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Proc-Type: 2001,MIC-CLEAR
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<SEC-DOCUMENT>0000791963-02-000005.txt : 20021030
<SEC-HEADER>0000791963-02-000005.hdr.sgml : 20021030
<ACCEPTANCE-DATETIME>20021030164128
ACCESSION NUMBER:		0000791963-02-000005
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		3
CONFORMED PERIOD OF REPORT:	20020930
FILED AS OF DATE:		20021030

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:		02803400

	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>sec902.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 </font></p>

<p align="left"><font size="3">SECURITIES EXCHANGE ACT OF 1934 </font></p>

<p align="left"><font size="3">For the Quarterly Period ended <b>September
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</font></p>

<p align="left"><font size="3">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.</b></font></p>

<p align="center"><font size="3">(Exact name of registrant as
specified in its charter)</font></p>

<p align="left"><font size="3">Ontario, Canada 98-0080034</font></p>

<p align="left"><font size="3">(State or other jurisdiction of
(I.R.S. Employer</font></p>

<p align="left"><font size="3">incorporation or organization)
Identification No.)</font></p>

<p align="center"><font size="3">P.O. Box 2015, Suite 1110</font></p>

<p align="center"><font size="3">20 Eglinton Avenue West</font></p>

<p align="center"><font size="3">Toronto, Ontario, Canada M4R 1K8</font></p>

<p align="center"><font size="3">(Address of principal executive
offices)</font></p>

<p align="center"><font size="3">(Zip Code)</font></p>

<p align="center"><font size="3">416-322-1515</font></p>

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

<p align="center"><font size="3">Not applicable</font></p>

<p align="center"><font size="3">(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 October
29, 2002 was 12,372,507 and 99,680 shares, respectively.</font></p>

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

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

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

<p align="center"><font size="4" face="Helvetica,Arial">INDEX</font></p>

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

<p align="left"><font size="3" face="Helvetica,Arial">PART I
FINANCIAL INFORMATION</font></p>

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

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

<p align="left"><font size="3" face="Helvetica,Arial">Condensed
Consolidated Statements of Operations for the three and nine
month periods ended September 30, 2002 and 2001 </font></p>

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

<p align="left"><font size="3" face="Helvetica,Arial">Condensed
Consolidated Statements of Changes in Shareholders&#146; Equity
for the three and nine month periods ended September 30, 2002 and
2001</font></p>

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

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

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

<p><font size="3" face="Helvetica,Arial">Item 4. Controls and
Procedures </font></p>

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

<p align="left"><font size="3" face="Helvetica,Arial">PART II
OTHER INFORMATION</font></p>

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

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

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

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

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

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

<p align="left"><font size="3" face="Helvetica,Arial">SIGNATURES </font></p>

<p align="left"><font size="3" face="Helvetica,Arial">CERTIFICATIONS
</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 SHEETS (unaudited)</font></p>
        </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">September
        30,</font><font face="Helvetica,Arial"><br>
        </font><font size="2" 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>
        2001</font></p>
        </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">$23,176</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">2,475</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">3,304</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">541,504</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">355,918</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 $120</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">49,157</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">41,745</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">37,531 </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">1,017,279</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">687,082 </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="25"><p align="left"><font
        face="Helvetica,Arial">Stock exchange seats (approximate
        market value</font></p>
        </td>
        <td valign="top" width="18%" height="25">&nbsp;</td>
        <td valign="top" width="15%" height="25">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica,Arial">$8,260; $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">$22,210; $18,503 in 2001</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica,Arial">9,865</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">11,957</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">10,183</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">24,840</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica,Arial">23,193</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">$1,042,119</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helvetica,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"><font face="Helvetica,Arial"></font>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="602">
    <tr>
        <td valign="top" colspan="3" height="23"><p
        align="center"><font face="Helvetica,Arial">FAHNESTOCK
        VINER HOLDINGS INC.</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="3" height="22"><p
        align="center"><font face="Helvetica,Arial">CONDENSED
        CONSOLIDATED BALANCE SHEETS (unaudited)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="22">&nbsp;</td>
        <td valign="top" width="18%" height="22"><p
        align="center"><font size="2" face="Helvetica,Arial">September
        30,<br>
        2002</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p
        align="center"><font size="2" face="Helvetica,Arial">December
        31,<br>
        2001</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" 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="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">$16,321</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">1,372</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">581,787</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">136,208</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">9,327</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">52,421</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">-</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">797,436</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">12,369,817 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">33,841</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">33,974</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">4,747</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">205,962</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">244,683</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">$1,042,119</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="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 OPERATIONS (unaudited)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21">&nbsp;</td>
        <td valign="top" colspan="2" width="32%" height="21"><p
        align="center"><font size="2" face="Helv,Arial">Three
        Months ended September 30, </font></p>
        </td>
        <td valign="top" colspan="2" width="28%" height="21"><p
        align="center"><font size="2" face="Helv,Arial">Nine
        Months ended September 30,</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="22">&nbsp;</td>
        <td valign="top" 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="5" 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" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">REVENUE:</font></p>
        </td>
        <td valign="top" width="18%" 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" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">Commissions</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">$32,900</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">$25,683 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">$101,790</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">$82,492 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">Principal transactions, net</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">13,403</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">11,243</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">38,943</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">41,005</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">Interest</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">6,876</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">6,761</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">20,471</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">28,715</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">Underwriting fees</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">6,531</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">2,779</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">17,066</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">8,199</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">Advisory fees</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">5,976</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">5,462</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">19,430</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">16,978</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">Other</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">2,836</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">1,820</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">9,483</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">6,730</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21">&nbsp;</td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">68,522</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">53,748</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">207,183</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">184,119</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21">&nbsp;</td>
        <td valign="top" width="18%" 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" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">EXPENSES:</font></p>
        </td>
        <td valign="top" width="18%" 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" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">Compensation and related </font></p>
        </td>
        <td valign="top" width="18%" 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" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">expenses</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">40,738</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">32,488 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">125,128</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">101,386 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">Clearing and exchange fees</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">2,442</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">1,440 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">6,715</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">3,981</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">Communications</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">8,029</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">5,118 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">24,938</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">16,629</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">Occupancy costs</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">5,511</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">3,178 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">17,330</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">8,826</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">Interest</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">2,167</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">1,857 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">5,984</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">12,236</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">Other</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">6,850</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">4,010 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">19,785</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">12,933</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21">&nbsp;</td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">65,737</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">48,091</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">199,880</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">155,991</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">Profit before income taxes</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">2,785</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">5,657</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">7,303</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">28,128</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">Income tax provision</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">1,050</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">2,323 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">3,053</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">11,758</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" 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="18%" height="21"><p align="right"><font
        face="Helv,Arial">1,735</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">3,334</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">4,250</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">16,370</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21">&nbsp;</td>
        <td valign="top" width="18%" 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" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">Cumulative effect of a change in
        accounting principle</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">-</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">-</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">1,774</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21">&nbsp;</td>
        <td valign="top" width="18%" 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" width="40%" height="22"><p align="left"><font
        face="Helv,Arial">NET PROFIT FOR PERIOD</font></p>
        </td>
        <td valign="top" width="18%" height="22"><p align="right"><font
        face="Helv,Arial">$1,735</font></p>
        </td>
        <td valign="top" width="14%" height="22"><p align="right"><font
        face="Helv,Arial">$3,334</font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helv,Arial">$6,024</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helv,Arial">$16,370 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="22">&nbsp;</td>
        <td valign="top" width="18%" 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" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">Basic earnings per share <br>
        (notes 2 and 3)</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">$0.14</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">$0.27 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">$0.48</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">$1.33 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">- Operations</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">$0.14</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">$0.27</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">$0.34</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">$1.33</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">- Cumulative effect of a change in
        accounting principles</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">-</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">-</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">$0.14</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="40%" height="21">&nbsp;</td>
        <td valign="top" width="18%" 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" width="40%" height="21"><p align="left"><font
        face="Helv,Arial">Diluted earnings per share</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helv,Arial">$0.14</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">$0.26 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">$0.47</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">$1.28 </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"><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" 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>
        September 30,</font></p>
        </td>
        <td valign="top" colspan="2" width="23%" height="21"><p
        align="center"><font size="2" face="Helv,Arial">Nine
        Months ended<br>
        September 30,</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21">&nbsp;</td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">2002</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">2001</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">2002</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">2001</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" 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="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 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">$1,735</font></p>
        </td>
        <td valign="top" width="12%" height="21"><blockquote>
            <p align="right"><font size="2" face="Helv,Arial">$3,334</font></p>
        </blockquote>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">$6,024</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">$16,370</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">1,185</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">964</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">3,707</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">2,560</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 (note 2)</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">(94)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">141</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(82)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">488</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 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">-</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">1,860</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">11,319</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">4,382</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">1,112</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">(346,336)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(75,535)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(440,810)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(51,519)</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">83,772</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">19,539</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">108,068</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">108,860</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">(2,603)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">5,181</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">1,715</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">9,667</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">1,550</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(2,605)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(4,214)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(4,242)</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">(5,256)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(4,018)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(4,301)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(15,290)</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">-</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">294,731</font></p>
        </td>
        <td valign="top" width="12%" height="22"><p align="right"><font
        size="2" face="Helv,Arial">58,676</font></p>
        </td>
        <td valign="top" width="11%" height="22"><p align="right"><font
        size="2" face="Helv,Arial">402,575</font></p>
        </td>
        <td valign="top" width="12%" height="22"><p align="right"><font
        size="2" face="Helv,Arial">(19,761)</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">(33)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(7,480)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(52,179)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(34,967)</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">1,432</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(4,562)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">406</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">22</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">3,935</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">8,922</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(4,391)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">985</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">26</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">51</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">634</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">520</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">(1,303)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">1,396</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(1,492)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(726)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">Cash provided by operating
        activities</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">34,601</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">15,323</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">18,268</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">14,079</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 Josephthal Group,
        Inc., net of cash acquired</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">3,139</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">3,139</font></p>
        </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">(673)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(185)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(1,580)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(587)</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
        investing activities</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(673)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">2,954</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(3,877)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">2,552</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">(1,126)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(1,115)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(3,387)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(3,327)</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">333</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">294</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">2,978</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">4,222</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 for cancellation</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(1,427)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(130)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(3,261)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(130)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="left"><font
        size="2" face="Helv,Arial">Increase in bank call loans</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(31,770)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(19,084)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(11,762)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(20,517)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="54%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">Cash used in financing
        activities</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(33,990)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(20,035)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(15,432)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(19,752)</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 in cash and cash
        equivalents</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(62)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(1,758)</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(1,041)</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">(3,121)</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">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">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"><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">$23,176</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">$11,548</font></p>
        </td>
        <td valign="top" width="11%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">$23,176</font></p>
        </td>
        <td valign="top" width="12%" height="21"><p align="right"><font
        size="2" face="Helv,Arial">$11,548</font></p>
        </td>
    </tr>
</table>

<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" 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
        September 30,</font></p>
        </td>
        <td valign="top" colspan="2" width="26%" height="21"><p
        align="center"><font face="Helv,Arial">Nine Months ended
        September 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="3" width="74%" 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="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">$35,068 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">$33,611 </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">333 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">294 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">2,978</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">4,222 </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">(1,427)</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helv,Arial">(130)</font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helv,Arial">(3,261)</font></p>
        </td>
        <td valign="top" width="14%" height="22"><p align="right"><font
        face="Helv,Arial">(130)</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">$33,974 </font></p>
        </td>
        <td valign="top" width="15%" height="23"><p align="right"><font
        face="Helv,Arial">$33,775 </font></p>
        </td>
        <td valign="top" width="13%" height="23"><p align="right"><font
        face="Helv,Arial">$33,974 </font></p>
        </td>
        <td valign="top" width="14%" height="23"><p align="right"><font
        face="Helv,Arial">$33,775 </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">$4,721 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">$3,968 </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">26 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">51 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">634 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">520 </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">$4,747 </font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helv,Arial">$4,019 </font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helv,Arial">$4,747 </font></p>
        </td>
        <td valign="top" width="14%" height="22"><p align="right"><font
        face="Helv,Arial">$4,019 </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">$205,353 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">$199,442 </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">1,735 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">3,334 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">6,024 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">16,370 </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">(1,126)</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">(1,115)</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">(3,387)</font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">(3,327)</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">$205,962 </font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helv,Arial">$201,661 </font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helv,Arial">$205,962 </font></p>
        </td>
        <td valign="top" width="14%" height="22"><p align="right"><font
        face="Helv,Arial">$201,661 </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">$244,683 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helv,Arial">$239,455 </font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helv,Arial">$244,683 </font></p>
        </td>
        <td valign="top" width="14%" height="21"><p align="right"><font
        face="Helv,Arial">$239,455 </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"><font size="3"></font>&nbsp;</p>

<p align="center"><font face="Helvetica,Arial">FAHNESTOCK VINER
HOLDINGS INC.<br>
Notes to Condensed Consolidated Financial Statements (Unaudited)</font></p>

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

<p><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 89 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 1,761 people, of whom 1,120 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 contained therein.</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">Certain prior period amounts have
been reclassified to conform to the current year presentation.</font></p>

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

<p><font face="Helvetica,Arial">2. Recent Accounting
Pronouncements</font></p>

<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
$11,957,000, 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 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">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</font></p>
        <p align="center"><font face="Helvetica,Arial">September
        30,</font></p>
        </td>
        <td valign="top" colspan="2" width="27%"><p
        align="center"><font face="Helvetica,Arial">Nine Months
        ended</font></p>
        <p align="center"><font face="Helvetica,Arial">September
        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" colspan="5"><font size="2"
        face="Helvetica,Arial">Expressed in thousands of dollars,
        except per share amounts</font></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">$1,735</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$3,334</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$6,024</font></p>
        </td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$16,370</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">324</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">$1,735</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$3,438</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$6,024</font></p>
        </td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$16,694</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">$0.14</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.27</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.48</font></p>
        </td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$1.33</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">$0.14</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.26</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.47</font></p>
        </td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$1.28</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">$0.14</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.28</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.48</font></p>
        </td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$1.35</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="45%"><font face="Helvetica,Arial">Diluted
        earnings per share as adjusted</font></td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$0.14</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.27</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.47</font></p>
        </td>
        <td valign="top" width="13%"><p align="right"><font
        face="Helvetica,Arial">$1.31</font></p>
        </td>
    </tr>
</table>

<p><font face="Helvetica,Arial">The adoption of other recently
issued accounting standards are not expected to have a material
impact on the Company&#146;s financial statements.</font></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>

<table border="0" cellpadding="0" cellspacing="0" width="528">
    <tr>
        <td valign="top" width="30%" height="16">&nbsp;</td>
        <td valign="top" colspan="2" width="34%" height="16"><p
        align="center"><font size="2" face="Helvetica,Arial">Three
        Months ended September 30,</font></p>
        </td>
        <td valign="top" colspan="2" width="36%" height="16"><p
        align="center"><font size="2" face="Helvetica,Arial">Nine
        Months ended</font></p>
        <p align="center"><font size="2" face="Helvetica,Arial">September
        30,</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="30%" height="16">&nbsp;</td>
        <td valign="top" width="17%" height="16"><p
        align="center"><font size="2" face="Helvetica,Arial">2002</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p
        align="center"><font size="2" face="Helvetica,Arial">2001</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p
        align="center"><font size="2" face="Helvetica,Arial">2002</font></p>
        </td>
        <td valign="top" width="19%" height="16"><p
        align="center"><font size="2" face="Helvetica,Arial">2001</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="30%" height="16"><p align="left"><font
        size="2" face="Helvetica,Arial">Basic weighted average
        number of shares outstanding</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">12,501,709</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">12,396,537</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">12,540,088</font></p>
        </td>
        <td valign="top" width="19%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">12,324,161</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="30%" height="16"><p align="left"><font
        size="2" face="Helvetica,Arial">Net effect, treasury
        method</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">167,690</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">459,069</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">306,252</font></p>
        </td>
        <td valign="top" width="19%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">445,599</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="30%" height="17"><p align="left"><font
        size="2" face="Helvetica,Arial">Diluted common shares</font></p>
        </td>
        <td valign="top" width="17%" height="17"><p align="right"><font
        size="2" face="Helvetica,Arial">12,669,399</font></p>
        </td>
        <td valign="top" width="17%" height="17"><p align="right"><font
        size="2" face="Helvetica,Arial">12,855,606</font></p>
        </td>
        <td valign="top" width="17%" height="17"><p align="right"><font
        size="2" face="Helvetica,Arial">12,846,340</font></p>
        </td>
        <td valign="top" width="19%" height="17"><p align="right"><font
        size="2" face="Helvetica,Arial">12,769,760</font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="528">
    <tr>
        <td valign="top" width="30%" height="17">&nbsp;</td>
        <td valign="top" width="17%" height="17">&nbsp;</td>
        <td valign="top" width="17%" height="17">&nbsp;</td>
        <td valign="top" width="17%" height="17">&nbsp;</td>
        <td valign="top" width="19%" height="17">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="30%" height="16"><p align="left"><font
        size="2" face="Helvetica,Arial">Net profit for the period</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">$1,735,000</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">$3,334,000</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">$6,024,000</font></p>
        </td>
        <td valign="top" width="19%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">$16,370,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="30%" height="16">&nbsp;</td>
        <td valign="top" width="17%" height="16">&nbsp;</td>
        <td valign="top" width="17%" height="16">&nbsp;</td>
        <td valign="top" width="17%" height="16">&nbsp;</td>
        <td valign="top" width="19%" height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="30%" height="16"><p align="left"><font
        size="2" face="Helvetica,Arial">Basic earnings per share</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">$0.14</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">$0.27</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">$0.48</font></p>
        </td>
        <td valign="top" width="19%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">$1.33</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="30%" height="16"><p align="left"><font
        size="2" face="Helvetica,Arial">- Operations</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">$0.14</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">$0.27</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">$0.34</font></p>
        </td>
        <td valign="top" width="19%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">$1.33</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="30%" height="16"><p align="left"><font
        size="2" face="Helvetica,Arial">- Cumulative effect of a
        change in accounting principles</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">-</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">-</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">$0.14</font></p>
        </td>
        <td valign="top" width="19%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="30%" height="16"><p align="left"><font
        size="2" face="Helvetica,Arial">Diluted earnings per
        share</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">$0.14</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">$0.26</font></p>
        </td>
        <td valign="top" width="17%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">$0.47</font></p>
        </td>
        <td valign="top" width="19%" height="16"><p align="right"><font
        size="2" face="Helvetica,Arial">$1.28</font></p>
        </td>
    </tr>
</table>

<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 September
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 nine months ended
September 30, 2002 of $6,024,000 ($0.48 and $0.47 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 nine
months ended September 30, 2002 of $4,250,000 ($0.34 basic and
$0.33 diluted earnings per share). The book value per share under
both U.S. and Canadian GAAP is $19.62 at September 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 September 30, 2002, the net
capital of Fahnestock as calculated under the Rule was
$154,369,000 or 38% of Fahnestock's aggregate debit items. This
was $146,198,000 in excess of the minimum required net capital. </font></p>

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

<p align="left"><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 September 30,</font></p>
        </td>
        <td valign="top" colspan="2" width="35%"><p
        align="center"><font size="2" face="Helvetica,Arial">Nine
        Months ended September 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">$38,588</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">$27,145</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">$123,267</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">$89,739</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">18,374</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">15,014</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">49,587</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">51,251</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">4,207</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">3,994</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">13,221</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">11,513</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">6,200</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">6,483</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">18,599</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">27,046</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">1,153</font></p>
        </td>
        <td valign="top" width="16%" height="23"><p align="right"><font
        size="2" face="Helvetica,Arial">1,112</font></p>
        </td>
        <td valign="top" width="18%" height="23"><p align="right"><font
        size="2" face="Helvetica,Arial">2,509</font></p>
        </td>
        <td valign="top" width="18%" height="23"><p align="right"><font
        size="2" face="Helvetica,Arial">4,570</font></p>
        </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">$68,522</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">$53,748</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">$207,183</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">$184,119</font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="510">
    <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">$(7,355)</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">$(3,293)</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">$(22,085)</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">$(3,960)</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">2,857</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">2,215</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">6,916</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">10,226</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">3,261</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">2,748</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">9,908</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">7,896</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">3,802</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">4,287</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">12,241</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">13,381</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">220</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">(300)</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">323</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">585</font></p>
        </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">$2,785</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        size="2" face="Helvetica,Arial">$5,657</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">$7,303</font></p>
        </td>
        <td valign="top" width="18%"><p align="right"><font
        size="2" face="Helvetica,Arial">$28,128</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">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 as 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>

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

<table border="0" cellpadding="0" cellspacing="0" width="619">
    <tr>
        <td valign="top" width="43%"><p align="left"><font
        face="Helvetica,Arial">(Unaudited)</font></p>
        </td>
        <td valign="top" colspan="2" width="29%"><p
        align="center"><font face="Helvetica,Arial">Three Months
        ended September 30,</font></p>
        </td>
        <td valign="top" colspan="2" width="28%"><p
        align="center"><font face="Helvetica,Arial">Nine Months
        ended September 30,</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="43%"><p align="left"><font
        face="Helvetica,Arial">Expressed in thousands of dollars</font></p>
        </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 face="Helvetica,Arial">Revenue</font></td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">$68,522</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$56,646</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$209,361</font></p>
        </td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">$190,370</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">$2,785</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$4,846</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$6,237</font></p>
        </td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">$20,645</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">$1,735</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$2,864</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$5,406</font></p>
        </td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">$12,030</font></p>
        </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">$0.14</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.23</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.43</font></p>
        </td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">$0.98</font></p>
        </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">$0.14</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.22</font></p>
        </td>
        <td valign="top" width="14%"><p align="right"><font
        face="Helvetica,Arial">$0.42</font></p>
        </td>
        <td valign="top" width="15%"><p align="right"><font
        face="Helvetica,Arial">$0.94</font></p>
        </td>
    </tr>
</table>

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

<p align="left"><font face="Helvetica,Arial">8. Stock
Appreciation Rights Plan</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 value of 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 contained therein.</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 reforms.</font></p>

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

<p><font face="Helvetica,Arial">Net profit for the third quarter
of 2002 was $1,735,000 or $0.14 per share, a decrease of 48% in
net profit when compared to $3,334,000 or $0.27 per share in the
third quarter of 2001. Revenue for the third quarter of 2002 was
$68,522,000, an increase of 27% compared to revenue of
$53,748,000 in the third quarter of 2001. </font></p>

<p><font face="Helvetica,Arial">The results of the third quarter
of 2002 reflected the continued weak business conditions.
Expectations of reduced corporate earnings, rising unemployment,
as well as a slowing economy have reinforced investors&#146;
reticence to make new commitments to the equity markets. These
concerns, coupled with unremitting disclosures about corporate
malfeasance, accounting fraud and arrests of corporate executives
have, created an environment of lower stock prices. Valuations of
corporate equities, while attractive, are not yet compelling.
Popular averages are touching new lows around the globe. While a
new recession is not expected, slower economic growth and reduced
capital spending is expected to last through the first half of
2003. The Company&#146;s results for the quarter reflect the
difficult environment. </font></p>

<p><font face="Helvetica,Arial">Commission income and, to a large
extent, income from principal transactions, depend on investor
participation in the markets. Commission revenue increased by 28%
in the third quarter of 2002 compared to the third quarter of
2001 as a result of the 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 19% compared to the third quarter of 2001 due to
higher trading profits from fixed income securities as a result
of lower interest rates and higher bond prices in the third
quarter of 2002 compared to the same period in 2001. Investment
banking revenues increased by 135% compared with the third
quarter of 2001, related to increased participation in the
issuance of closed-end funds and debt securities. Advisory fees
increased by 9% in the third quarter of 2002 compared to the
comparable period of 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) decreased by 4% in the third quarter of 2002 compared to
the third quarter of 2001 as a result of lower interest rates,
which more than offset the impact of somewhat higher customer
balances after the recent acquisitions. Expenses increased by 37%
in the third quarter of 2002 compared to the third 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 third quarter of 2002 compared to the
third 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 57% in the third quarter
of 2002 compared to the third 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 73% in the third quarter of 2002 compared to the
third 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><font face="Helvetica,Arial">Liquidity and Capital Resources</font></p>

<p><font face="Helvetica,Arial">Total assets at September 30,
2002 of $1,042,119,000 increased by approximately 47% from
$710,275,000 at December 31, 2001 due primarily to higher
broker/dealer balances, specifically higher stock borrow/stock
loan balances. Liquid assets accounted for 98% 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 an unsecured and on a fully
collateralized basis. At September 30, 2002, $1,372,000 of such
borrowings were outstanding, a decrease of 90% compared to
outstanding borrowings at December 31, 2001. At September 30,
2002, the Company had available collateralized and
uncollateralized letters of credit of $29,500,000.</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">Pursuant to a Normal Course
Issuer Bid which commenced on July 9, 2002 and terminates on July
8, 2003, the Company may purchase up to 620,700 of its Class A
non-voting shares through the facilities of the New York and
Toronto Stock Exchanges. During the third quarter of 2002 the
Company purchased a total of 67,300 Class A non-voting shares at
an average price of $21.19 per share through the facilities of
the New York Stock Exchange. The cumulative number of Class A
non-voting shares purchased during the nine months ended
September 30, 2002 pursuant to both the current normal course
issuer bid as well as the normal course issuer bid which
terminated on July 4, 2002 was 150,000 at an average price of
$21.74. All shares purchased have been cancelled. </font></p>

<p><font face="Helvetica,Arial">On February 22, 2002, May 17,
2002 and August 16, 2002, the Company paid cash dividends of
U.S.$0.09 per Class A non-voting and Class B share totaling
$3,387,000 from available cash on hand.</font></p>

<p><font face="Helvetica,Arial">On October 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 November 22,
2002 to shareholders of record on November 8, 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 $19.62 at
September 30, 2002 compared to $19.31 at September 30, 2001, an
increase of 2%, based on total outstanding shares of 12,469,497
and 12,403,350, 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"></font>&nbsp;</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 Securities Exchange Act
of 1934, as amended (the &quot;Exchange Act&quot;). 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 or the Company, (x) changes in federal and
state tax laws which could affect the popularity of products sold
by the Company and (xi) the effectiveness of 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 September 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">September 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">$139</font></p>
        </td>
        <td valign="top" width="17%"><p align="right"><font
        face="Helvetica,Arial">$148</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">241</font></p>
        </td>
        <td valign="top" width="17%"><p align="right"><font
        face="Helvetica,Arial">193</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">(24)</font></p>
        </td>
        <td valign="top" width="17%"><p align="right"><font
        face="Helvetica,Arial">(67)</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">$356</font></p>
        </td>
        <td valign="top" width="17%"><p align="right"><font
        face="Helvetica,Arial">$274</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
September 30, 2002 compared to those reported as at September 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 September 30, 2002 shifted towards
debt and away from equity compared to the relative portfolio
composition for the comparable period in 2001. However falling
market conditions through September 30, 2002 have resulted in
significantly increased equity price risk in 2002 compared to
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">ITEM 4. Controls and Procedures </font></p>

<p><font face="Helvetica,Arial">&nbsp;&nbsp;&nbsp;&nbsp; Prior to
the filing of this report, an evaluation was carried out under
the supervision and with the participation of the Company&#146;s
management, including its Chief Executive Officer and Chief
Financial Officer, of the effectiveness of the design and
operation of the Company&#146;s disclosure controls and
procedures (as defined in Rule&nbsp;13a-14(c) under the Exchange
Act). Based upon that evaluation, the Chief Executive Officer and
Chief Financial Officer concluded that the design and operation
of the Company&#146;s disclosure controls and procedures were
effective. No significant changes were made in the Company&#146;s
internal controls or in other factors that could significantly
affect these controls subsequent to the date of their evaluation.
</font></p>

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

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

<p><font face="Helvetica,Arial">(a) Exhibits </font></p>

<p align="left"><font face="Helvetica,Arial">99.1 Certification
of Albert G. Lowenthal</font></p>

<p align="left"><font face="Helvetica,Arial">99.2 Certification
of Elaine K. Roberts</font></p>

<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="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 30th day of October, 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;<br>
A.G.Lowenthal, Chairman<br>
(Principal Executive Officer)</font></p>

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

<p><font face="Helvetica,Arial">By: &quot;E.K. Roberts&quot;<br>
E.K.Roberts, President<br>
(Principal Financial Officer) </font></p>

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

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

<p><font face="Helvetica,Arial">I, Albert G. Lowenthal, certify
that: </font></p>

<ol>
    <li><font face="Helvetica,Arial">I have reviewed this
        quarterly report on Form&nbsp;10-Q of Fahnestock Viner
        Holdings Inc.; </font></li>
    <li><font face="Helvetica,Arial">Based on my knowledge, this
        quarterly report does not contain any untrue statement of
        a material fact or omit to state a material fact
        necessary to make the statements made, in light of the
        circumstances under which such statements were made, not
        misleading with respect to the period covered by this
        quarterly report; </font></li>
    <li><font face="Helvetica,Arial">Based on my knowledge, the
        financial statements, and other financial information
        included in this quarterly report, fairly present in all
        material respects the financial condition, results of
        operations and cash flows of the registrant as of, and
        for, the periods presented in this quarterly report; </font></li>
    <li><font face="Helvetica,Arial">The registrant&#146;s other
        certifying officers and I are responsible for
        establishing and maintaining disclosure controls and
        procedures (as defined in Exchange Act Rules&nbsp;13a-14
        and 15d-14) for the registrant and we have: </font></li>
</ol>

<table border="0" cellpadding="0" cellspacing="0" width="613">
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="92%"><font face="Helvetica,Arial">a)&nbsp;designed
        such disclosure controls and procedures to ensure that
        material information relating to the registrant,
        including its consolidated subsidiaries, is made known to
        us by others within those entities, particularly during
        the period in which this quarterly report is being
        prepared; </font></td>
        <td valign="top" width="0%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="92%"><font face="Helvetica,Arial">b)&nbsp;evaluated
        the effectiveness of the registrant&#146;s disclosure
        controls and procedures as of a date within 90&nbsp;days
        prior to the filing date of this quarterly report (the
        &quot;Evaluation Date&quot;); and </font></td>
        <td valign="top" width="0%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="92%"><font face="Helvetica,Arial">c)&nbsp;presented
        in this quarterly report our conclusions about the
        effectiveness of the disclosure controls and procedures
        based on our evaluation as of the Evaluation Date; </font></td>
        <td valign="top" width="0%">&nbsp;</td>
    </tr>
</table>

<blockquote>
    <blockquote>
        <p><font face="Helvetica,Arial">5. The registrant&#146;s
        other certifying officers and I have disclosed, based on
        our most recent evaluation, to the registrant&#146;s
        auditors and the audit committee of registrant&#146;s
        board of directors (or persons performing the equivalent
        function): </font></p>
    </blockquote>
</blockquote>

<table border="0" cellpadding="0" cellspacing="0" width="613">
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="92%"><font face="Helvetica,Arial">a)&nbsp;all
        significant deficiencies in the design or operation of
        internal controls which could adversely affect the
        registrant&#146;s ability to record, process, summarize
        and report financial data and have identified for the
        registrant&#146;s auditors any material weaknesses in
        internal controls; and </font></td>
        <td valign="top" width="0%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="92%"><font face="Helvetica,Arial">b)&nbsp;any
        fraud, whether or not material, that involves management
        or other employees who have a significant role in the
        registrant&#146;s internal controls; and </font></td>
        <td valign="top" width="0%">&nbsp;</td>
    </tr>
</table>

<blockquote>
    <blockquote>
        <p><font face="Helvetica,Arial">6. The registrant&#146;s
        other certifying officers and I have indicated in this
        quarterly report whether or not there were significant
        changes in internal controls or in other factors that
        could significantly affect internal controls subsequent
        to the date of our most recent evaluation, including any
        corrective actions with regard to significant
        deficiencies and material weaknesses. </font></p>
        <p><font face="Helvetica,Arial"></font>&nbsp;</p>
    </blockquote>
</blockquote>

<table border="0" cellpadding="0" cellspacing="0" width="264">
    <tr>
        <td valign="top" width="9%">&nbsp;</td>
        <td valign="top" width="68%"><font face="Helvetica,Arial">&quot;A.G.
        Lowenthal&quot;</font></td>
        <td valign="top" width="23%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="9%">&nbsp;</td>
        <td valign="top" colspan="2" width="91%"><font
        face="Helvetica,Arial">Name: Albert G. Lowenthal </font></td>
        <td valign="top" width="0%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="9%">&nbsp;</td>
        <td valign="top" colspan="2" width="91%"><font
        face="Helvetica,Arial">Title: Chief Executive Officer </font></td>
        <td valign="top" width="0%">&nbsp;</td>
    </tr>
</table>

<p><font face="Helv,Arial">October 30, 2002</font></p>

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

<p><font face="Helvetica,Arial">I, Elaine K. Roberts, certify
that: </font></p>

<ol>
    <li><font face="Helvetica,Arial">I have reviewed this
        quarterly report on Form&nbsp;10-Q of Fahnestock Viner
        Holdings Inc.; </font></li>
    <li><font face="Helvetica,Arial">Based on my knowledge, this
        quarterly report does not contain any untrue statement of
        a material fact or omit to state a material fact
        necessary to make the statements made, in light of the
        circumstances under which such statements were made, not
        misleading with respect to the period covered by this
        quarterly report; </font></li>
    <li><font face="Helvetica,Arial">Based on my knowledge, the
        financial statements, and other financial information
        included in this quarterly report, fairly present in all
        material respects the financial condition, results of
        operations and cash flows of the registrant as of, and
        for, the periods presented in this quarterly report; </font></li>
    <li><font face="Helvetica,Arial">The registrant&#146;s other
        certifying officers and I are responsible for
        establishing and maintaining disclosure controls and
        procedures (as defined in Exchange Act Rules&nbsp;13a-14
        and 15d-14) for the registrant and we have: </font></li>
</ol>

<table border="0" cellpadding="0" cellspacing="0" width="619">
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="92%"><font face="Helvetica,Arial">a)&nbsp;designed
        such disclosure controls and procedures to ensure that
        material information relating to the registrant,
        including its consolidated subsidiaries, is made known to
        us by others within those entities, particularly during
        the period in which this quarterly report is being
        prepared; </font></td>
        <td valign="top" width="0%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="92%"><font face="Helvetica,Arial">b)&nbsp;evaluated
        the effectiveness of the registrant&#146;s disclosure
        controls and procedures as of a date within 90&nbsp;days
        prior to the filing date of this quarterly report (the
        &quot;Evaluation Date&quot;); and </font></td>
        <td valign="top" width="0%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="92%"><font face="Helvetica,Arial">c)&nbsp;presented
        in this quarterly report our conclusions about the
        effectiveness of the disclosure controls and procedures
        based on our evaluation as of the Evaluation Date; </font></td>
        <td valign="top" width="0%">&nbsp;</td>
    </tr>
</table>

<blockquote>
    <blockquote>
        <p><font face="Helvetica,Arial">5. The registrant&#146;s
        other certifying officers and I have disclosed, based on
        our most recent evaluation, to the registrant&#146;s
        auditors and the audit committee of registrant&#146;s
        board of directors (or persons performing the equivalent
        function): </font></p>
    </blockquote>
</blockquote>

<table border="0" cellpadding="0" cellspacing="0" width="619">
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="92%"><font face="Helvetica,Arial">a)&nbsp;all
        significant deficiencies in the design or operation of
        internal controls which could adversely affect the
        registrant&#146;s ability to record, process, summarize
        and report financial data and have identified for the
        registrant&#146;s auditors any material weaknesses in
        internal controls; and </font></td>
        <td valign="top" width="0%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="92%"><font face="Helvetica,Arial">b)&nbsp;any
        fraud, whether or not material, that involves management
        or other employees who have a significant role in the
        registrant&#146;s internal controls; and </font></td>
        <td valign="top" width="0%">&nbsp;</td>
    </tr>
</table>

<blockquote>
    <blockquote>
        <p><font face="Helvetica,Arial">6.&nbsp; The
        registrant&#146;s other certifying officers and I have
        indicated in this quarterly report whether or not there
        were significant changes in internal controls or in other
        factors that could significantly affect internal controls
        subsequent to the date of our most recent evaluation,
        including any corrective actions with regard to
        significant deficiencies and material weaknesses. </font></p>
        <p><font face="Helvetica,Arial"></font>&nbsp;</p>
    </blockquote>
</blockquote>

<table border="0" cellpadding="0" cellspacing="0" width="264">
    <tr>
        <td valign="top" width="9%">&nbsp;</td>
        <td valign="top" width="68%"><font face="Helvetica,Arial">&quot;E.K.
        Roberts&quot;</font></td>
        <td valign="top" width="23%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="9%">&nbsp;</td>
        <td valign="top" colspan="2" width="91%"><font
        face="Helvetica,Arial">Name: Elaine K. Roberts </font></td>
        <td valign="top" width="0%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="9%">&nbsp;</td>
        <td valign="top" colspan="2" width="91%"><font
        face="Helvetica,Arial">Title: Chief Financial Officer </font></td>
        <td valign="top" width="0%">&nbsp;</td>
    </tr>
</table>

<p><font face="Helvetica,Arial">October 30, 2002</font></p>

<p><font face="Helvetica,Arial"></font>&nbsp;</p>
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<TYPE>EX-99
<SEQUENCE>2
<FILENAME>ex992.htm
<DESCRIPTION>CERTIFICATION
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<pre>EXHIBIT 99.2

CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350

 </pre>

<pre>The undersigned, Elaine K. Roberts, President and Chief Financial Officer of
Fahnestock Viner Holdings Inc. (the &quot;Company&quot;), hereby certifies that to her
knowledge the Quarterly Report on Form 10-Q for the period ended September 30, 2002
of the Company filed with the Securities and Exchange Commission on the date hereof
(the &quot;Report&quot;) fully complies with the requirements of section 13(a) or 15(d) of the
Securities Exchange Act of 1934 and the information contained in the Report fairly
presents, in all material respects, the financial condition and results of operations
of the Company for the period specified.

Signed at the City of Toronto, Ontario, Canada, this 30<sup>th</sup> day of October, 2002.



                               &quot;E.K. Roberts&quot;
                               Elaine K. Roberts
			       President and Chief Financial Officer</pre>
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<FILENAME>ex991.htm
<DESCRIPTION>CERTIFICATION
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<pre>
EXHIBIT 99.1
<font size="3">
</font>
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350

         The undersigned, Albert G. Lowenthal, Chairman and Chief Executive
 Officer of Fahnestock Viner Holdings Inc. (the &quot;Company&quot;), hereby certifies
 that to his knowledge the Quarterly Report on Form 10-Q for the period ended
 September 30, 2002 of the Company filed with the Securities and Exchange
 Commission on the date hereof  (the &quot;Report&quot;) fully complies with the requirements
 of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and the information
 contained in the Report fairly presents, in all material respects, the financial
 condition and results of operations of the Company for the period specified.

         Signed at the New York, New York, this 30<sup>th</sup> day of October, 2002.


                               &quot;A.G. Lowenthal&quot;
                               Albert G. Lowenthal
			       Chairman and Chief Executive Officer

</pre>
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