Instinet's U.S. equity share volume in August comprised 6,429 million shares of Nasdaq-listed stocks and 1,060 million shares of exchange-listed stocks.
Instinet's estimated total U.S. equity market share for August 2002 was 10.3%. Estimated share of Nasdaq-listed volume was 19.3%, and of exchange-listed volume was 2.7%.
________U.S. Equity Share Volume and Estimated Market Share_________
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* For a description of how we calculate our Nasdaq volumes, see "Management's Discussion and Analysis of Financial Condition and Results of Operations-Key Statistical Information-Nasdaq Volume Calculations" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2001.
** This market share information is subject to change when Nasdaq posts its final volume statistics.
Disclosure of Average Net Equity Transaction Fee Revenue per U.S. Equity Share Volume
Beginning with this release, Instinet will disclose each month its average net equity transaction fee revenue per U.S. share. This information, which represents our average customer pricing in U.S. equities, will be disclosed in the monthly release in which Instinet also discloses its U.S. equity share volume and market share figures. This information is also available on the Company's website at www.instinet.com.
Net equity transaction fee revenue is presented net of "Soft Dollar and Commission Recapture" and "Broker-Dealer Rebate" expenses.*** For convenience, the table immediately below shows Instinet's average net equity revenue per U.S. share for each month between January 1999 and August 2002.
Average Net Equity Revenue per U.S. Share
(U.S. Cents per side per share)
| 2002 | 2001 | 2000 | 1999 | |
| January | 0.59 | 0.67 | 0.78 | 0.86 |
| February | 0.55 | 0.65 | 0.77 | 0.87 |
| March | 0.51 | 0.63 | 0.80 | 0.86 |
| April | 0.42 | 0.62 | 0.75 | 0.84 |
| May | 0.36 | 0.64 | 0.76 | 0.89 |
| June | 0.33 | 0.66 | 0.77 | 0.90 |
| July | 0.26 | 0.67 | 0.77 | 0.87 |
| August | 0.24 | 0.71 | 0.76 | 0.87 |
| September | 0.69 | 0.75 | 0.83 | |
| October | 0.62 | 0.69 | 0.84 | |
| November | 0.62 | 0.70 | 0.83 | |
| December | 0.60 | 0.67 | 0.81 |
*** The required accounting for our soft dollar and commission recapture businesses requires us to record transaction fee revenues on a gross basis, inclusive of revenue which is associated with our soft dollar and commission recapture expenses and broker dealer rebates.
Instinet has experienced significant seasonality in its business, and period-to-period comparisons of operating results are not necessarily meaningful, nor are the results for any period necessarily indicative of results for any future period.
About Instinet
Instinet, through affiliates, is the largest global electronic agency securities broker and has been providing investors with electronic trading solutions for more than 30 years. Our services enable buyers and sellers worldwide to trade securities directly and anonymously with each other, have the opportunity to gain price improvement for their trades and lower their overall trading costs. Through our electronic platforms, our customers also can access over 40 securities markets throughout the world, including Nasdaq, the NYSE and stock exchanges in Frankfurt, Hong Kong, London, Paris, Sydney, Tokyo, Toronto and Zurich. We also provide our customers with access to research generated by us and by third parties, as well as various informational and decision-making tools. Unlike most traditional broker-dealers, we act solely as an agent for our customers and do not trade securities for our own account or maintain inventories of securities for sale. For more information, please go to www.instinet.com.
