Instinet To Complete Acquisition Of Island ECN On September 20, 2002 - $1.00 Per Share Dividend To Be Paid To Stockholders Of Record On September 19, 2002

Instinet Group Incorporated (Nasdaq: INET) announced today that it intends to complete its previously announced acquisition of Island ECN on September 20, 2002. Once all closing conditions have been satisfied, the company intends to pay a special cash dividend of $1.00 per common share. Instinet's Board of Directors authorized payment by the company of the dividend to Instinet stockholders of record on September 19, 2002, subject to the closing of the transaction on September 20, 2002. This payment shall be made on or about October 3, 2002.

The acquisition brings together superior trading platforms with a common goal of improving customers' performance by applying innovative technology solutions to equity trading. The combined business will offer professional investors and traders access to a deep liquidity pool and a broad range of value-added services. As an attractive alternative to other market offerings, the combined business will also help preserve investor choice -- now and following the anticipated introduction of Nasdaq's SuperMontage system next month.