Press Release: June 6, 2000

WR Hambrecht + Co Closes $83 Million Strategic Financing Round

Series C round led by American Express, Scudder Kemper, Texas Pacific Group and Hikari Tsushin Capital. Firm also announces Clay Christensen, expert on disruptive technology and Harvard Business School professor, joins its board of directors

San Francisco, CA, June 6, 2000—WR Hambrecht + Co today announced the closing of its Series C financing, raising $83 million from 11 investors. The firm received second round funding from American Express, Scudder Kemper Investments, Texas Pacific Group, Hikari Tsushin Capital, Inc., J.F. Shea Co., Inc., Crimson Ventures, Park Avenue Capital, News Corp’s venture group epartners Limited, American Century, Instinet and William R. Hambrecht.

"We see WR Hambrecht + Co’s OpenIPO auction as one of the truly unique products in equity underwriting today because it delivers better pricing and share allocation in public offerings," said Ted Truscott, Managing Director of Scudder Kemper Investments.

"We are delighted to be a part of this second round of funding," said Pierric Beckert, Senior Vice President of American Express Interactive Investments. "WR Hambrecht + Co has an innovative business model that creates more opportunities for all investors, and we look forward to leveraging their technology to further enhance American Express Brokerage ¹ ."

The firm expects to use this round of funding to accelerate growth in numerous areas, maintaining its strategic focus on leveraging the Internet to bring price transparency to the capital markets.

"We believe the Internet’s role in the capital formation process can only grow because it offers greater transparency and opens access to all investors," said Bill Hambrecht, the firm’s Chairman and CEO. "With the funding from our strategic partners, we’ll be well positioned to further our market presence and continue to redefine investment banking for the benefit of issuers and investors."

Clay Christensen Joins WR Hambrecht + Co’s Board of Directors

WR Hambrecht + Co also announced Clay Christensen, Harvard Business School professor and author of the best-selling book The Innovator’s Dilemma, has joined the firm’s Board of Directors. Mr. Christensen is well known for providing strategic counsel on management of technological innovation, developing organizational capabilities and finding new markets for new technologies.

"Clay’s expertise in the implementation and management of technological change makes him a valued advisor to the firm,” said J.D. Delafield, COO of WR Hambrecht + Co. "We believe Clay’s insight on disruptive technologies will be invaluable as we continue our efforts to use new technology to redefine investment banking."

Mr. Christensen is a professor of business administration at HBS with a joint appointment in the Technology & Operations Management and General Management faculty groups. His book, The Innovator’s Dilemma, received the Global Business Book Award for the best business book of 1997 and it has also been on the business book best-seller lists of The Wall Street Journal, The New York Times and Business Week. He advises many leading corporations on issues concerning the management of technological innovation.

"WR Hambrecht + Co is an innovator in financial services. The firm is disrupting the investment banking status quo and its legacy systems with both electronic and auction technology. WR Hambrecht + Co is applying creative thinking in a market that hasn’t changed much in the last 60 years," Christensen said.

1American Express Financial Advisors, Inc. Member NASD and SIPC. American Express Company is separate from American Express Financial Advisors Inc. and is not a broker-dealer.