JapanCross to Transfer PTS Business to Instinet

Business Wire, August 29, 2003

Business Editors

TOKYO--(BUSINESS WIRE)--Aug. 29, 2003

JapanCross Securities Co., Ltd. today announced that by agreement of its shareholders it will restructure its businesses and, as a result, transfer its PTS (proprietary trading system) business operations to Instinet Japan Limited. The transfer is expected to be completed by October, 2003.

JapanCross is a 50:50 joint venture between Instinet International Corporation and Nikko Citigroup Limited and was established in 2001 to offer Japanese equity crossing services to institutional investors. Through its newly created division, JapanCrossing, Instinet will continue to offer PTS crossing services to institutional investors as a means to reduce transaction costs.

"Transfer of the JapanCross business to one of our parents is a natural next step in the evolution of PTS crossing services in Japan," said Katsuhisa Sakauchi, the CEO of JapanCross. "JapanCross has received substantial order flow from institutional investors, and transferring our PTS operations to a parent allows us to realize natural economies of scale. Both parents remain committed to the PTS crossing business and our customers will continue to benefit from these services."

"We are delighted that the JapanCross business has matured to a point where it can be included with our existing offerings to domestic and international Japanese equity investors. A principal focus of our service is to reduce transaction costs, including with the development of alternative markets such as JapanCrossing," said Tony Mackay, President of Instinet Japan Limited.

"Nikko Citigroup is pleased with the growth of crossing services in Japan. We fully support this next step in the evolution of PTS-based crossing services, which are more naturally offered as a part of a broader menu of electronic trading-based services. Nikko Citigroup is committed to providing clients with access to alternative trading venues, including Instinet's PTS-based crossing services," said John Nicolis, Co-Head of Equities at Nikko Citigroup.

(C) 2003 JapanCross Securities Co., Ltd. All rights reserved. JapanCross Securities Co., Ltd. is a securities broker registered in Japan. It is an independent broker created by a 50:50 joint venture between Instinet International Corporation and Nikko Citigroup Limited, a securities broker registered in Japan. Not intended as an offer or solicitation with respect to the purchase or sale of any security. INSTINET is a registered service mark in the United States and in other countries throughout the world. Japan Cross is a service mark of JapanCross Securities Co., LTD.

About Instinet

Instinet, through affiliates, is the largest global electronic agency securities broker and has been providing investors with electronic trading solutions for more than 30 years. Our services enable buyers and sellers worldwide to trade securities directly and anonymously with each other, have the opportunity to gain price improvement for their trades, manage their orders and lower their overall trading costs. Instinet is part of the Reuters family of companies.

Through our electronic platforms, our customers can access over 40 securities markets throughout the world, including Nasdaq, the NYSE and stock exchanges in Frankfurt, Hong Kong, London, Paris, Sydney, Tokyo, Toronto and Zurich. Our customers consist of institutional investors, such as mutual funds, pension funds, insurance companies and hedge funds, as well as market professionals, including broker-dealers. We act solely as an agent for our customers and do not trade securities for our own account or maintain inventories of securities for sale.

This news release may be deemed to include forward-looking statements relating to Instinet. Certain important factors that could cause actual results to differ materially from those disclosed in such forward-looking statements are included in Instinet's Annual Report on Form 10-K for the year ended December 31, 2002, and other documents filed with the SEC and available on the Company's Web site. These statements speak only as of the date of this news release, and the Company does not undertake any obligation to update them.

About Nikko Citigroup

Nikko Citigroup Limited is a wholesale securities joint venture between Nikko Cordial Corporation and Citigroup, the world's most global financial services firm. Nikko Citigroup began operations in March 1999. The firm integrates the strong Japanese franchise of Nikko Cordial Securities with the global platform of Citigroup.