Barrack Rodos Files Class Action Lawsuit Against Knight Trading Group, Inc.

Business Editors/Legal Writers

PHILADELPHIA--(BUSINESS WIRE)--Dec. 12, 2000

Counsel for Class Plaintiff, Barrack, Rodos & Bacine, today issued the following:

A class action has been commenced in the United States District Court for the District of New Jersey on behalf of all persons who purchased the securities of Knight Trading Group (NASDAQ:NITE) ("Knight" or the "Company") between July 19, 2000, and October 4, 2000, inclusive (the "Class Period").

To sign up online: http://www.barrack.com/NewCases/NewCases.htm.

The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between July 19 and October 4, 2000.

For example, as alleged in the complaint, on July 19, 2000, defendants represented in an analysts' conference call that they were comfortable with estimates of 20%-30% growth in earnings per share during the third quarter of 2000, over the comparable 1999 period.

The complaint alleges that the statement was made without a reasonable basis, given operational problems known to defendants and the Company's increasing international expansion costs. On November 4, 2000, Knight issued a press release announcing third quarter results that were well below its prior assurances.

In reaction to this announcement, the price of Knight's shares dropped by 14% in one day. Before disclosing the above information, certain Knight insiders sold $50,000,000 worth of their personally held Knight common stock.

The plaintiff seeks to recover damages on behalf of all purchasers of Knight securities during the Class Period. He is represented by the law firm of Barrack, Rodos & Bacine, which has extensive experience in prosecuting investor class actions involving financial fraud. Barrack, Rodos & Bacine has prosecuted securities, antitrust and consumer class actions for over 20 years.

The firm has offices in Philadelphia, San Diego, New York, Boston and New Jersey and has been designated lead counsel by federal and state courts across the country in large, complex securities class actions, including those against Cendant Corp. (the largest securities class action in United States history), McKesson HBOC, Inc., Informix Corporation, Sunbeam Corporation and hundreds of others.

For more information about Barrack, Rodos & Bacine, please visit their website at www.barrack.com.

If you are a member of the Class described above, you may, no later than January 16, 2001, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.

If you wish to discuss this action or have any questions concerning this case or your rights or interests, please contact Maxine S. Goldman, Shareholder Relations Manager, at Barrack, Rodos & Bacine, 3300 Two Commerce Square, 2001 Market Street, Philadelphia, PA 19103, at 800-417-7305 or 215-963-0600, fax number 888-417-7306 or 215-963-0838 or by e-mail at [e-mail].