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<SEC-DOCUMENT>0000791963-03-000014.txt : 20030513
<SEC-HEADER>0000791963-03-000014.hdr.sgml : 20030513
<ACCEPTANCE-DATETIME>20030513171154
ACCESSION NUMBER:		0000791963-03-000014
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20030331
FILED AS OF DATE:		20030513

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:		03696284

	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:	VINER E A HOLDINGS LTD
		DATE OF NAME CHANGE:	19880622

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	GOLDALE INVESTMENTS LTD
		DATE OF NAME CHANGE:	19861030
</SEC-HEADER>
<DOCUMENT>
<TYPE>10-Q
<SEQUENCE>1
<FILENAME>sec303.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//IETF//DTD HTML//EN">
<html>


<body bgcolor="#FFFFFF" link="#0000FF" vlink="#800080">

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

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

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

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

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

<p align="left"><font size="3">For the Quarterly Period ended <b>March
31, 2003</b></font></p>

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

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

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

<p align="center"><font size="3">Commission File Number: 1-12043</font></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="center"><font size="3">Ontario, Canada <br>
(State or other jurisdiction of incorporation or organization)</font></p>

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

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

<p align="center"><font size="3">M4R 1K8<br>
(Zip Code)</font></p>

<p align="center"><font size="3">416-322-1515<br>
(Registrant&#146;s telephone number, including area code)</font></p>

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

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

<p><font size="3">Indicate by check mark whether the registrant
is an accelerated filer (as defined in Rule 12b-2 of the Exchange
Act). Yes [X] No [ ]</font></p>

<p><font size="3">The number of shares of the Company&#146;s
Class A non-voting shares and Class B voting shares (being the
only classes of common stock of the Company), outstanding on May
12, 2003 was 12,691,643 and 99,680 shares, respectively.</font></p>

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

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

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

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

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

<p align="left"><font size="3" face="Helvetica">Page No.</font></p>

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

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

<p align="left"><font size="3" face="Helvetica">Condensed
Consolidated Balance Sheets as of March 31, 2003 and December 31,
2002</font></p>

<p align="left"><font size="3" face="Helvetica">Condensed
Consolidated Statements of Operations for the three months ended
March 31, 2003 and 2002 </font></p>

<p align="left"><font size="3" face="Helvetica">Condensed
Consolidated Statements of Cash Flows for the three months ended
March 31, 2003 and 2002 </font></p>

<p align="left"><font size="3" face="Helvetica">Condensed
Consolidated Statements of Changes in Shareholders&#146; Equity
for the three months ended March 31, 2003 and 2002</font></p>

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

<p align="left"><font size="3" face="Helvetica">Item 2.
Management&#146;s Discussion and Analysis of Financial Condition
and Results of Operations</font></p>

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

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

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

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

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

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

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

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

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

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

<p align="left"><font size="3" face="Helvetica">CERTIFICATIONS </font></p>

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

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

<p align="center"><font size="3" face="Helvetica"><strong>PART 1<br>
FINANCIAL INFORMATION</strong></font></p>

<p align="left"><font size="3" face="Helvetica"><strong>Item. 1
Financial Statements </strong></font></p>

<table border="0" cellpadding="4" cellspacing="0" width="602">
    <tr>
        <td valign="top" colspan="3" height="21"><p
        align="center"><font face="Helvetica">FAHNESTOCK VINER
        HOLDINGS INC.</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="3" height="21"><p
        align="center"><font face="Helvetica">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">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21">&nbsp;</td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        size="2" face="Helvetica">March 31,</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="2" face="Helvetica">December 31,</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="22"><p align="right">&nbsp;</p>
&nbsp;        </td>
        <td valign="top" width="18%" height="22"><p align="right"><font
        face="Helvetica">2003 </font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helvetica">2002</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="22"><p align="left"><font
        size="2" face="Helvetica"><i>Expressed in thousands of
        U.S. dollars</i></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">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">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">Cash and cash equivalents</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">$20,348</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">$16,115 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica">Restricted deposits</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">8,745</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">7,440 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica">Deposits with clearing organizations</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">5,097</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">3,606 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica">Receivable from brokers and clearing
        organizations</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">299,123</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">492,094 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica">Receivable from customers</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">394,692</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">392,929 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica">Securities owned including amounts
        pledged of $2,646 ($1,078 in 2002), at market value</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">65,638</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">50,173 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica">Notes receivable</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">99,169</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">17,011</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica">Other</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">40,737</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">28,419 </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">933,549</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">1,007,787</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica">Other assets</font></p>
        </td>
        <td valign="top" width="18%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica">Stock exchange seats (approximate market
        value $5,949; $6,716 in 2002)</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">2,994</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">2,994</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica">Property, plant and equipment, net of
        accumulated depreciation of $28,423; $26,345 in 2002</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">18,208</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">8,488</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica">Intangible assets, net of amortization</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">36,412</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="66%" height="21"><p align="left"><font
        face="Helvetica">Goodwill</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">137,889</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">11,957</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">195,503</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">23,439</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">$1,129,052</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helvetica">$1,031,226 </font></p>
        </td>
    </tr>
</table>

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

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

<table border="0" cellpadding="4" cellspacing="0" width="602">
    <tr>
        <td valign="top" colspan="3" height="23"><p
        align="center"><font face="Helvetica">FAHNESTOCK VINER
        HOLDINGS INC.</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="3" height="22"><p
        align="center"><font face="Helvetica">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">&nbsp;</td>
        <td valign="top" width="15%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="22">&nbsp;</td>
        <td valign="top" width="18%" height="22"><p align="right"><font
        size="2" face="Helvetica">March 31,</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        size="2" face="Helvetica">December 31,</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="22"><p align="right">&nbsp;</p>
&nbsp;        </td>
        <td valign="top" width="18%" height="22"><p align="right"><font
        face="Helvetica">2003 </font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helvetica">2002</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="22"><p align="left"><font
        size="2" face="Helvetica"><i>Expressed in thousands of
        U.S. dollars</i></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">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">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">Drafts payable</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">$25,816</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">$21,653</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica">Bank call loans</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">43,900</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">16,200</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica">Payable to brokers and clearing
        organizations</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">282,044</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">520,743</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica">Payable to customers</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">156,177</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">162,343</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica">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">12,202</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">9,606</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica">Accounts payable and other liabilities</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">101,362</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">50,745</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica">Income taxes payable</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">3,258</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">2,057</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica">Current portion of long term debt</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">13,489</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">-</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">638,248</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">783,347</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica">Long term 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">Bank loans payable</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">19,167</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica">Long term debt</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">210,525</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica">Deferred income taxes</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">1,353</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">243</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">231,045</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">243</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">869,293</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">783,590</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">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">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="20"><p align="left"><font
        face="Helvetica">12,668,438 Class A non-voting shares
        (2002 - 12,397,007 shares)</font></p>
        </td>
        <td valign="top" width="18%" height="20"><p align="right"><font
        face="Helvetica">39,463</font></p>
        </td>
        <td valign="top" width="15%" height="20"><p align="right"><font
        face="Helvetica">34,338</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica">99,680 Class B voting shares</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">133</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">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">39,596</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">34,471</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="21"><p align="left"><font
        face="Helvetica">Contributed capital</font></p>
        </td>
        <td valign="top" width="18%" height="21"><p align="right"><font
        face="Helvetica">5,688</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">5,028</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="67%" height="22"><p align="left"><font
        face="Helvetica">Retained earnings</font></p>
        </td>
        <td valign="top" width="18%" height="22"><p align="right"><font
        face="Helvetica">214,475</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helvetica">208,137</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="Helvetica">259,759</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helvetica">247,636</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="Helvetica">$1,129,052</font></p>
        </td>
        <td valign="top" width="15%" height="23"><p align="right"><font
        face="Helvetica">$1,031,226 </font></p>
        </td>
    </tr>
</table>

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

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

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

<table border="0" cellpadding="4" cellspacing="0" width="602">
    <tr>
        <td valign="top" colspan="3" height="21"><p
        align="center"><font face="Helvetica">FAHNESTOCK VINER
        HOLDINGS INC.</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="3" height="21"><p
        align="center"><font face="Helvetica">CONDENSED
        CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="3" height="21"><p
        align="center"><font face="Helvetica">FOR THE THREE
        MONTHS ENDED MARCH 31,</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21">&nbsp;</td>
        <td valign="top" width="17%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="22">&nbsp;</td>
        <td valign="top" width="17%" height="22"><p align="right"><font
        face="Helvetica">2003</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helvetica">2002</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="22"><p align="left"><font
        size="2" face="Helvetica">(Expressed in thousands of U.S.
        dollars, except per share amounts)</font></p>
        </td>
        <td valign="top" width="17%" height="22">&nbsp;</td>
        <td valign="top" width="15%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">REVENUE:</font></p>
        </td>
        <td valign="top" width="17%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">Commissions</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">$68,324</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">$34,986 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">Principal transactions, net</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">26,098</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">13,649 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">Interest</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">10,619</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">6,642 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">Underwriting fees</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">14,861</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">4,749 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">Advisory fees</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">15,189</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">7,483 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">Arbitration award</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">21,750</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">Other</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">4,010</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">3,008 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21">&nbsp;</td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">160,851</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">70,517 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21">&nbsp;</td>
        <td valign="top" width="17%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">EXPENSES:</font></p>
        </td>
        <td valign="top" width="17%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">Compensation and related expenses</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">97,496</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">43,865 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">Clearing and exchange fees</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">6,982</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">1,990 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">Communications</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">11,772</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">7,948 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">Occupancy costs</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">10,454</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">6,040 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">Interest</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">3,161</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">1,946 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">Other</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">18,089</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">6,122 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21">&nbsp;</td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">147,954</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">67,911 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">Profit before income taxes </font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">12,897</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">2,606 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">Income tax provision</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">5,410</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">974 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="22"><p align="left"><font
        face="Helvetica">Profit before cumulative effect of a
        change in accounting principle</font></p>
        </td>
        <td valign="top" width="17%" height="22"><p align="right"><font
        face="Helvetica">7,487</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helvetica">1,632 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="22"><p align="left"><font
        face="Helvetica">Cumulative effect of a change in
        accounting principle</font></p>
        </td>
        <td valign="top" width="17%" height="22"><p align="right"><font
        face="Helvetica">-</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helvetica">1,774</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="22"><p align="left"><font
        face="Helvetica">NET PROFIT FOR THE PERIOD</font></p>
        </td>
        <td valign="top" width="17%" height="22"><p align="right"><font
        face="Helvetica">$7,487</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        face="Helvetica">$3,406</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="22">&nbsp;</td>
        <td valign="top" width="17%" height="22">&nbsp;</td>
        <td valign="top" width="15%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">Earnings per share: (notes 1 and 3)</font></p>
        </td>
        <td valign="top" width="17%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">Basic earnings per share</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">$0.59</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">$0.27 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">- Before the effect of a change in
        accounting principle</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">$0.59</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">$0.13</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">- Cumulative effect of a change in
        accounting principle</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">-</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">$0.14</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">Diluted earnings per share</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">$0.49</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">$0.26 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">- Before the effect of a change in
        accounting principle</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">$0.49 </font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">$0.13</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">- Cumulative effect of a change in
        accounting principle</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">-</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">$0.13</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21">&nbsp;</td>
        <td valign="top" width="17%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="68%" height="21"><p align="left"><font
        face="Helvetica">Dividends declared per share</font></p>
        </td>
        <td valign="top" width="17%" height="21"><p align="right"><font
        face="Helvetica">$0.09</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        face="Helvetica">$0.09</font></p>
        </td>
    </tr>
</table>

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

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

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

<table border="0" cellpadding="4" cellspacing="0" width="602">
    <tr>
        <td valign="top" colspan="3" height="22"><p
        align="center"><font size="3" face="Helvetica">FAHNESTOCK
        VINER HOLDINGS INC.</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="3" height="21"><p
        align="center"><font size="3" face="Helvetica">CONDENSED
        CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="3" height="21"><p
        align="center"><font size="3" face="Helvetica">FOR THE
        THREE MONTHS ENDED MARCH 31, </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="22"><p align="left"><font
        size="3" face="Helvetica">&nbsp;(Expressed in thousands
        of U.S. dollars)</font></p>
        </td>
        <td valign="top" width="16%" height="22"><p align="right"><font
        size="3" face="Helvetica">2003</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        size="3" face="Helvetica">2002</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Cash flows from operating
        activities:</font></p>
        </td>
        <td valign="top" width="16%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="25"><p align="left"><font
        size="3" face="Helvetica">Net profit for the period</font></p>
        </td>
        <td valign="top" width="16%" height="25"><p align="right"><font
        size="3" face="Helvetica">$7,487</font></p>
        </td>
        <td valign="top" width="15%" height="25"><p align="right"><font
        size="3" face="Helvetica">$3,406 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="24"><p align="left"><font
        size="3" face="Helvetica">Adjustments to reconcile net
        profit to net cash provided by (used in) operating
        activities:</font></p>
        </td>
        <td valign="top" width="16%" height="24">&nbsp;</td>
        <td valign="top" width="15%" height="24">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Non-cash items included in net
        profit:</font></p>
        </td>
        <td valign="top" width="16%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="22"><p align="left"><font
        size="3" face="Helvetica">Depreciation and amortization</font></p>
        </td>
        <td valign="top" width="16%" height="22"><p align="right"><font
        size="3" face="Helvetica">2,266</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        size="3" face="Helvetica">1,069 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="22"><p align="left"><font
        size="3" face="Helvetica">Write off of negative goodwill</font></p>
        </td>
        <td valign="top" width="16%" height="22"><p align="right"><font
        size="3" face="Helvetica">-</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        size="3" face="Helvetica">(1,774)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="22"><p align="left"><font
        size="3" face="Helvetica">Decrease (increase) in
        operating assets, net of the effect of acquisitions:</font></p>
        </td>
        <td valign="top" width="16%" height="22">&nbsp;</td>
        <td valign="top" width="15%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="22"><p align="left"><font
        size="3" face="Helvetica">Restricted deposits</font></p>
        </td>
        <td valign="top" width="16%" height="22"><p align="right"><font
        size="3" face="Helvetica">(1,305)</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        size="3" face="Helvetica">212 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="22"><p align="left"><font
        size="3" face="Helvetica">Deposits with clearing
        organizations</font></p>
        </td>
        <td valign="top" width="16%" height="22"><p align="right"><font
        size="3" face="Helvetica">(1,491)</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        size="3" face="Helvetica">3,876 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="22"><p align="left"><font
        size="3" face="Helvetica">Receivable from brokers and
        clearing organizations</font></p>
        </td>
        <td valign="top" width="16%" height="22"><p align="right"><font
        size="3" face="Helvetica">192,971</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        size="3" face="Helvetica">20,539 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="23"><p align="left"><font
        size="3" face="Helvetica">Receivable from customers</font></p>
        </td>
        <td valign="top" width="16%" height="23"><p align="right"><font
        size="3" face="Helvetica">(1,763)</font></p>
        </td>
        <td valign="top" width="15%" height="23"><p align="right"><font
        size="3" face="Helvetica">(26,446)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="22"><p align="left"><font
        size="3" face="Helvetica">Securities owned</font></p>
        </td>
        <td valign="top" width="16%" height="22"><p align="right"><font
        size="3" face="Helvetica">(2,682)</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        size="3" face="Helvetica">2,681</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Notes receivable</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">(16,644)</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">(2,649)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Other assets</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">(9,031)</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">(6,910)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Increase (decrease) in
        operating liabilities, net of the effect of acquisitions:</font></p>
        </td>
        <td valign="top" width="16%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Drafts payable</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">4,163</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">(671)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Payable to brokers and clearing
        organizations</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">(238,699)</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">13,481 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Payable to customers</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">(6,166)</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">(36,665)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Securities sold, but not yet
        purchased</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">2,596</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">(1,599)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Accounts payable and other
        liabilities</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">33,933</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">(1,493) </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Deferred tax liability</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">1,353</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Tax benefit from employee stock
        options exercised</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">660</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">515 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Income taxes payable</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">1,201</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">(269)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Cash used in operating
        activities</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">(31,151)</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">(32,697)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Cash flows from investing and
        other activities:</font></p>
        </td>
        <td valign="top" width="16%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Purchase of the Oppenheimer
        &amp; Co. division</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">(12,659)</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Purchase of the business of
        BUYandHOLD</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">-</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">(2,297)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Purchase of fixed assets</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">(478)</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">(587)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Cash used in investing and
        other activities</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">(13,137)</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">(2,884)</font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="4" cellspacing="0" width="602">
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Cash flows from financing
        activities:</font></p>
        </td>
        <td valign="top" width="16%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Cash dividends paid on Class A
        non-voting and Class B shares</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">(1,149)</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">(1,129)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Issuance of Class A non-voting
        shares</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">5,578</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">2,255 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Repurchase of Class A
        non-voting shares for cancellation</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">(453)</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Zero coupon promissory note
        repayments</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">(2,322)</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Proceeds from issuance of bank
        loans</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">25,000</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Bank loan repayments</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">(833)</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Increase in bank call loans</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">22,700</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">36,147 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Cash provided by financing
        activities</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">48,521</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">37,273 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><pre><font
size="3" face="Helvetica">Net increase in cash and cash equivalents</font></pre>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">4,233</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">1,692 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Cash and cash equivalents,
        beginning of period</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">16,115</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">24,217 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="22"><p align="left"><font
        size="3" face="Helvetica">Cash and cash equivalents, end
        of period</font></p>
        </td>
        <td valign="top" width="16%" height="22"><p align="right"><font
        size="3" face="Helvetica">$20,348</font></p>
        </td>
        <td valign="top" width="15%" height="22"><p align="right"><font
        size="3" face="Helvetica">$25,909 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Supplemental Disclosure of cash
        flow information:</font></p>
        </td>
        <td valign="top" width="16%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Cash paid during the quarter
        for</font></p>
        </td>
        <td valign="top" width="16%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Interest</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">$1,113</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">$2,038</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Income taxes</font></p>
        </td>
        <td valign="top" width="16%" height="21"><p align="right"><font
        size="3" face="Helvetica">$24</font></p>
        </td>
        <td valign="top" width="15%" height="21"><p align="right"><font
        size="3" face="Helvetica">$3,619</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="69%" height="21"><p align="left"><font
        size="3" face="Helvetica">Non-cash acquisition activity
        (see note 11) </font></p>
        </td>
        <td valign="top" width="16%" height="21">&nbsp;</td>
        <td valign="top" width="15%" height="21">&nbsp;</td>
    </tr>
</table>

<pre><font face="Helvetica">The accompanying notes are an integral part of these condensed consolidated financial statements.</font></pre>

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

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

<table border="0" cellpadding="4" cellspacing="0" width="602">
    <tr>
        <td valign="top" colspan="3" height="21"><p
        align="center"><font face="Helvetica">FAHNESTOCK VINER
        HOLDINGS INC.</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="3" height="21"><p
        align="center"><font face="Helvetica">CONDENSED
        CONSOLIDATED STATEMENTS OF CHANGES </font></p>
        <p align="center"><font face="Helvetica">IN SHAREHOLDER'S
        EQUITY (unaudited)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="3" height="21"><p
        align="center"><font face="Helvetica">FOR THE THREE
        MONTHS ENDED MARCH 31,</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" colspan="3" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="75%" height="22">&nbsp;</td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helvetica">2003 </font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helvetica">2002 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="75%" height="21"><p align="left"><font
        size="2" face="Helvetica">(Expressed in thousands of U.S.
        dollars)</font></p>
        </td>
        <td valign="top" width="13%" height="21">&nbsp;</td>
        <td valign="top" width="13%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="75%" height="21"><p align="left"><font
        face="Helvetica">Share capital</font></p>
        </td>
        <td valign="top" width="13%" height="21">&nbsp;</td>
        <td valign="top" width="13%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="75%" height="21"><p align="left"><font
        face="Helvetica">Balance at beginning of period</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helvetica">$34,471</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helvetica">$34,257 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="75%" height="22"><p align="left"><font
        face="Helvetica">Issue of Class A non-voting shares</font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helvetica">5,578</font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helvetica">2,255</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="75%" height="22"><p align="left"><font
        face="Helvetica">Repurchase of Class A non-voting shares
        for cancellation</font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helvetica">(453)</font></p>
        </td>
        <td valign="top" width="13%" height="22"><p
        align="center"><font face="Helvetica">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="75%" height="23"><p align="left"><font
        face="Helvetica">Balance at end of period</font></p>
        </td>
        <td valign="top" width="13%" height="23"><p align="right"><font
        face="Helvetica">$39,596</font></p>
        </td>
        <td valign="top" width="13%" height="23"><p align="right"><font
        face="Helvetica">$36,512 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="75%" height="22">&nbsp;</td>
        <td valign="top" width="13%" height="22">&nbsp;</td>
        <td valign="top" width="13%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="75%" height="21"><p align="left"><font
        face="Helvetica">Contributed capital</font></p>
        </td>
        <td valign="top" width="13%" height="21">&nbsp;</td>
        <td valign="top" width="13%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="75%" height="21"><p align="left"><font
        face="Helvetica">Balance at beginning of period</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helvetica">$5,028</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helvetica">$4,113 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="75%" height="22"><p align="left"><font
        face="Helvetica">Tax benefit from employee stock options
        exercised</font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helvetica">660</font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helvetica">515 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="75%" height="23"><p align="left"><font
        face="Helvetica">Balance at end of period</font></p>
        </td>
        <td valign="top" width="13%" height="23"><p align="right"><font
        face="Helvetica">$5,688</font></p>
        </td>
        <td valign="top" width="13%" height="23"><p align="right"><font
        face="Helvetica">$4,628 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="75%" height="22">&nbsp;</td>
        <td valign="top" width="13%" height="22">&nbsp;</td>
        <td valign="top" width="13%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="75%" height="21"><p align="left"><font
        face="Helvetica">Retained earnings</font></p>
        </td>
        <td valign="top" width="13%" height="21">&nbsp;</td>
        <td valign="top" width="13%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="75%" height="21"><p align="left"><font
        face="Helvetica">Balance at beginning of period</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helvetica">$208,137</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helvetica">$203,325 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="75%" height="21"><p align="left"><font
        face="Helvetica">Net profit for the period</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helvetica">7,487</font></p>
        </td>
        <td valign="top" width="13%" height="21"><p align="right"><font
        face="Helvetica">3,406</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="75%" height="22"><p align="left"><font
        face="Helvetica">Dividends</font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helvetica">(1,149)</font></p>
        </td>
        <td valign="top" width="13%" height="22"><p align="right"><font
        face="Helvetica">(1,129)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="75%" height="23"><p align="left"><font
        face="Helvetica">Balance at end of period</font></p>
        </td>
        <td valign="top" width="13%" height="23"><p align="right"><font
        face="Helvetica">$214,475</font></p>
        </td>
        <td valign="top" width="13%" height="23"><p align="right"><font
        face="Helvetica">$205,602 </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="75%" height="23">&nbsp;</td>
        <td valign="top" width="13%" height="23">&nbsp;</td>
        <td valign="top" width="13%" height="23">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="75%" height="23"><p align="left"><font
        face="Helvetica">Shareholders&#146; equity</font></p>
        </td>
        <td valign="top" width="13%" height="23"><p align="right"><font
        face="Helvetica">$259,759</font></p>
        </td>
        <td valign="top" width="13%" height="23"><p align="right"><font
        face="Helvetica">$246,742</font></p>
        </td>
    </tr>
</table>

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

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

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

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

<p align="left"><font face="Helvetica"><b>1. Summary of
significant accounting policies</b></font></p>

<p><font face="Helvetica">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 subsidiary of FVH is
Fahnestock &amp; Co. Inc. (&quot;Fahnestock&quot;), a registered
broker-dealer in securities. Fahnestock operates under its own
name and as the Oppenheimer &amp; Co. division of Fahnestock.
Fahnestock owns Freedom Investments, Inc., a registered broker
dealer in securities, which operates its BUYandHOLD division,
offering online discount brokerage and dollar-based investing
services. 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), research, market-making, and
investment advisory and asset management services. </font></p>

<p><font face="Helvetica">The Company&#146;s condensed
consolidated financial statements have been prepared in
accordance with accounting principles (GAAP) generally accepted
in the United States of America. These accounting principles are
set out in the notes to the Company&#146;s consolidated financial
statements for the year ended December 31, 2002 included in its
Annual Report on Form 10-K for the year ended December 31, 2002.
Disclosures reflected in these condensed consolidated financial
statements comply in all material respects with those required
pursuant to the rules and regulations of the United States
Securities and Exchange Commission (&quot;SEC&quot;) with respect
to quarterly financial reporting.</font></p>

<p><font face="Helvetica">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">Certain prior period amounts have been
reclassified to conform to the current year presentation.</font></p>

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

<p><font face="Helvetica">The following is a summary of
significant accounting policies followed in the preparation of
these consolidated financial statements:</font></p>

<p><font face="Helvetica"><i>(a) Basis of consolidation</i></font></p>

<p><font face="Helvetica">The consolidated financial statements
include the accounts of the Company and all subsidiaries. The
major subsidiaries, wholly-owned and operated in the United
States of America, are as follows:</font></p>

<blockquote>
    <blockquote>
        <p><font face="Helvetica">Fahnestock &amp; Co. Inc.
        -broker/dealer in securities</font></p>
        <p><font face="Helvetica">Freedom Investments, Inc.
        -discount broker in securities</font></p>
    </blockquote>
</blockquote>

<p><font face="Helvetica">Significant intercompany balances and
transactions have been eliminated in the preparation of the
consolidated financial statements.</font></p>

<p><font face="Helvetica"><i>(b) Brokerage operations</i></font></p>

<p><font face="Helvetica">Transactions in proprietary securities
and related revenues and expenses are recorded on a trade date
basis. Customers&#146; securities and commodities transactions
are reported on a settlement date basis, which is generally three
business days after trade date. Related commission income and
expense is recorded on a trade date basis. Securities owned and
securities sold, but not yet purchased, are reported at market
value generally based upon quoted prices. Realized and unrealized
changes in market value are recognized in net trading revenues in
the year in which the change occurs. Other financial instruments
are carried at fair value or amounts that approximate fair value.</font></p>

<p align="left"><font face="Helvetica"><i>(c) Cash and cash
equivalents</i></font></p>

<p align="left"><font face="Helvetica">The Company defines cash
equivalents as highly liquid investments with original maturities
of less than 90 days that are not held for sale in the ordinary
course of business.</font></p>

<p align="left"><font face="Helvetica"><i>(d) Drafts payable</i></font></p>

<p align="left"><font face="Helvetica">Drafts payable represent
amounts drawn by the Company against a bank.</font></p>

<p><font face="Helvetica"><i>(e) Goodwill </i></font></p>

<p><font face="Helvetica">Goodwill arose upon the acquisitions of
Fahnestock, First of Michigan Capital Corporation, Josephthal
Group, Inc., Grand Charter Group Incorporated and the Oppenheimer
&amp; Co. Inc. division. Goodwill is subject to an annual test
for impairment to determine if the fair value of goodwill of a
reporting unit is less than its carrying amount. Goodwill
recorded as at December 31, 2002 has been tested for impairment
and no such impairment was recorded.</font></p>

<p><font face="Helvetica">(f) <i>Intangible Assets </i></font></p>

<p><font face="Helvetica">Intangible assets are comprised of
customer relationships and trademarks and trade names arising
upon the acquisition of the Oppenheimer &amp; Co. division.
Amortization of customer relationships is provided on a
straight-line basis over 80 months. Trademarks and trade names,
which are not amortized, are subject to an annual test for
impairment to determine if the fair value is less than its
carrying amount.</font></p>

<p><font face="Helvetica"><i>(g) Property, plant and equipment</i></font></p>

<p><font face="Helvetica">Furniture, fixtures, proprietary
software and leasehold improvements and stock exchange seats are
stated at cost. Depreciation of furniture, fixtures and
proprietary software is provided on the straight-line basis
generally over three to seven years. Leasehold improvements are
amortized on a straight-line basis over the shorter of the life
of the asset or the life of the lease. </font></p>

<p><font face="Helvetica"><i>(h) Foreign currency translations</i></font></p>

<p><font face="Helvetica">Canadian currency balances have been
translated into U.S. dollars as follows: monetary assets and
liabilities at exchange rates prevailing at year end; revenue and
expenses at average rates for the year; and non-monetary assets
and share capital at historic rates.</font></p>

<p><font face="Helvetica"><i>(i) Income taxes</i></font></p>

<p><font face="Helvetica">The Company accounts for income taxes
in accordance with Statement of Financial Standards No. 109,
&quot;Accounting for Income Taxes&quot;. Deferred income tax
assets and liabilities arise from &quot;temporary
differences&quot; between the tax basis of an asset or liability
and its reported amount in the consolidated financial statements.
Deferred tax balances are determined by applying the enacted tax
rates.</font></p>

<p><font face="Helvetica"><i>(j)Securities lending activities</i></font></p>

<p><font face="Helvetica">Securities borrowed and securities
loaned are carried at the amounts of cash collateral advanced or
received.</font></p>

<p><font face="Helvetica">Securities borrowed transactions
require the Company to deposit cash or other collateral with the
lender. The Company receives cash or collateral in an amount
generally in excess of the market value of securities loaned.</font></p>

<p><font face="Helvetica">The Company monitors the market value
of securities borrowed and loaned on a daily basis and may
require counterparties to deposit additional collateral or return
collateral pledged when appropriate.</font></p>

<p><font face="Helvetica">Included in receivable from brokers and
clearing organizations are deposits paid for securities borrowed
of $239,093,000 (2002 - $480,938,000). Included in payable to
brokers and clearing organizations are deposits received for
securities loaned of $260,292,000 (2002 - $514,213,000).</font></p>

<p><font face="Helvetica"><i>(k) Resale and repurchase agreements</i></font></p>

<p><font face="Helvetica">Transactions involving purchases of
securities under agreements to resell (&quot;reverse repurchase
agreements&quot;) or sales of securities under agreements to
repurchase (&quot;repurchase agreements&quot;) are treated as
collateralized financing transactions and recorded at their
contractual resale or repurchase amounts plus accrued interest.</font></p>

<p><font face="Helvetica">The Company obtains possession of
collateral with a market value equal to or in excess of the
principal amount loaned under reverse repurchase agreements.
Collateral is valued daily, and adjusted when appropriate.</font></p>

<p><font face="Helvetica">(l) <i>Revenues</i></font></p>

<p><font face="Helvetica">Investment banking fees are recorded on
offering date, sales concessions on settlement date and
underwriting fees at the time the transaction is substantially
completed and income is reasonably determinable. Management and
investment advisory fees are recorded as earned.</font></p>

<p><font face="Helvetica"><i>(m) Interest expense</i></font></p>

<p><font face="Helvetica">Included in interest expense is
interest on bank loans, debt, payments in lieu of interest on
securities loaned and interest paid with respect to repurchase
agreements.</font></p>

<p><font face="Helvetica"><i>(n)</i> <i>Stock-based compensation
plans</i></font></p>

<p><font face="Helvetica">The Company has a stock-based
compensation plan, which is described in note 3. No compensation
expense is recognized for this plan when stock options are issued
to employees as the options are at fair value at the date of
grant. Any consideration paid by employees on the exercise of
stock options or purchase of stock is credited to share capital.</font></p>

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

<p><font face="Helvetica">The Financial Accounting Standards
Board issued SFAS No. 146, &quot;Accounting for Costs Associated
with Exit or Disposal Activities&quot;, FIN No. 45,
&quot;Guarantor&#146;s Accounting and Disclosure Requirements for
Guarantees, Including Indirect Guarantees of Indebtedness of
Others&quot;, and FIN No. 46, &quot;Consolidation of Variable
Interest Entities&quot;. The Company has reviewed this statement
and these interpretations and does not expect their adoption to
have a material impact on its financial results. The Company has
reviewed SFAS No. 148, &quot;Accounting for Stock-Based
Compensation &#150; Transition and Disclosure&quot; and has
adopted the disclosure provisions, but does not intend to adopt
the other provisions of this standard in fiscal 2003.</font></p>

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

<p align="left"><font face="Helvetica"><b>3. Earnings per share</b></font></p>

<p><font face="Helvetica">Earnings per share was computed by
dividing net profit by the weighted average number of Class A
non-voting shares (&quot;Class A Shares&quot;) and Class B shares
(&quot;Class B Shares&quot;) outstanding. Diluted earnings per
share includes the weighted average Class A and Class B Shares
outstanding and the effects of exchangeable debentures using the
if converted method and Class A Share options using the treasury
stock method. </font></p>

<p align="left"><font face="Helvetica">Earnings per share has
been calculated as follows:</font></p>

<table border="0" cellpadding="2" cellspacing="0" width="510">
    <tr>
        <td valign="top" width="60%" height="16">&nbsp;</td>
        <td valign="top" colspan="2" width="40%" height="16"><p
        align="center"><font size="2" face="Helvetica">Three
        Months ended March 31,</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%" height="16">&nbsp;</td>
        <td valign="top" width="21%" height="16"><p align="right"><font
        size="2" face="Helvetica">2003</font></p>
        </td>
        <td valign="top" width="19%" height="16"><p align="right"><font
        size="2" face="Helvetica">2002</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%" height="43"><p align="left"><font
        size="2" face="Helvetica">Basic weighted average number
        of shares outstanding</font></p>
        </td>
        <td valign="top" width="21%" height="43"><p align="right"><font
        size="2" face="Helvetica">12,717,054</font></p>
        </td>
        <td valign="top" width="19%" height="43"><p align="right"><font
        size="2" face="Helvetica">12,542,228</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%" height="16"><p align="left"><font
        size="2" face="Helvetica">Net effect, if converted method</font></p>
        </td>
        <td valign="top" width="21%" height="16"><p align="right"><font
        size="2" face="Helvetica">3,016,415</font></p>
        </td>
        <td valign="top" width="19%" height="16"><p align="right"><font
        size="2" face="Helvetica">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%" height="16"><p align="left"><font
        size="2" face="Helvetica">Net effect, treasury method</font></p>
        </td>
        <td valign="top" width="21%" height="16"><p align="right"><font
        size="2" face="Helvetica">214,574</font></p>
        </td>
        <td valign="top" width="19%" height="16"><p align="right"><font
        size="2" face="Helvetica">412,839</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%" height="17"><p align="left"><font
        size="2" face="Helvetica">Diluted common shares</font></p>
        </td>
        <td valign="top" width="21%" height="17"><p align="right"><font
        size="2" face="Helvetica">15,948,043</font></p>
        </td>
        <td valign="top" width="19%" height="17"><p align="right"><font
        size="2" face="Helvetica">12,955,067</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%" height="17">&nbsp;</td>
        <td valign="top" width="21%" height="17">&nbsp;</td>
        <td valign="top" width="19%" height="17">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="60%" height="16"><p align="left"><font
        size="2" face="Helvetica">Net profit for the period, as
        reported</font></p>
        </td>
        <td valign="top" width="21%" height="16"><p align="right"><font
        size="2" face="Helvetica">$7,487,000</font></p>
        </td>
        <td valign="top" width="19%" height="16"><p align="right"><font
        size="2" face="Helvetica">$3,406,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%" height="16"><p align="left"><font
        size="2" face="Helvetica">Effect of dilutive exchangeable
        debentures</font></p>
        </td>
        <td valign="top" width="21%" height="16"><p align="right"><font
        size="2" face="Helvetica">305,000</font></p>
        </td>
        <td valign="top" width="19%" height="16"><p align="right"><font
        size="2" face="Helvetica">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%" height="16"><p align="left"><font
        size="2" face="Helvetica">Net profit, available to
        shareholders and assumed conversions </font></p>
        </td>
        <td valign="top" width="21%" height="16"><p align="right"><font
        size="2" face="Helvetica">$7,792,000</font></p>
        </td>
        <td valign="top" width="19%" height="16"><p align="right"><font
        size="2" face="Helvetica">$3,406,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%" height="16">&nbsp;</td>
        <td valign="top" width="21%" height="16">&nbsp;</td>
        <td valign="top" width="19%" height="16">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="60%" height="16"><p align="left"><font
        size="2" face="Helvetica">Basic earnings per share</font></p>
        </td>
        <td valign="top" width="21%" height="16"><p align="right"><font
        size="2" face="Helvetica">$0.59</font></p>
        </td>
        <td valign="top" width="19%" height="16"><p align="right"><font
        size="2" face="Helvetica">$0.27</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%" height="16"><p align="left"><font
        size="2" face="Helvetica">- Before cumulative effect of a
        change in accounting principle</font></p>
        </td>
        <td valign="top" width="21%" height="16"><p align="right"><font
        size="2" face="Helvetica">$0.59</font></p>
        </td>
        <td valign="top" width="19%" height="16"><p align="right"><font
        size="2" face="Helvetica">$0.13</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%" height="16"><p align="left"><font
        size="2" face="Helvetica">- Cumulative effect of a change
        in accounting principle</font></p>
        </td>
        <td valign="top" width="21%" height="16"><p align="right"><font
        size="2" face="Helvetica">-</font></p>
        </td>
        <td valign="top" width="19%" height="16"><p align="right"><font
        size="2" face="Helvetica">$0.14</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="60%" height="16"><p align="left"><font
        size="2" face="Helvetica">Diluted earnings per share</font></p>
        </td>
        <td valign="top" width="21%" height="16"><p align="right"><font
        size="2" face="Helvetica">$0.49</font></p>
        </td>
        <td valign="top" width="19%" height="16"><p align="right"><font
        size="2" face="Helvetica">$0.26</font></p>
        </td>
    </tr>
</table>

<p><font face="Helvetica">On May 12, 2003 the shareholders of the
Company voted to approve the conversion of the convertible
debenture issued by a subsidiary of the Company into a second
exchangeable debenture, which would be exchangeable, pursuant to
its terms, for approximately 3.8 million Class A Shares of the
Company. The second exchangeable debenture, when issued, results
in diluted earnings per share for the three months ended March
31, 2003 of $0.41 per share. See notes 5 and 11.</font></p>

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

<p align="left"><font face="Helvetica"><i>Stock based
compensation</i></font></p>

<p><font face="Helvetica">The following presents pro forma income
and earnings per share impact, using a fair-value-based
calculation, of the Company&#146;s stock-based compensation.
Amounts are expressed in thousands of U.S. dollars except per
share amounts.</font></p>

<table border="0" cellpadding="7" cellspacing="0" width="517">
    <tr>
        <td valign="top" width="68%">&nbsp;</td>
        <td valign="top" colspan="2" width="32%"><p
        align="center"><font face="Helvetica">Three Months ended</font></p>
        <p align="center"><font face="Helvetica">March 31,</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%">&nbsp;</td>
        <td valign="top" width="16%"><p align="right"><font
        face="Helvetica">2003</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        face="Helvetica">2002</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%"><p align="left"><font
        face="Helvetica">Net profit, as reported</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        face="Helvetica">$7,487</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        face="Helvetica">$3,406</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%"><p align="left"><font
        face="Helvetica">Stock-based employee compensation
        expense included in reported net income</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        face="Helvetica">-</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        face="Helvetica">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%"><p align="left"><font
        face="Helvetica">Additional compensation expense</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        face="Helvetica">445</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        face="Helvetica">469</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%"><p align="left"><font
        face="Helvetica">Pro forma net profit</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        face="Helvetica">$7,042</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        face="Helvetica">$2,937</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="68%"><p align="left"><font
        face="Helvetica">Basic profit per share, as reported</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        face="Helvetica">$0.59</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        face="Helvetica">$0.27</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%"><p align="left"><font
        face="Helvetica">Diluted profit per share, as reported</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        face="Helvetica">$0.49</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        face="Helvetica">$0.26</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="68%"><p align="left"><font
        face="Helvetica">Pro forma basic profit per share</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        face="Helvetica">$0.55</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        face="Helvetica">$0.23</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="68%"><p align="left"><font
        face="Helvetica">Pro forma diluted profit per share</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        face="Helvetica">$0.46</font></p>
        </td>
        <td valign="top" width="16%"><p align="right"><font
        face="Helvetica">$0.23</font></p>
        </td>
    </tr>
</table>

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

<p><font face="Helvetica">For purposes of the pro forma
presentation, the Company determined fair value using the
Black-Scholes option pricing model. The weighted average fair
value of options granted during the three months ended March 31,
2003 and 2002, respectively, was $873,000 and $1,226,000. The
fair value is being amortized over five years on an after-tax
basis, where applicable for purposes of pro forma presentation.
Stock options generally expire five years after the date of grant
or three months after the date of retirement, if earlier. Stock
options generally vest over a five year period with 0% vesting in
year one, 25% of the shares becoming exercisable on each of the
next three anniversaries of the grant date and the balance
vesting in the last six months of the option life. The vesting
period is at the discretion of the Compensation and Stock Option
Committee and is determined at the time of grant.</font></p>

<p><font face="Helvetica">The calculation of fair value in this
pro forma presentation is not indicative of future amounts
because it does not take into consideration future grants, or any
difference between actual and assumed forfeitures.</font></p>

<p><font face="Helvetica"><b>4. Securities owned and securities
sold, but not yet purchased (at fair market value)</b></font></p>

<table border="0" cellpadding="7" cellspacing="0" width="546">
    <tr>
        <td valign="top" width="56%">&nbsp;</td>
        <td valign="top" width="19%"><p align="right"><font
        face="Helvetica">2003</font></p>
        </td>
        <td valign="top" width="5%"><p align="right">&nbsp;</p>
&nbsp;        </td>
        <td valign="top" width="20%"><p align="right"><font
        face="Helvetica">2002</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="56%"><p align="left"><font
        face="Helvetica">Securities owned consist of:</font></p>
        </td>
        <td valign="top" width="19%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="20%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="56%"><p align="left"><font
        face="Helvetica">Corporate equities</font></p>
        </td>
        <td valign="top" width="19%"><p align="right"><font
        face="Helvetica">$26,396,000</font></p>
        </td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="20%"><p align="right"><font
        face="Helvetica">$11,467,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="56%"><p align="left"><font
        face="Helvetica">Corporate and sovereign debt</font></p>
        </td>
        <td valign="top" width="19%"><p align="right"><font
        face="Helvetica">22,418,000</font></p>
        </td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="20%"><p align="right"><font
        face="Helvetica">16,522,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="56%"><p align="left"><font
        face="Helvetica">U.S. government and agency and state and
        municipal government obligations</font></p>
        </td>
        <td valign="top" width="19%"><p align="right"><font
        face="Helvetica">15,396,000</font></p>
        </td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="20%"><p align="right"><font
        face="Helvetica">22,103,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="56%"><p align="left"><font
        face="Helvetica">Money market funds </font></p>
        </td>
        <td valign="top" width="19%"><p align="right"><font
        face="Helvetica">723,000</font></p>
        </td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="20%"><p align="right"><font
        face="Helvetica">-</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="56%"><p align="left"><font
        face="Helvetica">Options and other</font></p>
        </td>
        <td valign="top" width="19%"><p align="right"><font
        face="Helvetica">705,000</font></p>
        </td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="20%"><p align="right"><font
        face="Helvetica">81,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="56%">&nbsp;</td>
        <td valign="top" width="19%"><p align="right"><font
        face="Helvetica">$65,638,000</font></p>
        </td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="20%"><p align="right"><font
        face="Helvetica">$50,173,000</font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="7" cellspacing="0" width="546">
    <tr>
        <td valign="top" width="56%"><p align="left"><font
        face="Helvetica">Securities sold, but not yet purchased
        consist of:</font></p>
        </td>
        <td valign="top" width="19%">&nbsp;</td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="20%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="56%"><p align="left"><font
        face="Helvetica">Corporate equities</font></p>
        </td>
        <td valign="top" width="19%"><p align="right"><font
        face="Helvetica">$3,085,000</font></p>
        </td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="20%"><p align="right"><font
        face="Helvetica">$5,049,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="56%"><p align="left"><font
        face="Helvetica">Corporate debt </font></p>
        </td>
        <td valign="top" width="19%"><p align="right"><font
        face="Helvetica">7,752,000</font></p>
        </td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="20%"><p align="right"><font
        face="Helvetica">3,935,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="56%"><p align="left"><font
        face="Helvetica">U.S. government and agency and state and
        municipal government obligations and other</font></p>
        </td>
        <td valign="top" width="19%"><p align="right"><font
        face="Helvetica">1,365,000</font></p>
        </td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="20%"><p align="right"><font
        face="Helvetica">622,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="56%">&nbsp;</td>
        <td valign="top" width="19%"><p align="right"><font
        face="Helvetica">$12,202,000</font></p>
        </td>
        <td valign="top" width="5%">&nbsp;</td>
        <td valign="top" width="20%"><p align="right"><font
        face="Helvetica">$9,606,000</font></p>
        </td>
    </tr>
</table>

<p><font face="Helvetica">Securities owned and securities sold,
but not yet purchased, consist of trading securities at fair
market values. Included in securities owned at March 31, 2003 are
securities with fair market values of approximately $12,368,000,
which are related to deferred compensation liabilities to
Oppenheimer &amp; Co Inc. division employees. At March 31, 2003,
the Company has pledged securities owned of approximately
$2,646,000 ($1,078,000 at December 31, 2002) as collateral to
counterparties for stock loan transactions, which can be sold or
repledged. </font></p>

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

<p><font face="Helvetica"><b>5. Long term debt </b></font></p>

<table border="0" cellpadding="7" cellspacing="0" width="638">
    <tr>
        <td valign="top" width="43%"><font face="Helvetica">Issued</font></td>
        <td valign="top" width="17%"><p align="center"><font
        face="Helvetica">Maturity Date</font></p>
        </td>
        <td valign="top" width="16%"><p align="center"><font
        face="Helvetica">Interest Rate</font></p>
        </td>
        <td valign="top" width="19%"><p align="right"><font
        face="Helvetica">March 31, 2003</font></p>
        </td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" colspan="5"><font face="Helvetica">Zero
        Coupon Promissory Note, </font></td>
    </tr>
    <tr>
        <td valign="top" width="43%"><font face="Helvetica">January
        2, 2003 <b>(a)</b></font></td>
        <td valign="top" width="17%"><p align="center"><font
        face="Helvetica">-</font></p>
        </td>
        <td valign="top" width="16%"><p align="center"><font
        face="Helvetica">0%</font></p>
        </td>
        <td valign="top" width="19%"><p align="right"><font
        face="Helvetica">$63,192,000</font></p>
        </td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" colspan="3" width="75%"><p align="left"><font
        face="Helvetica">Less current portion</font></p>
        </td>
        <td valign="top" width="19%"><p align="right"><font
        face="Helvetica">(13,489,000)</font></p>
        </td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="43%"><font face="Helvetica">Long
        term portion</font></td>
        <td valign="top" width="17%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
        <td valign="top" width="19%"><p align="right"><font
        face="Helvetica">49,703,000</font></p>
        </td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" colspan="5">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" colspan="5">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="43%"><p align="left"><font
        face="Helvetica">First Variable Rate Exchangeable </font></p>
        <p><font face="Helvetica">Debenture<b>, </b>January 6,
        2003 <b>(b)</b></font></p>
        </td>
        <td valign="top" width="17%"><p align="left"><font
        face="Helvetica">January 2, 2013</font></p>
        </td>
        <td valign="top" width="16%"><p align="center"><font
        face="Helvetica">3%</font></p>
        </td>
        <td valign="top" width="19%"><p align="right"><font
        face="Helvetica">69,981,000</font></p>
        </td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" colspan="5">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="43%"><font face="Helvetica">Convertible
        Debenture, </font><p><font face="Helvetica">January 6,
        2003 <b>(c)</b></font></p>
        </td>
        <td valign="top" width="17%"><p align="left"><font
        face="Helvetica">January 2, 2006</font></p>
        </td>
        <td valign="top" width="16%"><p align="center"><font
        face="Helvetica">3%</font></p>
        </td>
        <td valign="top" width="19%"><p align="right"><font
        face="Helvetica">90,841,000</font></p>
        </td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="43%">&nbsp;</td>
        <td valign="top" width="17%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
        <td valign="top" width="19%">&nbsp;</td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="43%">&nbsp;</td>
        <td valign="top" width="17%">&nbsp;</td>
        <td valign="top" width="16%">&nbsp;</td>
        <td valign="top" width="19%"><p align="right"><font
        face="Helvetica">$210,525,000</font></p>
        </td>
        <td valign="top" width="6%">&nbsp;</td>
    </tr>
</table>

<ol type="a">
    <li><font face="Helvetica">The Zero Coupon Promissory Note is
        repayable as related employee notes receivable, which are
        assigned to Fahnestock, become due and are forgiven. Such
        payments are to be made notwithstanding whether any of
        the employees&#146; loans default.</font></li>
    <li><font face="Helvetica">The First Variable Rate
        Exchangeable Debenture is exchangeable for approximately
        3.1 million Class A Shares of the Company at the rate of
        $23.20 per share. The annual interest rate is 3% in the
        first year, 4% in years two through four, and 5% in year
        five through maturity. The First Variable Rate
        Exchangeable Debenture, which matures on January 2, 2013,
        contains a retraction clause, which may be activated by
        the holder for a period of 120 days at the end of year
        seven. Interest is payable semi-annually in June and
        December.</font></li>
    <li><font face="Helvetica">The Convertible Debenture, which
        matures on January 2, 2006, is convertible into a Second
        Variable Rate Exchangeable Debenture, exchangeable for
        approximately 3.8 million Class A Shares of the Company,
        on the same terms as the First Variable Rate Exchangeable
        Debenture described in (b) above, upon the approval of a
        majority of both the Class A and Class B shareholders.
        Such approval was obtained at the Annual and Special
        Meeting held on May 12, 2003. </font></li>
</ol>

<p><font face="Helvetica"><b>6. Net Capital Requirements</b></font></p>

<p><font face="Helvetica">The Company's major subsidiaries,
Fahnestock and Freedom, are subject to the uniform net capital
requirements of the Securities and Exchange Commission
(&quot;SEC&quot;) under Rule 15c3-1 (the &quot;Rule&quot;).
Fahnestock computes its net capital requirements under the
alternative method provided for in the Rule which requires that
Fahnestock maintain net capital equal to two percent of aggregate
customer related debit items, as defined in SEC Rule 15c3-3. At
March 31, 2003, the net capital of Fahnestock as calculated under
the Rule was $151,595,000 or 33% of Fahnestock's aggregate debit
items. This was $142,472,000 in excess of the minimum required
net capital. Freedom computes its net capital requirement under
the basic method provided for in the Rule, which requires that
Freedom maintain net capital equal to the greater of $250,000 or
6 2/3% of aggregate indebtedness, as defined. At March 31, 2003,
Freedom had net capital of $3,211,000, which was $2,961,000 in
excess of the $250,000 required to be maintained at that date.</font></p>

<p align="left"><font face="Helvetica"><b>7. Commitments and
contingencies</b></font></p>

<p><font face="Helvetica">The Company and its subsidiaries have
operating leases for office space and capital leases for
equipment expiring at various dates through 2013. Future minimum
rental commitments under such office and equipment leases as at
March 31, 2003 are as follows:</font></p>
<div align="center"><center>

<table border="0" cellpadding="4" cellspacing="0" width="378">
    <tr>
        <td valign="top" width="65%"><font face="Helvetica">Balance
        of 2003</font></td>
        <td valign="top" width="35%"><p align="right"><font
        face="Helvetica">$20,225,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="65%"><font face="Helvetica">2004</font></td>
        <td valign="top" width="35%"><p align="right"><font
        face="Helvetica">23,697,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="65%"><font face="Helvetica">2005</font></td>
        <td valign="top" width="35%"><p align="right"><font
        face="Helvetica">20,672,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="65%"><font face="Helvetica">2006</font></td>
        <td valign="top" width="35%"><p align="right"><font
        face="Helvetica">19,136,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="65%"><font face="Helvetica">2007</font></td>
        <td valign="top" width="35%"><p align="right"><font
        face="Helvetica">17,496,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="65%"><font face="Helvetica">2008
        and thereafter</font></td>
        <td valign="top" width="35%"><p align="right"><font
        face="Helvetica">73,890,000</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="65%"><font face="Helvetica">Total</font></td>
        <td valign="top" width="35%"><p align="right"><font
        face="Helvetica">$175,116,000</font></p>
        </td>
    </tr>
</table>
</center></div>

<p align="left"><font face="Helvetica">Certain of the leases
contain provisions for rent escalation based on increases in
costs incurred by the lessor.</font></p>

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

<p align="left"><font face="Helvetica"><b>8. Financial
instruments with off-balance sheet risk and concentration of
credit risk</b></font></p>

<p><font face="Helvetica">In the normal course of business, the
Company's securities activities involve execution, settlement and
financing of various securities transactions for customers. These
activities may expose the Company to risk in the event customers,
other brokers and dealers, banks, depositories or clearing
organizations are unable to fulfill their contractual
obligations.</font></p>

<p align="left"><font face="Helvetica">The Company is exposed to
off-balance sheet risk of loss on unsettled transactions in the
event customers and other counterparties are unable to fulfill
their contractual obligations. It is the Company's policy to
periodically review, as necessary, the credit standing of each
counterparty with which it conducts business.</font></p>

<p><font face="Helvetica">Securities sold, but not yet purchased,
represent obligations of the Company to deliver the specified
security at the contracted price and thereby create a liability
to repurchase the security in the market at prevailing prices.
Accordingly, these transactions result in off-balance-sheet risk,
as the Company's ultimate obligation to satisfy the sale of
securities sold, but not yet purchased, may exceed the amount
recognized on the balance sheet. Securities positions are
monitored on a daily basis.</font></p>

<p><font face="Helvetica">The Company's customer financing and
securities lending activities require the Company to pledge
customer securities as collateral for various financing sources
such as bank loans and securities lending. At March 31, 2003, the
Company had approximately $550 million</font><font
color="#FF0000" face="Helvetica"> </font><font face="Helvetica">of
customer securities under customer margin loans that are
available to be pledged, of which the Company has repledged
approximately $57,042,000 under securities loan agreements. In
addition, the Company has received collateral of approximately
$226,488,000 under securities borrow agreements, of which the
Company has repledged approximately $199,704,000 as collateral
under securities loan agreements. Included in receivable from
brokers and clearing organizations are receivables from three
major U.S. broker-dealers totaling $107,574,000.</font></p>

<p><font face="Helvetica">The Company monitors the market value
of collateral held and the market value of securities receivable
from others. It is the Company's policy to request and obtain
additional collateral when exposure to loss exists. In the event
the counterparty is unable to meet its contractual obligation to
return the securities, the Company may be exposed to off-balance
sheet risk of acquiring securities at prevailing market prices. </font></p>

<p><font face="Helvetica">At March 31, 2003 the Company had
outstanding commitments to buy and sell of $335,000 and $100,000,
respectively, of mortgage-backed securities on a when issued
basis. These commitments have off-balance sheet risks similar to
those described above.</font></p>

<p><font face="Helvetica">At the present time, the Company clears
its Oppenheimer &amp; Co. division securities transactions
through CIBC World Markets. Accordingly, the Company has credit
exposures with this clearing broker. The clearing broker can
rehypothecate the securities held on behalf of the Company. The
clearing broker has the right to charge the Company for losses
that result from a client&#146;s failure to fulfill its
contractual obligations. As the right to charge the Company has
no maximum amount and applies to all trades executed through the
clearing broker, the Company believes there is no maximum amount
assignable to this right. At March 31, 2003, the Company has
recorded no liabilities with regard to this right. The
Company&#146;s policy is to monitor the credit standing of this
clearing broker, all counterparties and all clients with which it
conducts business.</font></p>

<p><font face="Helvetica"><b>9. Related Party Transactions</b></font></p>

<p><font face="Helvetica">The Company has notes and accounts
receivable from employees, net, of approximately $99,169,000 at
March 31, 2003, which are recorded at face value net of
accumulated amortization. These amounts will be forgiven over a
service period from the initial date of the loan or based on
productivity levels of employees with respect to certain of these
notes receivable and are contingent on the employee&#146;s
continued employment with the Company. The unamortized portion of
the notes become due and payable on demand in the event the
employee departs during the service period.</font></p>

<p align="left"><font face="Helvetica">As at March 31, 2003, the
Company has future commitments to make loans to employees against
notes receivable of approximately $23,090,000 to certain
employees provided that they are employees of the Company at that
future date. These notes, if issued, will have terms similar to
those described above.</font></p>

<p><font face="Helvetica"><b>10. Segment Information</b></font></p>

<p><font face="Helvetica">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, 2002. 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>
<div align="center"><center>

<table border="0" cellpadding="4" cellspacing="0" width="408">
    <tr>
        <td valign="top" width="49%">&nbsp;</td>
        <td valign="top" colspan="2" width="51%"><p
        align="center"><font face="Helvetica">Three Months ended</font></p>
        <p align="center"><font face="Helvetica">March 31,</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="49%">&nbsp;</td>
        <td valign="top" width="26%"><p align="right"><font
        face="Helvetica">2003</font></p>
        </td>
        <td valign="top" width="25%"><p align="right"><font
        face="Helvetica">2002</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="49%"><p align="left"><font
        face="Helvetica">Revenue:</font></p>
        </td>
        <td valign="top" width="26%">&nbsp;</td>
        <td valign="top" width="25%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="49%"><p align="left"><font
        face="Helvetica">Private Client </font></p>
        </td>
        <td valign="top" width="26%"><p align="right"><font
        face="Helvetica">$114,434</font></p>
        </td>
        <td valign="top" width="25%"><p align="right"><font
        face="Helvetica">$47,721</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="49%"><p align="left"><font
        face="Helvetica">Capital Markets</font></p>
        </td>
        <td valign="top" width="26%"><p align="right"><font
        face="Helvetica">41,337</font></p>
        </td>
        <td valign="top" width="25%"><p align="right"><font
        face="Helvetica">16,427</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="49%"><p align="left"><font
        face="Helvetica">Asset Management</font></p>
        </td>
        <td valign="top" width="26%"><p align="right"><font
        face="Helvetica">4,012</font></p>
        </td>
        <td valign="top" width="25%"><p align="right"><font
        face="Helvetica">4,618</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="49%" height="23"><p align="left"><font
        face="Helvetica">Other</font></p>
        </td>
        <td valign="top" width="26%" height="23"><p align="right"><font
        face="Helvetica">1,068</font></p>
        </td>
        <td valign="top" width="25%" height="23"><p align="right"><font
        face="Helvetica">1,751</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="49%"><p align="left"><font
        face="Helvetica">Total</font></p>
        </td>
        <td valign="top" width="26%"><p align="right"><font
        face="Helvetica">$160,851</font></p>
        </td>
        <td valign="top" width="25%"><p align="right"><font
        face="Helvetica">$70,517</font></p>
        </td>
    </tr>
</table>
</center></div><div align="center"><center>

<table border="0" cellpadding="4" cellspacing="0" width="408">
    <tr>
        <td valign="top" width="49%"><p align="left"><font
        face="Helvetica">Operating Income:</font></p>
        </td>
        <td valign="top" width="26%">&nbsp;</td>
        <td valign="top" width="25%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="49%"><p align="left"><font
        face="Helvetica">Private Client *</font></p>
        </td>
        <td valign="top" width="26%"><p align="right"><font
        face="Helvetica">$(12,335)</font></p>
        </td>
        <td valign="top" width="25%"><p align="right"><font
        face="Helvetica">$(3,810)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="49%"><p align="left"><font
        face="Helvetica">Capital Markets</font></p>
        </td>
        <td valign="top" width="26%"><p align="right"><font
        face="Helvetica">3,443</font></p>
        </td>
        <td valign="top" width="25%"><p align="right"><font
        face="Helvetica">1,853</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="49%"><p align="left"><font
        face="Helvetica">Asset Management</font></p>
        </td>
        <td valign="top" width="26%"><p align="right"><font
        face="Helvetica">3,245</font></p>
        </td>
        <td valign="top" width="25%"><p align="right"><font
        face="Helvetica">3,382</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="49%"><p align="left"><font
        face="Helvetica">Other</font></p>
        </td>
        <td valign="top" width="26%"><p align="right"><font
        face="Helvetica">18,544</font></p>
        </td>
        <td valign="top" width="25%"><p align="right"><font
        face="Helvetica">1,181</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="49%"><p align="left"><font
        face="Helvetica">Total</font></p>
        </td>
        <td valign="top" width="26%"><p align="right"><font
        face="Helvetica">$12,897</font></p>
        </td>
        <td valign="top" width="25%"><p align="right"><font
        face="Helvetica">$2,606</font></p>
        </td>
    </tr>
</table>
</center></div>

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

<blockquote>
    <blockquote>
        <p><font face="Helvetica">* Losses in the Private Client
        segment in 2003 are the result of transition services
        costs relating to the Oppenheimer &amp; Co. division,
        which will continue until Oppenheimer &amp; Co
        division&#146;s client accounts are converted to the
        Company&#146;s clearing platform at the end of May 2003
        as well as significant litigation settlement costs
        relating to Josephthal. Losses in the Private Client
        segment in 2002 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 the costs of
        under-utilized facilities.</font></p>
        <p><font face="Helvetica"></font>&nbsp;</p>
    </blockquote>
</blockquote>

<p align="left"><font face="Helvetica"><b>11. Acquisitions</b></font></p>

<p><font face="Helvetica">On January 2, 2003, the Company
acquired the U.S. Private Client Division of CIBC World Markets
Corp. (&quot;World Markets&quot;), a wholly-owned subsidiary of
Canadian Imperial Bank of Commerce (&quot;CIBC&quot;), and agreed
to complete, at a later date, the acquisition of the U.S. Asset
Management Division of World Markets. The U.S. Private Client
Division, now operating as the Oppenheimer &amp; Co. division,
employs approximately 620 brokers in 18 branch offices located
across the United States. Client assets at December 31, 2002 were
approximately $30 billion. The acquisition more than doubles the
Company&#146;s private client presence in terms of client assets
and provides managerial expertise to the organization. The
acquisition was accounted for by the purchase method. The Company
engaged an independent evaluator to identify and value intangible
assets acquired. The fair value of assets acquired, included in
the table below, is based on preliminary estimates. The Company
does not expect these values to materially change when the final
report is issued.</font></p>

<p align="left"><font face="Helvetica">The following table
summarizes the estimated fair value of assets acquired, in
thousands of dollars.</font></p>

<table border="0" cellpadding="3" cellspacing="0" width="390">
    <tr>
        <td valign="top" width="71%"><p align="left"><font
        size="3" face="Helvetica">Prepaid expenses</font></p>
        </td>
        <td valign="top" width="29%"><p align="right"><font
        size="3" face="Helvetica">$1,206</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="71%"><p align="left"><font
        size="3" face="Helvetica">Marketable securities</font></p>
        </td>
        <td valign="top" width="29%"><p align="right"><font
        size="3" face="Helvetica">12,783</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="71%"><p align="left"><font
        size="3" face="Helvetica">Property, plant and equipment</font></p>
        </td>
        <td valign="top" width="29%"><p align="right"><font
        size="3" face="Helvetica">11,320</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="71%"><p align="left"><font
        size="3" face="Helvetica">Notes receivable</font></p>
        </td>
        <td valign="top" width="29%"><p align="right"><font
        size="3" face="Helvetica">65,513</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="71%"><p align="left"><font
        size="3" face="Helvetica">Other assets</font></p>
        </td>
        <td valign="top" width="29%"><p align="right"><font
        size="3" face="Helvetica">2,081</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="71%"><p align="left"><font
        size="3" face="Helvetica">Intangible assets</font></p>
        </td>
        <td valign="top" width="29%"><p align="right"><font
        size="3" face="Helvetica">36,600</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="71%"><p align="left"><font
        size="3" face="Helvetica">Goodwill</font></p>
        </td>
        <td valign="top" width="29%"><p align="right"><font
        size="3" face="Helvetica">125,932</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="71%"><p align="left"><font
        size="3" face="Helvetica">Less:</font></p>
        </td>
        <td valign="top" width="29%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="71%"><p align="left"><font
        size="3" face="Helvetica">Deferred compensation
        liabilities</font></p>
        </td>
        <td valign="top" width="29%"><p align="right"><font
        size="3" face="Helvetica">(12,783)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="71%"><p align="left"><font
        size="3" face="Helvetica">Accrued expenses and accounts
        payable</font></p>
        </td>
        <td valign="top" width="29%"><p align="right"><font
        size="3" face="Helvetica">(1,115)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="71%"><p align="left"><font
        size="3" face="Helvetica">Purchase price paid</font></p>
        </td>
        <td valign="top" width="29%"><p align="right"><font
        size="3" face="Helvetica">$241,537</font></p>
        </td>
    </tr>
</table>

<p align="left"><font face="Helvetica">The aggregate purchase
price of approximately $241,537,000 was paid as follows:</font></p>

<table border="0" cellpadding="4" cellspacing="0" width="597">
    <tr>
        <td valign="top" width="20%"><p align="right"><font
        face="Helvetica">$12,659,000</font></p>
        </td>
        <td valign="top" width="80%"><p align="left"><font
        face="Helvetica">paid by Fahnestock in cash at closing
        from cash on hand</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="20%"><p align="right"><font
        face="Helvetica">$ 2,542,000</font></p>
        </td>
        <td valign="top" width="80%"><p align="left"><font
        face="Helvetica">paid by Fahnestock after March 31, 2003
        from available cash on hand</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="20%"><p align="right"><font
        face="Helvetica">$65,514,000</font></p>
        </td>
        <td valign="top" width="80%"><p align="left"><font
        face="Helvetica">was paid with the proceeds of the
        issuance by Viner Finance Inc, a wholly-owned subsidiary
        of the Company, to World Markets, of a zero coupon
        promissory note (i)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="20%"><p align="right"><font
        face="Helvetica">$160,822,000 </font></p>
        </td>
        <td valign="top" width="80%"><p align="left"><font
        face="Helvetica">was paid with the proceeds of debentures
        issued by E.A. Viner International Co., a wholly-owned
        subsidiary of the Company, to CIBC (ii)</font></p>
        </td>
    </tr>
</table>

<ol type="i">
    <li><font face="Helvetica">The Zero Coupon Promissory Note is
        repayable as related employee notes receivable, which are
        assigned to Fahnestock, become due and are forgiven. Such
        payments are to be made notwithstanding whether any of
        the employees&#146; loans default.</font></li>
    <li><font face="Helvetica">Two debentures were issued. The
        first variable rate exchangeable debenture, in the
        principal amount of approximately $70 million, is
        exchangeable for approximately 3.1 million Class A Shares
        of the Company at the rate of $23.20 per share. The first
        variable rate exchangeable debenture matures in ten
        years, and bears interest at an annual rate of interest
        of 3% in the first year, 4% in years two through four,
        and 5% in years five through maturity. The convertible
        debenture, in the principal amount of approximately $91
        million, is convertible into a second variable rate
        exchangeable debenture with the same terms as the first
        variable rate exchangeable debenture, subject to approval
        of the Company&#146;s Class A and Class B shareholders.
        Such approval was granted at the May 12, 2003 annual
        meeting. The second variable rate exchangeable debenture
        is exchangeable for approximately 3.8 million Class A
        Shares of the Company. The first and second (when issued)
        variable rate exchangeable debentures will be
        exchangeable for an aggregate of 6,932,000 Class A Shares
        (approximately 35% of the Class A Shares on a fully
        diluted basis) plus a potential additional issuance of up
        to approximately 208,000 Class A Shares if the debentures
        are exchanged, the holders exercise their rights to have
        the resulting Class A Shares sold and the holders realize
        a price of less than $23.20 per share. </font></li>
</ol>

<p><font face="Helvetica">In addition, the Company has entered
into a credit arrangement with CIBC wherein it has borrowed $25
million and may borrow a further $25 million, as required, to
finance retention notes to the new employees. The loans are
repayable, together with interest at the CIBC U.S. base rate plus
2%, over five years or earlier if any broker notes are collected
earlier.</font></p>

<p><font face="Helvetica">Presented below are pro forma
consolidated results of operations. Amounts presented give effect
to the acquisition of the Oppenheimer &amp; Co. division as if
the transaction was consummated as at January 1, 2002. The
Company&#146;s results for the three months ended March 31, 2003
include the results of the Oppenheimer &amp; Co. division. The
pro forma information is for comparative purposes only and is not
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. CIBC has an October 31<sup>st</sup> year end and
therefore, the financial information for the acquired division
relates to its first quarter ended January 31, 2002. Expenses
included in the pro forma presentation for the three months ended
March 31, 2002 include corporate expense allocations, reflecting
the manner in which this division was managed within CIBC. In the
three months ended March 31, 2003, the Company has incurred
certain transition costs relating to the continued management and
clerical support and clearing services provided by World Markets.
The Company anticipates substantial cost savings after the
conversion of the client accounts of the acquired division to the
Company&#146;s clearing platform. Such anticipated cost savings
are not reflected in the table presented below.</font></p>

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

<table border="0" cellpadding="2" cellspacing="0" width="486">
    <tr>
        <td valign="top" width="79%">&nbsp;</td>
        <td valign="top" width="21%"><p align="right"><font
        face="Helvetica">Three Months ended</font></p>
        <p align="right"><font face="Helvetica">March 31,</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="79%"><p align="left"><font
        face="Helvetica">Expressed in thousands of dollars</font></p>
        </td>
        <td valign="top" width="21%"><p align="right"><font
        face="Helvetica">2002</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="79%">&nbsp;</td>
        <td valign="top" width="21%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="79%"><font face="Helvetica">Revenue</font></td>
        <td valign="top" width="21%"><p align="right"><font
        face="Helvetica">$162,161</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="79%"><font face="Helvetica">Loss
        before tax from operations</font></td>
        <td valign="top" width="21%"><p align="right"><font
        face="Helvetica">($3,680)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="79%"><font face="Helvetica">Net
        loss</font></td>
        <td valign="top" width="21%"><p align="right"><font
        face="Helvetica">($2,134)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="79%"><font face="Helvetica">Basic
        loss per share </font></td>
        <td valign="top" width="21%"><p align="right"><font
        face="Helvetica">($0.17)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="79%"><font face="Helvetica">Diluted
        loss per share</font></td>
        <td valign="top" width="21%"><p align="right"><font
        face="Helvetica">($0.11)</font></p>
        </td>
    </tr>
</table>

<p><font face="Helvetica">On May 12, 2003 the shareholders of the
Company voted to approve the conversion of the convertible
debenture issued by a subsidiary of the Company into a second
exchangeable debenture, which would be exchangeable, pursuant to
its terms, for approximately 3.8 million Class A Shares of the
Company. The second exchangeable debenture, when issued, results
in pro forma diluted loss per share for the three months ended
March 31, 2002 of $0.07 per share.</font></p>

<p><font face="Helvetica">In addition the Company expects to
close the acquisition of the U.S. Asset Management Division of
World Markets by mid-May 2003 for an expected cash payment of
approximately $3.2 million.</font></p>

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

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

<p><font face="Helvetica">The Company&#146;s financial statements
have been prepared in accordance with accounting principles
generally accepted in the United States of America. Reference is
also made to the Company&#146;s consolidated financial statements
and notes thereto found in its Annual Report on Form 10-K for the
year ended December 31, 2002.</font></p>

<p><font face="Helvetica">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), research,
market-making, and investment advisory and asset management
services. The Company provides its services from 100 offices in
22 states located throughout the United States. Fahnestock
conducts business in South America through local broker-dealers.
At March 31, 2003, the Company employed approximately 2,855
people, of whom 1,773 were financial consultants. </font></p>

<p align="left"><font face="Helvetica">Critical Accounting
Policies</font></p>

<p align="left"><font face="Helvetica">The Company&#146;s
accounting policies are essential to understanding and
interpreting the financial results reported in the condensed
consolidated financial statements. The significant accounting
policies used in the preparation of the Company&#146;s condensed
consolidated financial statements are summarized in note 1 to
those statements. Certain of those policies are considered to be
particularly important to the presentation of the Company&#146;s
financial results because they require management to make
difficult, complex or subjective judgments, often as a result of
matters that are inherently uncertain. The following is a
discussion of these policies.</font></p>

<p><font face="Helvetica"><br>
<i>Valuation of Financial Instruments</i><br>
Substantially all&nbsp;financial instruments are reflected in the
consolidated financial statements at fair&nbsp;value or amounts
that approximate fair value. These&nbsp;include cash equivalents;
deposits&nbsp;with&nbsp;clearing organizations; securities owned;
and securities sold, but&nbsp;not yet purchased. &nbsp;Where
available, the Company uses prices from independent
sources,&nbsp;such as listed market prices, or broker or dealer
price quotations. In addition, even where&nbsp;the&nbsp;value of
a&nbsp;security&nbsp;is&nbsp;derived from an independent market
price or broker or dealer quote, certain assumptions may be
required&nbsp;to&nbsp;determine the&nbsp;fair&nbsp;value.
For&nbsp;instance,&nbsp;the&nbsp;Company generally assumes that
the size of positions in securities that the Company
holds&nbsp;would&nbsp;not be&nbsp;large
enough&nbsp;to&nbsp;affect&nbsp;the&nbsp;quoted price of&nbsp;the
securities if the Company were to sell them, and&nbsp;that any
such sale would happen in an orderly manner. However, these
assumptions may be incorrect and the actual value realized upon
disposition could be different from the current carrying value. </font></p>

<p><font face="Helvetica"><br>
<i>Intangible Assets and Goodwill<br>
</i>Goodwill represents the excess cost of a business acquisition
over the fair value of the&nbsp;net&nbsp;assets acquired. SFAS
No.&nbsp;142, &quot;Goodwill and Other Intangible
Assets,&quot;&nbsp;provides that goodwill is no longer amortized
and the value of identifiable intangible assets must be amortized
over their useful lives, unless the asset is determined to have
an indefinite useful life. Intangible&nbsp;assets
consist&nbsp;of&nbsp;goodwill&nbsp;related&nbsp;to&nbsp;the
acquisitions of Fahnestock, First of Michigan Corporation, Prime
Charter Ltd., Josephthal &amp; Co. Inc. and the Oppenheimer &amp;
Co. division. Goodwill has been allocated to the private client
reporting unit pursuant to&nbsp;SFAS No. 142. The Company
obtained an independent valuation of assets acquired and
liabilities assumed with respect to the acquisition of the
Oppenheimer &amp; Co. division in 2003. This valuation involved
significant estimates, which were based on historic data, revenue
projections and industry experience. The Company has identified
intangible assets relating to customer relationships, which it is
amortizing over their useful lives and trademarks and trade
names, which are being evaluated for impaiment on at least an
annual basis. The remaining excess cost of the Oppenheimer &amp;
Co. division is being allocated to goodwill.<br>
</font></p>

<p><font face="Helvetica">The Company reviews its goodwill in
order to determine whether its value is impaired&nbsp;on&nbsp;at
least&nbsp;an&nbsp;annual&nbsp;basis.
Goodwill&nbsp;is&nbsp;impaired when&nbsp;the carrying amount of
the reporting unit exceeds the implied fair value of the
reporting unit. &nbsp;In estimating&nbsp;the fair value&nbsp;of
the reporting&nbsp;unit, the Company uses valuation techniques
based on multiples of revenues, earnings, book value&nbsp;and
discounted cash&nbsp;flows&nbsp;similar
to&nbsp;models&nbsp;employed&nbsp;in analyzing the purchase
price&nbsp;of an acquisition target. If the value of the goodwill
is impaired, the difference&nbsp;between the value of&nbsp;the
goodwill reflected on the&nbsp;financial statements
and&nbsp;its&nbsp;current fair value&nbsp;is recognized as an
expense in the period in which the impairment occurs.</font></p>

<p><font face="Helvetica"><br>
<i>Reserves<br>
</i>The&nbsp;Company records reserves&nbsp;related&nbsp;to
legal&nbsp;proceedings&nbsp;in &nbsp;&quot;other payables and
accrued expenses&quot;. The determination of the amounts
of&nbsp;these reserves requires significant judgment on&nbsp;the
part&nbsp;of&nbsp;management. Management&nbsp;considers many
factors including, but&nbsp;not limited to: the amount of the
claim; the amount of the loss, if any,&nbsp;in the&nbsp;client's
account; the&nbsp;basis and&nbsp;validity of the claim; the
possibility of wrong&nbsp;doing on&nbsp;the part of an employee
of the Company; previous results in similar&nbsp;cases; and legal
precedents and case law as well as the timing of the resolution
of such matters. Each legal proceeding is reviewed with counsel
in each accounting period and the reserve is adjusted as deemed
appropriate by management. Any change in the reserve amount is
recorded as&nbsp;a charge to results&nbsp;in that period. The
assumptions of management in determining the estimates of
reserves may be incorrect and the actual disposition of a legal
proceeding could be greater or less than the reserve amount.<br>
<br>
The&nbsp;Company&nbsp;also records&nbsp;reserves&nbsp;or
allowances&nbsp;for doubtful&nbsp;accounts related&nbsp;to
receivables from&nbsp;clients and financial&nbsp;consultants.
&nbsp;Client loans are&nbsp;collateralized by securities;
however,&nbsp;if there is a decline in&nbsp;the value&nbsp;of the
collateral and the Company cannot obtain additional collateral or
collect on the loan, a reserve is established. &nbsp;The Company
also makes loans&nbsp;or pays advances&nbsp;to financial
consultants. Reserves&nbsp;are established on these
receivables&nbsp;if the financial consultant is no longer
associated with the Company and the receivable has not been
promptly repaid or&nbsp;if it is determined that it is probable
the amount will not be collected.</font></p>

<p><font face="Helvetica">The Company also estimates taxes
payable and records income tax reserves. These reserves are based
on historic experience and may not reflect the ultimate
liability. The Company monitors and adjusts these reserves as
necessary.</font></p>

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

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

<p><font face="Helvetica">Fahnestock Viner Holdings Inc. reported
net profit of U.S.$7,487,000 or $0.59 per share for the first
quarter of 2003, an increase of 120% in net profit when compared
to net profit of U.S.$3,406,000 or $0.27 per share in the first
quarter of 2002. Revenue for the first quarter of 2003 was U.S.
$160,851,000, an increase of 128% compared to revenue of U.S.
$70,517,000 in the first quarter of 2002. At March 31, 2003,
shareholders&#146; equity was approximately U.S. $259,759,000<b> </b>and
book value per share was U.S. $20.31 compared to
shareholders&#146; equity of U.S. $246,743,000<b> </b>and book
value per share of U.S. $19.62 at March 31, 2002.</font></p>

<p><font face="Helvetica">The results of the first quarter of
2003 reflect the changed face of the Company after the
acquisition by the Company on January 2, 2003 of the Oppenheimer
&amp; Co. division (the U.S. private client business of CIBC
World Markets). This acquisition more than doubled the
Company&#146;s private client presence, adding approximately 620
financial consultants in 18 offices, at closing. The aggregate
purchase price was approximately U.S. $242 million. The Company
will begin self-clearing the private client business in the
second quarter of 2003. Until that time, CIBC is providing
operational and administrative services to the Company on a
transition basis. This arrangement (which was anticipated)
precludes the attainment of certain operating efficiencies and
cost savings that are contemplated after the conversion of the
client accounts to the Company&#146;s clearing platform.</font></p>

<p><font face="Helvetica">The Company expects to close on its
purchase of Oppenheimer Asset Management (CIBC&#146;s U.S. Asset
Management Division) by mid-May, 2003. Oppenheimer Asset
Management currently manages client assets totaling over U.S. $8
billion. The business includes internally managed funds,
alternative investments (including hedge funds) and third party
managed high net worth accounts.</font></p>

<p><font face="Helvetica">Revenue in the first quarter of 2003
included the favorable arbitration award in the amount of
$21,750,000 against another broker dealer in a raiding case
involving the sales force of First of Michigan Corporation (a
company acquired by Fahnestock in 1997). Expenses on the first
quarter of 2003 included approximately $5 million in litigation
losses from cases arising at Josephthal &amp; Co (a company
acquired by Fahnestock in 2001), as well as approximately $1.2
million in write-downs of investments in non-marketable
securities. The results for the first quarter of 2002 included
the effect of a change in accounting principle relating to the
write-off of &quot;negative goodwill&quot; amounting to
$1,774,000 or $0.14 per share.</font></p>

<p><font face="Helvetica">During the first quarter of 2003,
market conditions remained difficult due to uncertainty about war
in Iraq, a nuclear confrontation in North Korea, as well as
worries about a slowing domestic economy, including anticipated
poor corporate earnings results and concerns about corporate
governance issues. Investors continued to favor fixed income
investments over equities, as interest rates reached their lowest
levels in 50 years. Many people believe that the end to the war
in Iraq, and a reduction in the rising rate of unemployment, are
likely to lead to an improved environment in future quarters.</font></p>

<p><font face="Helvetica">Commission income and, to a large
extent, income from principal transactions depend on investor
participation in the markets. Commission revenue increased by 95%
in the first quarter of 2003 compared to the first quarter of
2002 as a result of the acquisition of the Oppenheimer &amp; Co.
division, which more than offset generally lower commission
levels in 2003 compared to 2002. Weaker market conditions in 2003
resulted in lower commission levels generated from the
Company&#146;s branches in 2003 compared to 2002. Net revenue
from principal transactions increased by 91% compared to the
first quarter of 2002 due to business generated by the
Oppenheimer &amp; Co. division, higher trading profits from fixed
income securities as a result of lower interest rates and higher
bond prices in the first quarter of 2003 compared to the same
period in 2002. Investment banking revenues increased by 213%
compared with the first quarter of 2002, related to increased
participation in the issuance of closed-end funds and debt
securities primarily as a result of the Oppenheimer &amp; Co.
division acquisition. Advisory fees increased by 103% in the
first quarter of 2003 compared to the comparable period of 2002,
primarily as a result of the acquisitions of the Oppenheimer
&amp; Co. division on January 3, 2003 and the business of
BUYandHOLD Securities in March 2002. Arbitration award income
reflects the arbitration award with respect to the raiding case
involving the sales force of First of Michigan Corporation.</font></p>

<p><font face="Helvetica">Net interest revenue (interest revenue
less interest expense) increased by 59% in the first quarter of
2003 compared to the first quarter of 2002 primarily as a result
of interest earned on the Oppenheimer &amp; Co. division client
balances carried by CIBC World Markets.</font></p>

<p><font face="Helvetica">Expenses increased by 118% in the first
quarter of 2003 compared to the first quarter of 2002. The
increase in expenses can be attributed to the acquisitions of
Oppenheimer &amp; Co. on January 2, 2003 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 first quarter of 2003
compared to the first quarter of 2002. In addition, the fixed
component of compensation expense increased with the increase in
staff in newly acquired offices to handle the business of the
larger entity. The cost of clearing and exchange fees increased
251% in the first quarter of 2003 compared to the same period of
2002 due to the costs associated with the clearing of Oppenheimer
&amp; Co. division client accounts by World Markets during the
transition period. The cost of communications and technology
increased 48% in the first quarter of 2003 compared to the first
quarter of 2002 due to the costs associated with connecting
approximately 56% more financial consultants and 18 more branch
offices in 2003 compared to 2002. Occupancy costs increased by
73% in the first quarter of 2003 compared to the first quarter of
2002 due to the additional costs of 18 branch locations in 2003
compared to 2002. Occupancy costs are being aggressively
addressed and plans are underway for utilizing previously
underutilized space. The Company does not expect to have any
unutilized space after the second quarter of 2003. Other expenses
were significantly affected by litigation settlement costs of
former Josephthal &amp; Co. clients. In the poor market
environment experienced over the past several years client
litigation traditionally increases. The Company may face
additional unfavorable judgments in future quarters. The Company
has used its best estimate to provide adequate reserves to cover
litigation losses.</font></p>

<p><font face="Helvetica">Liquidity and Capital Resources</font></p>

<p><font face="Helvetica">Total assets at March 31, 2003
increased by approximately 9% from December 31, 2002 due
primarily to the acquisition of Oppenheimer &amp; Co. division.
Liquid assets accounted for 83% of total assets, compared to 98%
at year-end. The Oppenheimer acquisition resulted in the addition
of fixed assets, intangibles and goodwill, all considered long
term in nature. Current assets at March 31, 2003 decreased by 7%
compared to the previous year end because of a decline in stock
borrow/stock loan activity, which more than offset the increase
in notes receivable and other assets. The Company satisfies its
need for funds from its own cash resources, internally generated
funds, 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, changes in stock loan balances and changes
in notes receivable from employees. Fahnestock has arrangements
with banks for borrowings on an unsecured and on a fully
collateralized basis. At March 31, 2003, $63,067,000 of such
borrowings were outstanding, an increase of 289% compared to
outstanding borrowings at December 31, 2002. At March 31, 2003,
the Company had available collateralized and uncollateralized
letters of credit of $34,500,000.</font></p>

<p><font face="Helvetica">In connection with the acquisition of
the Oppenheimer &amp; Co. division, the Company issued debentures
in the amount of approximately $161 million and zero coupon
promissory note in the amount of approximately $66 million. The
notes to the financial statements contain a description of these
instruments. The interest due on the debentures is payable
semi-annually and will be financed from internally-generated
funds. The principal payments on the zero coupon promissory notes
will also be financed from internally-generated funds. The
Company believes that the necessary internally-generated funds
will be available to service these obligations from funds
generated by normal operations, including funds generated by the
acquired business. </font></p>

<p><font face="Helvetica">In connection with the acquisition of
the Oppenheimer &amp; Co. division, the Company has arranged a
credit facility in the amount of $50 million with CIBC. In
January 2003, the Company borrowed $25 million under this
facility and expects to borrow the balance in July 2003. The
borrowings are being used to finance broker notes and are
repayable, together with interest at the CIBC U.S. base rate plus
2%, over five years or earlier if any broker notes become due
earlier. The interest and principal repayments are being made out
of internally-generated funds and the Company believes that the
cash flow from funds generated by normal operations, including
funds generated by the acquired business, will be adequate to
enable the Company to meet its obligations.</font></p>

<p><font face="Helvetica">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">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 Shares
through the facilities of the New York and Toronto Stock
Exchanges. During the first quarter of 2003 the Company purchased
a total of 19,900 Class A Shares at an average price of $22.77
per share through the facilities of the New York Stock Exchange.
All shares purchased have been cancelled. </font></p>

<p><font face="Helvetica">On February 28, 2003, the Company paid
cash dividends of U.S.$0.09 per Class A Share and Class B Share
totaling $1,149,000 from available cash on hand.</font></p>

<p><font face="Helvetica">On April 24, 2003, the Board of
Directors declared a regular quarterly cash dividend of U.S.$0.09
per Class A and Class B Share payable on May 23, 2003 to
shareholders of record on May 9, 2003.</font></p>

<p><font face="Helvetica">The book value of the Company&#146;s
Class A and Class B Shares is $20.31 at March 31, 2003 compared
to $19.62 at March 31, 2002, an increase of 4%, based on total
outstanding shares of </font><font face="Arial">12,788,118 </font><font
face="Helvetica">and </font><font face="Arial">12,578,947</font><font
face="Helvetica">, respectively.</font></p>

<p align="left"><font face="Helvetica">Contractual and Contingent
Obligations</font></p>

<p align="left"><font face="Helvetica">The Company has
contractual obligations to make future payments in connection
with non-cancelable lease obligations, certain retirement plans
and debt assumed upon the acquisition of Josephthal. Additional
disclosure relating the Company&#146;s commitments appears in
note 8 to the consolidated financial statements.</font></p>

<p align="left"><font face="Helvetica">The following table sets
forth these contractual and contingent commitments as at March
31, 2003. </font></p>

<p align="left"><font face="Helvetica">Contractual Obligations
(In millions of dollars)</font></p>

<table border="1" cellpadding="4" cellspacing="0" width="607">
    <tr>
        <td valign="top" width="28%">&nbsp;</td>
        <td valign="top" width="10%"><p align="right"><font
        face="Helvetica">2003</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">2004</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">2005</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">2006</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">2007</font></p>
        </td>
        <td valign="top" width="17%"><p align="right"><font
        face="Helvetica">Thereafter</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">Total</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="28%"><p align="left"><font
        face="Helvetica">Minimum rentals</font></p>
        </td>
        <td valign="top" width="10%"><p align="right"><font
        face="Helvetica">$20</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">$24</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">$21</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">$19</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">$17</font></p>
        </td>
        <td valign="top" width="17%"><p align="right"><font
        face="Helvetica">$74</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">$175</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="28%"><p align="left"><font
        face="Helvetica">Supplemental Executive Retirement Plan</font></p>
        </td>
        <td valign="top" width="10%"><p align="right"><font
        face="Helvetica">1</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">-</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">-</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">-</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">-</font></p>
        </td>
        <td valign="top" width="17%"><p align="right"><font
        face="Helvetica">1</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">2</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="28%"><p align="left"><font
        face="Helvetica">Assumed Josephthal notes</font></p>
        </td>
        <td valign="top" width="10%"><p align="right"><font
        face="Helvetica">4</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">4</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">-</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">-</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">-</font></p>
        </td>
        <td valign="top" width="17%"><p align="right"><font
        face="Helvetica">1</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">9</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="28%"><p align="left"><font
        face="Helvetica">Total</font></p>
        </td>
        <td valign="top" width="10%"><p align="right"><font
        face="Helvetica">$25</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">$28</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">$21</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">$19</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">$17</font></p>
        </td>
        <td valign="top" width="17%"><p align="right"><font
        face="Helvetica">$76</font></p>
        </td>
        <td valign="top" width="9%"><p align="right"><font
        face="Helvetica">$186</font></p>
        </td>
    </tr>
</table>

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

<p><font face="Helvetica">The Financial Accounting Standards
Board issued SFAS No. 146, &quot;Accounting for Costs Associated
with Exit or Disposal Activities&quot;, FIN No. 45,
&quot;Guarantor&#146;s Accounting and Disclosure Requirements for
Guarantees, Including Indirect Guarantees of Indebtedness of
Others&quot;, and FIN No. 46, &quot;Consolidation of Variable
Interest Entities&quot;. The Company has reviewed this statement
and these interpretations and does not expect their adoption to
have a material impact on its financial results. The Company has
reviewed SFAS No. 148, &quot;Accounting for Stock-Based
Compensation &#150; Transition and Disclosure&quot;, and has
adopted the disclosure provisions, but does not intend to adopt
the other provisions of this standard in fiscal 2003.</font></p>

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

<p><font face="Helvetica">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, the results of
litigation, 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 or economic 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 and services sold by the Company, (xi) the
effectiveness of efforts to reduce costs and eliminate overlap,
(xii) war and nuclear confrontation and (xiii) corporate
governance issues. 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"><strong>ITEM 3. Quantitative and
Qualitative Disclosures About Market Risk</strong></font></p>

<p align="left"><font face="Helvetica">Risk Management</font></p>

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

<p><font face="Helvetica">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">Market Risk</font></p>

<p><font face="Helvetica">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">Operational Risk</font></p>

<p><font face="Helvetica">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. The Company has procedures designed to
assess and monitor counterparty risk. For a discussion of funding
risk, see &#145;Liquidity and Capital Resources&#146;, above.</font></p>

<p><font face="Helvetica">Credit Risk</font></p>

<p><font face="Helvetica">Credit risk arises from non-performance by
trading counterparties, customers and issuers of debt securities
held in the Company&#146;s inventory. The Company manages this
risk by imposing and monitoring position limits, regularly
reviewing trading counterparties, monitoring and limiting
securities concentrations, marking positions to market on a daily
basis to evaluate and establish the adequacy of collateral, and,
with respect to trading counterparties, conducting business
through clearing corporations which guarantee performance. </font></p>

<p align="left"><font face="Helvetica">Legal and Regulatory Risk</font></p>

<p><font face="Helvetica">Legal and regulatory risk includes the risk
of non-compliance with applicable legal and regulatory
requirements. The Company is subject to extensive regulation in
the different jurisdictions in which it conducts its activities.
The Company has comprehensive procedures for addressing issues
such as regulatory capital requirements, sales and trading
practices, use of and safekeeping of customer funds and
securities, granting of credit, collection activities, money
laundering, and record keeping.</font></p>

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

<p><font face="Helvetica">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
Securities and Exchange Commission&#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 limits and concentration limits.</font></p>

<p><font face="Helvetica">At March 31, 2003 and 2002, the
Company&#146;s value-at-risk for each component of market risk
was as follows (in thousands of U.S. dollars):</font></p>

<table border="0" cellpadding="0" cellspacing="0" width="336">
    <tr>
        <td valign="top" width="52%"><font
        face="Helvetica"></font>&nbsp;</td>
        <td valign="top" colspan="2" width="48%"><p align="right"><font
        face="Helvetica">As at March 31, </font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="52%"><font
        face="Helvetica"></font>&nbsp;</td>
        <td valign="top" width="26%"><p align="right"><font
        face="Helvetica"><u>2003</u></font></p>
        </td>
        <td valign="top" width="22%"><p align="right"><font
        face="Helvetica"><u>2002</u></font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="52%"><font
        face="Helvetica"></font>&nbsp;</td>
        <td valign="top" width="26%"><font
        face="Helvetica"></font>&nbsp;</td>
        <td valign="top" width="22%"><font
        face="Helvetica"></font>&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="52%"><p align="left"><font
        face="Helvetica">Interest rate risk</font></p>
        </td>
        <td valign="top" width="26%"><p align="right"><font
        face="Helvetica">$127</font></p>
        </td>
        <td valign="top" width="22%"><p align="right"><font
        face="Helvetica">$143</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="52%"><p align="left"><font
        face="Helvetica">Equity price risk</font></p>
        </td>
        <td valign="top" width="26%"><p align="right"><font
        face="Helvetica">309</font></p>
        </td>
        <td valign="top" width="22%"><p align="right"><font
        face="Helvetica">250</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="52%"><p align="left"><font
        face="Helvetica">Diversification benefit</font></p>
        </td>
        <td valign="top" width="26%"><p align="right"><font
        face="Helvetica">(50)</font></p>
        </td>
        <td valign="top" width="22%"><p align="right"><font
        face="Helvetica">(87)</font></p>
        </td>
    </tr>
    <tr>
        <td valign="top" width="52%"><font
        face="Helvetica"></font>&nbsp;</td>
        <td valign="top" width="26%"><font
        face="Helvetica"></font>&nbsp;</td>
        <td valign="top" width="22%"><font
        face="Helvetica"></font>&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="52%"><p align="left"><font
        face="Helvetica">Total</font></p>
        </td>
        <td valign="top" width="26%"><p align="right"><font
        face="Helvetica">$386</font></p>
        </td>
        <td valign="top" width="22%"><p align="right"><font
        face="Helvetica">$306</font></p>
        </td>
    </tr>
</table>

<p><font face="Helvetica">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 in 2003 from those reported in
2002 reflect changes in the size and composition of the
Company&#146;s trading portfolio at March 31, 2003 compared to
March 31, 2002, which include a larger position in equities. At
March 31, 2003 the Company was not holding any hedging positions,
thus reducing the diversification benefit compared to the
comparable period in 2002 when it did hold such positions. At
March 31, 2003, the Company held securities in the approximate
amount of $12,368,000, which are related to deferred compensation
liabilities to the Oppenheimer &amp; Co. division&#146;s
employees and which bear additional value-at-risk of
approximately $213,000.</font></p>

<p><font face="Helvetica">The value-at-risk estimate has limitations
that should be considered in evaluating the Company&#146;s
potential future losses based on the year-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. Likewise, 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"><strong>ITEM 4. Controls and Procedures
</strong></font></p>

<p><font face="Helvetica">&nbsp;&nbsp;&nbsp;&nbsp; Within the
90-day period preceding 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"></font>&nbsp;</p>

<p align="center"><font face="Helvetica"><strong>PART II<br>
OTHER INFORMATION</strong></font></p>

<p align="left"><font size="3" face="Helvetica"><strong>ITEM 1.
Legal Proceedings</strong></font></p>

<blockquote>
    <blockquote>
        <p><font size="3" face="Helvetica">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.</font></p>
        <p><font size="3" face="Helvetica">First of Michigan
        Corporation n/k/a Fahnestock &amp; Co. Inc., a subsidiary
        of the Company, was awarded monetary damages by a
        National Association of Securities Dealers Dispute
        Resolution Panel on January 14, 2003. On January 22,
        2003, Fahnestock &amp; Co. Inc. received the cash sum of
        $21,750,000 with respect to this award.<br>
        </font><font size="3" face="Haettenschweiler"></font></p>
    </blockquote>
</blockquote>

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

<p align="left"><font size="3" face="Helvetica">Not applicable</font></p>

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

<p align="left"><font size="3" face="Helvetica">Not applicable</font></p>

<p align="left"><font size="3" face="Helvetica"><strong>ITEM 4.
Submission of Matters to a Vote of Security Holders</strong></font></p>

<blockquote>
    <blockquote>
        <p align="left"><font size="3" face="Helvetica">None</font></p>
    </blockquote>
</blockquote>

<p align="left"><font size="3" face="Helvetica"><strong>ITEM 5. Other
Information</strong></font></p>

<p align="left"><font size="3" face="Helvetica">None</font></p>

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

<ol type="a">
    <li><ol type="a">
            <li><font size="3" face="Helvetica"><strong>Exhibits</strong> </font></li>
            <li><p align="left"><font size="3" face="Helvetica">99.1
                Certification of Albert G. Lowenthal</font></p>
                <p align="left"><font size="3" face="Helvetica">99.2
                Certification of Elaine K. Roberts</font></p>
            </li>
            <li><font size="3" face="Helvetica">Reports on Form
                8-K </font></li>
        </ol>
    </li>
</ol>

<ol>
    <li><ol>
            <li><font size="3" face="Helvetica">Form 8-K, filed
                January 6, 2003 &#150; reporting pursuant to Item
                5 of such Form the Company&#146;s completion of
                the acquisition of the U.S. Private Client
                Division of CIBC World Markets Corp. and the
                agreement to complete the acquisition of the U.S.
                Asset Management Division of CIBC World Markets
                at a later date.</font></li>
            <li><font size="3" face="Helvetica">Form 8-K, filed
                January 17, 2003 &#150; reporting pursuant to
                Items 2 and 7 of such Formthe Company&#146;s
                completion of the acquisition of the U.S. Private
                Client Division of CIBC World Markets Corp, a
                subsidiary of Canadian Imperial Bank of Commerce,
                and the anticipated closing of the acquisition by
                the Company of the U.S. Asset Management Division
                of CIBC World Markets Corp.</font></li>
            <li><font size="3" face="Helvetica">Form 8-K, filed
                January 23, 2003 &#150; reporting pursuant to
                Item 5 of such Form the award to First of
                Michigan Corporation n/k/a Fahnestock &amp; Co.
                Inc. of $21,750,000 of monetary damages by a
                National Association of Securities Dealers
                Dispute Resolution Panel on January 14, 2003 and
                the receipt of such monetary damages on January
                22, 2003.</font></li>
            <li><font size="3" face="Helvetica">Amendment No. 1
                to Form 8-K, filed March 18, 2003 &#150;
                reporting pursuant to Item 7 of such Form, a
                delay in filing of the historical audited
                financial statements of the divisions purchased
                from CIBC World Markets Corp. and the related pro
                forma financial information.</font></li>
        </ol>
    </li>
</ol>

<p align="left"><font face="Haettenschweiler"></font>&nbsp;</p>

<p align="left"><font face="Haettenschweiler"></font>&nbsp;</p>

<p align="left"><font face="Haettenschweiler"></font>&nbsp;</p>

<p align="left"><font face="Haettenschweiler"></font>&nbsp;</p>

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

<p><font face="Helvetica">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 12th day of May, 2003.</font></p>

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

<p align="left"><font face="Haettenschweiler"></font>&nbsp;</p>

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

<p><font face="Helvetica">A.G.Lowenthal, Chairman and Chief
Executive Officer</font></p>

<p><font face="Helvetica">(Principal Executive Officer)</font></p>

<p><font face="Haettenschweiler"></font>&nbsp;</p>

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

<p><font face="Helvetica">E.K.Roberts, President, Treasurer and
Chief Financial Officer</font></p>

<blockquote>
    <blockquote>
        <blockquote>
            <blockquote>
                <p><font face="Helvetica">(Principal Financial
                Officer) </font></p>
                <p align="left"><font face="Haettenschweiler"></font>&nbsp;</p>
            </blockquote>
        </blockquote>
    </blockquote>
</blockquote>

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

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

<ol>
    <li><font face="Helvetica">I have reviewed this quarterly
        report on Form&nbsp;10-Q of Fahnestock Viner Holdings
        Inc.; </font></li>
    <li><font face="Helvetica">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">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">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="1" cellspacing="0" width="613">
    <tr>
        <td valign="top" width="8%"><font face="Helvetica"></font>&nbsp;</td>
        <td valign="top" width="92%"><font face="Helvetica">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%"><font face=="Helvetica"></font>&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="8%"><font face="Helvetica"></font>&nbsp;</td>
        <td valign="top" width="92%"><font face="Helvetica">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%"><font face="Helvetica"></font>&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="8%"><font face=="Helvetica"></font>&nbsp;</td>
        <td valign="top" width="92%"><font face="Helvetica">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%"><font face="Helvetica"></font>&nbsp;</td>
    </tr>
</table>

<blockquote>
    <blockquote>
        <p><font face="Helvetica">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 the registrant&#146;s board of
        directors (or persons performing the equivalent
        function): </font></p>
    </blockquote>
</blockquote>

<table border="0" cellspacing="0" width="613">
    <tr>
        <td valign="top" width="8%"><font face="Helvetica"></font>&nbsp;</td>
        <td valign="top" width="92%"><font face="Helvetica">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%"><font face="Helvetica"></font>&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="8%"><font face="Helvetica"></font>&nbsp;</td>
        <td valign="top" width="92%"><font face="Helvetica">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%"><font face="Helvetica"></font>&nbsp;</td>
    </tr>
</table>

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

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

<p><font face="Helv,Arial">May 12, 2003</font></p>

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

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

<ol>
    <li><font face="Helvetica">I have reviewed this quarterly
        report on Form&nbsp;10-Q of Fahnestock Viner Holdings
        Inc.; </font></li>
    <li><font face="Helvetica">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">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">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" cellspacing="0" width="619">
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="92%"><font face="Helvetica">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">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">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">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 the registrant&#146;s board of
        directors (or persons performing the equivalent
        function): </font></p>
    </blockquote>
</blockquote>

<table border="0" cellspacing="0" width="619">
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="92%"><font face="Helvetica">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">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">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"></font>&nbsp;</p>
    </blockquote>
</blockquote>

<table border="0" cellspacing="0" width="264">
    <tr>
        <td valign="top" width="9%">&nbsp;</td>
        <td valign="top" width="68%"><font face="Helvetica">&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">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">Title: Chief Financial Officer </font></td>
        <td valign="top" width="0%">&nbsp;</td>
    </tr>
</table>

<p><font face="Helvetica">May 12, 2003</font></p>

<p>&nbsp;</p>

<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 March 31, 2003 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 12<sup>th</sup> day of May, 2003.


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


<i>A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff, upon request.
</i>


EXHIBIT 99.2

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


         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 March 31, 2003 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 12<sup>th</sup> day of May, 2003.



                                                       &quot;E.K. Roberts&quot;
                                                       Elaine K. Roberts
			                                     President and Chief Financial Officer

</pre>

<pre><i>A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff, upon request.
</i></pre>

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