Goldman Sachs To Report Stock Options Granted To Employees As An Expense

Joins Financial Services Forum in urging that uniform valuation methodology be adopted

NEW YORK – The Goldman Sachs Group, Inc. (NYSE: GS) announced today that it would report stock options granted to employees as an expense, beginning in fiscal year 2003.   In doing so, the firm joined other member companies in the Financial Services Forum (FSF) in affirming its commitment to rebuilding public trust in our financial and corporate institutions and practices.  In conjunction with the FSF, Goldman Sachs called for regulators and the accounting industry to determine and set uniform and accurate methods to value stock options in a timely fashion.

Goldman Sachs is a leading global investment banking, securities and investment management 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.