Goldman Sachs Integrates US Options Businesses of Spear, Leeds & Kellogg and The Hull Group

New Entity Named SLK-Hull Derivatives LLC

NEW YORK – The Goldman Sachs Group, Inc. (NYSE: GS) today announced that it has integrated Spear, Leeds & Kellogg, L.P.'s (SLK) U.S. options business and Hull Trading Company, The Hull Group L.L.C.'s equity derivatives market making business, effective at the close of trading on Thursday, November 1, 2001. SLK-Hull Derivatives LLC (SHD), as the new business will be called, combines both firms' extensive market expertise, state-of-the-art technology and risk management capabilities.

With coverage in over 750 options classes, and a presence on all five options exchanges, SHD intends to become the premier provider of liquidity and the center for price discovery in the options market. Clients will benefit from the new entity's combined floor and electronic trading capabilities, and its flexibility in responding to market structure changes as they occur.

Goldman Sachs is a leading global investment banking and securities firm that provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.