October 27, 2005; Boston & San Diego – Linsco/Private Ledger (LPL Financial Services), the nation's leading independent brokerage firm, today announced plans to sell a majority equity interest in the company to investment affiliates of Hellman & Friedman LLC and Texas Pacific Group (TPG), two leading private equity firms. Under terms of the definitive agreement, the company has been valued at $2.5 billion. Following the transaction, LPL's founders and employees will retain approximately 40% of the company's equity.

Headquartered in Boston and San Diego, LPL is America's number one independent brokerage firm as measured by revenues * , with more than 6,200 financial advisors, 3,000 branch offices, and over one million client accounts. The company generated revenues of $1.1 billion and had over $100 billion in assets under management for its 2004 fiscal year.

“This transaction provides LPL with world-class partners who are committed to growing our company under the same business model and operating team that have made LPL the independent brokerage firm of choice for over 6,200 financial advisors nationwide,” said Mark Casady, President and CEO. “Our partnership with Hellman & Friedman and TPG will provide a platform for us to expand upon the key elements of our success – especially the ability of our financial advisors to offer unbiased advice and services to their clients – and further strengthen our commitment to our advisors as the basis of our business.”

Following the closing, which is expected to be by year-end, Mr. Casady will assume the role of Chairman in addition to his current responsibilities as CEO and President, and Esther Stearns will continue as COO. Todd Robinson, the company's founder and current Chairman, will assume the role of Chairman Emeritus; co-founder and current Vice Chairman Dave Butterfield will retire; and co-founder Jim Putnam will remain as Vice Chairman and continue to serve on the Board of Directors. No other management changes will occur as a result of this transaction.

Richard Schifter, a partner at TPG, said, “We view LPL and its entire organization of financial advisors and employees as an excellent investment in an industry with bright prospects. The management team has built a highly successful business focused on supporting its advisors in developing strong and profitable relationships with their clients. The industry is evolving rapidly, and LPL and its financial advisors are well-positioned to capitalize on emerging opportunities. We look forward to working closely with Mark Casady and the rest of his team in the coming years to strengthen and build upon the leading position that LPL and its advisors hold in the industry.”

Jeffrey Goldstein, Managing Director at Hellman & Friedman, said, “We are proud to partner with a firm that has a strong culture dedicated to serving its financial advisors with access to high quality products, effective support services and an outstanding technology platform. Independent, unaligned financial advice is critical to all investors and the demand for this advice will continue to grow rapidly as retirement planning needs and investable assets increase significantly in coming years. LPL is a great fit with Hellman & Friedman's strategy to invest in top quality franchises with superior management teams and strong growth prospects.”

Mr. Casady added, “Going forward, our commitment to our business model and corporate philosophy will not change. In particular, I would emphasize that:

§ Our financial advisors will continue to be the most important people in this company, and we will continue to focus on providing them with the support, services, and infrastructure to succeed.

§ LPL remains committed to the independence of our financial advisors, who will continue to have access to a wide selection of non-proprietary financial products.

§ We are committed to continuing to invest in and grow our ability to offer exceptional unbiased research services, leading-edge technology, and superior office support to our financial advisors. We are confident that, with the backing of Hellman & Friedman and TPG, we will have the resources to explore more opportunities to create value for our advisors and enhance the success of their local operations.

Mr. Casady concluded, “Looking ahead, this will be a seamless transaction that leads LPL and our financial advisors on a continued path of success under the traditions and sound business model that Todd Robinson originally set forth.”

The transaction is subject to a number of customary closing conditions, including regulatory approval.

Morgan Stanley and The Goldman Sachs Group, Inc. served as LPL's financial advisors in this transaction, and Simpson Thacher & Bartlett LLP served as legal counsel for the company.

Wachtell, Lipton, Rosen & Katz and Arnold & Porter served as legal counsel for Hellman & Friedman and TPG.

About LPL Financial Services

Linsco/Private Ledger (LPL Financial Services) is committed to providing its financial advisors with the tools they need to offer the highest quality of independent investment advice. LPL has been ranked the number one independent broker/dealer for ten years in a row by Financial Planning Magazine (June 1996-2005, based on revenues). With over 1,200 staff members headquartered in Boston and San Diego, LPL offers non-proprietary investment products, unbiased research and wealth management services through more than 6,200 financial advisors nationwide. LPL financial advisors manage over $100 billion in total assets for their clients. For additional information about LPL Financial Services, visit www.lpl.com.

About Hellman & Friedman LLC

Hellman & Friedman LLC is a San Francisco-based private equity investment firm with additional offices in New York and London. Since its founding in 1984, the Firm has raised and managed over $8 billion of committed capital and invested in approximately 50 companies. The Firm's strategy is to invest in superior business franchises and to be a value-added partner to management in select industries including financial services, media, professional services, energy, and information services. The Firm has pursued investments in the financial services sector for over a decade, which include Arch Capital Group Limited (ACGL), CATRisk, Mondrian Investment Partners, and the NASDAQ Stock Market, Inc. For more information on Hellman & Friedman, visit www.hf.com.

About Texas Pacific Group

Texas Pacific Group, founded in 1993 and based in San Francisco, London and Fort Worth, Texas, is a private investment partnership managing over $15 billion in assets. TPG has extensive experience with public and private investments executed through leveraged buyouts, recapitalizations, spinouts, joint ventures, and restructurings. TPG seeks to invest in world-class franchises across a range of industries, including significant investments in financial services (Endurance Specialty Holdings, Fidelity National Information Services), technology (ON Semiconductor, MEMC, Lenovo, Seagate), branded consumer franchises (Burger King, Beringer, Ducati), media and communications (MGM, Findexa, TIM Hellas), retail (Petco, J.Crew, Neiman Marcus, Debenhams), healthcare (Oxford Health Plans, IASIS Healthcare, Quintiles Transnational), airlines (Continental, America West), and industrials (KRATON Polymers, British Vita, Grohe), among others.

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