Instinet Expands Fixed Income Service in Europe.

Business Editors

LONDON--(BUSINESS WIRE)--March 20, 2002

Instinet (Nasdaq: INET), through affiliates, the largest global electronic agency securities broker, today announced that Instinet Fixed Income Markets (IFIM) has expanded its global electronic broking capability to offer US Treasury and US Agency securities to European customers.

Instinet Fixed Income's European clients will now have access to and participate in IFIM's US Treasuries and Agencies global liquidity pool. Initially, this will be available to traders in Europe during New York trading hours and the service will be extended to include trading throughout European market hours.

Commenting on the launch, Peter Fenichel, CEO Global Fixed Income Markets said, "The addition of US Treasuries and Agencies broadens the scope and scale of our service for our European clients. It builds on our ongoing strategy to provide traders with access to our technology and electronic brokerage service which allows them to access real liquidity. The combination of a scalable broking platform and expert broking desks provides our clients the opportunity to trade more efficiently by reducing the market impact and opportunity costs of trading with the goal of achieving better performance on their trades."

Since its launch in Spring 2000, IFIM has built its capabilities to provide access to liquidity for the European and US inter-dealer community. Instinet Fixed Income Markets provides an electronic brokerage service combining a custom built trading platform with expert voice-brokerage support, so that traders have full anonymity, transparency and neutrality when they trade.

Instinet Fixed Income Markets' US service supports trading in approximately 270 U.S. government bond products, including basis and swap-based trades, and, 30 Federal Agencies. . In Europe, the electronic brokerage service supports trading in 570 Euro-denominated bond products. Euro-denominated products currently include Euro sovereign instruments, as well as German Jumbo Pfandbriefe and Credit products. European markets can be traded as outright cash instruments, as a basis trade or as a spread trade.

Notes to editors:

About Instinet

Instinet, through affiliates, is the largest global electronic agency securities broker and has been providing investors with electronic trading solutions for more than 30 years. Our services enable buyers and sellers worldwide to trade securities directly and anonymously with each other, have the opportunity to gain price improvement for their trades and lower their overall trading costs. Through our electronic platforms, our customers also can access over 40 securities markets throughout the world, including Nasdaq, the NYSE and stock exchanges in Frankfurt, Hong Kong, London, Paris, Sydney, Tokyo, Toronto and Zurich. We also provide our customers with access to research generated by us and by third parties, as well as various informational and decision-making tools. We act solely as an agent for our customers and do not trade securities for our own account or maintain inventories of securities for sale. For more information, please go to www.instinet.com

This press release is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.

(c) 2002 Instinet Corporation and its affiliated companies. All rights reserved. INSTINET and the INSTINET Mark are service marks in the United States and in other countries throughout the world. Approved for distribution in the UK by Instinet Europe Limited, which is regulated by the FSA and a member of the LSE.

Instinet Fixed Income Markets operates through Instinet Fixed Income Inc., in the US and through Instinet Europe Limited and Montag Popper & Partner GmbH in Europe, which are all affiliates of Instinet Corporation. Instinet Fixed Income Inc. and Instinet Corporation, member NASD/SIPC are affiliates of Reuters. This news release may be deemed to include forward-looking statements relating to Instinet. Certain important factors that could cause actual results to differ materially from those disclosed in such forward-looking statements are described in Instinet's prospectus contained in its registration statement on Form S-1, filed with the SEC and available on its website, under the heading "Risk Factors". Certain information regarding Nasdaq trading volumes is also included in the registration statement.