Kasten Chase Completes $CDN 7.4 Million Sale

TORONTO and NEW YORK - October 1, 2001 - Kasten Chase (TSE: KCA), a leading provider of high-assurance data security systems, today announced that it has sold its KastenNet Services division and licensed the underlying VersaPath secure access technology to Investment Technology Group (NYSE: ITG), a leading provider of technology-based equity trading services.

The transaction is valued at $CDN 7.4 million, comprising a license fee of $CDN 6.7 million for technology and $CDN 0.7 million for related KastenNet assets. Kasten Chase will realize approximately $CDN 6.5 million in revenue in Q3 2001 resulting from the transaction.

The KastenNet Services business provides Canadian customers with a direct access equity trading product. ITG has formed KTG Technologies Corporation, a Canadian entity that will operate the service under the KastenNet brand.

"This acquisition is a direct fit with our business strategy for global expansion of our direct access business line." stated Raymond L. Killian, Jr., ITG's Chairman, President and Chief Executive Officer. "We will expand the service to provide both Canadian market access for US users and US market access for Canadian users."

"This transaction reflects the significant value of our knowledge, skill and experience in the development and delivery of market leading technology solutions for industry-leading organizations within the financial services markets," said Jim Davies, president and chief operating officer at Kasten Chase. "This value will assume a growing importance as we advance our plans to deliver secure applications to the commercial markets. This event also represents a significant step toward completion of the transition of Kasten Chase into a single focus company in the area of high-assurance data security."

About Kasten Chase

Kasten Chase is focused on providing technology for the purposes of delivering advanced, fully integrated data communications solutions in the areas of data security, Internet access and wireless data communications. The company is headquartered in Toronto, Canada with U.S. offices located in Sterling, Virginia. For further information, visit

About ITG

ITG is headquartered in New York with offices in Boston, Los Angeles, Dublin, 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 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 products allow users to implement their own trading strategies by providing direct electronic access to most sources of market liquidity. For additional information, visit

Statements made today may include forward-looking information subject to risks, uncertainties and other factors that could materially affect actual results. For further information please see ITG's reports filed with the SEC pursuant to the Securities Exchange Act of 1934 which are available at the SEC's website (

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