September 25, 2008

SecondMarket to Trade Lehman Bros. Brankruptcy Claims

Adds Bankruptcy Industry Veterans to Bankruptcy Claims Trading Business

NEW YORK, N.Y., Sept. 25, 2008 - SecondMarket, the largest marketplace for illiquid assets, announced today that effective immediately it will begin trading bankruptcy claims created by the Lehman Brothers Holdings Inc. Chapter 11 filing. With $639 billion in assets and more than 100,000 creditors, the Lehman Brothers bankruptcy is the largest in the U.S. to date.

SecondMarket (formerly known as Restricted Stock Partners) opened to trading of bankruptcy claims in June 2008 when it acquired the Trade Receivable Exchange, Inc. (T-REX), the largest online auction platform serving the bankruptcy claims market.

"We purchased T-REX earlier this year in order to accelerate our expansion into claims trading," CEO Barry E. Silbert said. "These are unprecedented times in the financial and credit markets. We expect that bankruptcy claims trading is going to explode, particularly as a result of the Lehman Brothers Chapter 11 filing."

To address the growth in claims trading, SecondMarket also announced that John A. McKenna, Jr., a member of SecondMarket's Board of Directors, will play an active role in managing that business. Prior to founding SecondMarket, Silbert worked with McKenna at Houlihan Lokey Howard & Zukin, one of the world's leading bankruptcy financial advisors. At Houlihan Lokey, McKenna served as the Co-Head of the Financial Restructuring Group in the eastern region. Silbert and McKenna worked on many of the country's largest bankruptcy cases, including Enron, U.S. Airways and Delta Air Lines.

"Bankruptcies often have a ripple effect," according to McKenna. "When a major company like Lehman Brothers files for Chapter 11, the financial condition of its creditors is often materially affected. By providing them with an opportunity to sell their claims, instead of waiting for a recovery at the end of the bankruptcy case, SecondMarket plays an important role in providing the liquidity needed to restore stability to financial markets and the economy as a whole."

SecondMarket expects to trade a variety of unsecured claims resulting from the Lehman Brothers bankruptcy, including structured product, trade, lease and contract rejection, employment and other unsecured claims. Lehman Brothers listed total liabilities of $613 billion in its bankruptcy filing. Creditors can have access to the SecondMarket online trading platform and list their claims for sale at no cost.

In addition to bankruptcy claims, SecondMarket trades auction-rate securities, restricted securities in public companies and other illiquid assets. SecondMarket's online trading platform has more than 1,500 members, including global financial institutions, hedge funds, private equity firms, mutual funds, and other institutional and accredited investors that collectively manage over $250 billion in assets available for investment.

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About SecondMarket

Founded in 2004, New York-based SecondMarket is the world's largest marketplace for illiquid assets, such as auction-rate securities, bankruptcy claims and restricted securities in public companies. SecondMarket's online trading platform has more than 1,500 members, including global financial institutions, hedge funds, private equity firms, mutual funds, and other institutional and accredited investors that collectively manage over $250 billion in assets available for investment. SecondMarket is a wholly owned division of Green Drake, Inc. (Member FINRA/SIPC). For more information, visit www.SecondMarket.com.
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