William Blair & Company Initiates Coverage of GFI Group Inc. With Outperform Rating

Business Wire, Jan 25, 2008

CHICAGO -- William Blair & Company initiated research coverage of GFI Group Inc. (Nasdaq:GFIG) ($85.89), the fourth-largest and arguably fastest-growing global interdealer broker (IDB) concentrating in OTC cash and derivative markets, with an Outperform rating and Aggressive Growth company profile.

Analyst Mark Lane estimated that the company would earn $3.10 per share in 2007, $3.95 per share in 2008, and $4.95 per share in 2009.

"We believe the interdealer brokerage business model is well established and adds value," Lane said. "Moreover, we believe GFI is well positioned in the high-growth derivatives market (particularly credit) and has attractive financial characteristics. GFI's business requires modest capital; the company assumes minimal credit, liquidity, and financial market risk; and it is a cash-rich business. We also believe that compensation expense pressures will dissipate and that GFI's operating margin can move in excess of 20% over time. Lastly, brokerage revenue growth should continue to benefit from increased financial market volatility and trading activity in the near term."

William Blair & Company, L.L.C. has received compensation for investment banking services from the company within the past 12 months, or expects to receive or intends to seek compensation for investment banking services in the next 3 months.

William Blair & Company, L.L.C. is a market maker in the security of this company and may have a long or short position.

William Blair & Company, L.L.C. is a Chicago-based investment firm offering investment banking, asset management, equity research, institutional and private brokerage, and private capital to individual, institutional, and issuing clients. Since 1935, we have been committed to helping clients achieve their financial objectives. As an independent, employee-owned firm, our philosophy is to serve our clients' interests first and foremost. We place a high value on the enduring nature of our client relationships, the quality of our products and services, and the continuity and integrity of our people. William Blair & Company's offices include Chicago, Boston, London, New York, San Francisco, Shanghai, Tokyo, and Zurich. For more information, please visit www.williamblair.com.

For important disclosures and information regarding the firm's rating system, valuation methods and potential conflicts of interest, please visit: http://www.williamblair.com/Pages/news_story_dept.asp?uid=1321&depID=4

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