ITG Releases December 2002 Trading Statistics

NEW YORK, NY, January 9, 2003 – Investment Technology Group, Inc. ("ITG") (NYSE: ITG) today announced that U.S. trading volume was 1.7 billion shares for the month ended December 31, 2002, averaging 80.4 million shares per trading day. This compares to 1.9 billion shares (79.7 million per trading day) in November 2002 and 1.9 billion shares (95.0 million per trading day) in December 2001.

Earnings Outlook
The company reaffirmed its expectation to generate earnings per share of $0.33 - $0.38 for the fourth quarter of 2002, with the December volume results indicating that earnings will likely be at the low end of that range. This expectation excludes the $0.09 per share charge pertaining to the workforce reduction previously announced.

Share Repurchase
The company announced that its Board of Directors has authorized the repurchase of up to an additional 3.0 million shares of ITG common stock. The purchases will be funded from the company's available cash. In 2002, the company repurchased all 2.0 million shares of its common stock that had been previously authorized by the Board and, at December 31, 2002, had approximately 47.5 million shares of common stock outstanding.

"Our strong balance sheet and cash flow gives us the flexibility to repurchase shares and to invest in our future growth through international expansion, penetration of the hedge fund market and research and development," said Robert J. Russel, ITG's Chief Executive Officer.

December U.S. Trading Statistics
For the month ended December 31, 2002, U.S. trading volumes were 447 million shares for POSIT®, 827 million shares for Client-Site Trading Products, and 414 million shares for the Electronic Trading Desk. These data exclude all operations outside the United States and exclude statistics for Hoenig & Co., Inc., which ITG acquired on September 3, 2002. There were 21 trading days in December 2002 compared to 24 trading days in November 2002 and 20 trading days in December 2001.

ITG U.S. Trading Activity

Total U.S. Shares # of Trade Days POSIT Client Site Trading Products Electronic Trading Desk Total U.S. Volume Average U.S. Daily Volume
December: 21 447,293,336 826,824,722 413,631,585 1,687,749,643 80,369,031
Year-to-Date: 252 7,685,330,864 12,074,605,649 4,354,376,095 24,114,312,608 95,691,717
Monthly data are preliminary and, accordingly, may be revised in subsequent updates and public filings. These data are posted on ITG's web site,, and are also available via a downloadable spreadsheet file.

About ITG

ITG is headquartered in New York with offices in Boston, Los Angeles, Dublin, Hong Kong, London, Melbourne, Sydney, Tel Aviv and Toronto. As a leading provider of technology-based equity-trading services and transaction research to institutional investors and brokers, ITG's services help clients to access liquidity, execute trades more efficiently, and make better trading decisions. ITG generates superior trading results for its clients through three lines of business. POSIT®, the world's largest equity matching system, allows clients to trade confidentially. The Electronic Trading Desk is recognized as one of the leading program trading operations in the U.S. ITG's leading-edge Client Site Trading Products allow users to implement their own trading strategies by providing direct electronic access to most sources of market liquidity. For additional information, visit

In addition to historical information, this press release may contain "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995, that reflect management's expectations for the future. A variety of important factors could cause results to differ materially from such statements. These factors include the company's ability to achieve expected future levels of sales; the actions of both current and potential new competitors; rapid changes in technology; financial market volatility; general economic conditions in the United States and elsewhere; evolving industry regulation; cash flows into or redemption from equity funds; effects of inflation; customer trading patterns; and new products and services. These and other risks are described in greater detail in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2001 and other documents filed with the Securities and Exchange Commission and available on the company's web site.

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