SLK, founded in 1931, is a leader in its three core businesses - securities clearing and execution, floor-based market making and off-floor market making. It is the largest U.S. stock and options clearing firm by volume, the largest specialist firm on the New York Stock Exchange and the third largest NASDAQ market maker, making markets in approximately 6,400 NASDAQ securities. At current earnings estimates for 2001, it is expected that the transaction will be greater than 2% accretive on a financial reporting basis, and greater than 9% accretive on a cash basis. This assumes very modest cost benefits of US$50 million related to lower financing costs. The transaction will create approximately US$5 billion of intangible assets, which will be amortized over 20 years.