Instinet Restructuring
09 January 2004 - 6:00PM
UK Regulatory
RNS Number:0387U
Reuters Group PLC
9 January 2004
9 January 2004 01/04
INSTINET GROUP ANNOUNCES FURTHER COST REDUCTIONS
New York, January 8, 2004 - As part of its continuing cost-reduction efforts,
Instinet Group Incorporated (NASDAQ: INGP), the electronic brokerage in which
Reuters Group has a 63% stake, announced today that it is targeting a further
reduction in operating costs of approximately $30 million on an annualized basis
by the end of 2004.
The current cost-reduction is primarily due to the strategic decisions related
to the separation of Instinet, the Institutional Broker and INET, and the
company's ongoing efforts to streamline its operations.
As part of this cost-reduction, Instinet Group will record a charge of $60
million in the fourth quarter of 2003. The charge is related to the reduction of
Instinet Group's workforce by approximately 185 employees (or approximately 15%
of full-time employees), expected to be substantially completed by July 2004,
and the consolidation of the company's office space, which accounts for a
significant portion of the charge.
"This cost-reduction is part of our previously announced plan to reorganize and
streamline our company and empower our businesses to better serve their distinct
customers," said Edward J. Nicoll, Instinet Group's chief executive officer.
The latest cost reduction is in addition to previous cost reductions, which
reduced annual operating costs by approximately $160 million between the fourth
quarter of 2002 and the third quarter of 2003.
The company also announced it will record a $22 million charge in the fourth
quarter of 2003 for the impairment of intangible assets, related primarily to
certain Island technology assets that were capitalized in 2002 as part of the
company's acquisition of Island ECN. The impairment charge is based on the
application of annual impairment tests prescribed by current accounting
standards (FAS 142).
About Instinet
Instinet, through affiliates, is the largest global electronic agency securities
broker and has been providing investors with electronic trading solutions for
more than 30 years. Our services enable buyers and sellers worldwide to trade
securities directly and anonymously with each other, have the opportunity to
gain price improvement for their trades and lower their overall trading costs.
Instinet is part of the Reuters family of companies.
Through our electronic platforms, our customers also can access over 40
securities markets throughout the world, including NASDAQ, the NYSE and stock
exchanges in Frankfurt, Hong Kong, London, Paris, Sydney, Tokyo, Toronto and
Zurich. We also provide our customers with access to research generated by us
and by third parties, as well as various informational and decision-making
tools. We act solely as an agent for our customers and do not trade securities
for our own account or maintain inventories of securities for sale.
# # #
This news release is for information purposes only and is not intended as an
offer or solicitation with respect to the purchase or sale of any security.
While Instinet believes the information contained herein is reliable, we do not
guarantee its accuracy, and it may be incomplete or condensed. These statements
speak only as of this news release and Instinet undertakes no obligation to
update publicly any of the information contained herein, in light of new
information or future events.
(c) 2004 Instinet Group Incorporated and its affiliated companies. All rights
reserved. INSTINET and INET are service marks in the United States. Instinet ECN
services are provided by Instinet, LLC (formerly Instinet Corporation), member
NASD/SIPC, a subsidiary of Instinet Group Incorporated and an investment adviser
with the SEC. Island ECN services are provided by Inet ATS, Inc. (formerly The
Island ECN, Inc.), member NASD/NSX/SIPC and a subsidiary of Instinet Group
Incorporated.
This news release may be deemed to include forward-looking statements relating
to Instinet. Certain important factors that could cause actual results to differ
materially from those disclosed in such forward-looking statements are included
in the Instinet Annual Report Form 10-K dated for the period ended December 31,
2002 and other documents filed with the SEC and available on the Company's web
site. Certain information regarding NASDAQ trading volumes is also included in
Instinet's Annual Report on Form 10-K for the fiscal year ended December 31,
2002 and on the Company's web site at www.instinetgroup.com.
Investor Contact
John Pitt
Instinet Group Incorporated
212 310 7481
john.pitt@instinet.com
Media Contact
Stephen Austin
Instinet Group Incorporated
212 310 4037
stephen.austin@instinet.com
About Reuters
Reuters (www.about.reuters.com), the global information company, provides
indispensable information tailored for professionals in the financial services,
media and corporate markets. Our information is trusted and drives decision
making across the globe based on our reputation for speed, accuracy and
independence. We have 16,000 staff in 94 countries, including some 2,400
editorial staff in 197 bureaux serving approximately 130 countries, making
Reuters the world's largest international multimedia news agency. In 2002, the
Reuters Group had revenues of #3.6 billion.
Reuters and the sphere logo are the trademarks of the Reuters group of
companies.
Forward-looking Statements
This statement may be deemed to include forward-looking statements relating to
Reuters within the meaning of Section 27A of the US Securities Act of 1933 and
Section 21E of the US Securities Exchange Act of 1934. Certain important factors
that could cause actual results to differ materially from those disclosed in
such forward-looking statements are described in Reuters Annual Report and Form
20-F 2002 under the heading 'Risk Factors'. Copies of the Annual Report and Form
20-F are available on request from Reuters Group PLC, 85 Fleet Street, London
EC4P 4AJ.
Reuters Contacts:
Press - US Tel: 646 223 7728
Steve Naru
stephen.naru@reuters.com
Press - UK Tel: +44 (0) 20 7542 0496
Yasmeen Khan
yasmeen.khan@reuters.com
Investors Tel: +44 (0) 20 7542 7057
Miriam McKay
miriam.mckay@reuters.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCEADFPESXLEAE