"One of my business goals over the past few years was to build Deephaven's infrastructure and to put the right staff into place so that the firm would not be reliant on one person," Mr. Kessler said. "I have achieved this professional goal, which is why I can now retire to pursue the many personal goals I have. Colin and Shawn share my philosophy and strategy for Deephaven, and they will continue to manage the fund with the same objectives we've had for more than seven years -- low volatility, preservation of capital, a fair rate of return, and excellent client service. I feel strongly that Deephaven has the right resources, and I fully expect its success in the future."

Mr. Smith, 31, has been with Deephaven for more than four years as Director of Global Event Arbitrage. In that time, he has built a strong team of traders and analysts in both the U.S. and Europe. In addition, Mr. Smith has been intimately involved in launching new strategies for the fund and has played a key role in helping to run the Deephaven business. Mr. Smith has more than nine years of capital markets and hedge fund experience, and prior to joining Deephaven, he was a Vice President with Peter Schoenfeld Asset Management and Schroder Wertheim.

In addition to his responsibilities as CIO, Mr. Bergerson, 36, will continue to run the day-to-day activities for Global Convertible Arbitrage Group. Mr. Bergerson has 15 years experience in portfolio management, trading and fundamental analysis. During his three years at Deephaven, Mr. Bergerson has been an integral part of growing the fund's assets. Previously, he was a Portfolio Manager and Partner at Forest Investment Management, an Executive Director for UBS/Warburg Dillon Reed (through its acquisition of O'Connor & Associates), and an Assistant Vice President for National Westminster Bank USA.

In 1994, Mr. Kessler, 46, founded the firm that became Deephaven with convertible arbitrage and market-neutral investing as the core strategy. In 1995, he formed the proprietary trading and options market-making partnership that became Arbitrade, and Arbitrade then merged with Deephaven in 1997 to form Arbitrade Holdings LLC. Knight Trading Group acquired Arbitrade Holdings in January 2000 and established two subsidiaries: Deephaven Capital Management LLC, an asset management business for institutional and high net worth investors, and Knight Financial Products LLC, the Company's options market-making unit.

Deephaven manages approximately $1.3 billion with an analytical and disciplined approach to identifying and capitalizing on opportunities in the global markets. The manager focuses on sophisticated arbitrage trading with low correlation to the equities markets, and its goal is preservation of capital. Deephaven Capital Management, based in Minnetonka, Minnesota, has approximately 100 employees.

Knight is the liquidity center that offers superior execution services to its broker-dealer and institutional clients in over-the-counter (OTC) and listed equity securities, and in equity options. In so doing, Knight helps its clients meet their fiduciary obligation of obtaining best execution for the securities orders that they route on behalf of their customers. Knight also maintains an asset management business for institutional investors and high net worth individuals through Deephaven Capital Management LLC.

Knight has the power to commit capital for market orders and also maintains one of the largest limit order books in the OTC market. The Company has approximately 1,300 employees worldwide and is one of the largest destinations for stock orders placed via the Internet. Knight traded 112 billion shares in the year 2000, a volume behind only those posted by Nasdaq and the New York Stock Exchange (NYSE). Ultimately, Knight plans to enable its clients to trade all types of equity securities and options at any time, from anywhere in the world. More information about Knight can be obtained at www.knighttradinggroup.com .

The matters described herein contain forward-looking statements that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve a number of risks, uncertainties or other factors beyond the Company's control, which could cause actual results to differ materially from historical results, performance or other expectations and from any opinions or statements expressed with respect to future periods. These factors include, but are not limited to, the Company's ability to implement its growth strategies, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, intellectual property rights, and other factors detailed in the Company's registration statement and periodic reports filed with the Securities and Exchange Commission.

SOURCE Knight Trading Group, Inc.

CONTACT:          Margaret Wyrwas, Senior Vice President, Corporate
                  Communications & Investor Relations, +1-201-557-6954 or
                  mwyrwas@knight-sec.com, or Kara Fitzsimmons, Manager, Corporate
                  Communications, +1-201-356-1523 or kara_fitzsimmons@knight-sec.com, or
                  Judy Pirro, Manager, Investor and Shareholder Relations, +1-201-356-1548 or
                  judy_pirro@knight-sec.com, all of Knight Trading Group

URL:              http://www.knighttradinggroup.com 
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