In December 2001, Knight Chairman and CEO Kenneth D. Pasternak announced his retirement from his executive positions effective January 31, 2002. He will serve out his remaining term as a Director, which expires at Knight's annual meeting in May 2002, and he will continue to act in a consulting capacity until his contract expiration on July 8, 2002. Also in December, Knight's Board elected Charles V. Doherty, a veteran Board member, to serve as non-executive Chairman of the Board for Knight, effective February 1, 2002. Mr. Doherty is overseeing both an internal and external search for a new Knight CEO, for which the Company has retained leading executive search firm Heidrick & Struggles International, Inc.

Mr. Sanfilippo has been responsible for Knight's operations in Europe and Japan as Head of Global Equities, and for Knight's listed equities business as President and CEO of Knight Capital Markets. In addition, he is Chairman of Knight Roundtable Europe, Ltd., a venture between Knight and its broker-dealer, bank and securities firm partners in the U.S. and Europe. Mr. Sanfilippo joined Knight in 1997 when Tradetech Securities, a Nasdaq InterMarket trading firm that he founded in 1993 and managed as President and CEO, was acquired by Trimark Securities (now Knight Capital Markets).

"Tony has tackled some of our most challenging assignments since he joined the firm five years ago, and he has a proven track record of developing and managing businesses," Mr. Pasternak said. "In particular, he built Knight's Japan operations to the right size in a difficult economic environment, and his cost-control efforts in Europe have been instrumental in positioning the business for a market upswing."

Mr. Doherty said, "The Board selected Tony to assume the stewardship of Knight during this transition period. As a Knight veteran with experience across multiple business lines, Tony is well-qualified to lead the firm, allowing the Board to focus on its duty of care -- finding the most appropriate CEO for Knight's future."

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 135 billion shares in the year 2001, 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 http://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, mwyrwas@knight-sec.com, or Kara Fitzsimmons, Manager, Corporate Communications, +1-201-356-1523, kara_fitzsimmons@knight-sec.com, or Judy Pirro, Manager, Investor and Shareholder Relations, +1-201-356-1548, judy_pirro@knight-sec.com, all of Knight Trading Group, Inc.