The Bank of New York and Standard & Poor's Announce Strategic Alliance.

NEW YORK -- The Bank of New York and Standard & Poor's announced the creation of a strategic alliance that will enable investment managers to obtain Standard & Poor's investment research and corporate data products through execution services provided by BNY Securities Group broker-dealers. BNY Securities Group is the global agency brokerage, clearing and financial services outsourcing sector of The Bank of New York; and Standard & Poor's is the world's leading provider of independent investment research, ratings and indices, and is a division of The McGraw-Hill Companies.

Under the agreement, BNY Brokerage Inc., a member of BNY Securities Group, will acquire certain of the assets and liabilities of Standard & Poor's Securities, Inc. (SPSI), the institutional brokerage subsidiary of Standard & Poor's. SPSI currently provides brokerage services for investment managers who subscribe to various Standard & Poor's analytic and research products. As a result of the alliance, BNY Brokerage will assume SPSI's client relationships, providing them with a wide range of direct market access and broker-assisted capabilities that offer choice in trading models. The transaction is subject to regulatory approval and is currently expected to close at the end of February 2005.

This alliance demonstrates The Bank of New York's strategy to work with leading independent providers of research and other financial services in a "best-of-breed" approach. Through this arrangement, Standard & Poor's research clients will have access to BNY Securities Group's diverse set of execution management platforms and premier commission management services. Standard & Poor's is selling its institutional brokerage business to BNY Brokerage to focus on its core business of providing independent research, data and analysis to investors to help them make better-informed financial decisions.

Hendrik Kranenburg, executive vice president of Standard & Poor's, said, "BNY Securities Group is the ideal choice to distribute our research. Our alliance enables SPSI's clients to benefit from Standard & Poor's investment research products in combination with BNY Securities Group's highly regarded execution and commission management services. BNY Securities Group's multiple execution platforms and breadth of products and services will provide our clients with the solutions they need to implement their diverse trading strategies."

Joseph M. Velli, Head of BNY Securities Group and senior executive vice president of The Bank of New York, said, "We are delighted to create this important strategic alliance with Standard & Poor's, the largest provider of independent equity research and corporate data. They share our vision and recognition of the value of independent third-party research to support our clients' investment decision-making."

Carey S. Pack, president of BNY Brokerage, added, "The acquisition of Standard & Poor's brokerage business reinforces our continuing goal of offering the institutional investment community, and Standard & Poor's clients in particular, a wide range of premier execution capabilities and sophisticated commission management services."

BNY Brokerage is a leading institutional agency brokerage firm offering a broad range of execution and commission management services to money managers, institutional broker-dealers, and plan sponsors. Additional information on BNY Brokerage is available at www.bnybrokerage.com.

BNY Securities Group is the global agency brokerage, clearing and financial services outsourcing sector of The Bank of New York Company, Inc. It provides institutions, broker-dealers and corporations with a broadly diversified suite of services and "The Power of Choice" through multiple business models. Through its broad range of businesses, BNY Securities Group offers creative solutions in trade execution, commission management, independent research, securities clearing and financial services outsourcing. BNY Securities Group is the largest provider of commission management services, has 21 New York Stock Exchange seats, and offers global execution and clearing services in over 80 markets with offices in the U.S., Europe, Asia, and Australia. BNY Securities Group is an organization consisting of several broker-dealers and other companies. BNY Brokerage Inc. is a member of NYSE/NASD/SIPC.

The Bank of New York Company, Inc. (NYSE: BK) is a global leader in securities servicing for issuers, investors and financial intermediaries. The Company plays an integral role in the infrastructure of the capital markets, servicing securities in more than 100 markets worldwide. The Company provides quality solutions through leading technology for global financial institutions, asset managers, governments, non-profit organizations, corporations, and individuals. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has a distinguished history of serving clients around the world through its five primary businesses: Securities Servicing and Global Payment Services, Private Client Services and Asset Management, Corporate Banking, Global Market Services, and Retail Banking. Additional information on the Company is available at www.bankofny.com.

Standard & Poor's is the world's foremost provider of independent credit ratings, indices, risk evaluation, investment research, data and valuations. With 6,000 employees located in 21 countries, Standard & Poor's is an essential part of the world's financial infrastructure and has played a leading role for more than 140 years in providing investors with the independent benchmarks they need to feel more confident about their investment and financial decisions. For more information, visit www.standardandpoors.com.

Founded in 1888, The McGraw-Hill Companies (NYSE: MHP) is a leading global information services provider meeting worldwide needs in the financial services, education and business information markets through leading brands such as Standard & Poor's, BusinessWeek and McGraw-Hill Education. The Corporation has more than 280 offices in 40 countries. Sales in 2003 were $4.8 billion. Additional information is available at http://www.mcgraw-hill.com.