Press Release: August 15, 2000

WR Hambrecht + Co Redefines Corporate Bond Offerings With Launch Of OpenBook

Dow Chemical first to use WR Hambrecht + Co’s OpenBook auction in $300 million offering

San Francisco, CA, August 15, 2000—WR Hambrecht + Co today announced the launch of OpenBook (www.openbook.com) an internet-based Dutch auction platform for the investment grade bond market. Dow Chemical (DOW) is the first issuer to use WR Hambrecht + Co’s OpenBook auction with today’s $300 million bond offering.

“WR Hambrecht + Co’s OpenBook auction gives investors and issuers a more equitable and consistent market for bond offerings. Institutional investors get equal access and greater price stability, while issuers benefit from a broader investor base and a more stable after-market. Additionally, everyone can view the price discovery process,” said Bill Hambrecht, CEO of WR Hambrecht + Co. “Our OpenBook auction continues in the same tradition of our OpenIPO auction, leveraging technology to change the financial services landscape.”

WR Hambrecht + Co’s OpenBook uses an impartial Internet-based auction that allows the market to determine bond pricing and allocation, a first in corporate debt issuance. The system is also the only bond auction to offer all institutional investors real-time price discovery and open access to all offerings. Investors submit their bid and can then watch the real-time book building process. Once the auction is complete, WR Hambrecht + Co’s system determines the final allocation — with bonds awarded to those bidding at or below the spread clearing all the bonds. Investors who want a guaranteed bond allocation regardless of price can submit a non-competitive bid.

“WR Hambrecht + Co has now leveraged internet and auction technologies at both ends of the capital spectrum — equity IPOs (OpenIPO) and high grade bonds (OpenBook),” said J.D. Delafield, Senior Managing Director. “We have experienced tremendous validation from issuers and investors for both products. In addition to pursuing opportunities in these markets, we are working to introduce other primary market products as well.”

“We see similar issues in the bond market as we do with Initial Public Offerings. Both issuers and investors are losing out because of an antiquated system. Our OpenBook system can resolve these issues by having the bond pricing reflect market demand and the issuers’ interests,” said Mike Evelyn, co-head of WR Hambrecht + Co’s debt capital markets group.