Schwab Capital Markets, L.P. Acquires Electronic Trading Team; Acquisition is part of ongoing enhancement to Schwab's institutional business.

Business Editors

JERSEY CITY, N.J.--(BUSINESS WIRE)--June 15, 2001

In a continuing effort to enhance its institutional presence, Schwab Capital Markets L.P., (member SIPC/NASD) an affiliate of Charles Schwab & Co., Inc., has acquired the quantitative trading business of Epoch Partners, including a team of 19 traders and technology specialists lead by Michael Stewart. The acquisition of this team, which will be based in San Francisco, significantly enhances Schwab's presence in the electronic and program trading business. Michael Stewart joins Schwab as Senior Vice President, Electronic Trading, and will report to Lon Gorman, Vice Chairman of The Charles Schwab Corporation and President of Schwab Capital Markets. Epoch Partners is a technology enabled investment bank of which Charles Schwab is a founding partner.

"Schwab Capital Markets is committed to expanding its institutional business and becoming a significant player in this growing arena through electronic trading," said Gorman. "Mike and his team are market leaders in utilizing technology to rapidly increase trading capabilities. We're very pleased to leverage their expertise as we grow our institutional business."

"Many of our efforts at Epoch focused on leveraging Schwab's presence in the secondary marketplace," said Stewart. "By joining forces, we now have a clear mandate to blend our electronic trading platform with Schwab Capital Markets' market making expertise, and the tremendous retail order flow at Charles Schwab & Co., Inc. to create new products that benefit institutional and retail customers."

Prior to joining Schwab Capital Markets, Stewart, age 32, headed the Institutional Trading team for Epoch Partners, and previously served as Managing Director and Head of Program Trading for Banc of America Securities.

The Charles Schwab Corporation (NYSE:SCH), through Charles Schwab & Co., Inc. (member SIPC/NYSE), Schwab Capital Markets, L.P., U.S. Trust Corporation, CyberTrader and its other operating affiliates and subsidiaries, is one of the nation's largest financial services firms serving 7.7 million active accounts with $864.9 billion in customer assets through offices, regional client telephone service centers and automated telephonic and online channels. The Charles Schwab, U.S. Trust and CyberTrader sites can be reached at www.schwab.com, www.ustrust.com and www.cybertrader.com, respectively. (0601-6587)