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Instinet Group Announces July 2004 Transaction Information

NEW YORK--(BUSINESS WIRE)--Aug. 12, 2004--Instinet Group Incorporated (NASDAQ: INGP) today announced July 2004 transaction data for its two major business segments: Instinet, the Unconflicted Institutional Broker and INET, the Electronic Marketplace.
In July 2004, Instinet's total average daily U.S. equity share volume was 102 million shares, which represents a 2.8% share of the U.S. equity market. This compares to 88 million shares, or 2.5% of the U.S. equity market, in June 2004, and 110 million shares, or 2.9% of the U.S. equity market, in July 2003.

In July 2004, INET's total matched average daily U.S. equity share volume was 549 million shares, or 14.8% of the U.S. equity market. This volume consisted of 473 million shares of NASDAQ-listed stocks, or a 27.3% share of the NASDAQ-listed market, and 76 million shares of U.S. exchange-listed stocks, or 3.8% of the U.S. exchange-listed market.

This compares to INET's total matched average daily share volume of 451 million in June 2004, or 13.0% of the U.S equity market, consisting of 392 million shares of NASDAQ-listed stocks, or a 24.5% share of the NASDAQ-listed market, and 59 million shares of U.S. exchange-listed stocks, or 3.1% of the U.S. exchange-listed market.

In July 2003, INET's total matched average daily share volume was 491 million shares, or 13.2% of the U.S equity market, consisting of 440 million shares of NASDAQ-listed stocks, or a 24.8% share of the NASDAQ-listed market, and 51 million shares of U.S. exchange-listed stocks, or 2.6% of the U.S. exchange-listed market.

Instinet Group reports additional monthly operating data on its website at www.instinetgroup.com under the heading "Investor Relations - Instinet Trading Activity."

July June July
2004 2004 2003
(3)
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# of Trade Days 21 21 22
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Instinet (1)
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Total U.S. equity average daily volume
(million shares) 102 88 110
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Share of total U.S. equity market 2.8% 2.5% 2.9%
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INET - Matched Average Daily Volume (2)
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Nasdaq-listed equity share volume
(million shares) 473 392 440
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Share of total Nasdaq market 27.3% 24.5% 24.8%
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U.S. exchange-listed share volume
(million shares) 76 59 51
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Share of total U.S. exchange-listed market 3.8% 3.1% 2.6%
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Total U.S. equity share volume
(million shares) 549 451 491
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Share of total U.S. equity market 14.8% 13.0% 13.2%
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Monthly totals may not reflect weekly data, which are preliminary. The number of trading days in each period takes account of U.S. market holidays and any other U.S. market closings.

1. For a description of how we calculate Instinet's transaction volumes, see "Management's Discussion and Analysis of Financial Condition and Results of Operations - Calculation of Volume - Instinet, the Institutional Broker" in our Form 10-Q for the fiscal quarter ended June 30, 2004.

2. For a description of how we calculate INET's transaction volumes, see "Management's Discussion and Analysis of Financial Condition and Results of Operations - Calculation of Volume - INET, the Electronic Marketplace" in our Form 10-Q for the fiscal quarter ended June 30, 2004.

3. Represents Inet ATS, Inc. volume, including volume from ProTrader Securities L.P. beginning the week ended 10/5/01 through 7/22/03.

Instinet has experienced significant seasonality in its business, and period-to-period comparisons of operating results are not necessarily meaningful, nor are the results for any period necessarily indicative of results for any future period.

About Instinet Group

Instinet Group, through affiliates, is the largest global electronic agency securities broker and has been providing investors with electronic trading solutions and execution services for more than 30 years. We operate our two major businesses through Instinet, LLC, the Unconflicted Institutional Broker, and Inet ATS, Inc., the electronic marketplace.

-- Instinet, the Unconflicted Institutional Broker, gives its customers the opportunity to use its sales-trading expertise and advanced technology tools to interact with global securities markets, improve trading performance and lower overall transaction costs. Through Instinet's electronic platforms, customers can access other U.S. trading venues, including NASDAQ and the NYSE, and almost 30 securities markets throughout the world. Instinet acts solely as an agent for its customers, including institutional investors, such as mutual funds, pension funds, insurance companies and hedge funds. Lynch, Jones & Ryan, Instinet Group's commission recapture subsidiary, and Instinet Clearing Services, Inc., Instinet Group's clearing broker, are also a part of Instinet.

-- INET, the electronic marketplace, represents the consolidation of the order flow of the former Instinet ECN and former Island ECN, providing its U.S. broker-dealer customers one of the largest liquidity pools in NASDAQ-listed securities.

This press release is for information purposes only and is not intended as an offer or solicitation with respect to the purchase or sale of any security.

(C)2004 Instinet Group Incorporated and its affiliated companies. All rights reserved. INSTINET and INET are service marks in the United States. Instinet Group Incorporated is part of the Reuters family of companies. Instinet, LLC (branded Instinet, the Unconflicted Institutional Broker), member NASD/SIPC; Inet ATS, Inc. (branded INET), member NASD/NSX/SIPC; Lynch, Jones & Ryan, Inc., member NASD/SIPC; and Instinet Clearing Services, Inc., member NASD/SIPC, are subsidiaries of Instinet Group Incorporated.

This news release may be deemed to include forward-looking statements relating to Instinet Group. Certain important factors that could cause actual results to differ materially from those disclosed in such forward-looking statements are included in Instinet Group's Annual Report on Form 10-K for the fiscal year ended December 31,2003, and other documents filed with the SEC and available on the Company's website at www.investor.instinetgroup.com.

Contacts


Investor Contact:
Instinet Group Incorporated
Lisa Kampf, 212-231-5022
lisa.kampf@instinet.com
or
Media Contact:
Instinet Group Incorporated
Stephen Austin, 212-231-5331
stephen.austin@instinet.com

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