Lackritz: Securities Industry Association Compiled Impressive Record In 2004; Association Well-Positioned To Meet Challenges, Maximize Opportunities In The Year Ahead - Industry’s Commitment To Service, Values, And Clarity Key To Achieving Goals

Securities Industry Association President Marc E. Lackritz today said that in an uncertain world, the industry’s continued success depends on its commitment to service, values, and clarity. In his address to the opening session of the association’s 33rd annual meeting here, Lackritz said the industry has done a good job handling often adverse conditions and has made progress toward building a better future for issuers, investors, and securities firms.

“I am proud of everything we have achieved in a public environment of skepticism and doubt,” Lackritz said. “Our hard work has paid off with an increasing number of investors feeling positively towards the securities industry. Sixty-four percent of respondents to our annual survey expressed favorable opinions of Wall Street -- up from 55 percent in 2002 and 2003. Respondents also remain satisfied with the quality of services they receive from their broker, with 90 percent either ‘very’ or ‘somewhat satisfied’ with their investment professional.”

SIA Chairman Richard E. Thornburgh, vice chairman of the Executive Board of Credit Suisse First Boston and a member of the Executive Board of Credit Suisse Group, deserves a great deal of the credit for the association’s impressive list of accomplishments during 2004, said Lackritz. “Dick committed an unprecedented amount of time and personal effort to revitalize our association when we most needed it.” Lackritz added that he looks forward to working with incoming Chairman Daniel J. Ludeman, president and chief executive officer, Wachovia Securities, LLC, to build upon Thornburgh’s legacy.

While SIA compiled an impressive record during the past year, with important achievements on the advocacy, technology and operations, and member-services fronts, major challenges still loom, Lackritz said. Despite a strong first quarter, the industry’s recovery stalled by mid-year with revenues showing a broad-based decline. Also, large numbers of investor survey respondents continue to cite greed and self-interest as key industry problems. Lackritz called on the industry to stay “laser-focused” on its core values of integrity, honesty, and putting clients’ interests first.

Lackritz concluded by saying that SIA is well positioned to build upon its success in 2005. “We will emerge more vibrant, dynamic, and innovative than ever, and better prepared to meet the challenges – and seize the opportunities – that lie ahead.” The complete text of the speech will be available at http://www.sia.com.