STAMFORD, CT, February 26, 2002: NYFIX, Inc. (NASDAQ: NYFX), a leader in technology solutions for the financial marketplace, today announced its financial results for the fourth quarter and year-ended December 31, 2002. Highlights include:

Revenues of $17.3 million for fourth quarter of 2002, up 43% from last year;
Revenues of $55.8 million for year 2002, up 35% from 2001; EPS of $0.02 per common share for the fourth quarter of 2002 as compared to ($0.03) for the third quarter of 2002; Cash provided from operating activities of approximately $7 million for the fourth quarter and $4 million for the year; Year-end cash and short-term investments of $21.9 million.

Fourth Quarter Results

Revenue for the fourth quarter of 2002 was $17.3 million, representing an increase of 43% from $12.1 million for the fourth quarter of 2001 and an increase of 12% from $15.4 million for the third quarter of 2002. Net earnings was $0.6 million ($0.02 per common share) for the fourth quarter of 2002 as compared to $2.3 million ($0.08 per common share) for the fourth quarter of 2001 and a net loss of $0.9 million ($0.03 per common share) for the third quarter of 2002. Fourth quarter 2002 earnings was positively impacted by the favorable results of a completed study relating to certain research tax credits available to the Company. Earnings before income taxes were slightly better than breakeven for the fourth quarter of 2002.

Full Year Results

Revenue for the year ended December 31, 2002 was $55.8 million, representing an increase of 35% from $41.4 million for 2001. The net loss for the year was $3.2 million ($0.10 per common share) as compared to net earnings of $8.1 million ($0.30 and $0.29 per basic and diluted common share, respectively) for 2001.

Cash and short-term investments totaled $21.9 million as of December 31, 2002 as compared to $33.9 million at December 31, 2001, $21.4 million at September 30, 2002. Cash provided by operating activities was approximately $7 million in the fourth quarter of 2002 and $4 million for the year. While the Company generated cash from operating activities for the year, investing activities, including acquisitions, investments in affiliates, fixed and other assets totaled approximately $22.0 million for the year.

In addition, the Company previously reported that, as a result of completing its asset valuations, annual goodwill impairment tests and allocations of the purchase prices to the acquired tangible and intangible assets, goodwill of $70.2 million at December 31, 2002, related to the acquisitions of NYFIX Millennium, L.L.C. and Javelin Technologies, was not impaired.

"After a period of constructive investing and repackaging significant elements of our business, we believe we have returned to a profitable growth path. While we are still early in the growth path, we believe that we are very well positioned in our existing markets and we are also gaining traction with new efforts in newly developing markets," said Peter Kilbinger Hansen, President and Chief Executive Officer of NYFIX, Inc.

The Company said individual segments of the financial transaction chain - such as the retail oriented online brokerage, ECN businesses and some elements of the institutional brokerage business - are still experiencing challenging market conditions. However, market re-engineering, market refocusing and new growth opportunities are emerging out of a changing financial market and distribution structure.

Supported by changes in the Company's business model and continued investment in its electronic infrastructure capability, the Company is increasingly involved in all facets of straight through financial processing both from a technology and transaction perspective. With professional investors being less US equity-centric at the moment, several of the Company's global derivatives customers are experiencing growth, thus enabling the Company to increasingly sell its network and workstation products outside the United States.

"We are experiencing developing growth in most lines of our business. NYFIX Millennium is reaching increased levels of volume and a new level of interest from the marketplace. Also, NYFIX Transaction Services is continuing to expand its volume and customer base at a high rate resulting in overall growth in our transaction businesses. Synergies between Javelin and NYFIX are starting to work. Javelin experienced strong fourth quarter revenue growth from its core business and NYFIX Network sales to the buy-side institutional market is becoming one of the Company's fastest growing areas. We started this new offering in August 2002 and since then have executed contracts with more than 30 buy-side institutions to connect to the NYFIX Network," commented Mr. Hansen.

"We are encouraged by the continued improvement of quarterly results," commented Mark R. Hahn, Chief Financial Officer of NYFIX, Inc. "While the Company invests in the opportunity to deliver multiple business services over its ever-expanding platform, we believe that our ability to generate cash from operations in the fourth quarter and the future is enabling NYFIX to continue to make investments in our infrastructure to support the needs of the marketplace and our current and future customers."


The Company expects revenue for the first quarter of 2003 to be in the range of $17.7 million to $18.2 million. This compares to $10.1 million for the first quarter of 2002 and $17.3 million for the fourth quarter of 2002. First quarter earnings per common share is expected to be in the range of breakeven to $0.02. This compares to breakeven in the first quarter of 2002 and net earnings of $0.02 per common share for the fourth quarter of 2002. The Company believes it will achieve continued quarterly growth throughout the remainder of 2003 in revenue and earnings. While the Company is focusing on growing its recurring revenue model, capital sales continue to be a component of quarterly revenue and is less predictable, which may have an impact on the consistency of the Company's financial results.

The Company is hosting its quarterly conference call today at 12:00 Noon EST. The call can be accessed via the Internet at http://www.firstcallevents.com/service/ajwz371547017gf12.html and the Company's website at http://www.nyfix.com. A replay of the conference call will be available via the Company's website.

NYFIX, Inc. through its subsidiaries and affiliates provides electronic trading systems, industry-wide trade routing connectivity, straight-through processing and execution services and systems to the global equities and derivatives financial markets.

NYFIX USA, LLC develops real-time order management trader workstations, exchange automation systems, trade order and execution routing and STP solutions for brokerage firms and other financial institutions. NYFIX USA operates the NYFIX Network, the industry's largest FIX order-routing network, processing between 500 million to 1.2 billion shares of U.S. listed equity securities on a daily basis. NYFIX USA is a pioneer in the adoption of the Financial Information Exchange (FIX) protocol and all its products are FIX-compliant.

NYFIX Transaction Services, Inc., a broker-dealer subsidiary of NYFIX, Inc. and NASD member, provides execution and smart order routing solutions primarily to domestic and international broker-dealers and specialized trading firms.

NYFIX Millennium, L.L.C., an 80% owned broker-dealer subsidiary of NYFIX, Inc., is an Alternative Trading System, which provides a real-time, anonymous automated matching system for equity trading. NYFIX Millennium leverages the NYFIX network's large order routing share volume to provide a more efficient liquidity source for the financial community. Outside investors in NYFIX Millennium, L.L.C. include ABN Amro, Banc of America Securities, Deutsche Bank, JP Morgan, Lehman Brothers, Morgan Stanley, Sanford C. Bernstein & Co., SG Cowen Securities Corp., UBS Warburg and Wachovia Securities.

NYFIX Overseas, Inc. specializes in electronic trading solutions for the derivatives markets and develops order management workstations and exchange interface systems, supporting trading on more than 20 of the world's leading international derivatives exchanges. NYFIX Overseas has customers in Europe, the U.S. and the Far East.

Javelin Technologies, Inc. is a leading supplier of electronic trade communication technology and a leading provider of FIX technology. Javelin solutions provide better trading through universal connectivity, streamlining of workflow and elimination of the high costs and risks associated with the development of proprietary network links and protocol implementations.

EuroLink Network, Inc., a Madrid, Spain-based 40% owned affiliate of NYFIX, Inc., offers direct electronic access to the US equity markets from Europe. With a complete suite of order management, routing and execution products and services, EuroLink Network provides traders with superior speed, reliability and security through an established network infrastructure.

Renaissance Trading Technologies, LLC, an 18% owned affiliate of NYFIX, Inc., offers a trader workstation for the Nasdaq market, enabling principal and agency traders to electronically receive orders from multiple sources, execute orders according to best execution principles, route orders to ECN or ATS destinations and manage risk.

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