For Release: Contacts:

Wednesday, July 26, 2006 Nancy Condon (202) 728-8379 Herb Perone (202) 728-8464

Robert R. Glauber, NASD Chairman And CEO, Will Retire From NASD On August 31

Washington, D.C. — At the NASD Board of Governors meeting July 20, Robert R. Glauber, who has served as Chairman and CEO for nearly six years, announced his intention to advance the date of his expected retirement from the end of this year to August 31. He will return to Harvard as a visiting professor in its Law School. Mr. Glauber had been a professor at the Harvard Business School and a lecturer at Harvard's Kennedy School of Government before becoming NASD's CEO in 2000 and its Chairman in 2001.

As announced in January, Mr. Glauber will be succeeded by Mary L. Schapiro, NASD's Vice Chairman and President of its Regulatory Policy and Oversight Division.

"I came to NASD six years ago with the goal of transitioning the organization away from owning markets, and focusing it solely on its regulatory mission," Glauber said. "With NASD's recent sale of its last remaining stake in NASDAQ and with the SEC approval of NASDAQ's request to operate as an exchange beginning August 1, NASD has succeeded in making that transformation. Leaving now will allow me to join the Board of Directors of Freddie Mac, which I anticipate doing in September, consider a couple of other corporate board opportunities, and return to Harvard a bit sooner."

"I am extremely proud of everything the NASD team has accomplished over the last six years, in particular NASD's vital role in rebuilding public confidence in the securities markets after the dramatic downturn in 2000. I know Mary will lead the organization to even greater heights during her tenure."

Raymond ("Chip") Mason, chairman of the NASD Corporate Governance Committee and Chairman and CEO of Legg Mason, said, "The entire board is grateful for the job Bob has done. He steered NASD through a most critical time for securities regulators, leaving it with an unchallenged reputation for protecting investors and in the strongest financial condition. And, with its complete separation from owning for-profit markets, NASD is extremely well positioned to continue and build on its mission with energy and integrity. We understand his decision to leave a few months early and we thank him for his important service and wish him all the best in his future endeavors."

Mr. Mason said the Board was especially proud of these accomplishments during Mr. Glauber's tenure:

• Built a strong regulatory record, reflected in important new rules and programs in areas such as analyst conflict issues, mutual fund breakpoints and variable annuities.
  
  
• Oversaw vigorous enforcement actions to protect investors and restore confidence in the markets, capped by a record $134 million in fines last year.
  
  
• Fully transformed NASD into an organization focused solely on regulation by divesting all Amex and NASDAQ ownership and achieving SEC approval of NASDAQ Exchange Registration.
  
  
• Took steps to make NASD operate with private-sector efficiency and built a balance sheet to more than $2 billion through operating savings and proceeds of the NASDAQ sale. Because of the strong balance sheet, $150 million of rebates has been returned to member firms since 2000.
  
  
• Created an Investment Committee to provide oversight and guidance of NASD's growing investment portfolio, with an income allocation strategy to help fund operating expenses. Portfolio income reduced fees to members by $75 million in 2005 and is expected to produce roughly the same support in the future.
  
  
• Dramatically increased NASD's commitment to investor education by creating the NASD Investor Education Foundation, which funds innovative research and educational projects aimed at the investing public. The Foundation has a commitment of $85 million.
  
  
• Launched Examiner University, which provides innovative and extensive training for all new NASD examiners. A one-year course of classroom and on-the-job training for all incoming NASD examiners is designed to ensure that they do their job effectively and without unnecessary burden on regulated firms.
  
  
• Improved investor protection through enhanced market transparency, most recently through the NASD TRACE system, which provides corporate bond price data.
  
  
• Harmonized sales protection rules between mutual funds and 529 plans. Led the effort to work with insurance regulators to bring sales practice rules for fixed and equity indexed annuities into line with those set by NASD for variable annuities.
  
  
• Worked with the SEC to develop more effective disclosure for mutual fund sales using the Internet and a standardized summary document (Profile Plus) that contains information in simple form covering fund objective and performance, costs, and any conflicts the broker has in selling the fund.
  
  
• Advocated for regulatory consolidation with the NYSE that would enhance investor protection, reduce duplication and drive out unnecessary costs and compliance requirements.

Earlier in his career, Glauber served as Under Secretary of the Treasury for Finance from 1989 to 1992. In this capacity, he was the senior officer responsible for Treasury's domestic policy. Prior to joining Treasury, he was a professor at the Harvard Business School and after leaving Treasury, a lecturer at Harvard's Kennedy School of Government. In 1987, Glauber served as Executive Director of the Task Force on Market Mechanisms ("Brady Commission"), appointed by President Reagan to study the 1987 stock market crash.

NASD is the leading private-sector provider of financial regulatory services, dedicated to investor protection and market integrity through effective and efficient regulation and complementary compliance and technology-based services. NASD touches virtually every aspect of the securities business - from registering and educating all industry participants, to examining securities firms, enforcing both NASD rules and the federal securities laws, and administering the largest dispute resolution forum for investors and registered firms. For more information, please visit our Web site at www.nasd.com.