Fidelity Investments Closes Acquisition of UBS Correspondent Clearing Unit.

Business Editors

BOSTON--(BUSINESS WIRE)--July 1, 2003

Fidelity Investments(R) announced today it has closed its acquisition of Correspondent Services Corporation (CSC) from UBS Financial Services Inc., a unit of Swiss financial services firm UBS. Fidelity's agreement to acquire CSC was announced on April 8, 2003. Financial terms were not disclosed.

National Financial, Fidelity's correspondent clearing business, expects to begin the transition of CSC's client base to its brokerage platform later this year.

"We are pleased that the acquisition of CSC has closed," said Norman R. Malo, president, National Financial. "The closing has gone according to schedule, and we expect an equally seamless and timely integration of the CSC organization and its clients over the coming months.

"The clearing industry is undergoing significant and rapid consolidation. This acquisition underscores Fidelity's long-term commitment to the clearing business, and we are confident that by integrating National Financial's and CSC's technology, products and services we will enhance an already strong offering," Malo said.

Fidelity said CSC senior executives James P. MacGilvray, Michael F. Dura and Robert S. Basso, along with all CSC associates, including relationship managers, have joined National Financial.

"Our clients, along with the entire CSC team, are excited about joining National Financial," said Dura. "As part of National Financial, not only will our clients have access to an expanded menu of investment products and state-of-the-art technology, but also a premiere clearing platform that is backed by the resources of Fidelity Investments, one of the world's largest financial services organizations."

Following the transition, National Financial will service approximately 300 correspondent broker/dealer clients, and represent more than 3.3 million customer accounts, with an average daily trading volume of 158,000 and $277 billion in custodied assets, as of May 31, 2003.

About National Financial

National Financial provides broker/dealers, ranging from institutional and full-service firms to independent contractors, banks and discount brokers, with leading-edge clearing and execution products and integrated productivity tools to help enhance firm profitability, drive business growth and forge deeper customer relationships. National Financial also offers a leading online brokerage platform, compliance support, middle-office outsourcing, consolidated record keeping tools, fee-based solutions, and retirement and high-net-worth products, all supported by dedicated client service professionals. For more information about National Financial, please visit www.nationalfinancial.com.

About Fidelity Investments

Fidelity Investments is one of the world's largest providers of financial services, with custodied assets of $1.5 trillion, including managed assets of $869.3 billion as of May 31, 2003. Fidelity offers investment management, retirement planning, brokerage, human resources and benefits outsourcing services to 18 million individuals and institutions as well as through 5,500 financial intermediaries. The firm is the largest mutual fund company in the United States, the No. 1 provider of workplace retirement savings plans, one of the largest mutual fund supermarkets and a leading online brokerage firm. For more information about Fidelity Investments, visit www.fidelity.com.

National Financial Services LLC, Member NYSE, SIPC.

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