Annual General Meeting of Julius Baer Holding Ltd.; Raymond J. Baer Elected New Chairman of the Board of Directors.

Business Editors

ZURICH, Switzerland--(BUSINESS WIRE)--May 14, 2003

The Annual General Meeting of Julius Baer Holding Ltd., Zurich, today elected Raymond J. Baer as the new Chairman of the Board of Directors and Beatrice Speiser and Andreas J. Baer as new members of the Board.

The Annual General Meeting also declared a dividend of CHF 6.00 (US$4.58) per bearer share and CHF 1.20 (US$0.92) per registered share. Assets under management narrowed by 3% in the first quarter of 2003, from CHF 106 (US$80.9 billion) billion to CHF 103 billion (US$ 78.6 billion).

"From a political and economical perspective, last year was far from ideal." With these words, Thomas Baer, outgoing Chairman of the Board, opened this year's Annual General Meeting of Julius Baer Holding Ltd. But Mr. Baer also said that Julius Baer aims to use this time of uncertainty and turbulence to adapt to the changed conditions. He expects the redimensioning measures introduced last year to be completed by the end of this year.

Solid business strategy guarantees medium-term stability and longer-term growth

In his comments on the 2002 financial year, Walter Knabenhans, President of the Group Executive Board and Chief Executive Officer emphasized once again that the focus will be on the core business of private and institutional asset management as well as investment funds. Knabenhans also stressed that Julius Baer will remain independent in its home market Switzerland, and that potential partnerships and alliances were being developed in select European markets. "Even though the markets have stabilized somewhat after the war in Iraq, we will push ahead with the measures announced in March to lower costs and boost earnings. There is still no indication of a return any time soon to the euphoric market conditions of the late 1990s."

More than CHF 30 million (US$22.9 million) has been earmarked this year for growth investments in the Group's key markets. Julius Baer plans to build on the superior investment performance achieved over the last few years in the US, which once again led to a welcome influx of new money in 2002: "Our reputation as a top-quality provider in international asset management, combined with our targeted distribution strategy, means we have the opportunity for successful growth in this important market," Knabenhans said.

Decisions of the Annual General Meeting

Shareholders elected Raymond J. Baer as member and Chairman of the Board of Directors. He previously served as Vice President of the Group Executive Board and head of the Private Banking Business Line. Raymond J. Baer, who has been with the Julius Baer Group for 15 years, takes over from his uncle, Thomas Baer, Chairman of the Board since 1996. The changeover means that the overall responsibility for the company will pass to a representative of the fourth generation of the Baer family. "My aim is to write the next chapter in the success story of our bank and its traditions," said Raymond J. Baer in his speech accepting the position of Chairman.

Beatrice Speiser and Andreas J. Baer were also elected as new members of the Board of Directors. Ms Speiser has many years of experience as a lawyer and head of a consulting firm. In addition, she has been a lecturer at the Universite de Haute-Alsace since 1998 and a member of the Board of Directors of Julius Baer Family Office Ltd. since 2000.

Andreas J. Baer has worked since January 2000 as an attorney in business law for the Zurich law firm of Baer & Karrer. His previous professional experience includes work as an auditor for the district court of Pfaffikon, Zurich and participation in the Foreign Lawyers Program at the law firm Wilmer, Cutler & Pickering in Washington. Since 2000 Andreas J. Baer has been a member of the Board of Directors of Julius Baer Investment Funds Services Ltd.

Paul Embrechts was re-elected for another three-year term as a member of the Board of Directors.

In addition, the Annual General Meeting also decided, as part of the share buy-back program, to amend the capital of Julius Baer Holding Ltd. as follows:

- conversion of 195,460 registered shares into 39,092 bearer shares

- reduction of the share capital from CHF 5,575,111 (US$4,255,809) to CHF 5,470,561 (US$4,176,000).

The new share capital of CHF 5,470,561 (US$4,176,000) is made up of 9,727,665 registered shares with a par value of CHF 0.10 (US$.08) and 8,995,589 bearer shares, of which 8,421,937 entitled to dividends, with a par value of CHF 0.50 (US$.38).

Results for the 1st quarter of 2003

Assets under management by the Julius Baer Group fell by 3% in the first quarter of 2003 to CHF 103 billion (US$78.6 million). The reduction is due almost exclusively to market developments. In contrast, the flow of net new money in private banking and institutional asset management improved compared to the second half of 2002.

As expected, earnings were lower due to a year-on-year decline in assets under management and the lower transaction volumes. The cost reduction measures announced earlier are proceeding according to plan.

As indicated at the March press conference, net profit for the current year will turn out to be considerably lower than that of 2002 if operating conditions do not soon take a decisive and sustained turn for the better.

The speeches and presentations by Thomas Baer and Walter Knabenhans are available on the Internet at www.juliusbaer.com.

The half-yearly results of the Julius Baer Group will be published on 15 August 2003.