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Press Release: May 11, 1999 INSTINET AND WR HAMBRECHT + Co. SIGN EQUITY AGREEMENT Instinet Acquires 11.4% of Entrepreneurial Investment Bank, WR Hambrecht NEW YORK, NY, May 11, 1999—Today Instinet Corporation, a wholly-owned subsidiary of Reuters Group PLC (Nasdaq: RTRSY) and the world’s largest agency broker, and WR Hambrecht + Co, an entrepreneurial investment bank founded by financial services leader Bill Hambrecht, jointly announced Instinet’s investment in WR Hambrecht + Co. Instinet has acquired 11.4% of WR Hambrecht for $20 million USD. The two companies are also in advanced negotiations regarding an international joint venture to increase the efficiencies of the capital raising business in Europe and Asia through Instinet’s global agency brokerage using WR Hambrecht + Co.’s OpenIPO system. “Since its founding 30 years ago, Instinet has applied innovative technology to bring efficiencies and cost reductions to institutions, and the individuals served by these institutions, and now Instinet is the world’s leading agency brokerage firm,” said Bill Hambrecht, CEO of WR Hambrecht + Co “WR Hambrecht + Co is privileged to enter into an alliance with such a groundbreaking, significant player in world markets. ” "We are enthusiastic about joining forces with the Hambrecht team,” said Douglas M. Atkin, Instinet’s President and Chief Executive Officer. “For issuers, WR Hambrecht’s OpenIPO method represents a fundamentally new way to raise capital at much lower cost. For investors, many of whom have been excluded from participation in IPOs, it means the ability to participate. This alliance goes to the heart of Instinet’s strategy to make issuers and investors more efficient." Atkin said, "Today’s agreement with WR Hambrecht + Co is part of that strategy. We would encourage other leading financial firms to participate with us in extending the value of technology to increase efficiencies in the capital formation process globally.” WR Hambrecht + Co’s OpenIPO system, launched in the US in February 1999, is an auction-based method of taking companies public on the Internet, and has quickly moved to the forefront of technology-driven investment banking companies. The company offers issuers a way to generate capital more efficiently through technology by creating a level playing field; offers individuals greater access to the IPO process through its OpenIPO system; and, has introduced transparency among its investors by giving all investors — individuals and institutions — equal weight. By offering IPO’s over the Internet, not only are all investors and the issuers on a level-playing field, but they are all also able to participate in setting the optimal price. Instinet Corporation |