing price multiplied by the number of Class A and Class B shares outstanding) of Google Inc.’s stock at the end of the first day of trading on the stock exchange named in Google’s final S-1 filing.

Initially, six contracts will trade in this market, each representing one of six possible unique and exhaustive outcomes. The liquidation value of the contract which represents the actual outcome of the IPO will be $1.00. All other contracts will have a value of zero.

This document describes that market and should be viewed as a supplement to the Trader's Manual. Except as specified in this prospectus, trading rules for this market are the same as those specified in the Trader's Manual for the Iowa Electronic Market.

CONTRACTS

The initial financial contracts traded in this market are as follows:

Symbol IPO_0-20

IPO_20-25 IPO_25-30 IPO_30-35 IPO_35-40 IPO_gt40

Description $1 if market or if the IPO $1 if market $1 if market $1 if market $1 if market $1 if market

cap is less than or equal to $20 billion does not occur by March 31, 2005. cap is greater than $20 billion but less than or equal to $25 billion. cap is greater than $25 billion but less than or equal to $30 billion cap is greater than $30 billion but less than or equal to $35 billion cap is greater than $35 billion but less than or equal to $40 billion cap is greater than $40 billion.

The range of values in the contract symbol represent the threshold values at which that contract will pay off.

DETERMINATION OF LIQUIDATION VALUES

This is a winner-takes-all market. The contract that corresponds to the actual market capitalization according to the closing price and shares outstanding at the end of the first trading day after the IPO will have a liquidation value of $1.00; all others will have values of $0.00. For example, if there are (hypothetically) 100 million shares of Class “A” and Class “B” stock and the closing price on the first trading day is $210.00, then market capitalization is $210 x 100 million = $21 billion and a share of IPO_20-25 will pay $1.00 while all other contracts pay $0.

The print edition of the Wall Street Journal will be the official source for the closing price of Google stock and the final, completed S-1 filing (that is, the last filing – including any re-filings – prior to the IPO) with the SEC will be the source for the outstanding number of shares.

The judgment of the IEM Directors will be final in resolving questions of interpretation and typographical or clerical errors.

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