Bloomberg and ITG to Form 'SuperECN'.

NEW YORK--(BUSINESS WIRE)--May 20, 1999--

Innovators in Alternative Trading Systems, Bloomberg Tradebook(R)

and ITG, To Create New Trading Model for Listed and Over-the-counter

Stocks

Bloomberg Tradebook L.L.C., and Investment Technology Group, Inc., (NYSE:ITG) today announced the formation of Tradebook SuperECN, a strategic partnership that will combine the benefits of Bloomberg Tradebook's fast-growing ECN with ITG's electronic execution products including QuantEX(R), ITG Platform and POSIT(R), the world's largest electronic equity crossing system. The partnership will offer to customers of both firms the ability to access both continuous and "mid-point crossing" liquidity in Nasdaq and listed shares at the same time.

An "ECN" is an "electronic communications network," a regulated type of agency broker that facilitates continuous matching of customer buy and sell orders while providing those orders with direct electronic access to the national market system. A "crossing system" electronically matches buy and sell orders at a derived price, such as the market mid-point, at discrete times during the day.

Bloomberg Tradebook and ITG have agreed in principle to develop jointly the proprietary SuperECN that will offer participants fast, efficient executions of trades in one of the largest available pools of liquidity in U.S. equities. Both firms plan to commit capital, technology and order flow to the venture, and expect to add additional partners. Bloomberg Tradebook and ITG are actively developing technology and applications for the SuperECN and will determine an official launch date once definitive documentation has been completed.

Lou Eccleston, managing director, Bloomberg L.P., Bloomberg Tradebook's parent, said, "The planned combination of the benefits of Tradebook and POSIT, two leading alternative trading systems, offers customers of the SuperECN immediate access to both a continuous and a crossing market. Clearly this partnership with ITG will enhance liquidity, bringing together both listed and Nasdaq stocks in one integrated element. For the future is the foundation of an entity that could shape tomorrow's execution paradigm--not just in U.S. equities, but across global equities markets."

Raymond L. Killian, Jr., chairman, chief executive officer and president of ITG, remarked, "We are excited about the SuperECN concept. ITG will develop advanced electronic trading products that access the SuperECN in addition to an integrated link between POSIT and Bloomberg's Tradebook system. We have long felt that crossing and order-driven markets should be united in an effort to provide the greatest liquidity. This alliance will give our mutual customers enormous efficiency as a linked execution system."

Bloomberg Tradebook L.L.C., President Kevin Foley said, "Tradebook has led ECNs with service and innovation, bringing the new national market system to trading and investing professionals. Partnering with ITG brings even more value to our customers' search for best execution for all their orders, large and small, Nasdaq and listed."

The blending of an ECN and a crossing market will not be the SuperECN's only innovation. To ensure success, Tradebook SuperECN will have a unique equity structure designed to encourage liquidity formation and to maximize the benefit to customers. A capital contribution in the SuperECN is required of current and future partners, but ownership levels in the long run will be predominantly determined by a formula that rewards order flow contribution rather than capital contribution.

"We chose not to sell interests in Tradebook the traditional way, for cash on the barrel," said Eccleston. "This is a new model that will reward the ability and the willingness of partners to contribute substantial order flow. This deal is about liquidity, and that's why it will bring so much benefit to customers and prospective customers of both Bloomberg and ITG."

About Bloomberg Tradebook L.L.C.

Bloomberg Tradebook L.L.C., a wholly owned subsidiary of Bloomberg L.P., is an electronic agency broker of equity securities operated in compliance with the SEC's newly implemented Regulation ATS. Bloomberg Tradebook is an approved ECN with full integration into the US National Market System for Nasdaq securities. An innovator focusing on new opportunities offered by regulatory and technological change, Bloomberg Tradebook has more than tripled in volume since the beginning of 4Q 1998. Tradebook is currently averaging approximately 32 million shares matched daily. Tradebook's services are offered in association with B-Trade Service L.L.C., a wholly-owned subsidiary of the Bank of New York Company, Inc. B-Trade Services is a single-purpose entity handling sales trading, operations and trade execution of U.S. equities for Bloomberg Tradebook.

About POSIT

POSIT is ITG's flagship product. It is a stock crossing system that allows institutional investors to buy and sell stocks efficiently and confidentially. First quarter 1999 volume in POSIT was 1.419 billion shares.

About Investment Technology Group, Inc.

Through its wholly owned broker-dealer subsidiary, ITG Inc., ITG is the leading provider of technology-based equity trading services and transaction research to institutional investors and brokers. ITG's services help clients to access liquidity, execute trades more efficiently, and make better trading decisions. ITG's website is located at www.itginc.com.

About Bloomberg L.P.

Bloomberg L.P. is an information, news and media company encompassing Bloomberg Financial Markets, a global, multi-media-based distributor of information services, combining news, data and analysis for financial markets and businesses. Bloomberg provides real-time pricing, historical pricing, indicative data, analytics and electronic communications 24 hours a day through 115,000 systems used by 350,000 financial professionals in 100 countries worldwide. Bloomberg News, with 700 reporters in 80 bureaus, is syndicated in over 850 newspapers worldwide and is the basis for its television, radio and publishing enterprises. Bloomberg L.P.'s website is located at www.bloomberg.com.

In addition to the historical information contained in this release, there are "forward-looking statements", as that phrase is defined by the Private Securities Litigation Reform Act of 1995, that reflect management's expectations for the future. A variety of important factors could cause results to differ materially from such statements. These factors include: the actions of both current and potential new competitors, rapid changes in technology, financial market volatility, evolving industry regulation, cash flows into or redemption from equity funds, effects of inflation, customer trading patterns, and new products and services.