Fahnestock has acquired the U.S. Oppenheimer Private Client Division of CIBC World Markets Corp. was completed on Jan. 3. The companies have agreed to complete the acquisition of the U.S. Oppenheimer Asset Management Division, for an
aggregate consideration of approximately U.S. $241 million, at a later date.

As part of the agreement, CIBC may acquire, upon exchange of the exchangeable debentures issued as part of the purchase price, up to 35% of the issued shares of Fahnestock.

The Oppenheimer Private Client Division operates a high net worth retail business, which consists of 620 financial consultants in 18 branches in major financial centers across the United States. Additionally, Oppenheimer operates a highly regarded asset management business in a variety of products, including growth funds, value funds, sector funds and specialty funds.

The business of the Private Client Division will operate, effective today, as the Oppenheimer & Co. Division of Fahnestock. The Asset Management Division will be rolled into the Fahnestock organization in accordance with regulatory requirements. It is expected that all of the segments of the Asset Management Division will be operating as part of the Oppenheimer & Co. Division of Fahnestock by April 30, 2003. The client accounts of both the retail business and the asset management business will continue to be cleared through CIBC World Markets until the spring of 2003. In addition, the account executives of the combined firm will have access to CIBC World Markets research.

Fahnestock’s principal subsidiary, Fahnestock & Co. Inc., is a full- service, self-clearing broker-dealer headquartered in New York City and has been in operation since 1881. Fahnestock now employs over 1,700 financial consultants in over 100 branch offices throughout the United States as well as in South America and Canada. Fahnestock & Co. Inc. is a member firm of the New York Stock Exchange and all principal U.S. exchanges.