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DTCC and Thomson Financial ESG Create New Global Venture To Redefine Trade Processing

New York and London, April 27, 2000 -- In a move that will redefine trade processing globally, The Depository Trust & Clearing Corporation (DTCC) and Thomson Financial, a unit of The Thomson Corporation, announced today plans to create a new joint venture.

The new company will be a commercial enterprise that fills key gaps in the current institutional trade-processing model by offering streamlined trade management. The venture will link a broadened global community of custodian banks, investment managers and broker-dealers, accelerating the industry’s drive to manage operational risk through real-time straight-through-processing of securities transactions.

Building on the existing trade-processing businesses of DTCC's Depository Trust Company subsidiary and Thomson Financial ESG, a unit of Thomson Financial, the company's long range goal will be to leverage current Internet technology capabilities and an e-commerce architecture to offer a single trade management platform over a secure IP network.

"Our objectives are very clear," said Jill M. Considine, Chairman & CEO of The Depository Trust & Clearing Corporation (DTCC). "The new venture will create the leading global trade processing platform and bring the securities industry closer to shortened settlement cycles."

"The decision on our part to join with Thomson Financial is an outgrowth of our new mission at DTCC, which in part is focused on developing industry solutions based on strategic partnerships and alliances, delivering the greatest benefits in terms of connectivity, efficiency, lower cost and value added services to our customers," added Considine.

"We believe that the joint venture has the potential to become one of the most significant business-to-business e-commerce models by helping the financial industry meet the challenges associated with growing trading volumes and shortened global trade settlement cycles," said Sharon Rowlands, Chief Operating Officer of Thomson Financial. "The new company will leverage the heritage of its parents, combining an unblemished record of safety and soundness in trade processing with a reputation for commercial innovation and problem-solving on behalf of a global client base."

The new company will be structured as a joint venture. Robert J. McGrail, Managing Director and Head of New Business Ventures for DTCC, will serve as Chairman and P. Howard Edelstein, President and Chief Executive Officer of Thomson Financial ESG, will be the President & Chief Executive Officer.

"Today we're introducing a new business model," said McGrail. "We are combining the resources of two complementary organizations to create a global company capable of operating seamlessly, with reliability and neutrality, along with an appropriate measure of industry control."

"Electronic trading, new market structures and extended trading hours are placing ever-increasing operational stresses on the global securities markets," added Edelstein. "This new collaboration will help the industry improve operational performance and increase investment returns. The net result will be less risk and greater efficiency in the global capital markets of the 21^st century."

A final definitive agreement will be submitted to the Boards of Thomson and DTCC in early summer. Completion of the transaction will follow customary due diligence and will be subject to appropriate regulatory approvals.

A seven member Board made up of two representatives each from DTCC and Thomson Financial and three global securities industry representatives will govern the new company. The new company will operate independently of DTCC's securities depository business and Thomson Financial.

Bear Stearns is advising DTCC on the venture, and Deutsche Bank Alex. Brown is advising Thomson.

About DTCC

The Depository Trust & Clearing Corporation (DTCC), with operating facilities in multiple locations in the U.S. and overseas, is a holding company for six subsidiary businesses - a depository and five clearing corporations - as well as the co-owner with Thomson Financial of a global joint venture called Omgeo. Through its subsidiaries, DTCC provides clearance, settlement and information services for equities, corporate debt, municipal debt, government securities and mortgage-backed securities in the U.S., and emerging markets debt trades globally. It is also a leading clearinghouse for mutual funds and insurance products, linking funds and carriers with distribution networks. In addition, DTCC provides custody and asset servicing for more than two million securities from the U.S. and 84 other countries. For more information on DTCC, see www.dtcc.com.

Thomson Financial ESG is the worldwide leader in providing technology-based workflow solutions to the global investment community. Thomson Financial ESG is committed to partnering with its clients to dramatically reduce the risk and cost of processing trades, thereby improving their investment performance. Thomson Financial ESG services are used in 39 countries for domestic and cross-border trading. Thomson Financial ESG supports approximately 4,000 clients from 18 offices located in major financial centres across the globe. For more information, visit the Thomson Financial ESG web site at www.thomsonesg.com.

Thomson Financial is a US$1.44 billion provider of information services and work solutions to the financial and corporate communities worldwide. Through the widest range of products and services in the industry, Thomson Financial helps clients in more than 70 countries make better decisions, be more productive and achieve superior results. Thomson Financial is part of The Thomson Corporation, a leading e-information and solutions business with annual revenues of more than US$5.8 billion. The Corporation's common shares are listed on the Toronto and London stock exchanges. For more information on Thomson Financial, visit www.thomsonfinancial.com.