NYFIX Acquires Broker/Dealer for Transaction Services Business.

Business Editors

STAMFORD, Conn.--(BUSINESS WIRE)--Jan. 3, 2002

NYFIX, Inc. (NASDAQ: NYFX) today announced that it had completed the acquisition of a dormant broker/dealer that was formerly a member of the Chicago Stock Exchange, effective December 21, 2001.

The Company has filed a membership application with the NASD and the newly acquired broker/dealer will be renamed NYFIX Transaction Services, Inc. Andy Wilson, Director of Sales of NYFIX, Inc. for the past four years, has been named president of NYFIX Transaction Services, Inc.

The equity markets are continuing to transition toward all electronic processing of trades. The concept of STP - "Straight Through Processing" and T+1 settlement are a rapidly approaching reality. There is a very large segment of small, mid-sized and foreign non-NYSE member broker/dealers that increasingly recognize that they must embrace robust real-time electronic connectivity solutions to access multiple market centers for executions as well as post trade processing applications linking with settlement and stock allocation services. These firms must also comply with increasing regulatory demand for online compliance, electronic trade reporting and long-term electronic record storage and retrieval capabilities.

"We see a tremendous opportunity to enter this market segment to offer a fully bundled technology and execution service that instantly reduces variable execution costs and eliminates what for many firms would be a significant and challenging investment. We are providing a value-added service that establishes the necessary technology and absorbs ongoing costs associated with market connectivity, upgrades and day-to-day management of technology operations," said Peter K. Hansen, President and Chief Executive Officer of NYFIX, Inc.

"NYFIX Transaction Services will offer fast and reliable electronic executions at a very competitive per share fee. Our new broker/dealer will considerably expand our market reach and the revenue opportunity for the NYFIX group as a whole, without competing with the core bulge bracket exchange member firms who typically service buy-side institutions," commented Andy Wilson, President of NYFIX Transaction Services, Inc.

NYFIX Transaction Services has pre-entered into agreements with over 20 clients for transaction based revenue generation pending NASD approval of its filing. Some of these firms have agreed to pay a basic interim routing fee and give up other brokerage parties for the execution handling. "Consistent with our strategic growth plan, we had expected to complete a broker/dealer acquisition during fourth quarter 2001. Because of this delay, the fees generated in the fourth quarter will not compensate for the delay in collecting actual transaction revenues from NYFIX Transaction Service, Inc. acting as the actual executing broker. While the delay in concluding the acquisition will influence transaction revenues in fourth quarter expected results, the demand is very strong and we are continuing to commit business at a high rate. If this trend continues, we are very optimistic that we will soon be able to upgrade our expectations for this activity for year 2002," concluded Peter K. Hansen.

NYFIX, Inc. (NASDAQ: NYFX) develops and markets advanced electronic trading systems to brokerage firms, international banks and global exchanges trading in equities and derivative instruments. The Company's NYFIX Network, a combined FIX (Financial Information eXchange Protocol) and Exchange Access Network, enables users to electronically communicate trade data among the buy-side, sell-side, and exchange floor environments. NYFIX is one of the world's largest electronic order routing networks.

NYFIX Millennium, L.L.C., the Broker-Dealer affiliate of NYFIX, Inc., is an Alternative Trading System (ATS) which aims to provide investors with a valuable tool for achieving best execution. NYFIX Millennium seeks to help investors achieve price improvement, ensure anonymity and reduce market fragmentation through the electronic linkage of various liquidity sources, including exchanges and ECNs. NYFIX Millennium complements the existing market structure while eliminating many of its inefficiencies. 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, L.L.C. include NYFIX, Inc., ABN Amro, Banc of America Securities, Deutsche Bank, JP Morgan, Lehman Brothers, Morgan Stanley, Sanford C. Bernstein & Co., Inc., 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.