NYFIX, Inc. Board Approves Holding Company Structure and Name Change to NYFIX Holdings, Inc.; Company Organizes NYFIX USA, LLC.

Business Editors

STAMFORD, Conn.--(BUSINESS WIRE)--Jan. 8, 2002

NYFIX, Inc. (NASDAQ: NYFX) today announced that the Board of Directors has approved changes to the Company's name and organizational structure.

The Company will be implementing a holding company structure and the new name will be NYFIX Holdings, Inc. The name change and the new organizational structure are subject to shareholder approval, which is being solicited at a special meeting of the shareholders scheduled for March 1, 2002.

The Company believes that it has a significant opportunity to expand its revenue and presence in the market through a ramp-up of its existing business lines along with one or more strategic acquisitions and minority investments in certain service and product providers.

"We expect strong growth in 2002 and beyond. The holding company structure provides a format where we can set overall strategic goals and fully collaborate across activities, while at the same time position our services separately in the market where needed. As we continue to grow, we see value in providing each of our subsidiaries' management teams with a strong sense of ownership as well as direct accountability for each of our specific activities while simultaneously offering the support of a collaborative company effort. It is our clear objective to provide this type of environment," said Peter Kilbinger Hansen, Chief Executive Officer of NYFIX Holdings.

Mr. Hansen also stated that the acquisitions under consideration will not only provide immediate revenue streams, but also will enhance the Company's strategic market position in a manner where it believes it can introduce new and potentially significant revenues sources.

The adoption of the holding company structure coincides with the Company's decision to exercise its option to increase its ownership in NYFIX Millennium, LLC, the Company's broker/dealer affiliate which operates an Alternative Trading System ("ATS") as outlined in separate company announcement issued today.

In other news, the Company said that effective January 1, 2002 the Company has established a wholly-owned subsidiary, NYFIX USA, LLC. Upon approval by the Company's shareholders, all the Company's data-center operations, NYFIX network operations, helpdesk operations, software development, customer support and other technical operations will be transferred to NYFIX USA, LLC. NYFIX USA will provide all technical development and operations to all affiliates and will continue to provide sales of core products primarily on a subscription basis.

NYFIX Holdings, Inc., in addition to reviewing existing activities and potential investments on an ongoing basis, will amongst other things, provide executive committee planning, strategic planning, financial/accounting planning, marketing, investor relations, legal services, facilities management and human resources.

NYFIX Holdings, Inc., will own NYFIX USA, LLC, NYFIX Transaction Services, Inc., and NYFIX Overseas, Inc. and have a substantial interest in NYFIX Millennium, LLC.

NYFIX Holdings, Inc. (NASDAQ:NYFX), following the restructuring, through its subsidiaries will provide electronic trading systems, industry-wide trade routing connectivity, straight-through processing and execution services and systems to the global equities and derivatives financial markets.

NYFIX USA, LLC develops real-time order management trader workstations, exchange automation systems, trade order and execution routing and STP solutions for brokerage firms and other financial institutions. NYFIX USA operates the NYFIX Network, the industry's largest FIX order-routing network, processing between 500 million to 1.2 billion shares of U.S. listed equity securities on a daily basis. NYFIX USA is a pioneer in the adoption of the FIX protocol and all its products are FIX-compliant.

NYFIX Transaction Services, Inc., a recently acquired broker-dealer, has a pending membership application filed with the NASD. NYFIX Transaction Services, Inc. will provide execution and smart order routing solutions primarily to domestic and international broker-dealers and specialized trading firms.

NYFIX Overseas, Inc. specializes in electronic trading solutions for the derivatives markets and develops order management workstations and exchange interface systems, supporting trading on more than 20 of the world's leading international derivatives exchanges. NYFIX Overseas is in global customer roll-out in Europe, the U.S. and the Far East.

NYFIX Millennium, LLC, the broker-dealer affiliate of NYFIX, Inc., is an Alternative Trading System which provides a real-time, anonymous automated matching system for equity trading. NYFIX Millennium leverages the NYFIX network's large order routing share volume to provide a more efficient liquidity source for the financial community. Investors in NYFIX Millennium, LLC include NYFIX Holdings, ABN Amro, Banc of America Securities, Deutsche Bank, JP Morgan, Lehman Brothers, Morgan Stanley, Sanford C. Bernstein & Co., SG Cowen Securities Corp., UBS Warburg and Wachovia Securities.

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the ability of the Company to market and develop its products. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this press release will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other person that the objectives and plans of the Company will be achieved.