Folder 137

NYC 9/11 Public Portal Document

0926/01 2150 LEHMHN CORP TAX d 912122599802 NU.42S D03

relationship with Over many years, the firm has also developed a long-term client senior managed 39 debt the City of New York. Since 1990, Lohman Brothers has the rebuilding of the financings for New York City, totaling more than $17 billion to fund City's infrastructure. emerged as one Since becoming a public company in 1994, Lehman Brothers has 2000, our net of the most successful financial services firms in the world. From 1996 to increased revenues have grown from $3.4 billion to $7.7 billion, our return on equity has grown from 7,500 from 12% to 27%, and the number of Lehman Brothers employees has to 13,000 today. our 45 New York City has been at the heart of Lehman Brothers' growth. Of concentration of global locations in 20 countries, Lehman Brothers has by far the greatest of our 13.000 employees were its people in New York City. In fact, approximately 50% Centers 1 and 3, and based in Manhattan, including 5,600 employees at World Financial 650 employees at the World Trade Center. It is our hope to put all of these employees back to work in Manhattan, and we urgently need your help to secure suitable Manhattan real estate to allow us to rat our business.

In the ten days since the attack on New York, the real estate group at Lehman Brothers has worked around the clock to locate the space critical to our business. After examining a number of properties, we have come to the conclusion that there is one — and do only one — solution that will enable us to keep all our employees in Manhattan. To so, we would immediately lease 500,000 square feet of long term space at 180 Water Street (which would seat 2,400 employees) for our trading support function, a property controlled by the City that is being made available because of the extraordinary business retention efforts of Mayor Giuliani. We would also immediately lease 430,000 square feet of long term space in mid-town Manhattan (which would seat about 1,400 employees) for our investment banking business. Our two trading floors arc currently functioning at our disaster recovery site in Jersey City, where we have had to add an additional 150,000 square feet in a nearby building. We will move our two trading floors into the World financial Center as soon as it becomes available for re-occupancy (this will require about 3,000 seats at the World Financial Center).

The reason we so badly need the help of the City in securing the 180 Water Street space is simple — we have to keep our trading support functions in one location, reasonably proximate to trading, and there is no other 500,000 square foot block of space available for immediate occupancy in downtown Manhattan that is suitable for our business requirements. If we succeed in obtaining this space, Lehman Brothers will be able to firmly commit to returning all of our New York based employees to Manhattan, as well as locating our future New York City area employee growth in Manhattan. Since we have been growing our New York City based employee population by about 500 employees per year — the balance of the World Financial Center space we previously occupied will provide sufficient expansion space for another few years. Jersey City will then return to its former role as our primary disaster recovery center.

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