News Release

NASD Board of Governors Appoints Four New Members to the National Adjudicatory Council

Washington, DC — The National Association of Securities Dealers, Inc. (NASD®) Board of Governors has approved the appointment of four new members to the 2002 National Adjudicatory Council (NAC). The NAC is a 14-person committee that meets regularly to decide appeals from disciplinary, membership, and exemption decisions; rule on statutory disqualification applications; and other policy matters. Council members serve three-year terms, and represent an equal mix of industry and non-industry members. The NAC also re-elected David A. DeMuro as Chair, and elected Barbara L. Weaver as Vice Chair, effective immediately.

"The NAC carries out an essential function for a self-regulatory organization in deciding disciplinary matters," said Mary L. Schapiro, President of NASD Regulation, Inc. "Additionally, we rely on the NAC's expertise and perspective to help formulate fair and effective disciplinary policy. David DeMuro and Barbara Weaver will be excellent leaders of the NAC, and I welcome all new and returning members to the 2002 council."

DeMuro is Managing Director, Global Compliance and Regulation, at Lehman Brothers, where he has worked since 1984. As Chairman of the NAC, he also sits on the NASD Board of Governors.

Weaver is Vice President and Senior Southeast Regional Compliance Officer for Legg Mason Wood Walker, Inc., where she has worked since 1976 (the first 12 years at its business division, Howard Weil).

The Board also appointed four new members to the 2002 NAC; two appointments represent geographic regions of NASD members, and two are non-industry members. Philip R. Lochner, Managing Director of The Directorship Search Group, and Richard O. Scribner, President and Chief Executive Officer of Recording for the Blind & Dyslexic, have been appointed to the NAC as non-industry members. The other two new members of the NAC are Philip V. Oppenheimer, President and Chief Operating Officer, Oppenheimer & Close, Inc. and William A. Svoboda, Senior Vice President, Morgan Stanley, Inc.

NAC non-industry members returning to serve in 2002 are Mary E.T. Beach, Herbert H. Brown, Alice T. Kane, Mark A. Sargent and Elliott J. Weiss. Those returning industry members are Douglas L. Kelly, Mark Madoff and Theodore W. Urban.

The National Association of Securities Dealers, Inc. (NASD) is the largest securities-industry, self-regulatory organization in the United States. It is the parent of NASD Regulation, Inc., the American Stock Exchange, LLC and NASD Dispute Resolution, Inc. For more information about the NASD and its subsidiaries, please visit the following Web sites: www‌; www‌; www‌;