The Bank of New York to Acquire Lynch, Jones & Ryan, A Leader in Commi

    Business Editors

    NEW YORK--(BUSINESS WIRE)--April 22, 2005--The Bank of New York announced today that is has signed a definitive agreement with Instinet Group Incorporated to acquire Lynch, Jones & Ryan, Inc. (LJR), a leader in the provision of commission recapture services to institutional clients. Lynch, Jones & Ryan, Inc. is a wholly owned subsidiary of Instinet Group, which is a member of the Reuters family of companies. LJR is the pioneer and premier provider of commission recapture programs, with over 30 years experience in providing value-added trading services to institutional investors who comprise 1,400 plan sponsor funds, with more than $2.2 trillion in assets. The company's headquarters are in New York, with regional offices in Chicago, Dallas, San Francisco and a presence in London, Tokyo and Sydney.
    The Bank has agreed to acquire LJR for a purchase premium of up to $159 million in cash, of which $5 million will be contingent upon achievement of a second quarter revenue target.
    The Bank plans to operate LJR as a subsidiary of BNY Brokerage Inc., its agency brokerage and a member of BNY Securities Group. BNY Brokerage, currently a major provider of commission recapture services, will consolidate its commission recapture business under the LJR brand name. The combination of BNY Brokerage and LJR's commission recapture businesses will create the leading provider with the broadest range of products. The transaction is subject to regulatory approval and currently is expected to close at the end of June 2005.
    Todd W. Burns, president of Lynch, Jones & Ryan, Inc. commented, "We are pleased to join The Bank of New York and to participate in the tremendous synergies this acquisition affords. We believe our clients will benefit from BNY Brokerage's diverse product suite and enhanced trading capabilities, which feature direct market access, program and algorithmic trading as well as agency fixed income trading. As a recognized global leader in transition management, BNY Brokerage's offering enables us to significantly enhance our ability to market new services to LJR's clients."
    "The acquisition of LJR bolsters our position as the leading provider of agency brokerage and commission management services," stated Carey S. Pack, president of BNY Brokerage Inc. "It reinforces our long-standing commitment to the plan sponsor and institutional fund community around the world. LJR has a renowned global brand and we are excited about the prospects for accelerated growth in Europe and Asia, as well as the U.S. market, through the combination of our commission recapture businesses. In particular, we have significant opportunities to introduce our transition management expertise to LJR's clients. I am also very pleased to have Todd Burns join our management team as head of our combined commission recapture business."
    Commission recapture is a commission management service that enables plan sponsors or mutual funds to gain control over commission costs generated as a result of trades executed on their investment portfolios. Through commission recapture, funds are able to increase overall performance by reducing operating expenses without affecting the quality of execution.
    BNY Brokerage is a leading institutional agency broker providing execution and commission management services to investment managers, hedge funds, pension funds, endowments, unions, and other plan sponsor clients.
    BNY Securities Group is the global agency brokerage, clearing and financial services outsourcing sector of The Bank of New York Company, Inc. It provides institutions, broker-dealers and corporations with a broadly diversified suite of services and "The Power of Choice" through multiple business models. Through its broad range of businesses, BNY Securities Group offers creative solutions in trade execution, commission management, independent research, securities clearing and financial services outsourcing. BNY Securities Group is the largest provider of commission management services, has 21 New York Stock Exchange seats, and offers global execution and clearing services in over 80 markets with offices in the U.S., Europe, Asia, and Australia. BNY Securities Group is an organization consisting of several broker-dealers and other companies. BNY Brokerage Inc. is a member of NYSE/NASD/SIPC.
    The Bank of New York Company, Inc. (NYSE: BK) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, investment management, and individual & regional banking services. The Company's extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com.

    Lynch, Jones & Ryan, Inc. member NASD/SIPC.

--30--NM/ny*

CONTACT: The Bank of New York Kevin Heine, 212-635-1569

KEYWORD: NEW YORK INDUSTRY KEYWORD: BANKING MERGERS/ACQ SOURCE: The Bank of New York

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