EWEB Global X Emerging Markets Internet and E Commerce ETF

Dutton Associates initiates coverage of Euroweb International (NASDAQ:EWEB) with a Buy rating and a $5.00 target price. The 20-page report by Dutton senior analyst Rafael Kapelinski is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, and other leading financial portals. We initiate coverage of Euroweb International Corp. (Euroweb) with a Buy rating and a price target of $5. Established in 1996, Euroweb operates in Hungary and Romania through its subsidiaries Euroweb Hungary Rt. and Euroweb Romania S.A. The Company provides a wide array of Internet services tailored to the needs of residential and business subscribers, including Internet access (dial up, leased lines, ISDN, ADSL) and related value-added services (IP VPN, application development, server hosting, domain registration). Also, Euroweb provides typical telecommunication services such as international and domestic leased lines - mainly in Romania - and voice termination and origination. Euroweb is one of the few publicly listed Central European ISPs, and the only one that is trading in the United States. Following the political changes at the beginning of the 1990s, the Central European telecommunications market has experienced a stage of very fast growth and massive technological upgrade. Opportunities for offering Internet services are still considerable. Dial up still remains the dominant Internet access technology in the region on a user basis, although broadband penetration is accelerating fast off a low base. We would like to argue that the Company's current valuation does not reflect the current business momentum. The Company is trading at a deep discount to the few available benchmarks in Central Europe. We estimate Euroweb's fair market value at approximately $27 million, or $5 per share. In our peer analysis, we benchmark Euroweb against one of our covered companies, Internet Gold, a leading Israeli ISP and the best available comparable in the region. About Dutton Associates Dutton Associates is one of the largest independent investment research firms in the U.S. Its 27 senior analysts are primarily CFAs and have expertise in many industries. Dutton Associates provides continuing analyst coverage of over 100 enrolled companies, and its research, estimates, and ratings are carried in all the major databases serving institutions and online investors. The cost of enrollment in our one-year continuing research program is US $33,000 prepaid for 4 Research Reports, typically published quarterly, and requisite Research Notes. Dutton Associates received US $26,900 from the Company for 2 Research Reports with coverage commencing on 7/14/05. The Firm does not accept any equity compensation. Our principals and analysts are prohibited from owning or trading in securities of covered companies. The views expressed in this research report accurately reflect the analyst's personal views about the subject securities or issuer. Neither the analyst's compensation nor the compensation received by us is in any way related to the specific ratings or views contained in this research report or note. Please read full disclosures and analyst background at www.jmdutton.com before investing.