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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000791963-02-000004.txt : 20020729
<SEC-HEADER>0000791963-02-000004.hdr.sgml : 20020729
<ACCEPTANCE-DATETIME>20020729142516
ACCESSION NUMBER:		0000791963-02-000004
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20020630
FILED AS OF DATE:		20020729

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FAHNESTOCK VINER HOLDINGS INC
		CENTRAL INDEX KEY:			0000791963
		STANDARD INDUSTRIAL CLASSIFICATION:	SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211]
		IRS NUMBER:				980080034
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-12043
		FILM NUMBER:		02713047

	BUSINESS ADDRESS:	
		STREET 1:		SUITE 1110, P.O. BOX 2015
		STREET 2:		20 EGLINTON AVE. WEST
		CITY:			TORONTO ONTARIO CANADA
		STATE:			A0
		ZIP:			M4R 1K8
		BUSINESS PHONE:		(416)322-1515

	MAIL ADDRESS:	
		STREET 1:		PO BOX 2015 SUITE 1110
		STREET 2:		20 EGLINTON AVENUE WEST
		CITY:			TORONTO ONTARIO CANADA
		STATE:			A6
		ZIP:			M4R 1K8

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GOLDALE INVESTMENTS LTD
		DATE OF NAME CHANGE:	19861030

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	VINER E A HOLDINGS LTD
		DATE OF NAME CHANGE:	19880622
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>sec602.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//IETF//DTD HTML//EN">
<html>


<body bgcolor="#FFFFFF" link="#0000FF">

<p align="center"><font size="3"><b>UNITED STATES</b></font></p>

<p align="center"><font size="3"><b>SECURITIES AND EXCHANGE
COMMISSION</b></font></p>

<p align="center"><font size="3"><b>Washington, D.C. 20549</b></font></p>

<p align="center"><font size="3"><b>FORM 10-Q</b></font></p>

<p align="left"><font size="3">[ x ] QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 </font></p>

<p align="left"><font size="3">For the Quarterly Period ended <b>June
30, 2002</b></font></p>

<p align="left"><font size="3">or</font></p>

<p align="left"><font size="3">[ ] TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 </font></p>

<p align="left"><font size="3">for the transition period from
___to___</font></p>

<p align="left"><font size="3">Commission File Number: 1-12043</font></p>

<p align="left"><font size="3"></font>&nbsp;</p>

<p align="center"><font size="3"><b>FAHNESTOCK VINER HOLDINGS
INC.<br>
</b>(Exact name of registrant as specified in its charter)</font></p>

<p align="left"><font size="3">Ontario, Canada <br>
(State or other jurisdiction of incorporation or organization) </font></p>

<p align="left"><font size="3">98-0080034<br>
(I.R.S Employer Identification No.)</font></p>

<p align="center"><font size="3">P.O. Box 2015, Suite 1110<br>
20 Eglinton Avenue West<br>
Toronto, Ontario, Canada M4R 1K8<br>
(Address of principal executive offices) (Zip Code)</font></p>

<p align="center"><font size="3">416-322-1515<br>
(Registrant's telephone number, including area code)</font></p>

<p align="center"><font size="3">Not applicable<br>
(Former name, former address and former fiscal year, if changed
since last report)</font></p>

<p><font size="3">Indicate by check mark whether registrant (1)
has filed all reports required to be filed by Section 13 or 15(d)
of the Securities Exchange Act of 1934 during the preceding 12
months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes [x] No [ ]</font></p>

<p><font size="3">The number of shares of the Company's Class A
non-voting shares and Class B voting shares (being the only
classes of common stock of the Company), outstanding on July 29,
2002 was 12,412,207 and 99,680 shares, respectively.</font></p>

<p align="left"><font size="3"></font>&nbsp;</p>

<p align="center"><font size="3"></font>&nbsp;</p>

<p align="center"><font size="4">FAHNESTOCK VINER HOLDINGS INC.</font></p>

<p align="center"><font size="4">INDEX</font></p>

<p align="left"><font size="3">PART I FINANCIAL INFORMATION</font></p>

<p align="left"><font size="3">Item 1. Financial Statements
(unaudited)</font></p>

<p align="left"><font size="3">Condensed Consolidated Balance
Sheets as of June 30, 2002 and December 31, 2001</font></p>

<p align="left"><font size="3">Condensed Consolidated Statements
of Operations for the three and six month periods ended June 30,
2002 and 2001 </font></p>

<p align="left"><font size="3">Condensed Consolidated Statements
of Cash Flows for the three and six month periods ended June 30,
2002 and 2001 </font></p>

<p align="left"><font size="3">Condensed Consolidated Statements
of Changes in </font></p>

<p align="left"><font size="3">Shareholders&#146; Equity for the
three and six month periods ended June 30, 2002 and 2001</font></p>

<p align="left"><font size="3">Notes to Condensed Consolidated
Financial Statements</font></p>

<p align="left"><font size="3">Item 2. Management's Discussion
and Analysis of Financial Condition and Results of Operations</font></p>

<p align="left"><font size="3">Item 3. Quantitative and
Qualitative Disclosures About Market Risk </font></p>

<p align="left"><font size="3">PART II OTHER INFORMATION</font></p>

<p align="left"><font size="3">Item 1. Legal Proceedings </font></p>

<p align="left"><font size="3">Item 2. Changes in Securities and
Use of Proceeds </font></p>

<p align="left"><font size="3">Item 3. Defaults Upon Senior
Securities </font></p>

<p align="left"><font size="3">Item 4. Submission of Matters to a
Vote of Security-Holders </font></p>

<p align="left"><font size="3">Item 5. Other Information </font></p>

<p align="left"><font size="3">Item 6. Exhibits and Reports on
Form 8-K </font></p>

<p align="left"><font size="3">SIGNATURES </font></p>

<p align="left"><font size="3" face="Helvetica,Arial"></font>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="602">
    <tr>
        <td valign="top" colspan="3" height="21"><p
        align="center"><font face="Helvetica,Arial">FAHNESTOCK
        VINER HOLDINGS INC.</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="3" height="21"><p
        align="center"><font face="Helvetica,Arial">CONDENSED
        CONSOLIDATED BALANCE SHEET (unaudited)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21">&nbsp;</td>
        <td valign="top" width="18%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21">&nbsp;</td>
        <td valign="top" width="18%" height="21"><p
        align="center"><font size="2" face="Helvetica,Arial">June
        30,<br>
        </font><font face="Helvetica,Arial">2002 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p
        align="center"><font size="2" face="Helvetica,Arial">December
        31,<br>
        </font><font face="Helvetica,Arial">2001</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="22">&nbsp;</td>
        <td valign="top" width="18%" height="22"><p
        align="center">&nbsp;</p>
&nbsp;        </td>
        <td valign="top" width="15%" height="22"><p
        align="center">&nbsp;</p>
&nbsp;        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="22"><p align="left"><font
        size="2" face="Helvetica,Arial">Expressed in thousands of
        U.S. dollars</font></p>
        </td>
        <td valign="top" width="18%" height="22">&nbsp;</td>
        <td valign="top" width="15%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica,Arial">ASSETS</font></p>
        </td>
        <td valign="top" width="18%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica,Arial">Current assets</font></p>
        </td>
        <td valign="top" width="18%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica,Arial">Cash and cash equivalents</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">$23,238</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">$24,217 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica,Arial">Restricted deposits</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">2,381</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">2,393 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica,Arial">Deposits with clearing
        organizations</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">5,164</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">7,686 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica,Arial">Receivable from brokers and
        clearing organizations</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">195,168</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">100,694 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica,Arial">Receivable from customers</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">439,690</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">463,986 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica,Arial">Securities owned including amounts
        pledged of $2,690 </font></p>
        </td>
        <td valign="top" width="18%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica,Arial">($176 in 2001), at market value</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">46,554</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">50,575 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica,Arial">Other</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">44,195</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">38,430 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21">&nbsp;</td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">756,390</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">687,981 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica,Arial">Other assets</font></p>
        </td>
        <td valign="top" width="18%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica,Arial">Stock exchange seats (approximate
        market value</font></p>
        </td>
        <td valign="top" width="18%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica,Arial">$8,522; $8,155 in 2001)</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">3,018</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">3,018 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica,Arial">Fixed assets, net of accumulated
        depreciation of</font></p>
        </td>
        <td valign="top" width="18%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica,Arial">$21,025; $18,503 in 2001</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">10,378</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">9,992 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica,Arial">Goodwill</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">11,058</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">9,284 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21">&nbsp;</td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">24,454</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">22,294 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21">&nbsp;</td>
        <td valign="top" width="18%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="22">&nbsp;</td>
        <td valign="top" width="18%" height="22"><p align="right"><font
        face="Helvetica,Arial">$780,844</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helvetica,Arial">$710,275 </font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="602">
    <tr>
        <td valign="top" width="67%" height="22">&nbsp;</td>
        <td valign="top" width="18%" height="22"><p
        align="center">&nbsp;</p>
&nbsp;        </td>
        <td valign="top" width="15%" height="22"><p
        align="center">&nbsp;</p>
&nbsp;        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica,Arial">LIABILITIES AND SHAREHOLDERS'
        EQUITY</font></p>
        </td>
        <td valign="top" width="18%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica,Arial">Current liabilities</font></p>
        </td>
        <td valign="top" width="18%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica,Arial">Drafts payable</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">$21,577</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">$20,622 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica,Arial">Bank call loans</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">33,142</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">13,134 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica,Arial">Payable to brokers and clearing
        organizations</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">287,057</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">179,212 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica,Arial">Payable to customers</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">136,241</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">188,387 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica,Arial">Securities sold, but not yet
        purchased, at market value</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">7,895</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">8,921 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica,Arial">Accounts payable and other
        liabilities</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">48,487</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">56,812 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica,Arial">Income taxes payable</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">1,303</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">1,492 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21">&nbsp;</td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">535,702</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">468,580 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21">&nbsp;</td>
        <td valign="top" width="18%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica,Arial">Shareholders' equity</font></p>
        </td>
        <td valign="top" width="18%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica,Arial">Share capital</font></p>
        </td>
        <td valign="top" width="18%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica,Arial">12,418,277 Class A non-voting
        shares</font></p>
        </td>
        <td valign="top" width="18%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="20"><p align="left"><font
        face="Helvetica,Arial">(2001 - 12,337,085 shares)</font></p>
        </td>
        <td valign="top" width="18%" height="20"><p align="right"><font
        face="Helvetica,Arial">34,935</font></p>
        </td>
        <td valign="top" width="15%" height="20"><p align="right"><font
        face="Helvetica,Arial">34,124 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica,Arial">99,680 Class B voting shares</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">133</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">133 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21">&nbsp;</td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">35,068</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">34,257 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helv,Arial">Contributed capital</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">4,721</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">4,113 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="22"><p align="left"><font
        face="Helv,Arial">Retained earnings</font></p>
        </td>
        <td valign="top" width="18%" height="22"><p align="right"><font
        face="Helv,Arial">205,353</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helv,Arial">203,325 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="22">&nbsp;</td>
        <td valign="top" width="18%" height="22"><p align="right"><font
        face="Helv,Arial">245,142</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helv,Arial">241,695 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="22">&nbsp;</td>
        <td valign="top" width="18%" height="22">&nbsp;</td>
        <td valign="top" width="15%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="23">&nbsp;</td>
        <td valign="top" width="18%" height="23"><p align="right"><font
        face="Helv,Arial">$780,844</font></p>
        </td>
        <td valign="top" width="15%" height="23"><p align="right"><font
        face="Helv,Arial">$710,275 </font></p>
        </td>
    </tr>
</table>

<p align="left"><font size="2" face="Helvetica,Arial">The
accompanying notes are an integral part of these condensed
consolidated financial statements.</font></p>

<p align="left">&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="601">
    <tr>
        <td valign="top" colspan="6" height="21"><p
        align="center"><font face="Helv,Arial">FAHNESTOCK VINER
        HOLDINGS INC.</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="6" height="21"><p
        align="center"><font face="Helv,Arial">CONDENSED
        CONSOLIDATED STATEMENT OF OPERATIONS (unaudited)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="6" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21">&nbsp;</td>
        <td valign="top" colspan="3" width="32%" height="21"><p
        align="center"><font size="2" face="Helv,Arial">Three
        Months ended June 30, </font></p>
        </td>
        <td valign="top" colspan="2" width="28%" height="21"><p
        align="center"><font size="2" face="Helv,Arial">Six
        Months ended June 30,</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="22">&nbsp;</td>
        <td valign="top" colspan="2" width="18%" height="22"><p
        align="center"><font size="2" face="Helv,Arial">2002</font></p>
        </td>
        <td valign="top" width="14%" height="22"><p
        align="center"><font size="2" face="Helv,Arial">2001</font></p>
        </td>
        <td valign="top" width="13%" height="22"><p
        align="center"><font size="2" face="Helv,Arial">2002 </font></p>
        </td>
        <td valign="top" width="15%" height="22"><p
        align="center"><font size="2" face="Helv,Arial">2001 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="6" height="22"><p align="left"><font
        size="2" face="Helv,Arial">Expressed in thousands of U.S.
        dollars, except per share amounts</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21"><p
        align="left"><font face="Helv,Arial">REVENUE:</font></p>
        </td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
        <td valign="top" width="14%" height="21">&nbsp;</td>
        <td valign="top" width="13%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21"><p
        align="left"><font face="Helv,Arial">Commissions</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">$33,904 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">$26,614 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">$68,890 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">$56,809 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21"><p
        align="left"><font face="Helv,Arial">Principal
        transactions, net</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">11,891 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">11,665 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">25,540 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">29,762 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21"><p
        align="left"><font face="Helv,Arial">Interest</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">6,953 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">8,466 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">13,595 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">21,954 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21"><p
        align="left"><font face="Helv,Arial">Underwriting fees</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">5,786 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">2,493 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">10,535 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">5,420 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21"><p
        align="left"><font face="Helv,Arial">Advisory fees</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">5,971 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">5,854 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">13,454 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">11,516 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21"><p
        align="left"><font face="Helv,Arial">Other</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">3,639 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">1,784 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">6,647 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">4,910 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">68,144 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">56,876 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">138,661 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">130,371 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
        <td valign="top" width="14%" height="21">&nbsp;</td>
        <td valign="top" width="13%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21"><p
        align="left"><font face="Helv,Arial">EXPENSES:</font></p>
        </td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
        <td valign="top" width="14%" height="21">&nbsp;</td>
        <td valign="top" width="13%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21"><p
        align="left"><font face="Helv,Arial">Compensation and
        related </font></p>
        </td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
        <td valign="top" width="14%" height="21">&nbsp;</td>
        <td valign="top" width="13%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21"><p
        align="left"><font face="Helv,Arial">expenses</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">40,525 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">32,222 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">84,390 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">68,898 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21"><p
        align="left"><font face="Helv,Arial">Clearing and
        exchange fees</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">2,283 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">1,705 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">4,273 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">2,541 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21"><p
        align="left"><font face="Helv,Arial">Communications</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">8,961 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">5,688 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">16,909 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">11,511 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21"><p
        align="left"><font face="Helv,Arial">Occupancy costs</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">5,779 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">2,748 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">11,819 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">5,647 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21"><p
        align="left"><font face="Helv,Arial">Interest</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">1,871 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">3,548 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">3,817 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">10,379 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21"><p
        align="left"><font face="Helv,Arial">Other</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">6,813 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">4,114 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">12,935 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">8,924 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">66,232 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">50,025 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">134,143 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">107,900 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21"><p
        align="left"><font face="Helv,Arial">Profit before income
        taxes</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">1,912 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">6,851 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">4,518 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">22,471 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21"><p
        align="left"><font face="Helv,Arial">Income tax provision</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">1,029 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">2,932 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">2,003 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">9,435 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21"><p
        align="left"><font face="Helv,Arial">Profit before
        cumulative effect of a change in accounting principle</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">883</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">3,919</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">2,515</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">13,036</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="22"><p
        align="left"><font face="Helv,Arial">Cumulative effect of
        a change in accounting principle</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helv,Arial">-</font></p>
        </td>
        <td valign="top" width="14%" height="22"><p align="right"><font
        face="Helv,Arial">-</font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helv,Arial">1,774</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helv,Arial">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="22">&nbsp;</td>
        <td valign="top" width="15%" height="22">&nbsp;</td>
        <td valign="top" width="14%" height="22">&nbsp;</td>
        <td valign="top" width="13%" height="22">&nbsp;</td>
        <td valign="top" width="15%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="22"><p
        align="left"><font face="Helv,Arial">NET PROFIT FOR
        PERIOD</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helv,Arial">$883 </font></p>
        </td>
        <td valign="top" width="14%" height="22"><p align="right"><font
        face="Helv,Arial">$3,919 </font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helv,Arial">$4,289 </font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helv,Arial">$13,036 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="22">&nbsp;</td>
        <td valign="top" width="15%" height="22">&nbsp;</td>
        <td valign="top" width="14%" height="22">&nbsp;</td>
        <td valign="top" width="13%" height="22">&nbsp;</td>
        <td valign="top" width="15%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="22"><p
        align="left"><font face="Helv,Arial">Basic earnings per
        share </font></p>
        <p align="left"><font face="Helv,Arial">(notes 2 and 3)</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helv,Arial">$0.07 </font></p>
        </td>
        <td valign="top" width="14%" height="22"><p align="right"><font
        face="Helv,Arial">$0.32 </font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helv,Arial">$0.34 </font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helv,Arial">$1.06 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="22"><p
        align="left"><font face="Helv,Arial">- Operations</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helv,Arial">$0.07</font></p>
        </td>
        <td valign="top" width="14%" height="22"><p align="right"><font
        face="Helv,Arial">$0.32</font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helv,Arial">$0.20</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helv,Arial">$1.06</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="22"><p
        align="left"><font face="Helv,Arial">- Cumulative effect
        of a change in accounting principle</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helv,Arial">-</font></p>
        </td>
        <td valign="top" width="14%" height="22"><p align="right"><font
        face="Helv,Arial">-</font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helv,Arial">$0.14</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helv,Arial">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="43%" height="21"><p
        align="left"><font face="Helv,Arial">Diluted earnings per
        share</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">$0.07 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">$0.30 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">$0.33 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">$1.02 </font></p>
        </td>
    </tr>
</table>

<p align="left">&nbsp;</p>

<p align="left"><font size="2" face="Helvetica,Arial">The
accompanying notes are an integral part of these condensed
consolidated financial statements.</font></p>

<p align="left"><font size="2" face="Helvetica,Arial"></font>&nbsp;</p>

<p align="left"><font size="2" face="Helvetica,Arial"></font>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="601">
    <tr>
        <td valign="top" colspan="5" height="21"><p
        align="center"><font size="2" face="Helv,Arial">FAHNESTOCK
        VINER HOLDINGS INC.</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="5" height="21"><p
        align="center"><font size="2" face="Helv,Arial">CONDENSED
        CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="5" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21">&nbsp;</td>
        <td valign="top" colspan="2" width="23%" height="21"><p
        align="center"><font size="2" face="Helv,Arial">Three
        Months ended<br>
        June 30, </font></p>
        </td>
        <td valign="top" colspan="2" width="23%" height="21"><p
        align="center"><font size="2" face="Helv,Arial">Six
        Months ended <br>
        June 30,</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="22">&nbsp;</td>
        <td valign="top" width="11%" height="22"><p
        align="center"><font size="2" face="Helv,Arial">2002</font></p>
        </td>
        <td valign="top" width="12%" height="22"><p
        align="center"><font size="2" face="Helv,Arial">2001</font></p>
        </td>
        <td valign="top" width="11%" height="22"><p
        align="center"><font size="2" face="Helv,Arial">2002 </font></p>
        </td>
        <td valign="top" width="12%" height="22"><p
        align="center"><font size="2" face="Helv,Arial">2001 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="5" height="22"><p align="left"><font
        size="2" face="Helv,Arial">Expressed in thousands of U.S.
        dollars</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Cash flows from operating
        activities:</font></p>
        </td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Net profit for the period</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">$883</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">$3,919</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">$4,289</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">$13,036</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Adjustments to reconcile net
        profit to net cash provided by (used in) operating
        activities:</font></p>
        </td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Non-cash items included in net
        profit:</font></p>
        </td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Depreciation and amortization</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">1,453</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">790</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">2,522</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">1,596</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Write off of unamortized
        negative goodwill</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">-</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">-</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(1,774)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Decrease (increase) in
        operating assets,</font></p>
        </td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">net of the effect of
        acquisitions:</font></p>
        </td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Restricted deposits</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(200)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">442</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">12</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">347</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Securities purchased under
        agreement</font></p>
        </td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">to resell</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">-</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(699)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">-</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">21,500</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Deposits with clearing
        organizations</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(1,354)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(10,708)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">2,522</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(10,207)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Receivable from brokers and
        clearing</font></p>
        </td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">organizations</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(115,013)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">483,990</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(94,474)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">24,016</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Receivable from customers</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">50,742</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">3,921</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">24,296</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">89,321</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Securities owned</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">1,637</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(2,431)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">4,318</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">4,486</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Other assets</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">3,794</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(40)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(5,764)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(1,637)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Increase (decrease) in
        operating</font></p>
        </td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">liabilities, net of the effect
        of acquisitions:</font></p>
        </td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Drafts payable</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">1,626</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">1,153</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">955</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(11,272)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Securities sold under
        agreement to repurchase</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">-</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(453,155)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">-</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(21,500)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="22"><p align="left"><font
        size="2" face="Helv,Arial">Payable to brokers and
        clearing organizations</font></p>
        </td>
        <td valign="top" width="11%" height="22"><p align="right"><font
        size="2" face="Helv,Arial">94,364</font></p>
        </td>
        <td valign="top" width="12%" height="22"><p align="right"><font
        size="2" face="Helv,Arial">(471)</font></p>
        </td>
        <td valign="top" width="11%" height="22"><p align="right"><font
        size="2" face="Helv,Arial">107,844</font></p>
        </td>
        <td valign="top" width="12%" height="22"><p align="right"><font
        size="2" face="Helv,Arial">(78,437)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Payable to customers</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(15,481)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(5,141)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(52,146)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(27,487)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Securities sold, but not yet
        purchased</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">573</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">106</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(1,026)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">4,584</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Accounts payable and other
        liabilities</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(6,832)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(2,183)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(8,326)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(7,937)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Tax benefit from employee
        stock options exercised</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">93</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">173</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">608</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">469</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Income taxes payable</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">80</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(4,937)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(189)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(2,122)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">Cash provided by (used in)
        operating activities</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">16,365</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">14,729</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(16,333)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(1,244)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Cash flows from investing
        activities:</font></p>
        </td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Purchase of the business of
        BUYandHOLD</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">-</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">-</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(2,297)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Purchase of fixed assets</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(321)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(252)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(907)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(402)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">Cash used in investing
        activities</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(321)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(252)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(3,204)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(402)</font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="601">
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Cash flows from financing
        activities:</font></p>
        </td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Cash dividends paid on Class A
        non-voting</font></p>
        </td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">and Class B shares</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(1,132)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(1,113)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(2,261)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(2,212)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Issuance of Class A non-voting
        shares</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">390</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">581</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">2,645</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">3,928</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Repurchase of Class A
        non-voting shares</font></p>
        </td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">for cancellation</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(1,834)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">-</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(1,834)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">(Increase) decrease in bank
        call loans</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(16,139)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(13,200)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">20,008</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(1,433)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">Cash (used in) provided by
        financing activities</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(18,715)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(13,732)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">18,558</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">283</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Net (decrease) increase in
        cash and cash equivalents</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(2,671)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">745</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(979)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(1,363)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Cash and cash equivalents,
        beginning of period</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">25,909</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">12,561</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">24,217</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">14,669</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Cash and cash equivalents, end
        of period</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">$23,238</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">$13,306</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">$23,238</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">$13,306</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21">&nbsp;</td>
        <td valign="top" width="12%" height="21">&nbsp;</td>
    </tr>
</table>

<p align="left"><font size="2" face="Helvetica,Arial">The
accompanying notes are an integral part of these condensed
consolidated financial statements.</font></p>

<p align="left"><font size="2" face="Helvetica,Arial"></font>&nbsp;</p>

<p align="left"><font size="2" face="Helvetica,Arial"></font>&nbsp;</p>

<p align="left"><font size="2" face="Helvetica,Arial"></font>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="619">
    <tr>
        <td valign="top" colspan="5" height="21"><p
        align="center"><font face="Helv,Arial">FAHNESTOCK VINER
        HOLDINGS INC.</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="5" height="21"><p
        align="center"><font face="Helv,Arial">CONDENSED
        CONSOLIDATED STATEMENTS OF <br>
        CHANGES IN SHAREHOLDERS&#146; EQUITY (unaudited)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="5" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="21">&nbsp;</td>
        <td valign="top" colspan="2" width="30%" height="21"><p
        align="center"><font face="Helv,Arial">Three Months ended<br>
        June 30,</font></p>
        </td>
        <td valign="top" colspan="2" width="26%" height="21"><p
        align="center"><font face="Helv,Arial">Six Months ended<br>
        June 30,</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="22">&nbsp;</td>
        <td valign="top" width="16%" height="22"><p align="right"><font
        face="Helv,Arial">2002 </font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helv,Arial">2001 </font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helv,Arial">2002 </font></p>
        </td>
        <td valign="top" width="14%" height="22"><p align="right"><font
        face="Helv,Arial">2001 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="2" width="59%" height="21"><p
        align="left"><font size="2" face="Helv,Arial">Expressed
        in thousands of U.S. dollars</font></p>
        </td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
        <td valign="top" width="13%" height="21">&nbsp;</td>
        <td valign="top" width="14%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="21"><p align="left"><font
        face="Helv,Arial"><b>Share capital</b></font></p>
        </td>
        <td valign="top" width="16%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
        <td valign="top" width="13%" height="21">&nbsp;</td>
        <td valign="top" width="14%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="21"><p align="left"><font
        face="Helv,Arial">Balance at beginning of period</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        face="Helv,Arial">$36,512 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">$33,030 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">$34,257 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">$29,683 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="21"><p align="left"><font
        face="Helv,Arial">Issue of Class A non-voting shares</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        face="Helv,Arial">390 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">581 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">2,645 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">3,928 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="22"><p align="left"><font
        face="Helv,Arial">Repurchase of Class A non-voting shares
        for cancellation</font></p>
        </td>
        <td valign="top" width="16%" height="22"><p align="right"><font
        face="Helv,Arial">(1,834)</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helv,Arial">-</font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helv,Arial">(1,834)</font></p>
        </td>
        <td valign="top" width="14%" height="22"><p align="right"><font
        face="Helv,Arial">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="23"><p align="left"><font
        face="Helv,Arial">Balance at end of period</font></p>
        </td>
        <td valign="top" width="16%" height="23"><p align="right"><font
        face="Helv,Arial">$35,068 </font></p>
        </td>
        <td valign="top" width="15%" height="23"><p align="right"><font
        face="Helv,Arial">$33,611 </font></p>
        </td>
        <td valign="top" width="13%" height="23"><p align="right"><font
        face="Helv,Arial">$35,068 </font></p>
        </td>
        <td valign="top" width="14%" height="23"><p align="right"><font
        face="Helv,Arial">$33,611 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="22">&nbsp;</td>
        <td valign="top" width="16%" height="22">&nbsp;</td>
        <td valign="top" width="15%" height="22">&nbsp;</td>
        <td valign="top" width="13%" height="22">&nbsp;</td>
        <td valign="top" width="14%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="21">&nbsp;</td>
        <td valign="top" width="16%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
        <td valign="top" width="13%" height="21">&nbsp;</td>
        <td valign="top" width="14%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="21"><p align="left"><font
        face="Helv,Arial"><b>Contributed capital</b></font></p>
        </td>
        <td valign="top" width="16%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
        <td valign="top" width="13%" height="21">&nbsp;</td>
        <td valign="top" width="14%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="21"><p align="left"><font
        face="Helv,Arial">Balance at beginning of period</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        face="Helv,Arial">$4,628 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">$3,795 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">$4,113 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">$3,499 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="21"><p align="left"><font
        face="Helv,Arial">Tax benefit from employee stock options
        exercised</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        face="Helv,Arial">93 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">173 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">608 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">469 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="22"><p align="left"><font
        face="Helv,Arial">Balance at end of period</font></p>
        </td>
        <td valign="top" width="16%" height="22"><p align="right"><font
        face="Helv,Arial">$4,721 </font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helv,Arial">$3,968 </font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helv,Arial">$4,721 </font></p>
        </td>
        <td valign="top" width="14%" height="22"><p align="right"><font
        face="Helv,Arial">$3,968 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="22">&nbsp;</td>
        <td valign="top" width="16%" height="22">&nbsp;</td>
        <td valign="top" width="15%" height="22">&nbsp;</td>
        <td valign="top" width="13%" height="22">&nbsp;</td>
        <td valign="top" width="14%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="21"><p align="left"><font
        face="Helv,Arial"><b>Retained earnings</b></font></p>
        </td>
        <td valign="top" width="16%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
        <td valign="top" width="13%" height="21">&nbsp;</td>
        <td valign="top" width="14%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="21"><p align="left"><font
        face="Helv,Arial">Balance at beginning of period</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        face="Helv,Arial">$205,602 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">$196,636 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">$203,325 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">$188,618 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="21"><p align="left"><font
        face="Helv,Arial">Net profit for the period</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        face="Helv,Arial">883 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">3,919 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">4,289 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">13,036 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="21"><p align="left"><font
        face="Helv,Arial">Dividends</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        face="Helv,Arial">(1,132)</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">(1,113)</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">(2,261)</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">(2,212)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="22"><p align="left"><font
        face="Helv,Arial">Balance at end of period</font></p>
        </td>
        <td valign="top" width="16%" height="22"><p align="right"><font
        face="Helv,Arial">$205,353 </font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helv,Arial">$199,442 </font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helv,Arial">$205,353 </font></p>
        </td>
        <td valign="top" width="14%" height="22"><p align="right"><font
        face="Helv,Arial">$199,422 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="22">&nbsp;</td>
        <td valign="top" width="16%" height="22">&nbsp;</td>
        <td valign="top" width="15%" height="22">&nbsp;</td>
        <td valign="top" width="13%" height="22">&nbsp;</td>
        <td valign="top" width="14%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="21"><p align="left"><font
        face="Helv,Arial">TOTAL SHAREHOLDERS' EQUITY</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        face="Helv,Arial">$245,142 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">$237,021 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">$245,142 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">$237,021 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="44%" height="21">&nbsp;</td>
        <td valign="top" width="16%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
        <td valign="top" width="13%" height="21">&nbsp;</td>
        <td valign="top" width="14%" height="21">&nbsp;</td>
    </tr>
</table>

<p align="left"><font size="2" face="Helvetica,Arial">The
accompanying notes are an integral part of these condensed
consolidated financial statements.</font></p>

<p align="left">&nbsp;</p>

<p align="left">&nbsp;</p>

<p align="left"><font face="Helvetica,Arial"></font>&nbsp;</p>

<p align="center"><font face="Helvetica,Arial">FAHNESTOCK VINER
HOLDINGS INC.</font></p>

<p align="center"><font face="Helvetica,Arial">Notes to Condensed
Consolidated Financial Statements (Unaudited)</font></p>

<p align="left"><font face="Helvetica,Arial">1. Basis of
Presentation</font></p>

<p><font face="Helvetica,Arial">The condensed consolidated
financial statements include the accounts of Fahnestock Viner
Holdings Inc. (&quot;FVH&quot;) and its subsidiaries (together,
the &quot;Company&quot;). The principal subsidiaries of FVH are
Fahnestock &amp; Co. Inc. (&quot;Fahnestock&quot;) and Freedom
Investments, Inc., registered broker-dealers in securities. The
Company engages in a broad range of activities in the securities
industry, including retail securities brokerage, institutional
sales and trading, investment banking (both corporate and public
finance), underwritings, research, market-making, and investment
advisory and asset management services. The Company provides its
services from 90 offices in 20 states located throughout the
United States. Fahnestock also conducts business in Toronto,
Canada and in South America through local broker-dealers. The
Company employs approximately 1,782 people, of whom 1,121 are
financial consultants. </font></p>

<p><font face="Helvetica,Arial">All material intercompany
accounts have been eliminated in consolidation. </font></p>

<p><font face="Helvetica,Arial">The Company&#146;s condensed
consolidated financial statements have been prepared in
accordance with the rules and regulations of the Securities and
Exchange Commission (&quot;SEC&quot;) with respect to Form 10-Q
and do not include all of the information and footnotes required
under generally accepted accounting principles (GAAP) in the
United States of America for complete financial statements. These
financial statements should be read in conjunction with the
Company&#146;s most recent annual report on Form 10-K for the
year ended December 31, 2001 including the summary of significant
accounting policies utilized by the Company. </font></p>

<p><font face="Helvetica,Arial">The financial statements include
all adjustments, which in the opinion of management, are normal
and recurring and necessary for a fair presentation of the
results of operations, financial position and cash flows for the
interim periods presented. The nature of the Company&#146;s
business is such that the results of operations for the interim
periods are not necessarily indicative of the results to be
expected for a full year.</font></p>

<p><font face="Helvetica,Arial">These condensed consolidated
financial statements are presented in U.S. dollars.</font></p>

<ol start="2">
    <li><font face="Helvetica,Arial">Recent Accounting
        Pronouncements</font></li>
</ol>

<p><font face="Helvetica,Arial">Effective January 1, 2002, the
Company adopted Financial Accounting Standards Board Statements
No. 141, &quot;Business Combinations&quot; and No. 142,
&quot;Goodwill and Other Intangible Assets&quot; (FAS 142). The
new standards require a write-off of unamortized &quot;negative
goodwill&quot;. Negative goodwill represents the excess value of
net assets acquired above the cost of acquisition. Unamortized
negative goodwill of $1,774,000 ($0.14 per share), which arose on
the acquisitions of Hopper Soliday Corporation and subsidiaries,
Reich &amp; Co., Inc. and Propp &amp; Company Inc., was written
off on January 1, 2002, as the cumulative effect of a change in
accounting principle. </font></p>

<p><font face="Helvetica,Arial">Remaining unamortized goodwill of
$11,058,000, which arose on the acquisitions of Fahnestock &amp;
Co. Inc., Fahnestock International Inc., First of Michigan
Capital Corporation, Josephthal Group, Inc. and Grand Charter
Group Incorporated, is no longer being amortized but will be
tested for impairment at least annually. Goodwill acquired
subsequent to June 30, 2001 has been tested for impairment in
accordance with FAS 142 and there is no indication that
impairment has occurred. There can be no assurance that future
goodwill impairment tests will not result in a charge to
earnings.</font></p>

<p><font face="Helvetica,Arial">Including the effect of
amortization of goodwill acquired prior to January 1, 2002, the
Company would have recorded approximately $194,000 ($0.02 per
share) of goodwill amortization expense for the three months
ended June 30, 2002 had FAS 142 not been adopted ($388,000 or
$0.03 per share for the six months ended June 30, 2002). </font></p>

<p><font face="Helvetica,Arial">The following table reflects the
results of operations as though FAS 142 had been adopted on
January 1, 2001.</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="638">
    <tr>
        <td valign="top" width="45%">&nbsp;</td>
        <td valign="top" colspan="2" width="27%"><p
        align="center"><font face="Helvetica,Arial">Three Months
        ended<br>
        June 30,</font></p>
        </td>
        <td valign="top" colspan="2" width="27%"><p
        align="center"><font face="Helvetica,Arial">Six Months
        ended<br>
        June 30,</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="45%">&nbsp;</td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">2002</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">2001</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">2002</font></p>
        </td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">2001</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="45%"><font size="2"
        face="Helvetica,Arial">Expressed in thousand of dollars</font></td>
        <td valign="top" width="13%">&nbsp;</td>
        <td valign="top" width="14%">&nbsp;</td>
        <td valign="top" width="14%">&nbsp;</td>
        <td valign="top" width="13%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="45%"><font face="Helvetica,Arial">Net
        profit as reported</font></td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$883</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$3,919</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$4,289</font></p>
        </td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$13,036</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="45%"><font face="Helvetica,Arial">Amortization
        of goodwill as reported</font></td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">-</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">104</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">-</font></p>
        </td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">220</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="45%"><font face="Helvetica,Arial">Net
        profit as adjusted</font></td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$883</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$4,023</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$4,289</font></p>
        </td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$13,256</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="45%">&nbsp;</td>
        <td valign="top" width="13%">&nbsp;</td>
        <td valign="top" width="14%">&nbsp;</td>
        <td valign="top" width="14%">&nbsp;</td>
        <td valign="top" width="13%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="45%"><font face="Helvetica,Arial">Basic
        earnings per share as reported</font></td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$0.07</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.32</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.34</font></p>
        </td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$1.06</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="45%"><font face="Helvetica,Arial">Diluted
        earnings per share as reported</font></td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$0.07</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.30</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.33</font></p>
        </td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$1.02</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="45%">&nbsp;</td>
        <td valign="top" width="13%">&nbsp;</td>
        <td valign="top" width="14%">&nbsp;</td>
        <td valign="top" width="14%">&nbsp;</td>
        <td valign="top" width="13%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="45%"><font face="Helvetica,Arial">Basic
        earnings per share as adjusted</font></td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$0.07</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.33</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.34</font></p>
        </td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$1.08</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="45%"><p align="left"><font
        face="Helvetica,Arial">Diluted earnings per share as
        adjusted</font></p>
        </td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$0.07</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.31</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.33</font></p>
        </td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$1.04</font></p>
        </td>
    </tr>
</table>

<p><font face="Helvetica,Arial"></font>&nbsp;</p>

<p><font face="Helvetica,Arial">3. Earnings per share</font></p>

<p><font face="Helvetica,Arial">Basic earnings per share was
computed by dividing net profit by the weighted average number of
Class A non-voting and Class B shares outstanding. Diluted
earnings per share includes the weighted average Class A
non-voting and Class B shares outstanding and the effects of
Class A non-voting share options using the treasury stock method.</font></p>

<p><font face="Helvetica,Arial">Earnings per share has been
calculated as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="564">
    <tr>
        <td valign="top" width="34%" height="16">&nbsp;</td>
        <td valign="top" colspan="2" width="32%" height="16"><p
        align="center"><font size="3" face="Helvetica,Arial">Three
        Months ended<br>
        June 30,</font></p>
        </td>
        <td valign="top" colspan="2" width="34%" height="16"><p
        align="center"><font size="3" face="Helvetica,Arial">Six
        Months ended<br>
        June 30,</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="34%" height="16">&nbsp;</td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">2002</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">2001</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">2002</font></p>
        </td>
        <td valign="top" width="18%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">2001</font></p>
        </td>
    </tr>
    <tr>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
        <td>&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="34%" height="16"><p align="left"><font
        face="Helvetica,Arial">Basic weighted average number of
        shares outstanding</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">12,576,771</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">12,368,786</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">12,559,595</font></p>
        </td>
        <td valign="top" width="18%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">12,287,373</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="34%" height="16"><p align="left"><font
        face="Helvetica,Arial">Net effect, treasury method</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">264,162</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">491,303</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">356,382</font></p>
        </td>
        <td valign="top" width="18%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">446,392</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="34%" height="17"><p align="left"><font
        face="Helvetica,Arial">Diluted common shares</font></p>
        </td>
        <td valign="top" width="16%" height="17"><p align="right"><font
        size="3" face="Helvetica,Arial">12,840,933</font></p>
        </td>
        <td valign="top" width="16%" height="17"><p align="right"><font
        size="3" face="Helvetica,Arial">12,860,089</font></p>
        </td>
        <td valign="top" width="16%" height="17"><p align="right"><font
        size="3" face="Helvetica,Arial">12,915,977</font></p>
        </td>
        <td valign="top" width="18%" height="17"><p align="right"><font
        size="3" face="Helvetica,Arial">12,733,765</font></p>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="564">
    <tr>
        <td valign="top" width="34%" height="17">&nbsp;</td>
        <td valign="top" width="16%" height="17">&nbsp;</td>
        <td valign="top" width="16%" height="17">&nbsp;</td>
        <td valign="top" width="16%" height="17">&nbsp;</td>
        <td valign="top" width="18%" height="17">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="34%" height="16"><p align="left"><font
        face="Helvetica,Arial">Net profit for the period</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">$883,000</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">$3,919,000</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">$4,289,000</font></p>
        </td>
        <td valign="top" width="18%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">$13,036,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="34%" height="16">&nbsp;</td>
        <td valign="top" width="16%" height="16">&nbsp;</td>
        <td valign="top" width="16%" height="16">&nbsp;</td>
        <td valign="top" width="16%" height="16">&nbsp;</td>
        <td valign="top" width="18%" height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="34%" height="16"><p align="left"><font
        face="Helvetica,Arial">Basic earnings per share</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">$0.07</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">$0.32</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">$0.34</font></p>
        </td>
        <td valign="top" width="18%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">$1.06</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="34%" height="16"><p align="left"><font
        face="Helvetica,Arial">- Operations</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">$0.07</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">$0.32</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">$0.20</font></p>
        </td>
        <td valign="top" width="18%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">$1.06</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="34%" height="16"><p align="left"><font
        face="Helvetica,Arial">- Cumulative effect of a change in
        accounting principle</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">-</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">-</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">$0.14</font></p>
        </td>
        <td valign="top" width="18%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="34%" height="16"><p align="left"><font
        face="Helvetica,Arial">Diluted earnings per share</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">$0.07</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">$0.30</font></p>
        </td>
        <td valign="top" width="16%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">$0.33</font></p>
        </td>
        <td valign="top" width="18%" height="16"><p align="right"><font
        size="3" face="Helvetica,Arial">$1.02</font></p>
        </td>
    </tr>
</table>
</center></div>

<p><font face="Helvetica,Arial"></font>&nbsp;</p>

<p><font face="Helvetica,Arial"></font>&nbsp;</p>

<p><font face="Helvetica,Arial">4. Differences between U.S. and
Canadian GAAP</font></p>

<p><font face="Helvetica,Arial">The Company has prepared
consolidated financial statements for the quarter ended June 30,
2002 for distribution to its shareholders in accordance with
Canadian GAAP, which conform in all material respects with U.S.
GAAP except as follows:</font></p>

<p><font face="Helvetica,Arial">The Canadian Institute of
Chartered Accountants also issued new standards with respect to
Goodwill and Other Intangible Assets, which the Company has
adopted effective January 1, 2002. Under U.S. GAAP, the write-off
of negative goodwill is recorded as the effect of a change in
accounting principle and is reflected in the statement of
operations resulting in net profit for the six months ended June
30, 2002 of $4,289,000 ($0.34 and $0.33 basic and diluted
earnings per share, respectively). Under Canadian GAAP the
write-off of negative goodwill is recorded as an adjustment to
opening retained earnings resulting in net profit for the six
months ended June 30, 2002 of $2,515,000 ($0.20 basic and $0.19
diluted earnings per share). The book value per share under both
U.S. and Canadian GAAP is $19.58 at June 30, 2002.</font></p>

<p><font face="Helvetica,Arial">5. Net Capital Requirements</font></p>

<p><font face="Helvetica,Arial">The Company's principal
broker-dealer subsidiary, Fahnestock, is subject to the Uniform
Net Capital Rule (the &quot;Rule&quot;) of the SEC and the net
capital rule of the New York Stock Exchange (the
&quot;NYSE&quot;). Fahnestock has elected to use the alternative
method permitted by the Rule, which requires that it maintain
minimum net capital equal to 2% of aggregate debit items arising
from customer transactions, as defined. The NYSE may prohibit a
member firm from expanding its business or paying dividends if
resulting net capital would be less than 5% of aggregate debit
items. </font></p>

<p><font face="Helvetica,Arial">At June 30, 2002, the net capital
of Fahnestock as calculated under the Rule was $168,139,000 or
36% of Fahnestock's aggregate debit items. This was $158,871,000
in excess of the minimum required net capital. </font></p>

<p align="left"><font face="Helvetica,Arial">6. Segment
Information</font></p>

<p><font face="Helvetica,Arial">The table below presents
information about the reported operating income of the Company
for the periods noted, in accordance with the method described in
the Company&#146;s Annual Report on Form 10-K for the year ended
December 31, 2001. The Company&#146;s business is conducted
primarily in the United States. Asset information by reportable
segment is not reported, since the Company does not produce such
information for internal use.</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="510">
    <tr>
        <td valign="top" width="32%">&nbsp;</td>
        <td valign="top" colspan="2" width="33%"><p
        align="center"><font size="2" face="Helvetica,Arial">Three
        Months ended<br>
        June 30,</font></p>
        </td>
        <td valign="top" colspan="2" width="35%"><p
        align="center"><font size="2" face="Helvetica,Arial">Six
        Months ended<br>
        June 30,</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="32%">&nbsp;</td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">2002</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">2001</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">2002</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">2001</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="5"><p align="left"><font
        size="2" face="Helvetica,Arial">Expressed in thousands of
        dollars</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="32%"><p align="left"><font
        face="Helvetica,Arial">Revenue:</font></p>
        </td>
        <td valign="top" width="16%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
        <td valign="top" width="18%">&nbsp;</td>
        <td valign="top" width="18%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="32%"><p align="left"><font
        face="Helvetica,Arial">Private Client </font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">$39,406</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">$30,202</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">$80,944</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">$62,594</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="32%"><p align="left"><font
        face="Helvetica,Arial">Capital Markets</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">14,786</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">14,104</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">31,213</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">36,237</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="32%"><p align="left"><font
        face="Helvetica,Arial">Asset Management</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">4,396</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">3,763</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">9,014</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">7,519</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="32%"><p align="left"><font
        face="Helvetica,Arial">Interest</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">6,216</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">7,780</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">12,399</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">20,563</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="32%" height="23"><p align="left"><font
        face="Helvetica,Arial">Other</font></p>
        </td>
        <td valign="top" width="16%" height="23"><p align="right"><font
        size="2" face="Helvetica,Arial">3,340</font></p>
        </td>
        <td valign="top" width="16%" height="23"><p align="right"><font
        size="2" face="Helvetica,Arial">1,027</font></p>
        </td>
        <td valign="top" width="18%" height="23"><p align="right"><font
        size="2" face="Helvetica,Arial">5,091</font></p>
        </td>
        <td valign="top" width="18%" height="23"><p align="right"><font
        size="2" face="Helvetica,Arial">3,458</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="32%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
        <td valign="top" width="18%">&nbsp;</td>
        <td valign="top" width="18%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="32%"><p align="left"><font
        face="Helvetica,Arial">Total</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">$68,144</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">$56,876</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">$138,661</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">$130,371</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="32%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
        <td valign="top" width="18%">&nbsp;</td>
        <td valign="top" width="18%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="32%"><p align="left"><font
        face="Helvetica,Arial">Operating Income:</font></p>
        </td>
        <td valign="top" width="16%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
        <td valign="top" width="18%">&nbsp;</td>
        <td valign="top" width="18%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="32%"><p align="left"><font
        face="Helvetica,Arial">Private Client *</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">$(6,769)</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">$(371)</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">$(14,730)</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">$(666)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="32%"><p align="left"><font
        face="Helvetica,Arial">Capital Markets</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">2,206</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">1,215</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">4,059</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">8,011</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="32%"><p align="left"><font
        face="Helvetica,Arial">Asset Management</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">3,264</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">2,794</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">6,646</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">5,148</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="32%"><p align="left"><font
        face="Helvetica,Arial">Interest</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">4,289</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">3,823</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">8,440</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">9,093</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="32%"><p align="left"><font
        face="Helvetica,Arial">Other</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">(1,078)</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">(610)</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">103</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">885</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="32%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
        <td valign="top" width="18%">&nbsp;</td>
        <td valign="top" width="18%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="32%"><p align="left"><font
        face="Helvetica,Arial">Total</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">$1,912</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">$6,851</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">$4,518</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">$22,471</font></p>
        </td>
    </tr>
</table>

<p><font face="Helvetica,Arial">* Losses in 2002 in the Private
Client segment are the result of operating losses and acquisition
costs relating to Josephthal, Prime Charter and BUYandHOLD and
include litigation settlement costs, retention and severance
costs and costs of under-utilized facilities.</font></p>

<p align="left"><font face="Helvetica,Arial">7. Acquisitions</font></p>

<p><font face="Helvetica,Arial">On March 12, 2002, through its
wholly-owned subsidiary, Freedom Investments, Inc., the Company
acquired the business operated by BUYandHOLD Securities
Corporation and affiliates for cash consideration of $2,297,000.
BUYandHOLD is an online brokerage business headquartered in
Edison, NJ, which provides its customers with a dollar-based
investing platform. BUYandHOLD operates as a division of Freedom
Investments, Inc. and its results since the date of acquisition
have been included in these consolidated financial statements.
The combination of the Freedom and BUYandHOLD technology
platforms provides clients with one of the most comprehensive and
diversified suites of financial services offered online today.
The acquisition furthers the Company&#146;s growth and expansion
and adds significantly to its client base, as well as providing
additional managerial expertise. The acquisition was accounted
for by the purchase method. The following table summarizes the
estimated fair value of assets acquired.</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="421">
    <tr>
        <td valign="top" width="75%"><p align="left"><font
        face="Helvetica,Arial">Securities owned, at market value</font></p>
        </td>
        <td valign="top" width="25%"><p align="right"><font
        face="Helvetica,Arial">$297,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="75%"><p align="left"><font
        face="Helvetica,Arial">Furniture, fixtures and equipment</font></p>
        </td>
        <td valign="top" width="25%"><p align="right"><font
        face="Helvetica,Arial">2,000,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="75%"><p align="left"><font
        face="Helvetica,Arial">Purchase price paid</font></p>
        </td>
        <td valign="top" width="25%"><p align="right"><font
        face="Helvetica,Arial">$2,297,000</font></p>
        </td>
    </tr>
</table>
</center></div>

<p align="left"><font face="Helvetica,Arial"></font>&nbsp;</p>

<p align="left"><font face="Helvetica,Arial"></font>&nbsp;</p>

<p><font face="Helvetica,Arial">Presented below are unaudited pro
forma consolidated results of operation. Amounts presented for
2002 and 2001 give effect to the acquisition of the business of
BUYandHOLD Securities Corporation and affiliates as if the
transaction was consummated at January 1, 2001. The pro forma
information is for comparative purposes only and is not
necessarily indicative either of the actual results that would
have occurred if the acquisition had been consummated at the
beginning of the period presented, or of future operations of the
combined companies. The Company anticipates significant cost
savings as a result of the consolidation of the operations of
BUYandHOLD with the Company&#146;s business, which is not
reflected in this pro forma presentation.</font></p>

<p><font face="Helvetica,Arial"></font>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="619">
    <tr>
        <td valign="top" width="43%">&nbsp;</td>
        <td valign="top" colspan="2" width="29%"><p
        align="center"><font face="Helvetica,Arial">Three Months
        ended<br>
        June 30,</font></p>
        </td>
        <td valign="top" colspan="2" width="28%"><p
        align="center"><font face="Helvetica,Arial">Six Months
        ended<br>
        June 30,</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="43%">&nbsp;</td>
        <td valign="top" width="15%"><p align="center"><font
        face="Helvetica,Arial">2002</font></p>
        </td>
        <td valign="top" width="14%"><p align="center"><font
        face="Helvetica,Arial">2001</font></p>
        </td>
        <td valign="top" width="14%"><p align="center"><font
        face="Helvetica,Arial">2002</font></p>
        </td>
        <td valign="top" width="15%"><p align="center"><font
        face="Helvetica,Arial">2001</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="43%"><font size="2"
        face="Helvetica,Arial">Expressed in thousands of dollars</font></td>
        <td valign="top" width="15%">&nbsp;</td>
        <td valign="top" width="14%">&nbsp;</td>
        <td valign="top" width="14%">&nbsp;</td>
        <td valign="top" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="43%"><font face="Helvetica,Arial">Revenue</font></td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">$68,144</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$58,892</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$140,839</font></p>
        </td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">$133,724</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="43%"><font face="Helvetica,Arial">Profit
        before tax from operations</font></td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">$1,912</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$3,733</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$3,452</font></p>
        </td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">$15,799</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="43%"><font face="Helvetica,Arial">Net
        profit</font></td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">$883</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$2,165</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$3,776</font></p>
        </td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">$9,163</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="43%">&nbsp;</td>
        <td valign="top" width="15%">&nbsp;</td>
        <td valign="top" width="14%">&nbsp;</td>
        <td valign="top" width="14%">&nbsp;</td>
        <td valign="top" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="43%"><font face="Helvetica,Arial">Basic
        earnings per share </font></td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">$0.07</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.18</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.30</font></p>
        </td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">$0.75</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="43%"><font face="Helvetica,Arial">-Operations</font></td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">$0.07</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.18</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.16</font></p>
        </td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">$0.75</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="43%"><font face="Helvetica,Arial">-Cumulative
        effect of a change in accounting principle</font></td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">-</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">-</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.14</font></p>
        </td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="43%">&nbsp;</td>
        <td valign="top" width="15%">&nbsp;</td>
        <td valign="top" width="14%">&nbsp;</td>
        <td valign="top" width="14%">&nbsp;</td>
        <td valign="top" width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="43%"><font face="Helvetica,Arial">Diluted
        earnings per share</font></td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">$0.07</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.17</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.29</font></p>
        </td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">$0.72</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="43%"><font face="Helvetica,Arial">-Operations</font></td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">$0.07</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.17</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.15</font></p>
        </td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">$0.72</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="43%"><font face="Helvetica,Arial">-Cumulative
        effect of a change in accounting principle</font></td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">-</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">-</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.14</font></p>
        </td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">-</font></p>
        </td>
    </tr>
</table>

<p align="left"><font face="Helvetica,Arial"></font>&nbsp;</p>

<p align="left"><font face="Helvetica,Arial"><b>8. Subsequent
Event</b></font></p>

<p><font face="Helvetica,Arial">On July 18, 2002 the Board of
Directors approved a Stock Appreciation Rights Plan (the
&quot;Plan&quot;) on behalf of certain employees of the Company
and its subsidiaries. The Plan will permit employee participation
in appreciation in the Class A non-voting shares of the Company
without the issuance of such additional shares. The estimated
benefit of Stock Appreciation Rights granted will be recorded as
additional compensation expense over the vesting period. To the
extent utilized, Stock Appreciation Rights granted under the Plan
will replace employee stock options, which would otherwise have
been granted.</font></p>

<p align="left">&nbsp;</p>

<p align="center"><font face="Helvetica,Arial"></font>&nbsp;</p>

<p align="left"><font face="Helvetica,Arial">ITEM 2.
Management&#146;s Discussion and Analysis of Financial Condition
and Results of Operations</font></p>

<p><font face="Helvetica,Arial">The Company&#146;s condensed
consolidated financial statements have been prepared in
accordance with the rules and regulations of the SEC with respect
to Form 10-Q and do not include all of the information and
footnotes required under U.S. GAAP for complete financial
statements. These financial statements should be read in
conjunction with the Company&#146;s most recent Annual Report on
Form 10-K for the year ended December 31, 2001 including the
summary of significant accounting policies utilized by the
Company.</font></p>

<p><font face="Helvetica,Arial">Business Environment</font></p>

<p><font face="Helvetica,Arial">The securities industry is
directly affected by general economic and market conditions,
including fluctuations in volume and price levels of securities
and changes in interest rates, all of which have an impact on
commissions and firm trading and investment income as well as on
liquidity. Substantial fluctuations can occur in revenues and net
income due to these and other factors, including recent interest
in accounting and corporate governance reform.</font></p>

<p><font face="Helvetica,Arial">Results of Operations</font></p>

<p><font face="Helvetica,Arial">Net profit for the second quarter
of 2002 was $883,000 or $0.07 per share, a decrease of 77% in net
profit when compared to $3,919,000 or $0.32 per share in the
second quarter of 2001. Revenue for the second quarter of 2002
was $68,144,000, an increase of 20% compared to revenue of
$56,876,000 in the second quarter of 2001. </font></p>

<p><font face="Helvetica,Arial">The results of the second quarter
of 2002 reflected the continued weak business conditions. Fears
of recession and a continuous stream of negative news about
accounting irregularities and disclosure violations has seriously
impacted investor confidence in the markets and has resulted in
three straight years of declining averages and reduced volume.
Commission income and to a large extent, income from principal
transactions, depend on market volume levels. Commission revenue
increased by 27% in the second quarter of 2002 compared to the
second quarter of 2001 as a result of acquisition of the
businesses of Josephthal &amp; Co. Inc. in September 2001, Prime
Charter, Ltd. in November 2001 and BUYandHOLD in March 2002,
which more than offset generally lower commission levels from
weaker markets in 2002 compared to 2001. Net revenue from
principal transactions increased by 2% compared to the second
quarter of 2001 due to the increased size of the organization
compared to the same period in 2001. Investment banking revenues
increased by 132% compared with the second quarter of 2001,
related to increased issuance of closed-end mutual funds and debt
securities in 2002. Advisory fees increased by 2% in the second
quarter of 2002 compared to 2001 primarily as a result of the
acquisition of the business of BUYandHOLD Securities in March
2002. BUYandHOLD provides a fee-based approach to retail
investors. Net interest revenue (interest revenue less interest
expense) increased by 3% in the second quarter of 2002 compared
to the second quarter of 2001 as a result of higher customer
balances after the recent acquisitions, offsetting the effect of
lower rates. Expenses increased by 32% in the second quarter of
2002 compared to the second quarter of 2001. The increases in
expense can be attributed to the acquisitions of Josephthal and
Prime Charter in the latter part of 2001 and the business of
BUYandHOLD in March 2002. Compensation expense has volume-related
components and, therefore, increased with the increased level of
commission business conducted in the second quarter of 2002
compared to the second quarter of 2001 as well as staff in newly
acquired offices to handle the business of the larger entity. The
cost of communications and technology increased 58% in the second
quarter of 2002 compared to the second quarter of 2001 due to the
costs associated with connecting 51% more financial consultants
and 15 more branch offices in 2002 compared to 2001. Occupancy
costs increased by 110% in the second quarter of 2002 compared to
the second quarter of 2001 due to the additional costs of 15
branch locations in 2002 compared to 2001. Occupancy costs were
significantly impacted by costs associated with unused space that
is being held for disposal.</font></p>

<p align="left"><font face="Helvetica,Arial">Liquidity and
Capital Resources</font></p>

<p><font face="Helvetica,Arial">Total assets at June 30, 2002 of
$780,844,000 increased by approximately 10% from $710,275,000 at
December 31, 2001 due primarily to higher broker/dealer balances.
Liquid assets accounted for 97% of total assets, consistent with
year-end levels. The Company satisfies its need for funds from
its own cash resources, internally generated funds, subordinated
borrowings, collateralized and uncollateralized borrowings
consisting primarily of bank loans, and uncommitted lines of
credit. The amount of Fahnestock's bank borrowings fluctuates in
response to changes in the level of the Company's securities
inventories and customer margin debt as well as changes in stock
loan balances. Fahnestock has arrangements with banks for
borrowings on a fully collateralized basis. At June 30, 2002,
$33,142,000 of such borrowings were outstanding, an increase of
152% compared to outstanding borrowings at December 31, 2001. At
June 30, 2002 the Company had available collateralized and
uncollateralized letters of credit of $34,500,000.</font></p>

<p><font face="Helvetica,Arial">Management believes that funds
from operations, combined with Fahnestock's capital base and
available credit facilities, are sufficient for the Company's
liquidity needs in the foreseeable future.</font></p>

<p><font face="Helvetica,Arial">On February 22, 2002 and May 17,
2002, the Company paid cash dividends of $0.09 per Class A
non-voting and Class B share totaling $2,261,000 from available
cash on hand.</font></p>

<p><font face="Helvetica,Arial">On July 18, 2002, the Board of
Directors declared a regular quarterly cash dividend of U.S.$0.09
per Class A non-voting and Class B share payable on August 16,
2002 to shareholders of record on August 2, 2002.</font></p>

<p><font face="Helvetica,Arial">The book value of the
Company&#146;s Class A non-voting and Class B shares is $19.58 at
June 30, 2002 compared to $19.13 at June 30, 2001, an increase of
2%, based on total outstanding shares of 12,517,957 and
12,389,930, respectively.</font></p>

<p><font face="Helvetica,Arial">Newly Issued Accounting Standards</font></p>

<p><font face="Helvetica,Arial">Please see the notes to the
accompanying condensed consolidated financial statements for a
discussion of recently issued accounting standards.</font></p>

<p><font face="Helvetica,Arial">Factors Affecting
&quot;Forward-Looking Statements&quot;</font></p>

<p><font face="Helvetica,Arial">This report contains
&quot;forward-looking statements&quot; within the meaning of
Section 27A of the Securities Act of 1933, as amended (the
&quot;Act&quot;), and Section 21E of the Exchange Act. These
forward-looking statements relate to anticipated financial
performance, future revenues or earnings, business prospects and
anticipated market performance of the Company. The Private
Securities Litigation Reform Act of 1995 provides a safe harbor
for forward-looking statements. In order to comply with the terms
of the safe harbor, the Company cautions readers that a variety
of factors could cause the Company&#146;s actual results to
differ materially from the anticipated results or other
expectations expressed in the Company&#146;s forward-looking
statements. These risks and uncertainties, many of which are
beyond the Company&#146;s control, include, but are not limited
to: (i) transaction volume in the securities markets, (ii) the
volatility of the securities markets, (iii) fluctuations in
interest rates, (iv) changes in regulatory requirements which
could affect the cost and manner of doing business, (v)
fluctuations in currency rates, (vi) general economic conditions,
both domestic and international, (vii) changes in the rate of
inflation and the related impact on the securities markets,
(viii) competition from existing financial institutions and other
new participants in the securities markets, (ix) legal
developments affecting the litigation experience of the
securities industry, (x) changes in federal and state tax laws
which could affect the popularity of products sold by the Company
and (xi) the effectiveness of the efforts to reduce costs and
eliminate overlap. There can be no assurance that the Company has
correctly or completely identified and assessed all of the
factors affecting the Company&#146;s business. The Company does
not undertake any obligation to publicly update or revise any
forward-looking statements.</font></p>

<p><font face="Helvetica,Arial"></font>&nbsp;</p>

<p><font face="Helvetica,Arial"></font>&nbsp;</p>

<p align="left"><font face="Helvetica,Arial">ITEM 3. Quantitative
and Qualitative Disclosures About Market Risk</font></p>

<p><font face="Helvetica,Arial">Risk Management</font></p>

<p><font face="Helvetica,Arial">The Company&#146;s principal
business activities by their nature involve significant market
and credit risks. The Company&#146;s effectiveness in managing
these risks is critical to its success and stability. </font></p>

<p><font face="Helvetica,Arial">As part of its normal business
operations, the Company engages in the trading of both fixed
income and equity securities in both a proprietary and
market-making capacity. The Company makes markets in
over-the-counter equities in order to facilitate order flow and
accommodate its institutional and retail customers. The Company
also makes markets in municipal bonds, mortgage-backed
securities, government bonds and high yield bonds.</font></p>

<p><font face="Helvetica,Arial">Market risk generally means the
risk of loss that may result from the potential change in the
value of a financial instrument as a result of fluctuations in
interest and currency exchange rates and in equity and commodity
prices. Market risk is inherent in all types of financial
instruments, including both derivatives and non-derivatives. The
Company&#146;s exposure to market risk arises from its role as a
financial intermediary for its customers&#146; transactions and
from its proprietary trading and arbitrage activities. </font></p>

<p><font face="Helvetica,Arial">In addition, the Company&#146;s
activities expose it to operational risk, legal risk and funding
risk. Operational risk generally means the risk of loss resulting
from improper processing of transactions or deficiencies in the
Company&#146;s operating systems or internal controls. With
respect to its trading activities, the Company has procedures
designed to ensure that all transactions are accurately recorded
and properly reflected on the Company&#146;s books on a timely
basis. With respect to client activities, the Company operates a
system of internal controls designed to ensure that transactions
and other account activity (new account solicitation, transaction
authorization, transaction processing, billing and collection)
are properly approved, processed, recorded and reconciled. Legal
risk generally includes the risk of non-compliance with legal and
regulatory requirements and the risk that a counterparty&#146;s
obligations are unenforceable. The Company is subject to
extensive regulation in the various jurisdictions in which it
conducts its business. Through its legal advisors and its
compliance department, the Company has established routines to
ensure compliance with regulatory capital requirements, sales and
trading practices, new products, use and safekeeping of customer
securities and funds, granting of credit, collection activities,
and record keeping. The Company has procedures designed to assess
and monitor counterparty credit risk. </font></p>

<p><font face="Helvetica,Arial">Value-at-Risk </font></p>

<p><font face="Helvetica,Arial">Value-at-risk is a statistical
measure of the potential loss in the fair value of a portfolio
due to adverse movements in underlying risk factors. In response
to the SEC&#146;s market risk disclosure requirements, the
Company has performed a value-at-risk analysis of its trading
financial instruments and derivatives. The value-at-risk
calculation uses standard statistical techniques to measure the
potential loss in fair value based upon a one-day holding period
and a 95% confidence level. The calculation is based upon a
variance-covariance methodology, which assumes a normal
distribution of changes in portfolio value. The forecasts of
variances and co-variances used to construct the model for the
market factors relevant to the portfolio were generated from
historical data. Although value-at-risk models are sophisticated
tools, their use can be limited as historical data is not always
an accurate predictor of future conditions. The Company attempts
to manage its market exposure using other methods, including
trading authorization and concentration limits.</font></p>

<p align="left"><font face="Helvetica,Arial">At June 30, 2002 and
2001, the Company&#146;s value-at-risk for each component of
market risk was as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="414">
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" colspan="2" width="30%"><p
        align="center"><font face="Helvetica,Arial">June 30,</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">2002</font></p>
        </td>
        <td valign="top" width="17%"><p align="right"><font
        face="Helvetica,Arial">2001</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%"><p align="left"><font
        size="2" face="Helvetica,Arial">Expressed in thousands of
        dollars</font></p>
        </td>
        <td valign="top" width="13%">&nbsp;</td>
        <td valign="top" width="17%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="70%"><p align="left"><font
        face="Helvetica,Arial">Interest rate risk</font></p>
        </td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$175</font></p>
        </td>
        <td valign="top" width="17%"><p align="right"><font
        face="Helvetica,Arial">$231</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%"><p align="left"><font
        face="Helvetica,Arial">Equity price risk</font></p>
        </td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">165</font></p>
        </td>
        <td valign="top" width="17%"><p align="right"><font
        face="Helvetica,Arial">357</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%"><p align="left"><font
        face="Helvetica,Arial">Diversification benefit</font></p>
        </td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">(93)</font></p>
        </td>
        <td valign="top" width="17%"><p align="right"><font
        face="Helvetica,Arial">(216)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="70%">&nbsp;</td>
        <td valign="top" width="13%">&nbsp;</td>
        <td valign="top" width="17%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="70%"><p align="left"><font
        face="Helvetica,Arial">Total</font></p>
        </td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$247</font></p>
        </td>
        <td valign="top" width="17%"><p align="right"><font
        face="Helvetica,Arial">$372</font></p>
        </td>
    </tr>
</table>
</center></div>

<p><font face="Helvetica,Arial">The potential future loss
presented by the total value-at-risk generally falls within
predetermined levels of loss that should not be material to the
Company&#146;s results of operations, financial condition or cash
flows. The changes in the value-at-risk amounts reported as at
June 30, 2002 compared to those reported as at June 30, 2001
reflect reductions in the size and changes in the composition of
the Company&#146;s trading portfolio. The weighting of the
portfolio at June 30, 2002 shifted towards debt and away from
equities compared to the relative portfolio composition for the
comparable period in 2001. From time to time the Company modifies
its risk exposure with hedging positions and this affects the
diversification benefit in the value-at-risk calculation.</font></p>

<p><font face="Helvetica,Arial">The value-at-risk estimate has
limitations that should be considered in evaluating the
Company&#146;s potential future losses based on the period-end
portfolio positions. Recent market conditions, including
increased volatility, may result in statistical relationships
that result in higher value-at-risk than would be estimated from
the same portfolio under different market conditions, or the
converse may be true. Critical risk management strategy involves
the active management of portfolio levels to reduce market risk.
The Company&#146;s market risk exposure is continuously monitored
as the portfolio risks and market conditions change.</font></p>

<p><font face="Helvetica,Arial"></font>&nbsp;</p>

<p align="center"><font face="Helvetica,Arial">PART II</font></p>

<p align="center"><font face="Helvetica,Arial">OTHER INFORMATION</font></p>

<p align="left"><font face="Helvetica,Arial">ITEM 1. Legal
Proceedings</font></p>

<blockquote>
    <blockquote>
        <p><font face="Helvetica,Arial">The Company's
        subsidiaries are parties to legal proceedings incidental
        to<br>
        their respective businesses. In management's opinion,
        there are no legal proceedings to which the Company or
        its subsidiaries are parties or to which any of their
        respective properties are subject which are material to
        the Company's financial position. The total number of
        cases in which the Company is involved and the related
        claims have increased due to recent acquisitions and
        market declines. The potential significance of legal
        matters on the Company's future operating results depends
        on the level of future results of operations as well as
        the timing and ultimate outcome of such legal matters.<br>
        </font></p>
    </blockquote>
</blockquote>

<p align="left"><font face="Helvetica,Arial">ITEM 2. Changes in
Securities and Use of Proceeds</font></p>

<p align="left"><font face="Helvetica,Arial">Not applicable</font></p>

<p align="left"><font face="Helvetica,Arial">ITEM 3. Defaults
Upon Senior Securities</font></p>

<p align="left"><font face="Helvetica,Arial">Not applicable</font></p>

<p align="left"><font face="Helvetica,Arial">ITEM 4. Submission
of Matters to a Vote of Security-Holders</font></p>

<blockquote>
    <blockquote>
        <p><font face="Helvetica,Arial">At the Annual and Special
        Meeting of Shareholders of the Company held on May 13,
        2002, the holders of Class B voting shares (i) elected
        seven directors, (ii) appointed PricewaterhouseCoopers
        LLP as auditors of the Company and authorized the
        directors to fix their remuneration, and (iii) confirmed
        the amendment to the Company&#146;s 1996 Equity Incentive
        Plan increasing the number of Class A non-voting shares
        that may be issued pursuant to options granted under the
        Plan by 410,000.</font></p>
        <p align="left"><font face="Helvetica,Arial">The number
        of votes cast for or against or withheld as to each
        matter voted upon, as applicable, is set forth below:</font></p>
    </blockquote>
</blockquote>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="583">
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="38%">&nbsp;</td>
        <td valign="top" width="26%"><p align="center"><font
        face="Helvetica,Arial">For</font></p>
        </td>
        <td valign="top" width="27%"><p align="center"><font
        face="Helvetica,Arial">Against/Withheld</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="38%">&nbsp;</td>
        <td valign="top" width="26%">&nbsp;</td>
        <td valign="top" width="27%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="8%"><p align="left"><font
        face="Helvetica,Arial">(i)</font></p>
        </td>
        <td valign="top" width="38%"><p align="left"><font
        face="Helvetica,Arial">Election of Directors:</font></p>
        </td>
        <td valign="top" width="26%"><p align="center"><font
        face="Helvetica,Arial">95,568</font></p>
        </td>
        <td valign="top" width="27%"><p align="center"><font
        face="Helvetica,Arial">4</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="38%"><p align="left"><font
        face="Helvetica,Arial">J.L. Bitove</font></p>
        <p align="left"><font face="Helvetica,Arial">R. Crystal</font></p>
        <p align="left"><font face="Helvetica,Arial">A.G.
        Lowenthal</font></p>
        <p align="left"><font face="Helvetica,Arial">K.W.
        McArthur</font></p>
        <p align="left"><font face="Helvetica,Arial">A.W.
        Oughtred</font></p>
        <p align="left"><font face="Helvetica,Arial">E.K. Roberts</font></p>
        <p align="left"><font face="Helvetica,Arial">B. Winberg</font></p>
        </td>
        <td valign="top" width="26%">&nbsp;</td>
        <td valign="top" width="27%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="38%">&nbsp;</td>
        <td valign="top" width="26%">&nbsp;</td>
        <td valign="top" width="27%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="8%"><p align="left"><font
        face="Helvetica,Arial">(ii)</font></p>
        </td>
        <td valign="top" width="38%"><p align="left"><font
        face="Helvetica,Arial">Appointment of Auditors</font></p>
        </td>
        <td valign="top" width="26%"><p align="center"><font
        face="Helvetica,Arial">95,572</font></p>
        </td>
        <td valign="top" width="27%"><p align="center"><font
        face="Helvetica,Arial">0</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="38%">&nbsp;</td>
        <td valign="top" width="26%">&nbsp;</td>
        <td valign="top" width="27%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="8%"><p align="left"><font
        face="Helvetica,Arial">(iii)</font></p>
        </td>
        <td valign="top" width="38%"><p align="left"><font
        face="Helvetica,Arial">Amendment of 1996 Equity Incentive
        Plan</font></p>
        </td>
        <td valign="top" width="26%"><p align="center"><font
        face="Helvetica,Arial">95,560</font></p>
        </td>
        <td valign="top" width="27%"><p align="center"><font
        face="Helvetica,Arial">12</font></p>
        </td>
    </tr>
</table>
</center></div>

<p align="left"><font face="Helvetica,Arial"></font>&nbsp;</p>

<p align="left"><font face="Helvetica,Arial">ITEM 5. Other
Information</font></p>

<p align="left"><font face="Helvetica,Arial">None</font></p>

<p align="left"><font face="Helvetica,Arial">ITEM 6. Exhibits and
Reports on Form 8-K</font></p>

<ol type="a">
    <li><font face="Helvetica,Arial">Exhibits - None</font></li>
</ol>

<p align="left"><font face="Helvetica,Arial">(b) Reports on Form
8-K - None</font></p>

<p align="left"><font face="Helvetica,Arial"></font>&nbsp;</p>

<p align="left"><font face="Helvetica,Arial"></font>&nbsp;</p>

<p align="left"><font face="Helvetica,Arial"></font>&nbsp;</p>

<p align="left"><font face="Helvetica,Arial"></font>&nbsp;</p>

<p align="center"><font face="Helvetica,Arial"><b>SIGNATURES</b></font></p>

<p><font face="Helvetica,Arial">Pursuant to the requirements of
the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned
hereunto duly authorized, in the City of Toronto, Ontario, Canada
on the 29th day of July, 2002.</font></p>

<p align="left"><font face="Helvetica,Arial">FAHNESTOCK VINER
HOLDINGS INC.</font></p>

<p align="left"><font face="Helvetica,Arial"></font>&nbsp;</p>

<p align="left"><font face="Helvetica,Arial">By: &quot;A.G.
Lowenthal&quot;</font></p>

<p><font face="Helvetica,Arial">A.G.Lowenthal, Chairman<br>
(Principal Financial Officer)</font></p>

<p><font face="Helvetica,Arial"></font>&nbsp;</p>

<p><font face="Helvetica,Arial">By: &quot;E.K. Roberts&quot;</font></p>

<p><font face="Helvetica,Arial">E.K.Roberts, President<br>
(Duly Authorized Officer) </font></p>
</body>
</html>

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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