JERSEY CITY, N.J., Jul 3, 2002 /PRNewswire-FirstCall via COMTEX/ -- Knight Trading Group, Inc. (Nasdaq: NITE) today announced that it expects to report a loss per share in the range of $0.04 to $0.06 for the second quarter ended June 30, 2002, excluding charges of up to $0.15.

During Knight's first quarter conference call on April 17, 2002, the Company said it would evaluate its international operations and could incur charges of up to $0.15 for the second quarter. This review was completed during the second quarter, resulting in international charges of between $0.10 and $0.12.

Knight also reviewed its domestic operating and real estate costs during the second quarter and will take a charge of $0.02 to $0.04 for the quarter. In addition, as part of this ongoing review, the Company reduced its domestic staff level by 10%.

Knight's domestic equity operations remained profitable in the second quarter. However, market conditions continued to affect all of Knight's businesses -- equities, options and asset management. Market volume, volatility and principal amount traded remained low, without a catalyst for a significant uptick. The Nasdaq Composite Index lost nearly 21% during the quarter, headed toward September 2001 lows, while the Dow Jones Industrial Average closed down more than 11% for the second quarter.

The Knight Board of Directors announced the authorization of a share repurchase program on April 4, 2002. During the second quarter, the Company repurchased 3,888,000 shares totaling $21.8 million. Knight intends to continue repurchasing shares under the current program, which allows for the purchase of Class A Common Stock up to a total amount of $35 million.

Knight will release its official second quarter results on Wednesday, July 17, 2002 at 6:00 a.m. Eastern Time (EDT). The Company will conduct its second quarter earnings conference call for analysts, investors and the media at 9:00 a.m. (EDT) that same day. The conference call will be Webcast live at 9:00 a.m. (EDT) for all investors and interested parties on Knight's Web site (http://www.knighttradinggroup.com).

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 institutions 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 1,110 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). More information about Knight can be obtained at http://www.knight-sec.com or http://www.knighttradinggroup.com.

Certain statements contained herein constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current expectations, estimates and projections about the Company's industry, management's beliefs and certain assumptions made by management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict. Since such statements involve risks and uncertainties, the actual results and performance of the Company may turn out to be materially different from the results expressed or implied by such forward-looking statements. Given these uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the result of any revisions to the forward-looking statements made herein; however, readers should carefully review reports or documents the Company files from time to time 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@knighttrading.com, or Kara Fitzsimmons, Manager, Corporate Communications, +1-201-356-1523, kfitzsimmons@knighttrading.com, both of Knight Trading Group, Inc.

URL: http://www.knighttradinggroup.com