Cantor Fitzgerald to acquire the assets of Parallax Group, leading provider of analytical research and investment strategies for convertible and hybrid equity securities markets.

NEW YORK--(BUSINESS WIRE)--July 1, 1996--In a move to further reinforce its leading position in the third market equity business, Cantor Fitzgerald & Co. announced today it will acquire the assets of Parallax Group of Stamford, Conn., a major provider of sophisticated analytical research and investment strategies for the convertible and other hybrid equity security markets. Parallax will be merged with Cantor Fitzgerald's existing convertible securities business and be based in Stamford and New York City.

Using the full range of hybrid equity securities -- including U.S. and international convertibles, options, and warrants -- Parallax structures and implements risk-management investment strategies primarily for large institutional clients. Cantor Fitzgerald & Co. is the nation's largest third-market equity broker and a leading market maker in NASDAQ and other listed securities.

"The proliferation of hybrid securities has significantly multiplied the portfolio risk management options open to our clients," said Howard W. Lutnick, President and CEO of Cantor Fitzgerald L.P. "Parallax's sophisticated, custom-tailored strategies using these instruments extends Cantor Fitzgerald~s full-service, one-stop shopping philosophy and perfectly complements our well-recognized strengths in institutional brokerage and trade execution."

Commenting on the transaction, Peter DaPuzzo, Senior Managing Director of Cantor Fitzgerald, said: "Parallax's rigorous market-driven analytic research and analysis adds an important new dimension to the institutional services that Cantor Fitzgerald can offer. The combination of Parallax's specialized knowledge and Cantor's strong capital will also enable Parallax to play a more strategic role in underwriting groups."

Emmett J. Harty, Parallax's founder and president, who will head the new division, added: "Numerous synergies should stem from our combined operations and in-depth knowledge of these highly-specialized financial instruments. In particular, Cantor Fitzgerald's substantial capital base and broad distribution will significantly enhance our ability to facilitate trades for our clients."

Amplifying on Parallax's services, Mr. Harty said the new Cantor Fitzgerald division will help institutional clients, including money managers, mutual funds, plan sponsors, insurers and corporations, understand the pricing, market, and relative cost parameters of a range of available hybrid equity securities. "We analyze all new and existing equity financial products, and develop highly analytical risk-management strategies based, to a considerable extent, upon our clients' fundamental assessment of stock price movements for particular companies," he added.

Cantor Fitzgerald's large network of over 80 institutional sales people located throughout the U.S. and in London has enabled the firm to establish a reputation as the largest and most successful third market equity firm in the U.S.

Cantor Fitzgerald & Co. is part of Cantor Fitzgerald L.P. Cantor Fitzgerald L.P. -- with its affiliates -- is also the world's leading broker of U.S. and International Government Securities and corporate debt. The firm employs approximately 2,000 people in offices throughout the U.S., Europe and Asia.

CONTACT: Debra Walton-Collings

Cantor Fitzgerald

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