The Bank of New York to Provide Commission Recapture Services to Electricity Supply Pension Scheme.

LONDON -- The Bank of New York has been appointed by the Electricity Supply Pension Scheme (ESPS) to provide commission recapture services though BNY Brokerage Inc. Valued at over GBP 17 billion, ESPS is the UK's fourth largest pension scheme with approximately 200,000 members.

The Bank of New York will add commission recapture to the suite of services it currently provides to ESPS, which include custodial services, investment accounting, compliance monitoring and reporting.

Peter Browne, Finance Director at ESPS commented, "The Bank of New York developed a flexible commission recapture programme in which each of our Groups within the Scheme can choose whether or not to participate. We are looking forward to this extension of services from The Bank of New York to provide useful benefits for the participating Groups."

BNY Brokerage, an operating division of BNY Securities Limited, has worked with ESPS to put in place a non-directed arrangement, which supports the investment managers' strategies and is founded on the conflict-free agency principles that anchor all of the BNY Securities Group business lines. The execution options available under the ESPS arrangement allow for easy participation and include some of the most prestigious global brokers in the market.

Jo Sellers, BNY Securities Limited vice president and Product Manager for Commission Recapture services said, "Since extending its commission recapture service to European-based clients last year, The Bank of New York have witnessed a growing demand among pension funds for experienced providers capable of understanding the increasing complexities associated with today's global markets. In particular, the debate around transparency has led to an increased use and management of brokerage commissions by fund trustees, and through our commission recapture programmes, they are often better able to control an element of these very high costs."

The Bank of New York Company, Inc. (NYSE: BK) is a global leader in providing a comprehensive array of services that enable institutions and individuals to move and manage their financial assets in more than 100 markets worldwide. The Company has a long tradition of collaborating with clients to deliver innovative solutions through its core competencies: securities servicing, treasury management, investment management, and individual & regional banking services. The Company's extensive global client base includes a broad range of leading financial institutions, corporations, government entities, endowments and foundations. Its principal subsidiary, The Bank of New York, founded in 1784, is the oldest bank in the United States and has consistently played a prominent role in the evolution of financial markets worldwide. Additional information is available at www.bankofny.com.

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 Brokerage Inc. is a member of NYSE/NASD/SIPC. BNY Securities Limited, registered in England and Wales No. 3766757, authorised and regulated by the Financial Services Authority.

BNY Securities Group is the global agency brokerage, clearing and financial services outsourcing sector of The Bank of New York Company, Inc. BNY Securities Group 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.

ESPS is an industry-wide pension scheme in which the Participating Employers are successor companies to the electricity boards upon privatization and other companies established within the electricity industry since privatization. There are 26 separate Groups within the two-tier ESPS and the commission recapture programme allows some or each of these Groups to participate.