Cantor Fitzgerald Launches 'Independent Market Services'; New Subsidiary to Offer a Full Range of Marketplace Services and Strategic Counsel.

Business Editors

NEW YORK--(BUSINESS WIRE)--March 20, 2001

Cantor Fitzgerald, a leading financial institution providing a broad spectrum of services to the largest global financial markets, today announced the launch of Independent Market Services, L.L.C.

The wholly owned subsidiary will offer a full range of market services to a broad array of traditional and emerging marketplaces. These services will include market design, trading technology implementation, market operation expertise and futures and derivative product design. The group will leverage Cantor Fitzgerald's experience in building and operating markets and the marketplace technology expertise of eSpeed, Inc. (NASDAQ: ESPD), the leading provider of electronic trading solutions for building, operating and powering markets. This combination will provide a critical resource for non-financial industries looking for market liquidity, transparency and integrity.

IMS offers a unique combination of senior experienced industry and marketplace executives, who will draw from Cantor Fitzgerald's extensive experience in market requirements and market design and from eSpeed's superior technology assets, to bring the most innovative and thoughtful solutions to its partners.

"Many industries are facing enormous challenges turning outdated distribution networks into fair and efficient marketplace environments," said Admiral William Flanagan USN (Ret), President of Independent Market Services. "There is a new and very real need for expertise in marketplace design and operation. IMS will provide these for our partners."

Admiral Flanagan will lead the new group. Adm. Flanagan the former Commander-in-Chief of the US Atlantic Fleet, has been instrumental at Cantor Fitzgerald in developing non-financial commodities markets, especially those brought about by government deregulation and privatization.

Dr. Phil Ginsberg and Jeanine Hull, Esq. will serve as Senior Vice Presidents of the new company. Dr. Ginsberg has provided strategic planning advice to the public and private sectors, specializing in commodities and financial products. He served as an Associate Professor of Finance at the Kellogg School of Management at Northwestern University. His 17 years of experience at Cantor Fitzgerald extends across technology, intellectual property, equities and fixed income dealing. Jeanine Hull has 25 years of industry and government experience in energy services. She has served as a senior executive dealing with the development of efficient energy markets and is a former president of the national trade association for competitive energy suppliers. Ms. Hull also served as counsel to the Energy and Commerce Committee of the United States House of Representatives.

"IMS will work with its partners to combine our deep understanding of market dynamics with their specific market expertise," said Adm. Flanagan. "By working with our partners, we will take full advantage of opportunities to leverage Cantor's varied resources to develop fair and efficient markets around the world."

Howard W. Lutnick, Chairman and CEO of Cantor Fitzgerald added "Cantor Fitzgerald has a sophisticated understanding of some of the world's most complex, liquid and illiquid, regulated and unregulated marketplaces. The formation of Independent Market Services will harness that expertise to help develop and maintain efficient, reliable marketplaces."

About Cantor Fitzgerald

Cantor Fitzgerald, one of the "Forbes 500" Largest Private Companies in the U.S., provides a broad spectrum of wholesale institutional brokerage and execution services to the largest of the global financial markets. In conjunction with its affiliate, eSpeed, it operates one of the world's largest electronic marketplaces for G-10 sovereign debt, Agency and Corporate bonds, including Eurobonds and has historically been one of the largest "third-market" equity operations in the U.S. Headquartered in New York, Cantor Fitzgerald currently employs more than 1500 people in offices throughout the U.S., Canada, Europe, and Asia, serving the world's largest banks and securities houses. For more information about Cantor Fitzgerald visit www.cantor.com.

About Independent Market Services, L.L.C.

Independent Market Services (IMS) is a wholly-owned subsidiary of Cantor Fitzgerald, drawing upon the firm's broad experience in the development and organization of complex, liquid, regulated and unregulated markets. IMS will offer a full range of market services including, market design, technology solutions, and market operations to a wide variety of traditional and emerging markets. It's mission is to develop fair, reliable marketplaces that respect transparency, integrity and liquidity, thereby creating efficiencies, preventing unnecessary volatility, and enhancing risk management practices.