has acquired

has acquired

Financial advisor to The Bank of New York

February 2002

Freeman & Co. Acted as Financial Advisor to The Bank of New York
February 2002
Asset Management
Buy-Side M&A

The Bank of New York to acquire the Index Asset Management Unit of Axe Houghton Associates

November 29, 2001 (New York, NY) - The Bank of New York announced today that it has signed a definitive agreement to acquire the Core International ADR and Domestic Equity Index institutional investment management businesses of Axe-Houghton Associates, Inc., a wholly-owned subsidiary of Hoenig Group Inc. (Nasdaq: HOEN). This purchase is expected to be completed on or before March 31, 2002.

Axe-Houghton Associates, Inc., a registered investment adviser based in Rye Brook, New York, had assets under management in these two businesses of approximately $2.6 billion as of October 31, 2001. BNY Asset Management, the investment management arm of The Bank of New York, currently has assets under management in excess of $60 billion.

Newton P. S. Merrill, senior executive vice president of The Bank of New York, stated, "This transaction is evidence of the Bank's long-term commitment to providing a comprehensive range of active and indexed investment management services. The ADR Management business we are acquiring from Axe-Houghton Associates provides us with a new dimension in international investing, with a superior track record of performance based on unique expertise in using American depository receipts (ADRs). In addition, this acquisition will complement the Bank's industry-leading position in the ADR issuance marketplace. Axe-Houghton Associates' achievements highlight ADRs as an effective tool for international investing.”

Fredric P. Sapirstein, chairman and chief executive officer of Hoenig Group Inc., stated: "It's a near perfect complement, joining Axe-Houghton's long experience in managing ADRs with The Bank of New York's position as one of the leading ADR agent banks. This transaction will broaden distribution of Axe-Houghton's ADR and domestic equity index investment expertise while providing Hoenig Group shareholders with the opportunity to recognize immediate value from the businesses being sold."