An Extraordinary Acquisition for eSpeed
Patent is a Building Block for Electronic Futures Exchanges
Wagner Patent Will Help eSpeed Expand Into New Verticals
New York, April 25, 2001 eSpeed, Inc. (Nasdaq:ESPD), the leading developer of electronic marketplaces and related trading technology solutions, today announced that it has purchased a patent which plays a crucial role in the trading of futures products. eSpeed has exclusive rights to the patent which deals with electronic futures trading in the United States including but not limited to: energy futures, interest rate futures, single stock futures and equity index futures. eSpeed operates the Cantor Exchange- the first fully electronic futures exchange in the United States.
According to the Futures Industry Association, futures and options on futures trading in the United States last year alone exceeded 594,516,449 contracts.
Purchased from Electronic Trading Systems Corporation ("ETS"), United States Patent No. 4,903,201 ("the Wagner patent") is one of the earliest patents in this technology area. Dealing with the design and operation of futures exchanges, the Wagner patent adds an extraordinary complement to eSpeed's existing patent portfolio.
Background
Traditional futures exchanges operate in an "open outcry" trading pit where traders yell out bids and offers. This current system is inefficient, slow and very expensive. The Wagner patent deals with automated futures trading systems in which transactions are completed by a computer matching bids and offers.
The Wagner patent will help eSpeed expand current markets running on its electronic platform, assist in the expansion into new verticals and serve to attract new partners.
About eSpeed, Inc.
eSpeed, Inc. operates multiple buyer/multiple seller real-time electronic marketplaces. eSpeed's suite of marketplace tools provides end-to-end transaction solutions for the purchase and sale of financial and non-financial products via the Internet or over eSpeed's global private network. eSpeed currently provides the marketplace infrastructure for 45 financial and non-financial instruments, including most of the world's fixed income marketplaces. eSpeed transacts over $200 billion of financial instruments daily and is headquartered in New York City. Additional information on eSpeed is available via the Internet at http://www.espeed.com.
About the Cantor Exchange
The Cantor Exchange is a joint venture between eSpeed and the New York Board of Trade (NYBOT), combining the regulatory and clearing expertise of the NYBOT with the technological leadership of eSpeed , Inc . The two organizations work together to bring innovation to the U.S. Treasury and Agency futures marketplaces. The Cantor Exchange is regulated by the Commodities Futures Trading Commission (CFTC) and outside the United States is currently recognized and/or authorized as a foreign exchange in the United Kingdom, Denmark, Finland, France, Ireland, Japan, Norway and Germany. Authorization in additional markets is pending.
Statements contained in this Press Release which are not historical facts are forward-looking statements, as the term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to: the limited operating history of eSpeed, Inc., its expected incurrence of future losses and negative cash flow from operations for the first half of 2001, its ability to enter into marketing and strategic alliances, to effectively manage its growth, to expand the use of its electronic systems, and to induce customers to use its marketplaces and services and other factors that are discussed in eSpeed's Annual Report on Form 10-K filed with the Securities and Exchange Commission.
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