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Thursday, January 15, 1998 Reid Walker - (202) 728-8243 Scott Peterson - (202) 728-8955

NASD Members Approve New Board of Governors

Washington, D.C.—The National Association of Securities Dealers, Inc. (NASD®), today announced that its membership has approved 22 members of the Board of Governors at its annual meeting held in Washington, D.C. Under NASD By-Laws, the Board will consist of 27 members—twenty two elected by the membership, four members of the staffs of the NASD and it’s subsidiaries, and the Chair of the newly created National Adjudicatory Council.

The 27 members of the new NASD Board of Governors will consist of 9 industry, 14 non-industry and 4 NASD staff members. Industry members consist of:

• Herbert M. Allison, Jr., President and COO, Merrill Lynch & Co., Inc.
• Frank E. Baxter, Chairman and CEO, Jefferies Group, Inc.
• Richard F. Brueckner, Managing Director, Pershing Division of Donaldson,
• Lufkin & Jenrette, Inc. (Chair of the National Adjudicatory Council)
• E. David Coolidge, III., CEO, William Blair & Co., L.L.C.
• Jon S. Corzine, Chairman and CEO, Goldman, Sachs & Co.
• James Dimon, President and COO and Director of Travelers Group, and Chairman and CEO of Smith Barney Inc.
• Donald B. Marron, Chairman and CEO, PaineWebber Group Inc.
• Todd A. Robinson, Chairman and CEO, LPL Financial Services
• Kenneth J. Wessels, CEO, Wessels, Arnold and Henderson, LLC

Non-industry members include:

• Nancy Kassebaum Baker, former United States Senator
• Michael W. Brown, Retired Chief Financial Officer, Microsoft Corporation
• Elaine L. Chao, Distinguished Fellow, The Heritage Foundation
• Robert R. Glauber, Lecturer, John F. Kennedy School of Government, Harvard University
• Harry P. Kamen, Chairman and CEO, Metropolitan Life Insurance Co.
• Donald J. Kirk, Executive-in-Residence, Columbia University, Graduate School of Business
• Philip R. Lochner, Senior Vice President, Time Warner Inc.
• Bridget A. Macaskill, President and CEO, Oppenheimer Funds, Inc.
• John D. Markese, President, American Association of Individual Investors
• Paul H. O’Neill, Chairman and CEO, ALCOA
• James S. Riepe, Vice Chairman, T. Rowe Price Associates, Inc.
• James F. Rothenberg, President and Director, Capital Research and Management Co.
• Howard Schultz, Chairman and CEO, Starbucks Coffee Company
• Arvind Sodhani, Vice President and Treasurer, Intel Corporation

NASD staff Board members include:

• Frank G. Zarb, Chairman, CEO and President, NASD, Inc.
• Richard G. Ketchum, Chief Operating Officer and Executive Vice President, NASD, Inc.
• Alfred R. Berkeley, III, President, The Nasdaq Stock Market, Inc.
• Mary L. Schapiro, President, NASD Regulation, Inc.

Individuals having not previously served in a board capacity include Messrs. Allison, Baxter, Kamen, Marron, O’Neill, and Schultz.

Board terms will be staggered. Serving January 1998-January 1999 will be Richard Brueckner, Elaine Chao, E. David Coolidge, James Dimon, Donald Kirk, Bridget Macaskill, John Markese, and James Rothenberg.

Serving January 1998-January 2000 will be Nancy Baker, Jon Corzine, Robert Glauber, Philip Lochner, Arvind Sodhani, and Kenneth Wessels.

Serving January 1998-January 2001 will be Herbert Allison, Frank Baxter, Michael Brown, Harry Kamen, Donald Marron, Paul O’Neill, James Riepe, Todd Robinson, and Howard Schultz.

Sixteen members of the NASD Board of Governors will also serve as members of the NASD Regulation, Inc., or The Nasdaq Stock Market, Inc., boards.

The National Association of Securities Dealers is the largest securities-industry self-regulatory organization in the United States. Through its subsidiaries, NASD Regulation, Inc., and The Nasdaq Stock Market, Inc., the NASD develops rules and regulations, provides a dispute resolution forum, conducts regulatory reviews of members activities and designs, operates and regulates securities markets all for the benefit and protection of the investor.