Citadel Client Presentation June 2005 V3

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Citadel

Relationship Overview

June21, 2005

Confidential Discussion Document to:


Table of ContentsAgenda

I. Agenda

II. Executive Summary

III. Lehman Brothers Organization

III. Lehman’s Paradigm for Measuring the Success of Our Strategic Relationship

IV. Product Details and Revenue Analysis

V. New Issue

VI. Resource Analysis

VII. Summary/Conclusion

_____________________________________________________________

Appendices

A. Vote Summary

B. Lehman Brothers’ Equity Franchise

Agenda


AgendaAgenda

Today’s objectives and desired outcomes:

Introduce Ajay Nagpal, Head of Global Equity Sales

Review the depth and breadth of Lehman’s relationship with Citadel

Identify opportunities for growth and expansion of the relationship

Review Lehman’s service offering and identify strengths, weaknesses and opportunities for improvement


Meeting ParticipantsAgenda

Ajay Nagpal, Managing Director

Global Head of Equity Sales

212-526-6545

[email protected]

Alan Sorkin, Managing Director

Global Head of Equity Account Management

212-526-6545

[email protected]

mailto:[email protected]

mailto:[email protected]

Executive Summary


Executive Summary Lehman strategy is based upon the power of client-focused strategic partnerships

– Citadel is a major partner; ranking 60th in gross revenue (51st net)

– We enjoy a mutually beneficial “New Issue” relationship with Citadel providing Lehman valuable market color and liquidity that enables us to price our deal flow better. In return, Citadel new issue deal allocation rank is 4 th within Lehman’s universe of accounts.

– Citadel is a top-tier resource recipient, enjoying access to all Lehman services and covered by our best senior sales and trading professionals. Citadel resource allocation rank is 4th within Lehman’s universe of accounts.

Lehman believes that by exceeding Citadels expectations and providing world class service which supports your investment decision process, we can command outsized market share

We would like today’s discussion to explore ways to build upon our solid foundation

– Citadel to provide guidance on how Lehman Brothers can improve our service offering

– Understand the dynamic between Citadel commission allocation process and the service it receives

Executive Summary

Lehman’s Goal is to be the #1 Strategic Provider to Our Clients

1

Lehman Brothers Equities Organization


Lehman Brothers Global Equities Organization

Head of Global EquitiesBart McDade

Global Sales

Ajay Nagpal

Global Derivatives

and Convertibles

TimThrosby

Global Research

Steve Hash

Global Execution Services &

Global Trading

PatWhalen

Global Client

Services

John Wickham

2

Citadel – The Lehman Brothers TeamLehman Brothers Equities Organization

Global Equities Bart McDade New York 212-526-7067Global Sales Ajay Nagpal New York 212-526-6545Global Portfolio Sales Alan Tannenbaum New York 212-526-1701Global Account Management Alan Sorkin New York 212-526-8718

US Portfolio Sales David Deluca New York 212 526 7032Brendan Donoghue New York 212 526 0396Paul Spencer New York 212 526 7047Angelica Capola New York 212 526 1233Jim Miller San Fran 415 274 5421Neal Brockmeier San Fran 415 274 5440

EU Portfolio Sales Sanjay Lamba New York 212 528 6306Gideon Bernstein San Fran 415 263 4508Alex Bowden London 44 20 710 34413

Japan Portfolio Sales Nick Wilcockson Los Angeles 310 481 4173Janet Lewis New York 212 528 8778

Asia Portfolio Sales Val Huang San Fran 415 274 5593Cecilia Lee Korea 82 2 317 5127John Song Korea 82 2 317 5121

US Sales / Trading Eric Burns San Fran 415 274 5300Intl Sales / Trading Jefferson Saunders Tokyo 81 3 6440 2654Equity Finance Alan Pace New York 212 526 8623

Robert Curtis London 44 20 710 33030Stat Arb Jeff Zorek New York 212 526 7640Convertibles Rich Cunningham New York 212 526 7255

Scott Parrot New York 212 526 7255Simon Haynes-Oliver London 44 20 710 32727

Relative Value Jay Elkins New York 212 526 9130Ian Davey London 44 20 710 31007Indy Bhattacharya London 44 20 710 31007

Volatility Ryan Peters New York 212 526 7230Omar Abdellaoui London 44 20 710 34338

Coverage Team

Senior Management Team

3

Lehman’s Paradigm for Measuring the Success of Our Strategic Relationship

Measuring a Salespersons ImpactLehman’s Paradigm for Measuring the Success of Our Strategic Relationships

Qualitative

Salespersons impact in driving the revenue outcome

Quality of revenue outcome: e.g. one time impact or repeatable/sustained relationship

“Maintenance” of existing revenue streams vs. growth in new revenue stream

Quantitative

Magnitude of net revenue across products Growth in share of net revenue wallet Monetization of multiple product opportunities Distribution of revenue

Know Your Client

Develop an explicit understanding of the resources the client values

Deliver resources in a manner consistent with client commission process

Capture outsized share, by exceeding expectations and leveraging Lehman’s resources to enhance Citadels investment decision making process

Elements

Of a Successful

Relationship

Environment has Driven Lehman Brothers to Change the Metrics for Measuring Salesperson Success

By exceeding expectations and enhancing our clients capabilities to succeed, we believe Lehman can command an outsized market share

4

Lehman has Created Significant Relevance with Clients

Knight

BASDeutsche

BankPrudential Bernstein

JPMorgan

GoldmanSachs

UBS

Bear

Jefferies

Merrill Lynch

CSFBLehman

CitigroupMorgan Stanley

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

12%

13%

400 450 500 550 600

Greenwich Quality Index - NYSE & NASDAQ Trading

NYSE &NASDAQTradingShare

(%) Highest Quality Score

Lehman is #1 ranked in Overall Quality in both Portfolio Sales and Research, and #2 in Sales Trading

Are We Monetizing our Success?

Our Goal

Share of Wallet Methodology

5

Product Details and Revenue Analysis


Citadel – Relationship Overview

Global Equity Gross Production Lehman Brothers Gross Revenue with Citadel is $14.5mm, up 11% versus 2004 and 42% versus 2003; Net Revenue is $14.2mm up 15% versus 2004 and 45% versus 2003

The key driver of this growth is a 95% increase YOY in New Issue (+179% from 2003)

Regional penetration is expanding, European commissions currently account for 45% of Secondary business vs 29% in 2004

Growth in European commissions is accounted for by a significant increase in Relative Value

Overall secondary business has declined 22% YOY.

The business mix within Equities has changed given the reduction in Financing revenues

Key product commission drivers currently are Relative Value, Convertibles and US Cash

We continue to enjoy growth on a gross basis, key driver of this growth is New Issue

$7.2$8.7

$7.0

$2.6

$3.7 $7.2

$-

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

2003 2004 2005 YTD Ann

Secondary New Issue

$10

$12$14$ mils

Global Equity Net Production

$7.3$9.3

$7.4

$2.6

$3.7 $7.2

$-

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

2003 2004 2005 YTD Ann

Secondary New Issue

$ mils

$10

$13$15

6


Citadel – Relationship OverviewGlobal Equity Net Production by Product

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

US Execu

tion S

ervice

sEU Exe

cutio

n Serv

ices

AS Execu

tion S

ervice

s

Equity

Financ

e

Relativ

e Valu

e

Volatili

ty

Conve

rts

New Is

sue

2005 YTD Ann 2004($000s)

Total Secondary Revenues: 2005 $7mm Total New Issue Revenues:

2005 $7.2mm

7


Global Cash Business2003 - 2005 US Cash Commissions

$1.77$2.07

$1.84

$1.64

$2.03

$1.47

$-

$0.50

$1.00

$1.50

$2.00

$2.50

2003 2004 2005 YTD AnnGross Net

$ mil's

2003 - 2005 EU Cash Commissions

$0.60

$0.29

$0.54

$0.09

$0.35$0.48

$-

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

2003 2004 2005 YTD Ann

Gross Net

$ mil's

$0.07

$0.11

$0.28

$-

$0.05

$0.10

$0.15

$0.20

$0.25

$0.30

2003 2004 2005 YTD Ann

Gross Net

$ mil's

2003 - 2005 Asia Cash Commissions

US

Primary cash relationship for Lehman Brothers is in the US.

Consumer, Financials, Healthcare and Tech trading accounts for

83% of gross commissions

Europe

Lehman have a team of 3 sales people covering Citadel for European

Product, based in NY, SF and London

Lehman Brothers do not have dedicated Single Stock sales trading

for European cash, EU cash trades are managed through our Relative

Value team

We would like to explore the need to provide single stock coverage

to Citadel and also opportunities around ADR execution in the US

Asia

Lehman Brothers provide Asia coverage from the San Francisco

office

Outstanding question regarding need for Japan coverage and the

associated opportunity

Lehman Brothers currently rank Tier 1 in Global Equities with Citadel

8


Relative Value2003 - 2005 Commission

2003 - 2005 Commission by Region

$0.53

$1.59

$2.59

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

2003 2004 2005 YTD Ann

Relative Value$ mil's

$0.01 $0.02 $0.05$0.02 $0.03 $0.00

$0.50

$1.54

$2.54

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

2003 2004 2005 YTD Ann

US EUR ASIA

$ mil's

98% of 2005 Relative Value commissions are European

Relative Value

Relative Value is the largest contributor to Lehman

Secondary Revenues

Relative Value represents the majority of the European

business, Lehman relative value team have a well

established relationship with the trading desk in London

Is there a US Opportunity to expand the relationship ?

Lehman Brothers currently rank Tier 1 in US Event Driven and Tier 2 in EU Event Driven

9


Volatility

2003 - 2005 Commission by Region

2003 - 2005 Commission

$0.42

$0.64

$0.98

$-

$0.20

$0.40

$0.60

$0.80

$1.00

$1.20

2003 2004 2005 YTD Ann

$ mil's

$0.12

$0.54

$0.39

$0.26

$0.10 $0.12

$- $-

$0.54

$-

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

2003 2004 2005 YTD Ann

US EURASIA

$ mil's

US

Currently execute Listed Options from New York with the

ISE group and Pav Sethi’s group

Established dialogue with R. Khandalavala from New

York, no execution to date

Asia

Lehman are executing Derivative products with Citadels

Tokyo office:

– Chris O’Meara is ramping up the relationship, recently

executed Equity Linked Notes

10


Equity Finance2003 - 2005 Commission

$2.73

$2.43

$0.17

$-

$0.50

$1.00

$1.50

$2.00

$2.50

$3.00

2003 2004 2005 YTD Ann

Cash PB relationship ended at the end of 2004, part of a

process as Citadel move to self clearing

Citadel currently have ~ $155mm in total return swap

balances with Lehman Brothers

Lehman Stock Lending group currently lend stock to

Citadel

11

New Issue


Citadel New Issues

New Issue Allocations by Sector (past 12 month activity)

Strategic partner through the new issue process– We value and thank you for the liquidity you provide and the market color that enables us to price our deal flow competitively

Citadel participated in 35 Syndicate deals in the past twelve months, primarily focused in Technology, Internet & Media, Financial Services, Industrial and Consumer. As a result, Citadels 2005 YTD new issue ranks 4th within Lehman’s client universe

29%

19%16%

13% 13%10%

6%3% 3%

Techno

logy

Intern

et & M

edia

Financia

l Servi

ces

Indus

trial

Consu

mer

Health

Care

Service

s

Energy

/ Power

Retail

12


Citadel New IssuesNew Issue Participation (past 12 month activity)

Company Ticker Sec. Type Offer $ Trade Date Meeting Indication Allocation % Of Indic. % Of Deal Offer/1 Day Offer/1 Value

HUDSON CITY BANCORP INC HCBK FO 10.00 06/02/05 1 on 1 8,000,000 6,500,000 81.25% 2.53% 9.60% 6,240,000NAVTEQ CORP NVT FO 37.50 05/04/05 1 on 1 500,000 350,000 70.00% 1.17% -1.20% -157,500CENTRAL EUROPEAN MEDIA E CETV FO 44.91 04/28/05 1 on 1 275,000 150,000 54.55% 3.19% 2.43% 163,500SIGNATURE BANK SBNY FO 26.40 03/28/05 100,000 10,000 10.00% 0.07% 0.42% 1,100MEMC ELECTRONIC MATERIAL WFR FO 11.50 02/16/05 1 on 1 1,750,000 1,200,000 68.57% 2.11% 4.26% 588,000SYBASE, INC SY.D CVDB 100.00 02/15/05 30,000 14,000 46.67% 3.50%SYNIVERSE TECHNOLOGIES SVR IPO 16.00 02/09/05 1 on 1 1,250,000 975,000 78.00% 0.00% 0DEX MEDIA INC DEX FO 23.25 01/25/05 1 on 1 1,000,000 800,000 80.00% 4.44% 0.00% 0ASSURANT INC AIZ FO 30.60 01/20/05 25,000 5,000 20.00% 0.02% 2.45% 3,750FANNIE MAE FNM.P CVPS 100,000.00 12/29/04 7,500 2,000 26.67% 8.00%WESCO INTERNATIONAL INC WCC FO 26.25 12/16/04 1 on 1 600,000 600,000 100.00% 6.00% 0.00% 0INTERLINE BRANDS INC IBI IPO 15.00 12/15/04 1 on 1 750,000 400,000 53.33% 3.20% 15.33% 920,000BLOUNT INTERNATIONAL INC BLT FO 16.50 12/14/04 500,000 400,000 80.00% 4.00% 1.21% 80,000PILGRIM'S PRIDE CORP PPC FO 29.50 12/07/04 1 on 1 325,000 325,000 100.00% 3.25% -2.88% -276,250CB RICHARD ELLIS GROUP INC CBG FO 28.00 12/07/04 200,000 5,000 2.50% 0.03% 5.00% 7,000GREENFIELD ONLINE INC SRVY FO 18.16 12/06/04 1 on 1 600,000 200,000 33.33% 3.33% 5.18% 188,000OWENS-ILLINOIS INC OI FO 22.98 12/02/04 1,000,000 675,000 67.50% 2.14%MINDSPEED TECHNOLOGIES 1 MSPD.D CVDB 100.00 12/02/04 5,000 3,000 60.00% 7.50% 0.17% 522OVERSTOCK.COM, INC. OSTK.D CVDB 100.00 11/17/04 3,750 2,000 53.33% 2.00%TEMPUR PEDIC INTERNATIONA TPX FO 18.96 11/17/04 1 on 1 500,000 250,000 50.00% 1.92% 0.37% 17,500SIX FLAGS, INC. PKS.D CVDB 100.00 11/16/04 20,000 4,000 20.00% 1.54%UNITED MICROELECTRONICS C UMC ADR 3.48 11/10/04 500,000 400,000 80.00% 1.82% -1.44% -20,000CELL GENESYS, INC. CEGE.D CVDB 100.00 10/15/04 1 on 1 5,000 4,000 80.00% 3.64%HUGHES SUPPLY INC HUG FO 30.00 10/05/04 1 on 1 550,000 500,000 90.91% 11.63% 1.20% 180,000LEHMAN BROS. INC - GENERAL LEH.P CVPS 25.00 10/04/04 3,000,000 650,000 21.67% 2.17% 0NESS TECHNOLOGIES INC NSTC IPO 12.00 09/29/04 1 on 1 1,800,000 1,400,000 77.78% 11.99% 5.00% 840,000Analyst, KB JMDT IPO 16.00 09/28/04 530,968 70,000 13.18% 1.26% 40.69% 455,700VITESSE SEMICONDUCTOR COR VTSS.D CVDB 100.00 09/17/04 5,000 2,500 50.00% 2.78%AQUILA, INC. ILA.D CVPS 25.00 08/18/04 600,000 200,000 33.33% 1.67%HENRY SCHEIN, INC HSIC.D CVDB 100.00 08/04/04 10,000 8,500 85.00% 4.25% 0.00% 0BLOUNT INTL, INC. BLT FO 10.00 08/03/04 1 on 1 375,000 300,000 80.00% 2.50% 5.40% 162,000ENERSYS INC ENS IPO 12.50 07/29/04 1 on 1 350,000 300,000 85.71% 2.40% 0.00% 0DEX MEDIA, INC. DEX IPO 19.00 07/21/04 1 on 1 650,000 425,000 65.38% 0.80% 2.63% 212,500GREENFIELD ONLINE INC SRVY IPO 13.00 07/15/04 1 on 1 500,000 125,000 25.00% 2.50% 43.85% 712,500ADVANCED MEDICAL OPTICS, I AVO.D CVDB 100.00 06/16/04 15,000 8,350 55.67% 2.78%

5.59% 10,318,322

2005 YTD 1-day benefit to Citadel is $10.3mm

13

Resource Analysis

Citadel Revenue vs. Resource UtilizationCitadel continues to be a major recipient of resources, Citadel resource allocation rank is 4th within Lehman’s universe of accounts

Resource Analysis

7,194

8,694

6,974

3,692 7,211

2,585476

388376

0

100

200

300

400

500

600

700

800

900

1,000

FY 2003 FY 2004 YTD Ann 20050

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

Sec NI Resources

Total Production vs. Resource Utilization

$9,779

$14,185

$12,386

SEC

NI

NI

NI

SEC SEC

14


Citadel Global Resource Allocation

2005 YTD Global Resources Delivered by Sector (as of 06.13.05)

Since our summer 2004 meeting we have made an effort to balance resources provided across Citadels global equity sectors

1on1 Group Total Total Rnk 1on1 Group Total Total Rnk

Analyst Visit 68 2 70 25 164 4 168 20Company Marketing 17 24 41 16 44 50 94 21Conference 1:1s 119 0 119 1 141 0 141 3Deal Roadshows 10 0 10 n/a 39 4 43 n/aIndustry Events 1 9 10 5 0 5 5 68Total 215 35 250 4 388 63 451 10

2005 YTD (as of 06.06.05) 2004 FYMeeting Type

14%

12%

12%

9%

8%

7%

6%

4%

3%

2% 2%

1% 1% 1% 1%

0% 0% 0% 0% 0% 0%

15%

Healthc

are

Consum

er

Techno

logy

Intern

et & M

edia

Teleco

ms

Energy

/ Pow

er

Finan

cial S

ervice

s

Indust

rial

Service

s

Basic I

ndust

ries

Strateg

yMed

iaReta

il

Utlities

Banks

Autos

Specia

lty Fina

nce

Real Esta

te

Pharm

aOils

Chemica

ls

Biotech

15

Summary Conclusion


Conclusion/Next Steps

Citadel continues to be an extremely important strategic partner for Lehman Brothers across multiple regions and

products

Lehman value Citadel as a strategic partner in the New Issue process and thank you for the liquidity you provide

and the market color that enables us to price our deal flow competitively

Lehman believes there are several opportunities to increase our relationship with Citadel:

– Listed Options flow

– Expand US Cash Relationship

– Non-Dollar and ADR

– Asia Ex and Japan

We remain committed to continued dialogue to mutually grow an already successful partnership

Conclusion/Next Steps

16

Appendix


Citadel Votes Citadel Vote Results

Global Overall: LB Ranks Tier 1 vs. #7 (FY 2003)

Event Driven; LB ranks US Tier 1 vs #10 (FY 2003), Europe Tier 2

Sector Overall Meetings Sales Team Analysts

Communications 5 5 4 4Consumer Staples 5 5 7 5Energy 3 1 4 9Financials 4 5 2 3Healthcare 5 7 3 4Soft + Services 14 14 4 14Technology 1 1 3 2

Rank

Overall Meetings Sales Team Analysts

US Risk Arb 4 4 3 8US Spec. Situations 1 2 3 1ECM 4 - - -Europe 8 13 5 1

Rank

17

Lehman Brothers’ Equity Franchise

A Leader in Equity and Equity-Linked Underwriting

U.S. Equity & Equity-Linked Volume

Lehman Brothers was one of the top equity underwriters of 2004…

___________________________Source: Dealogic as of 12/31/2004.

6.0% 6.3%

8.9%

0%

2%

4%

6%

8%

10%

2002 2003 2004

% Market Share

…And has gained market share every year since 2002

Lehman U.S. Equity & Equity-Related Market Share

Lehman Brothers Equity Franchise

Volume ($MM)

Lehman U.S. Equity & Equity-Related Volume

84%48%

18

Change in # of 2004Rank Firm 2004 2000

Ranked Analysts Since 2000

1 Lehman Brothers 51 31 +202 Merrill Lynch 39 55 -16

3 (T) Morgan Stanley 32 55 -233 (T) UBS 32 19 +13

5 Citigroup/Salomon Smith Barney 31 46 -156 Bear Stearns 28 32 -47 Credit Suisse First Boston 27 73 -468 Goldman Sachs 24 35 -119 J.P. Morgan 18 17 +1

10 Banc of America Securities 17 5 +12

# of Ranked Analysts

#1 Ranked Equity Research Franchise

2004 Institutional Investor All-America Research Rankings

Lehman Brothers ranked #1 in 2004 All-America Research Team for the second straight year With 51 ranked analysts in 2004, institutional investors recognized Lehman Brothers as having the premier research

team on Wall Street for the second straight year

Over 700 institutions voted in this year’s poll, demonstrating the continued importance of research to institutional investors

___________________________Note: It is Lehman Brothers' policy to provide research coverage on companies for which Lehman Brothers has either lead or joint-lead managed an equity offering. Specific decisions on research coverage

are made solely by Lehman Brothers' research management. For further information, please contact Alicia Ogawa at 212-526-3586.


19

Sales & Distribution Strength

Leading Equity Platform on the Street

Institutional Ranked #1 overall in the Sales

Survey in 2004 317 institutional sales professionals in 14

offices globally Ranked #2 in

for small and mid-cap companiesRetail Ranked #1 commissions / salesperson by

374 PCS sales people in 14 offices globally Exclusive alliance with

– 9.0 mm retail customers– $462 billion total brokerage customer assets

Trading Prowess

Ranked #1 overall in the NYSE Listed Trading Survey in 2004

Ranked #2 in U.S.-Listed by Ranked #3 in U.S. Trading by 162 traders globally, making markets in 2,000

Listed and 980 NASDAQ stocks Unique sectorized trading approach

New Issue Momentum

Equity & Equity-Linked Market Share Gains

Lehman Brothers’ Equity Franchise

Sole Bookrunner for $2.5 billion convertible preferred stock and $2.5 billion preferred stock offering

Joint Global Coordinator and Bookrunner for €3.26 billion IPO

Sole Bookrunner for $750 million mandatory convertible

Bookrunner for $1.0 billion IPO

Joint Global Coordinator and Bookrunner for €1.25 billion IPO

Sole Bookrunner for $1.0 billion convertible

Bookrunner for $945.0 million follow-on

% Market Share


20

Sales and trading capabilities are a critical component of a successful equity offering The recently released Institutional Investor survey provides further evidence that Lehman Brothers is unmatched in equity

distribution

The Premier Equity Franchise

Lehman Brothers’ Top Ranked Trading Franchise

#3 #1

2004 Rank #4 – NASDAQ Listed

#3 #4

Lehman Brothers’ Top Ranked Sales Force

2004 Rank #1 – Overall U.S. Salesforce

#3 #1

2004 Rank #1 – NYSE Listed

317 institutional sales professionals in 14 offices globally

Unique Product Management platform provides seamless distribution of key, real-time, sectorized market intelligence to institutional investors

162 traders globally, making markets in 2,000 Listed and 980 NASDAQ stocks

Unique sectorized trading approach

Coordinated trading targets for all priority firm relationships

8.9% NYSE market share in 2004, representing 29% growth from 2001

Institutional Investor U.S. Equity Sales Rankings Institutional Investor U.S. Equity Trading Rankings


21

Lehman Brothers’ Equity FranchiseLehman Brothers U.S. Equity Franchise – A Dedication to Market Making Excellence Lehman Brothers’ sales and trading continues to gain momentum among the largest institutional investors as demonstrated by our client ranking gains in recent surveys

– Sales/Trading Excellence: Ranked #1 in Nasdaq Sales Trader Capability, #2 in Penetration of Nasdaq Trading, #1 in Competitiveness of Listed Block Trading, #2 in Small or Mid Cap Equities Trading , #2 in Capability of Soft Dollar Team

– Market Share Momentum: Listed and Nasdaq market share were 8.2% and 5.2% in 2003 respectively, up from 6.9% and 4.9% in 2001(1)

% Gain in NYSE Trading Franchise 2001-2003 (2)

22.2%

11.8%

2.9% 0.9% 0.0%

-7.3%-10.7%

-20%

-10%

0%

10%

20%

30%

LehmanBrothers

UBSW Citi GS MS CSFB ML

Shar

e G

ain

% Gain in NASDAQ Trading Franchise 2001-2003 (2) 45.9% 41.8%

3.4% 3.1%

-8.1%

-18.1% -18.4%-30%

-20%

-10%

0%

10%

20%

30%

40%

50%

UBSW LehmanBrothers

MS GS ML CSFB Citi

Shar

e G

ain

___________________________1. Based on Autex rankings.2. Data based on 2003 Greenwich Associates McLagan 100 survey. Trading franchise recognition based on total share of points assigned in 2003 Greenwich Associates survey.

“Lehman’s equity trading business…has developed a reputation for client services and the ability to execute difficult trades”

“One of the best equity trading desks on Wall Street”-CIBC World Markets, June 3rd, 2003


22

Documents

Citadel Client Presentation June 2005 V3