Neuberger Berman Files Registration Statement for Secondary Offering of 1.7 Million Shares

Business Wire, July 1, 2002

Business Editors

Neuberger Berman (NYSE:NEU) announced today that it has filed a registration statement with the Securities and Exchange Commission relating to a proposed secondary offering of up to 1.7 million shares of its common stock owned by employees who hold the stock under the Neuberger Berman Employee Defined Contribution Stock Incentive Plan, and up to 3.3 million shares of Neuberger Berman common stock owned by individuals who were the Company's Principals prior to Neuberger Berman's initial public offering in October 1999 (the "Founders Shares"), that may subsequently be delivered by the Neuberger Berman Automatic Common Exchange Security Trust (the "Trust").

The Founders Shares may be delivered in 2005 by the Trust, upon exchange of the Trust Automatic Common Exchange Securities (the "Trust Securities") concurrently being offered by the Trust. The Trust is a closed-end investment company not affiliated with Neuberger Berman. The Trust also filed a registration statement with the Securities and Exchange Commission relating to a proposed primary public offering by the Trust of Trust Securities covering up to 3.3 million shares of Neuberger Berman common stock.

Neuberger Berman will not receive any of the proceeds from the proposed offerings.

Merrill Lynch & Co. and Goldman, Sachs & Co. will be the book-running lead managers on the secondary offering and the Trust Securities offering, respectively. Bear, Stearns & Co. Inc., JP Morgan Securities Inc. and Salomon Smith Barney Inc. will join them as co-managers in each of the offerings.

Neuberger Berman Inc. through its subsidiaries is an investment advisory company with $61.9 billion in assets under management as of March 31, 2002. For 63 years, the firm has provided clients with a broad range of investment products, services and strategies. The firm offers private asset management, wealth management services, tax planning and personal and institutional trust services, mutual funds and institutional management, and professional securities services for individuals, institutions, corporations, pension funds, foundations and endowments. Neuberger Berman is headquartered in New York with offices in major cities throughout the United States.

The registration statements relating to these securities have been filed with the Securities and Exchange Commission but have not yet become effective. The securities may not be sold nor may offers to buy be accepted prior to the time the registration statements become effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

Once preliminary prospectuses are printed they will be available from Merrill Lynch & Co., 4 World Financial Center, New York, NY 10080 and Goldman, Sachs & Co., 85 Broad Street, New York, NY 10004.

Statements made in this release that look forward in time involve risks and uncertainties and are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such risks and uncertainties include, without limitation, the adverse effect from a decline in the securities markets or a decline in the Company's products' performance, a general downturn in the economy, competition from other companies, changes in government policy or regulation, inability of the Company to attract or retain key employees, inability of the Company to implement its operating strategy and acquisition strategy, inability of the Company to manage rapid expansion and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations.