Lehman Bros Holdings Inc
24 April 2002


THIS IS A NON REGULATORY ANNOUNCEMENT


                             EDGEWORTH CAPITAL LLP

Press Release

For immediate release

                        EDGEWORTH CAPITAL TO BE LAUNCHED

New investment management venture will be majority-owned by Lehman Brothers


LONDON, 24 APRIL, 2002 -Edgeworth Capital LLP, a new UK-based investment
management firm, is being launched today.

The firm, majority owned by Lehman Brothers, the global investment bank, will
focus initially on hedge fund products that will target institutions and high
net worth individual clients.

Edgeworth Capital will be led by Wesley Paul, previously Global Head of
Investments with J.P.Morgan Asset Management, together with several other highly
experienced investment partners.

Recent trends in asset management, such as consolidation and product
commoditisation, together with continuing market volatility has provided an
attractive environment in which to launch the firm. Currently, the marketplace
is highly fragmented with nearly 6,000 participants and is characterised by the
lack of large, well-financed, high quality providers. The launch of Edgeworth
Capital takes advantage of this opportunity.

The hedge fund industry has enjoyed 20 per cent annualised growth over the last
ten years* and is expected to grow to well over US$ 1 trillion by 2005;
importantly, a large proportion of that growth is expected to come from
institutional investors.

Edgeworth Capital will be structured to provide competitive high margin, high
growth products. The firm's management has a strong focus on fiduciary duty and
traditional values and as a result has attracted some of the industry's best
people. In addition, it has the financial backing of a respected, global
company.

Mr. Paul said, "The hedge fund market, despite rapid growth over the last
several years, is looking for the emergence of a strong player with a quality
corporate partner, global reach, talented people, transparent processes and
traditional values. With continuing consolidation in the asset management
industry the timing of this launch is perfect and will benefit our clients."

Edgeworth Capital's target clients will be large and medium sized institutions,
funds of hedge funds and high net worth, sophisticated investors. Initially, it
plans to launch two funds: a Global Fund, led by Joe Rooney, previously Global
Strategist with Lehman Brothers in Europe, and a Pan European Equity Fund.

Raul Biancardi, Co-Head European Private Client Services at Lehman Brothers,
said, "This venture will allow Lehman Brothers, and its partners, to develop new
revenue streams, both from Edgeworth Capital itself and also by cross-selling to
existing private clients and other Lehman Brothers clients globally."

It is anticipated that further such initiatives will follow this, as Lehman
Brothers develops its alternative asset management business. In November 2001,
Lehman Brothers embarked on a joint venture with Ehrenkranz & Ehrenkranz LLP to
provide wealth management services in manufacturing and distributing fund of
hedge fund products.

Mr. Paul concluded, "This venture aligns all stakeholders interests. Our clients
get instant scale with an excellent, focused investment team, backed by a global
investment bank. "


                                     -ENDS-

* Van Money Management, TASS, McKinsey


Media Contacts

Edgeworth Capital                               Wesley Paul

                                          + 44 20 7011 8701


Smithfield Financial                             John Kiely

                                          + 44 20 7360 4900


Lehman Brothers                             Stewart Prosser

                                           +44 20 7011 7252

                                     Jessica Shepherd-Smith

                                           +44 20 7260 1923



                      This information is provided by RNS
            The company news service from the London Stock Exchange