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			Prudential Europe The single market and the impact of technology and major demographic shifts are bringing about unprecedented change in the savings and investment markets of continental Europe. These, coupled with the lowering of barriers to cross-border trade within the EU, mean that we have been able to create a new business model to develop the opportunities that are emerging for retail financial services in continental Europe. In a low inflation, low interest rate environment, continental European savers are already buying increasing quantities of equity-based savings products. Products of this kind are recognised areas of strength for Prudential and European legislation now enables products originating in one EU country to be marketed and sold on a cross-border basis. Our strategy for continental European retail markets involves harnessing existing product resources and tailoring them to individual market needs. Whilst meeting local presentational, fiscal and regulatory requirements, the basic core products will be the same in each market and be produced in a single location. We will be distributing through a series of non-exclusive strategic partnerships with leading local financial services providers. Our products will be branded or co-branded 'Prudential'. In November 1999, we announced partnerships with CNP Assurances in France and Signal Iduna in Germany. In forging links with France's leading life assurer and one of Germany's major insurance providers, we have gained access to local markets and marketing expertise and large scale distribution networks. Our strategic partnerships include the sharing of technical expertise and the consideration of joint ventures both in the respective home markets and elsewhere. We will launch the first new products for distribution in France and Germany later this year. In the meantime, we continue to develop our German broker business based in Frankfurt where we have already established a leading position in the new but rapidly-growing unit linked market. Whilst, in the short term, retail savings and investment products are our main focus, in the longer term, the provision of funded pensions both on an individual and a group basis will be a major market opportunity. In addition, we will distribute products through the local equivalents of independent financial advisers and insurance brokers. The next major markets for implementing our strategic partnership approach are Italy and Spain. We will develop plans for these markets during the course of this year.