Goldman Sachs and JBWere Agree on Australian / NZ Merger

27 March 2003, Sydney, Australia – The Goldman Sachs Group, Inc. (NYSE:GS) and JBWere announced today that they have reached an agreement in principle to merge their Australian operations into a new venture to be branded Goldman Sachs JBWere. The transaction will create one of the leading investment banking and securities firms in Australia, and will offer significantly enhanced services to a broad range of corporate, institutional and retail clients in Australia and New Zealand.


Under the terms of the agreement, Goldman Sachs will own 45 percent of Goldman Sachs JBWere, with partners and employees of Goldman Sachs JBWere owning the remaining 55 percent. A new Board of Directors will be created with equal representation from Goldman Sachs and JBWere. Mr. Terry Campbell, the current Executive Chairman of JBWere, will assume the position of Chairman and Chief Executive Officer of Goldman Sachs JBWere. Mr. Andrew Stuart, currently Co-Chairman of Goldman Sachs Australia and Mr. Craig Drummond, currently Joint Managing Director - Corporate of JBWere, will become Co-Chief Operating Officers of the new firm.

Mr. John Paterson and Mr. Alastair Walton will become Vice Chairmen.

The transaction will, upon closing, combine JBWere's prominent position in Australian and New Zealand equities trading and research with Goldman Sachs' premier investment banking, fixed income and equities capabilities – a powerful combination that will offer the new firm's clients the highest quality access to domestic and international markets.

Commenting on the agreement, Mr. Campbell said: "Our partnership with Goldman Sachs will benefit our business, our people and our clients, who will gain ready access to a global network of research, investment products, market expertise and advice. Our dedication to client focus has helped us retain our position as one of Australia's leading investment houses. This merger is an unparalleled opportunity to build on that success."

"Today's agreement reinforces Goldman Sachs' commitment to Australia and, with one step, brings us closer to our goal of becoming the leading investment bank in the Australian market," said Mr. John Thornton, President and Co-Chief Operating Officer of The Goldman Sachs Group, Inc. "JBWere is one of the country's most respected financial institutions with a culture, like ours, that embodies leadership and excellence. We view the future of this partnership with great confidence."

It is expected that the transaction will be completed in the next four months and is subject to regulatory approval.

Since 1840, JBWere has been a leading participant in the capital formation process for Australian industry and commerce. The firm provides an extensive range of investment products and advisory and execution services to private, institutional, intermediary and corporate clients. In both primary and secondary markets, JBWere is in the unique position of being independently recognized as the pre-eminent investment house in equities research and in funds management.

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 global investment banking firms. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong, Sydney and other major financial centers around the world.


Goldman Sachs JBWere JBWere
Edward Naylor Bridget Crowe Leah Clarke
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