Hobbs Appointed New CEO of Houlihan Lokey Howard & Zukin; Former Chairman of Warburg Dillon...

Business Editors

NEW YORK & LOS ANGELES--(BUSINESS WIRE)--Dec. 10, 2001

Houlihan Lokey Howard & Zukin announced the appointment of Franklin W. "Fritz" Hobbs, former chairman of Warburg Dillon Read, Inc., as chief executive officer, effective January 1, 2002.

"Fritz will make an outstanding contribution to the company," Lokey said. "Our firm is in a period of strong, sustained growth. As a proven leader at the highest levels of the investment banking industry, Fritz brings experience and skills that complement the energetic, entrepreneurial culture of our firm."

Houlihan Lokey Howard & Zukin is a leading provider of investment banking services to middle-market companies in North America and operates actively in Europe and Asia. The firm is the preeminent financial restructuring advisor in the world, advising in many of today's largest and most complex restructurings. Houlihan Lokey's financial advisory services are among the most extensive in North America; the firm was rated the No. 1 provider of fairness opinions in 2000.(1) The firm also has a successful merchant banking arm and extensive expertise in private placement of debt and equity capital. Houlihan Lokey has consistently ranked among the top M&A investment banks, having advised in $39 billion in M&A transactions in 2000. The firm was ranked the No. 3 advisor in M&A deals under $500 million last year.(2)

"I've known Houlihan Lokey and the quality of its work for many years," Hobbs said. "The leadership team here has indeed built a remarkable investment bank, one which has set industry standards in a wide range of financial services. My role is to help the firm grow and build upon its existing successes. I look forward to helping Houlihan Lokey bring its innovative services to a growing universe of companies."

Hobbs observed that the vast consolidation among financial institutions has worked to the advantage of Houlihan Lokey. The firm stands as one of the few independent investment banks able to address a number of voids created by a narrowing field of major investment banks. Houlihan Lokey provides superior service where others cannot because of conflicts of interest, barriers to entry and structural and resource constraints.

"Houlihan Lokey dominates its investment banking markets thanks to an outstanding platform," Hobbs said. "Its advantages include a superior reputation and the extraordinary breadth of its client relationships, more than 1,100 in this year alone."

Hobbs began his career at Dillon Read as an associate in 1972 after graduating from Harvard University and the Harvard Business School. By the mid-1980s, he was head of corporate finance and M&A. Hobbs became president in 1991 and took on the added responsibilities of chief executive officer in 1994.

Following Dillon Read's acquisition in early l997 by Swiss Bank Corporation, which later that year merged with UBS, Hobbs became global head of corporate finance for Warburg Dillon Read, Inc., becoming chairman in 1999. He resigned as chairman in March 2000.

About Houlihan Lokey Howard & Zukin

Houlihan Lokey Howard & Zukin is an investment bank providing a wide range of services, including mergers and acquisitions, corporate alliances, private placements of debt and equity capital, financial opinions and advisory services, financial restructuring and merchant banking. Houlihan Lokey has ranked among the top 20 M&A advisors for the past 10 years. Founded in 1970, the firm has a staff of more than 500 employees in 10 offices across North America and in Asia and is active in Europe. Houlihan Lokey serves more than 1,000 clients a year ranging from closely held middle-market companies to Fortune 500 corporations. For more information, visit Houlihan Lokey's Website at www.hlhz.com.

(1) Mergers & Acquisitions magazine, February 2001

(2) Thomson Financial Securities Data, January 2001