ITG Europe: Change Of Ownership As Company Prepares For Growth

ITG Europe, the technology-based equity trading services group, announced today that it will be wholly owned by Investment Technology Group, Inc. (ITG) subject to regulatory approval and the subsequent completion of an agreement signed between ITG and Société Générale. The likely change in ownership comes shortly after ITG Europe reported strong volume figures at the close of its second year of trading and as the group prepares for further expansion into European markets and the introduction of new execution products.

ITG should acquire the remaining 50% of ITG Europe that it does not already own from Société Générale for a consideration of US$18.5 million.

ITG Europe operates POSIT® - the intraday equities crossing system - in eight European countries and has recently launched PORTRAIT™ - a pan-European portfolio trading service. The change in ownership will not impact the services ITG Europe currently offers clients.

In November 2000, ITG Europe reported that the volume of shares submitted into POSIT® grew135% in the last year and that some 2.8 billion shares have been matched since the group began operating two years ago. Since its inception, ITG Europe has seen dramatic developments in many aspects of its business. Client numbers have grown fourfold and the number of markets in which the group operates has grown from one to eight. Furthermore, a new business stream -PORTRAIT™ - was successfully introduced and, most importantly, the group's technology has proved to be highly reliable.

Alasdair Haynes, Chief Executive Officer of ITG Europe, said: "The joint venture has been very successful to date and we have achieved our initial objectives. However, to help clients further we need more investment in terms of technology and ITG is best suited to do this through its proprietary products and experience in the business of transaction cost control. The new ownership structure gives ITG Europe the ability to pursue the opportunities ahead. We are very excited about the future of this business."

Ray Killian, Chairman, President and Chief Executive of ITG, said: "Assuming total ownership of ITG Europe is in line with our strategy of globalising the ITG brands and ensuring consistent product offerings across the world. The completion of this transaction, combined with our recent acquisition of the remaining interest in ITG Australia, establishes a foundation for further international expansion and gives us the flexibility to explore worldwide strategic partnerships." Marc Litzler, Global Head of Equities for SG, said: "Although we are very pleased by the progress of the joint venture with the ITG group, we believe that ITG Europe is now less in need of SG and that this is an appropriate time to divest and get a proper return on our investment. We are confident that with the full backing of ITG, ITG Europe has a bright future ahead."

For further information please contact Belinda Keheyan, Head of Corporate Communications (tel) + 44 20 7670 4014

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