ITG Reports Third Quarter 2005 EPS of $0.37

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NEW YORK, NY, October 27, 2005 - Investment Technology Group, Inc. (NYSE: ITG), a leading provider of technology-based equity trading services and transaction research, today announced that for the third quarter ended September 30, 2005, net income was $15.6 million, 47 percent higher than net income of $10.6 million in the third quarter of 2004. Earnings were $0.37 per diluted share, an increase of 48 percent versus earnings of $0.25 per diluted share in the third quarter of last year. ITG's total revenue for the third quarter of 2005 was $102.2 million, 18 percent higher than total revenue of $86.3 million for the third quarter of 2004.

Excluding the impact of non-recurring items, operating revenues of $102.0 million increased by 21 percent from third quarter 2004 operating revenues of $84.2 million. Operating earnings per share of $0.36 in the third quarter of 2005 increased 33 percent versus operating earnings of $0.27 per diluted share in the third quarter of last year. Pre-tax operating margins in the third quarter of 2005 were 27 percent, up from 22 percent in the third quarter of 2004.

"ITG maintained momentum in the growth of our volume, market share and earnings in the third quarter," stated Ray Killian, ITG's Chairman, President and Chief Executive Officer. "We have made strides in executing our growth strategy by announcing two strategic acquisitions, expanding our product offerings internationally, and increasing penetration domestically with clients across our product spectrum."

ITG's International revenues were $22.4 million in the third quarter of 2005, 23 percent higher than revenues of $18.2 million in the third quarter of 2004. International pre-tax operating profits decreased from $1.0 million in the third quarter of 2004 to $0.8 million in the third quarter of 2005.

"ITG has experienced a decline in our European volumes, primarily due to security concerns throughout London in July as well as typical seasonality in August. We are confident that this remains an area of growth for ITG, and are committed to enhancing our presence in key financial centers around the world," stated Mr. Killian.

Other highlights of the third quarter include the announcements of two strategic acquisitions. In July, ITG announced that it would acquire Macgregor, a leading provider of trade order management technology for the global financial community. This deal is now expected to close in early 2006. In September, ITG announced the acquisition of Plexus, a research and consulting firm dedicated to enhancing investment performance. This deal is expected to close in January 2006.

Year to date - US GAAP Results

For the nine months ended September 30, 2005, revenues increased 21 percent from $244.9 million in 2004 to $296.1 million in 2005. Net income increased to $46.3 million, a 64 percent increase from $28.3 million in 2004, and diluted earnings per share increased 67 percent, from $0.66 in 2004 to $1.10 in 2005.

Conference Call

ITG has scheduled a conference call today at 11:00 a.m. ET to discuss second quarter results. Those wishing to listen to the call should dial 1-800-309-1245 at least 10 minutes prior to the start of the call to ensure connection. A listen-only webcast will also be available on ITG's website at For those unable to listen to the live broadcast of the call, a replay will be available for one week by dialing 1-888-203-1112 and entering the pass code 9453771. A replay will be available for two weeks on ITG's website. Both methods of listening to the replay will be available starting approximately two hours after the completion of the conference call.

About ITG

Investment Technology Group, Inc. (ITG), is a specialized brokerage firm that partners with clients globally to provide innovative solutions spanning the entire trading process. A pioneer in electronic trading, ITG has a unique approach to trading that combines pre-trade analysis, trade execution, and post-trade evaluation to provide continuous improvements in trading and cost efficiency. The firm is headquartered in New York and maintains offices in North America, Europe and the Asia Pacific regions. 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, 2004, and other documents filed with the Securities and Exchange Commission and available on the company's web site.

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Maureen Murphy
Investor Relations
(212) 444-6323

Alicia Curran
Media Relations
(212) 444-6130

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