CBOE Lists 5.5 Million Warrants On Salomon Smith Barney Holdings Inc.

The Chicago Board Options Exchange (CBOE) today began trading two year Call Warrants on the Salomon Smith Barney Holdings Inc. 1999 TEN+SM Index under the symbol TEP (TEP.WS) which were priced on October 11, 1999. The offering, underwritten by Salomon Smith Barney, consisted of 5.5 million Warrants priced at $3.50 per Warrant for an aggregate amount of $19,250,000. The 1999 TEN+ Index (symbol: TZS) represents a diversified basket of common stocks of 15 corporations operating in several industry groups selected by Salomon Smith Barney. The initial Index value was set to equal 100. The stocks that comprise the Index are: Albertson's, Inc., (ABS), Allstate Corporation (ALL), Amgen, Inc. (AMGN), Bank of New York, Inc. (The) (BK), Dayton Hudson Corporation (DH), Electronic Data Systems Corporation (EDS), Fort James Corporation (FJ), Honeywell, Inc. (HON), Lucent Technologies, Inc. (LU), Marsh & McLennan Companies, Inc. (MMC), MCI WorldCom, Inc. (MCK), Mobil Corporation (MOB), Pitney Bowes Inc. (PBI), Raytheon Company Class A (RYA)/Raytheon Company Class B (RTN) and Tyco International Ltd. (TYC). "Today's listing is evidence of the growing demand for products based on the firm's annual research selections," said Nicholas D. Parcharidis, Director of CBOE Capital Markets. "Moreover, these Warrants provide investors with another means of participating in the appreciation potential of the 1999 TEN+ stocks by adding a leveraged equity-linked instrument to balance out a portfolio". Holders of these "American Style" Warrants, which expire on October 11, 2001 are entitled to receive upon exercise an amount in cash computed by reference to increases, if any, in the 1999 TEN+ Index. The cash settlement value of the Warrants will equal the greater of (i) zero and (ii) the product of $10 times the percentage increase in the 1999 TEN+ Index. All in-the-money Warrants not exercised will be automatically exercised on the expiration date. Flash Trading is the Designated Primary Market Maker (DPM) for the Warrants. Trading hours are 8:30 a.m. to 3:00 p.m. Chicago time. CBOE, the world's largest options marketplace and the creator of listed options, is regulated by the Securities and Exchange Commission (SEC). For additional information about the CBOE and its products, access the CBOE site on the World Wide Web at http://www.cboe.com.