Knight's acquisition of Arbitrade Holdings (now Knight Financial Products) closed on January 12, 2000. Prior to that date, Arbitrade was a partnership and did not account for partner compensation or income tax. Adjusting for these items resulted in Knight's second quarter 1999 results of $0.46 per diluted share. The $0.53 earnings per diluted share figure for the second quarter 1999 that was incorrectly reported by certain media outlets does not incorporate the compensation and income tax adjustments required in light of Knight's acquisition of Arbitrade.

Following is a clarification of Knight's second quarter 1999 financial results that were reported in today's Digest for Corporate Earnings Reports in The Wall Street Journal:

    Quar June 30, 1999                   Previously Reported      Corrected

    Revenues                                    $254,172,478   $254,172,478
    Net income                                   $66,527,631    $58,031,726
    Avg dil shr                                  126,672,844    126,672,844
    Earnings per basic share                           $0.55          $0.48
    Earnings per diluted share                         $0.53          $0.46

    6 months 1999                        Previously Reported      Corrected

    Revenues                                    $457,612,643   $457,612,643
    Net income                                  $113,533,058    $99,974,918
    Avg dil shr                                  124,647,369    124,647,369
    Earnings per basic share                           $0.95          $0.83
    Earnings per diluted share                         $0.91          $0.80

Knight's second quarter 2000 net income of $67,218,795, or $0.53 per diluted share, represented a 16% increase over second quarter 1999 net income of $58,031,726, or $0.46 per diluted share.