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ITG Europe To Be Wholly Owned Subsidiary of Investment Technology Group, Inc.

NEW YORK - January 16, 2001 - Investment Technology Group, Inc. (NYSE:ITG) today announced that it has signed an agreement to acquire Société Générale's interest in ITG Europe for U.S. $18.5 million. Closing of the transaction is contingent upon obtaining certain regulatory approvals.

ITG Europe was established in 1998 as a joint venture between ITG and Société Générale. ITG Europe operates the POSIT® crossing system in eight European countries and is a registered trademark of Investment Technology Group Limited (ITGL). ITGL is a member of the London Stock Exchange, the Deutsche Börse and Euronext. ITGL is headquartered in Dublin, Ireland and is regulated by the Central Bank of Ireland. The group has central sales and marketing departments in London. Since ITG Europe began operating two years ago, 2.8 billion shares have been matched, reinforcing ITG's commitment to its international growth strategy.

"Our experience in the UK and Australia has shown that institutional investors have recognized that market impact is the largest part of their overall execution costs. ITG's advanced tools can help clients minimize these costs thereby improving their performance," stated Raymond L. Killian, Jr., ITG Chairman, President and Chief Executive Officer. "We plan to continue enhancing the technology capabilities of ITG Europe through the implementation of the same product lines we have succeeded with domestically - alternative trading, program trading and direct access."

The completion of this transaction, combined with the November 28, 2000 announcement that ITG had acquired the interest in ITG Australia Ltd. that it did not already own, establishes a foundation for further global expansion. These acquisitions provide ITG with the flexibility to explore strategic partnerships that would supply a wide, global reach. According to Mr. Killian, these activities are in-line with ITG strategies to globalize the organization and take advantage of a business model that supports client relationships worldwide, strengthens its brand, and enhances shareholder value.

"The joint venture has been very successful to date and we have achieved our initial objectives," said Alasdair Haynes, Chief Executive Officer of ITG Europe. "The new ownership structure gives ITG Europe the ability to pursue the opportunities ahead. We are very excited about the future of this business."

About ITG

ITG is headquartered in New York with offices in Boston, Los Angeles, Dublin, London, Melbourne, Sydney, Tel Aviv and Toronto. As the leading provider of technology-based equity trading services and transaction research to institutional investors and brokers, ITG generates superior trading results for its clients. ITG's services help clients to access liquidity, execute trades more efficiently, and make better trading decisions. ITG's cutting edge trading tools are easy to use and interface seamlessly with clients' workflow. As an electronic broker, ITG differentiates itself with institutional customers via front-end or desktop services that provide unique content and connectivity. In the electronic trading marketplace, through its POSIT system, ITG is the premier confidential stock crossing system for the industry. For additional information, visit www.itginc.com

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