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<SEC-DOCUMENT>0000791963-04-000008.txt : 20040805
<SEC-HEADER>0000791963-04-000008.hdr.sgml : 20040805
<ACCEPTANCE-DATETIME>20040805121358
ACCESSION NUMBER:		0000791963-04-000008
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20040630
FILED AS OF DATE:		20040805

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			OPPENHEIMER HOLDINGS INC
		CENTRAL INDEX KEY:			0000791963
		STANDARD INDUSTRIAL CLASSIFICATION:	SECURITY BROKERS, DEALERS & FLOTATION COMPANIES [6211]
		IRS NUMBER:				980080034
		STATE OF INCORPORATION:			A6
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		10-Q
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-12043
		FILM NUMBER:		04953956

	BUSINESS ADDRESS:	
		STREET 1:		SUITE 1110, P.O. BOX 2015
		STREET 2:		20 EGLINTON AVE. WEST
		CITY:			TORONTO
		STATE:			A6
		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
		STATE:			A6
		ZIP:			M4R 1K8

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FAHNESTOCK VINER HOLDINGS INC
		DATE OF NAME CHANGE:	19950725

	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>sec604.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//IETF//DTD HTML//EN">
<html>


<body bgcolor="#FFFFFF" link="#0000FF" vlink="#7F007F">

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

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

<p><font size="3">For the Quarterly Period ended <b>June 30, 2004</b></font></p>

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

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

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

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

<p align="center"><font size="3"><b>OPPENHEIMER HOLDINGS INC.</b></font></p>

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

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

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

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

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

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

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

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

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

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

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

<p align="center"><font size="3">None</font></p>

<p align="center"><font size="3">(Former name, former address and
former fiscal year, if changed since last report)</font></p>

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

<p><font size="3">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 July
30, 2004 was 13,380,561 and 99,680 shares, respectively.</font></p>

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

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

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

<p><font size="3" face="Helvetica">Condensed Consolidated Balance
Sheets as of June 30, 2004 and December 31, 2003</font></p>

<p><font size="3" face="Helvetica">Condensed Consolidated
Statements of Operations for the three and six months ended June
30, 2004 and 2003</font></p>

<p><font size="3" face="Helvetica">Condensed Consolidated
Statements of Cash Flows for the three and six months endedJune
30, 2004 and 2003</font></p>

<p><font size="3" face="Helvetica">Condensed Consolidated
Statements of Changes in Shareholders&#146; Equity for the three
and six months ended June 30, 2004 and 2003</font></p>

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

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

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

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

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

<p><font size="3" face="Helvetica">Item 2. Changes in Securities,
Use of Proceeds and Issuer Purchases of Equity Securities </font></p>

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

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

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

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

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

<p><font size="3" face="Helvetica">Certifications </font></p>

<p align="center"><font size="3" face="Helvetica"><b>PART 1 </b></font></p>

<p align="center"><font size="3" face="Helvetica"><b>FINANCIAL
INFORMATION</b></font></p>

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

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

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

<table border="0" cellpadding="0" cellspacing="0" width="602">
    <tr>
        <td colspan="3" height="21"><p align="center"><font
        face="Helvetica">OPPENHEIMER HOLDINGS INC.</font></p>
        </td>
    </tr>
    <tr>
        <td colspan="3" height="21"><p align="center"><font
        face="Helvetica">CONDENSED CONSOLIDATED BALANCE SHEETS
        (unaudited)</font></p>
        </td>
    </tr>
    <tr>
        <td width="66%" height="21">&nbsp;</td>
        <td width="18%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="66%" height="21">&nbsp;</td>
        <td width="18%" height="21"><p align="center"><font
        size="3" face="Helvetica">June 30</font><font size="2"
        face="Helvetica">,</font></p>
        </td>
        <td width="15%" height="21"><p align="center"><font
        size="2" face="Helvetica">December 31,</font></p>
        </td>
    </tr>
    <tr>
        <td width="66%" height="22">&nbsp;</td>
        <td width="18%" height="22"><p align="center"><font
        face="Helvetica">2004 </font></p>
        </td>
        <td width="15%" height="22"><p align="center"><font
        face="Helvetica">2003</font></p>
        </td>
    </tr>
    <tr>
        <td width="66%" height="22"><font size="2"
        face="Helvetica"><i>Expressed in thousands of U.S.
        dollars</i></font></td>
        <td width="18%" height="22">&nbsp;</td>
        <td width="15%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td width="66%" height="21"><font face="Helvetica">ASSETS</font></td>
        <td width="18%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="66%" height="21"><font face="Helvetica">Current
        assets</font></td>
        <td width="18%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="66%" height="25"><font face="Helvetica">Cash
        and cash equivalents</font></td>
        <td width="18%" height="25"><p align="right"><font
        face="Helvetica">$30,622</font></p>
        </td>
        <td width="15%" height="25"><p align="right"><font
        face="Helvetica">$34,478 </font></p>
        </td>
    </tr>
    <tr>
        <td width="66%" height="21"><font face="Helvetica">Restricted
        deposits</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">15,319</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">14,466 </font></p>
        </td>
    </tr>
    <tr>
        <td width="66%" height="21"><font face="Helvetica">Deposits
        with clearing organizations</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">16,373</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">17,858 </font></p>
        </td>
    </tr>
    <tr>
        <td width="66%" height="21"><font face="Helvetica">Receivable
        from brokers and clearing organizations</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">330,449</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">278,521 </font></p>
        </td>
    </tr>
    <tr>
        <td width="66%" height="21"><font face="Helvetica">Receivable
        from customers</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">884,478</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">906,487 </font></p>
        </td>
    </tr>
    <tr>
        <td width="66%" height="21"><font face="Helvetica">Securities
        owned including amounts pledged of $4,915</font></td>
        <td width="18%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="66%" height="21"><font face="Helvetica">($1,427
        in 2003), at market value</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">82,510</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">95,223 </font></p>
        </td>
    </tr>
    <tr>
        <td width="66%" height="21"><font face="Helvetica">Notes
        receivable</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">82,087</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">97,919</font></p>
        </td>
    </tr>
    <tr>
        <td width="66%" height="21"><font face="Helvetica">Other</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">44,866</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">63,610 </font></p>
        </td>
    </tr>
    <tr>
        <td width="66%" height="21">&nbsp;</td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">1,486,704</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">1,508,562</font></p>
        </td>
    </tr>
    <tr>
        <td width="66%" height="21"><font face="Helvetica">Other
        assets</font></td>
        <td width="18%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="66%" height="25"><font face="Helvetica">Stock
        exchange seats (approximate market value</font></td>
        <td width="18%" height="25">&nbsp;</td>
        <td width="15%" height="25">&nbsp;</td>
    </tr>
    <tr>
        <td width="66%" height="21"><font face="Helvetica">$5,119;
        $4,968 in 2003)</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">2,994</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">2,994</font></p>
        </td>
    </tr>
    <tr>
        <td width="66%" height="21"><font face="Helvetica">Property,
        plant and equipment, net of accumulated </font></td>
        <td width="18%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="66%" height="21"><font face="Helvetica">depreciation
        of $36,672; $32,150 in 2003</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">22,664</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">23,807</font></p>
        </td>
    </tr>
    <tr>
        <td width="66%" height="21"><font face="Helvetica">Intangible
        assets, net of amortization</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">35,498</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">35,865</font></p>
        </td>
    </tr>
    <tr>
        <td width="66%" height="21"><font face="Helvetica">Goodwill</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">137,889</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">137,889</font></p>
        </td>
    </tr>
    <tr>
        <td width="66%" height="21">&nbsp;</td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">199,045</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">200,555</font></p>
        </td>
    </tr>
    <tr>
        <td width="66%" height="21">&nbsp;</td>
        <td width="18%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="66%" height="22">&nbsp;</td>
        <td width="18%" height="22"><p align="right"><font
        face="Helvetica">$1,685,749</font></p>
        </td>
        <td width="15%" height="22"><p align="right"><font
        face="Helvetica">$1,709,117 </font></p>
        </td>
    </tr>
</table>

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

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

<table border="0" cellpadding="0" cellspacing="0" width="602">
    <tr>
        <td colspan="3" height="23"><p align="center"><font
        face="Helvetica">OPPENHEIMER HOLDINGS INC.</font></p>
        </td>
    </tr>
    <tr>
        <td colspan="3" height="22"><p align="center"><font
        face="Helvetica">CONDENSED CONSOLIDATED BALANCE SHEETS
        (unaudited)</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="22">&nbsp;</td>
        <td width="18%" height="22">&nbsp;</td>
        <td width="15%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td width="67%" height="22">&nbsp;</td>
        <td width="18%" height="22"><p align="center"><font
        size="3" face="Helvetica">June 30</font><font size="2"
        face="Helvetica">,</font></p>
        </td>
        <td width="15%" height="22"><p align="center"><font
        size="2" face="Helvetica">December 31,</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="22">&nbsp;</td>
        <td width="18%" height="22"><p align="center"><font
        face="Helvetica">2004 </font></p>
        </td>
        <td width="15%" height="22"><p align="center"><font
        face="Helvetica">2003</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="22"><font size="2"
        face="Helvetica"><i>Expressed in thousands of U.S.
        dollars</i></font></td>
        <td width="18%" height="22">&nbsp;</td>
        <td width="15%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">LIABILITIES
        AND SHAREHOLDERS' EQUITY</font></td>
        <td width="18%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">Current
        liabilities</font></td>
        <td width="18%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">Drafts
        payable</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">$47,795</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">$68,148</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">Bank
        call loans</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">65,899</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">91,500</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">Payable
        to brokers and clearing organizations</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">574,216</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">467,966</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">Payable
        to customers</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">306,966</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">406,137</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">Securities
        sold, but not yet purchased, at market value</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">30,106</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">10,687</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">Accrued
        compensation</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">67,624</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">88,999</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">Accounts
        payable and other liabilities</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">43,460</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">33,857</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">Income
        taxes payable</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">-</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">67</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">Current
        portion of bank loans</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">10,119</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">10,119</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">Current
        portion of long term debt</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">15,620</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">15,921</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="21">&nbsp;</td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">1,161,805</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">1,193,401</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">Long
        term liabilities</font></td>
        <td width="18%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">Bank
        loans payable</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">21,317</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">29,536</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">Long
        term debt</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">27,315</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">34,954</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">Exchangeable
        debentures</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">160,822</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">160,822</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">Deferred
        tax liability</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">10,371</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">9,473</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="21">&nbsp;</td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">219,825</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">234,785</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="21">&nbsp;</td>
        <td width="18%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">Shareholders'
        equity</font></td>
        <td width="18%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">Share
        capital</font></td>
        <td width="18%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="67%" height="22"><font face="Helvetica">13,380,171
        Class A non-voting shares</font></td>
        <td width="18%" height="22">&nbsp;</td>
        <td width="15%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td width="67%" height="20"><font face="Helvetica">(2003
        &#150; 12,819,520 shares)</font></td>
        <td width="18%" height="20"><p align="right"><font
        face="Helvetica">51,844</font></p>
        </td>
        <td width="15%" height="20"><p align="right"><font
        face="Helvetica">41,520</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">99,680
        Class B voting shares</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">133</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">133</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="21">&nbsp;</td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">51,977</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">41,653</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="21"><font face="Helvetica">Contributed
        capital</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">8,674</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helvetica">5,966</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="22"><font face="Helvetica">Retained
        earnings</font></td>
        <td width="18%" height="22"><p align="right"><font
        face="Helvetica">243,468</font></p>
        </td>
        <td width="15%" height="22"><p align="right"><font
        face="Helvetica">233,312</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="22">&nbsp;</td>
        <td width="18%" height="22"><p align="right"><font
        face="Helvetica">304,119</font></p>
        </td>
        <td width="15%" height="22"><p align="right"><font
        face="Helvetica">280,931</font></p>
        </td>
    </tr>
    <tr>
        <td width="67%" height="16">&nbsp;</td>
        <td width="18%" height="16">&nbsp;</td>
        <td width="15%" height="16">&nbsp;</td>
    </tr>
    <tr>
        <td width="67%" height="23">&nbsp;</td>
        <td width="18%" height="23"><p align="right"><font
        face="Helvetica">$1,685,749</font></p>
        </td>
        <td width="15%" height="23"><p align="right"><font
        face="Helvetica">$1,709,117 </font></p>
        </td>
    </tr>
</table>

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

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="601">
    <tr>
        <td colspan="5" height="21"><p align="center"><font
        face="Helv">OPPENHEIMER HOLDINGS INC.</font></p>
        </td>
    </tr>
    <tr>
        <td colspan="5" height="21"><p align="center"><font
        face="Helv">CONDENSED CONSOLIDATED STATEMENTS OF
        OPERATIONS (unaudited)</font></p>
        </td>
    </tr>
    <tr>
        <td colspan="5" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="43%" height="21">&nbsp;</td>
        <td colspan="2" width="29%" height="21"><p align="center"><font
        size="2" face="Helv">Three Months ended </font></p>
        <p align="center"><font size="2" face="Helv">June 30, </font></p>
        </td>
        <td colspan="2" width="28%" height="21"><p align="center"><font
        size="2" face="Helv">Six Months ended </font></p>
        <p align="center"><font size="2" face="Helv">June 30,</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="22">&nbsp;</td>
        <td width="15%" height="22"><p align="center"><font
        size="2" face="Helv">2004</font></p>
        </td>
        <td width="14%" height="22"><p align="center"><font
        size="2" face="Helv">2003</font></p>
        </td>
        <td width="13%" height="22"><p align="center"><font
        size="2" face="Helv">2004</font></p>
        </td>
        <td width="15%" height="22"><p align="center"><font
        size="2" face="Helv">2003 </font></p>
        </td>
    </tr>
    <tr>
        <td colspan="5" height="22"><font size="2" face="Helv">Expressed
        in thousands of U.S. dollars, except per share amounts</font></td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">REVENUE:</font></td>
        <td width="15%" height="21">&nbsp;</td>
        <td width="14%" height="21">&nbsp;</td>
        <td width="13%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Commissions</font></td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">$78,360</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">$78,830</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">$170,590</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">$147,154</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Principal
        transactions, net</font></td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">23,342</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">40,109</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">60,054</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">66,207</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Interest</font></td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">10,607</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">10,547</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">21,159</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">21,166</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Underwriting
        fees</font></td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">9,863</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">12,534</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">24,606</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">27,395</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Advisory
        fees</font></td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">27,302</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">14,571</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">52,480</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">29,760</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Arbitration
        award</font></td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">-</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">-</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">2,700</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">21,750</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Other</font></td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">5,269</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">7,806</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">8,922</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">11,816</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21">&nbsp;</td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">154,743</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">164,397</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">340,511</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">325,248</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">EXPENSES:</font></td>
        <td width="15%" height="21">&nbsp;</td>
        <td width="14%" height="21">&nbsp;</td>
        <td width="13%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Compensation
        and related </font></td>
        <td width="15%" height="21">&nbsp;</td>
        <td width="14%" height="21">&nbsp;</td>
        <td width="13%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">expenses</font></td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">104,605</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">101,467</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">223,966</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">198,963</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Clearing
        and exchange fees</font></td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">3,822</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">5,740</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">7,769</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">12,722</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Communications</font></td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">11,725</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">16,010</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">25,310</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">27,782</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Occupancy
        costs</font></td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">14,312</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">12,891</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">28,167</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">25,610</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Interest</font></td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">4,172</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">4,331</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">8,158</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">7,492</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Other</font></td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">13,385</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">10,357</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">25,915</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">26,181</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21">&nbsp;</td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">152,021</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">150,796</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">319,285</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">298,750</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Profit
        before income taxes</font></td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">2,722</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">13,601</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">21,226</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">26,498</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Income tax
        provision</font></td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">1,143</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">5,682</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">8,658</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">11,092</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="22">&nbsp;</td>
        <td width="15%" height="22">&nbsp;</td>
        <td width="14%" height="22">&nbsp;</td>
        <td width="13%" height="22">&nbsp;</td>
        <td width="15%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td width="43%" height="22"><font face="Helv">NET PROFIT
        FOR PERIOD</font></td>
        <td width="15%" height="22"><p align="right"><font
        face="Helv">$1,579</font></p>
        </td>
        <td width="14%" height="22"><p align="right"><font
        face="Helv">$7,919</font></p>
        </td>
        <td width="13%" height="22"><p align="right"><font
        face="Helv">$12,568</font></p>
        </td>
        <td width="15%" height="22"><p align="right"><font
        face="Helv">$15,406</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="22">&nbsp;</td>
        <td width="15%" height="22">&nbsp;</td>
        <td width="14%" height="22">&nbsp;</td>
        <td width="13%" height="22">&nbsp;</td>
        <td width="15%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td width="43%" height="22"><font face="Helv">Basic
        earnings per share (note 4)</font></td>
        <td width="15%" height="22"><p align="right"><font
        face="Helv">$0.12</font></p>
        </td>
        <td width="14%" height="22"><p align="right"><font
        face="Helv">$0.62</font></p>
        </td>
        <td width="13%" height="22"><p align="right"><font
        face="Helv">$0.94</font></p>
        </td>
        <td width="15%" height="22"><p align="right"><font
        face="Helv">$1.21</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Diluted
        earnings per share</font></td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">$0.12</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">$0.43</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">$0.70</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">$0.84</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
        <td width="14%" height="21">&nbsp;</td>
        <td width="13%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Dividends
        declared per share</font></td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">$0.09</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">$0.09</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">$0.18</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">$0.18</font></p>
        </td>
    </tr>
</table>

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

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

<table border="0" cellpadding="0" cellspacing="0" width="601">
    <tr>
        <td colspan="5" height="21"><p align="center"><font
        size="2" face="Helv">OPPENHEIMER HOLDINGS INC.</font></p>
        </td>
    </tr>
    <tr>
        <td colspan="5" height="21"><p align="center"><font
        size="2" face="Helv">CONDENSED CONSOLIDATED STATEMENTS OF
        CASH FLOWS (unaudited)</font></p>
        </td>
    </tr>
    <tr>
        <td colspan="5" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="54%" height="21">&nbsp;</td>
        <td colspan="2" width="23%" height="21"><p align="center"><font
        size="2" face="Helv">Three Months ended </font></p>
        <p align="center"><font size="2" face="Helv">June 30, </font></p>
        </td>
        <td colspan="2" width="23%" height="21"><p align="center"><font
        size="2" face="Helv">Six Months ended </font></p>
        <p align="center"><font size="2" face="Helv">June 30,</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="22">&nbsp;</td>
        <td width="11%" height="22"><p align="center"><font
        size="2" face="Helv">2004</font></p>
        </td>
        <td width="12%" height="22"><p align="center"><font
        size="2" face="Helv">2003</font></p>
        </td>
        <td width="11%" height="22"><p align="center"><font
        size="2" face="Helv">2004</font></p>
        </td>
        <td width="12%" height="22"><p align="center"><font
        size="2" face="Helv">2003</font></p>
        </td>
    </tr>
    <tr>
        <td colspan="5" height="22"><font size="2" face="Helv">Expressed
        in thousands of U.S. dollars</font></td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Cash
        flows from operating activities:</font></td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Net
        profit for the period</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">$1,579</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">$7,919</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">$12,568</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">$15,406</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Adjustments
        to reconcile net profit to net cash provided </font></td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">by
        (used in) operating activities:</font></td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Non-cash
        items included in net profit:</font></td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Depreciation
        and amortization</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">2,493</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">2,075</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">4,890</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">4,341</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Deferred
        tax liability</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(14)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">1,111</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">898</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">2,464</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Tax
        benefit from employee stock options exercised</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">33</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">95</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">2,708</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">755</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Decrease
        (increase) in operating assets,</font></td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">net
        of the effect of acquisitions:</font></td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Restricted
        deposits</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(1,295)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(2,033)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(853)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(3,338)</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Deposits
        with clearing organizations</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">6,464</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(5,554)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">1,485</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(7,045)</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Receivable
        from brokers and clearing</font></td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Organizations</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">2,060</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(347,154)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(51,928)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(154,183)</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Receivable
        from customers</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">15,901</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(549,080)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">22,009</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(550,843)</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Securities
        owned</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">15,222</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(26,805)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">12,713</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(29,487)</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Notes
        receivable</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">7,090</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">5,050</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">15,832</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(11,594)</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Other
        assets</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">5,670</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(9,929)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">18,744</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(18,960)</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Increase
        (decrease) in operating</font></td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">liabilities,
        net of the effect of acquisitions:</font></td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Drafts
        payable</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(6,866)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">34,001</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(20,353)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">38,164</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Payable
        to brokers and clearing organizations</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">25,363</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">362,159</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">106,250</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">123,460</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="22"><font size="2" face="Helv">Payable
        to customers</font></td>
        <td width="11%" height="22"><p align="right"><font
        size="2" face="Helv">(75,455)</font></p>
        </td>
        <td width="12%" height="22"><p align="right"><font
        size="2" face="Helv">427,345</font></p>
        </td>
        <td width="11%" height="22"><p align="right"><font
        size="2" face="Helv">(99,171)</font></p>
        </td>
        <td width="12%" height="22"><p align="right"><font
        size="2" face="Helv">421,179</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Securities
        sold, but not yet purchased</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">16,606</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">682</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">19,419</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">3,278</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Accrued
        compensation</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">5,129</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(7,601)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(21,375)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">20,179</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Accounts
        payable and other liabilities</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(577)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">7,342</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">9,603</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">13,495</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Income
        taxes payable</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(4,058)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">2,187</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(67)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">3,388</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><p align="right"><font
        size="2" face="Helv">Cash (used in) provided by operating
        activities</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">15,345</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(98,190)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">33,372</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(129,341)</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Cash
        flows from investing activities:</font></td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Purchase
        of the Oppenheimer &amp; Co. divisions</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">-</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(4,031)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">-</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(16,690)</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Purchase
        of fixed assets</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(1,426)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(4,635)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(3,380)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(5,113)</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><p align="right"><font
        size="2" face="Helv">Cash used in investing activities</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(1,426)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(8,666)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(3,380)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(21,803)</font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="601">
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Cash
        flows from financing activities:</font></td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Cash
        dividends paid on Class A non-voting</font></td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">and
        Class B shares</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(1,213)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(1,151)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(2,412)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(2,300)</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Issuance
        of Class A non-voting shares</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">120</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">647</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">10,324</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">6,225</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Repurchase
        of Class A non-voting shares</font></td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">for
        cancellation</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">-</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(132)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">-</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(585)</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Zero
        coupon promissory note repayments</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(3,745)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(5,023)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(7,940)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(7,345)</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Proceeds
        from issuance of bank loans</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">-</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">-</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">-</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">25,000</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Bank
        loan repayments</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(3,250)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(2,024)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(8,219)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(2,857)</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">(Decrease)
        increase in bank call loans</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(14,001)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">129,175</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(25,601)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">151,875</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><p align="right"><font
        size="2" face="Helv">Cash provided by (used in) financing
        activities</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(22,089)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">121,492</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(33,848)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">170,013</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Net
        increase (decrease) in cash and cash equivalents</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(8,170)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">14,636</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(3,856)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">18,869</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Cash
        and cash equivalents, beginning of period</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">38,792</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">20,348</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">34,478</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">16,115</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">Cash
        and cash equivalents, end of period</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">$30,622</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">$34,984</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">$30,622</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">$34,984</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="54%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="11%" height="21">&nbsp;</td>
        <td width="12%" 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>&nbsp;</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="619">
    <tr>
        <td colspan="5" height="21"><p align="center"><font
        face="Helv">OPPENHEIMER HOLDINGS INC.</font></p>
        </td>
    </tr>
    <tr>
        <td colspan="5" height="21"><p align="center"><font
        face="Helv">CONDENSED CONSOLIDATED STATEMENTS OF </font></p>
        <p align="center"><font face="Helv">CHANGES IN
        SHAREHOLDERS&#146; EQUITY (unaudited)</font></p>
        </td>
    </tr>
    <tr>
        <td colspan="5" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="44%" height="21">&nbsp;</td>
        <td colspan="2" width="30%" height="21"><p align="center"><font
        face="Helv">Three Months ended </font></p>
        <p align="center"><font face="Helv">June 30,</font></p>
        </td>
        <td colspan="2" width="26%" height="21"><p align="center"><font
        face="Helv">Six Months ended</font></p>
        <p align="center"><font face="Helv">June 30,</font></p>
        </td>
    </tr>
    <tr>
        <td width="44%" height="22">&nbsp;</td>
        <td width="16%" height="22"><p align="right"><font
        face="Helv">2004</font></p>
        </td>
        <td width="15%" height="22"><p align="right"><font
        face="Helv">2003 </font></p>
        </td>
        <td width="13%" height="22"><p align="right"><font
        face="Helv">2004</font></p>
        </td>
        <td width="14%" height="22"><p align="right"><font
        face="Helv">2003 </font></p>
        </td>
    </tr>
    <tr>
        <td colspan="2" width="59%" height="21"><font size="2"
        face="Helv">Expressed in thousands of U.S. dollars</font></td>
        <td width="15%" height="21">&nbsp;</td>
        <td width="13%" height="21">&nbsp;</td>
        <td width="14%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="44%" height="21"><font face="Helv"><b>Share
        capital</b></font></td>
        <td width="16%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
        <td width="13%" height="21">&nbsp;</td>
        <td width="14%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="44%" height="21"><font face="Helv">Balance at
        beginning of period</font></td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">$51,857</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">$39,596</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">$41,653</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">34,471</font></p>
        </td>
    </tr>
    <tr>
        <td width="44%" height="21"><font face="Helv">Issue of
        Class A non-voting shares</font></td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">120</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">647</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">10,324</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">6,225</font></p>
        </td>
    </tr>
    <tr>
        <td width="44%" height="22"><font face="Helv">Repurchase
        of Class A non-voting shares for cancellation</font></td>
        <td width="16%" height="22"><p align="right"><font
        face="Helv">-</font></p>
        </td>
        <td width="15%" height="22"><p align="right"><font
        face="Helv">(132)</font></p>
        </td>
        <td width="13%" height="22"><p align="right"><font
        face="Helv">-</font></p>
        </td>
        <td width="14%" height="22"><p align="right"><font
        face="Helv">(585)</font></p>
        </td>
    </tr>
    <tr>
        <td width="44%" height="23"><font face="Helv">Balance at
        end of period</font></td>
        <td width="16%" height="23"><p align="right"><font
        face="Helv">$51,977</font></p>
        </td>
        <td width="15%" height="23"><p align="right"><font
        face="Helv">$40,111</font></p>
        </td>
        <td width="13%" height="23"><p align="right"><font
        face="Helv">$51,977</font></p>
        </td>
        <td width="14%" height="23"><p align="right"><font
        face="Helv">$40,111</font></p>
        </td>
    </tr>
    <tr>
        <td width="44%" height="22">&nbsp;</td>
        <td width="16%" height="22">&nbsp;</td>
        <td width="15%" height="22">&nbsp;</td>
        <td width="13%" height="22">&nbsp;</td>
        <td width="14%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td width="44%" height="21">&nbsp;</td>
        <td width="16%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
        <td width="13%" height="21">&nbsp;</td>
        <td width="14%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="44%" height="21"><font face="Helv"><b>Contributed
        capital</b></font></td>
        <td width="16%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
        <td width="13%" height="21">&nbsp;</td>
        <td width="14%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="44%" height="21"><font face="Helv">Balance at
        beginning of period</font></td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">$8,641</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">$5,688</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">$5,966</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">$5,028</font></p>
        </td>
    </tr>
    <tr>
        <td width="44%" height="21"><font face="Helv">Tax benefit
        from employee stock options exercised</font></td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">33</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">95</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">2,708</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">755</font></p>
        </td>
    </tr>
    <tr>
        <td width="44%" height="22"><font face="Helv">Balance at
        end of period</font></td>
        <td width="16%" height="22"><p align="right"><font
        face="Helv">$8,674</font></p>
        </td>
        <td width="15%" height="22"><p align="right"><font
        face="Helv">$5,783</font></p>
        </td>
        <td width="13%" height="22"><p align="right"><font
        face="Helv">$8,674</font></p>
        </td>
        <td width="14%" height="22"><p align="right"><font
        face="Helv">$5,783</font></p>
        </td>
    </tr>
    <tr>
        <td width="44%" height="22">&nbsp;</td>
        <td width="16%" height="22">&nbsp;</td>
        <td width="15%" height="22">&nbsp;</td>
        <td width="13%" height="22">&nbsp;</td>
        <td width="14%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td width="44%" height="21"><font face="Helv"><b>Retained
        earnings</b></font></td>
        <td width="16%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
        <td width="13%" height="21">&nbsp;</td>
        <td width="14%" height="21">&nbsp;</td>
    </tr>
    <tr>
        <td width="44%" height="21"><font face="Helv">Balance at
        beginning of period</font></td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">$243,102</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">$214,475</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">$233,312</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">$208,137</font></p>
        </td>
    </tr>
    <tr>
        <td width="44%" height="21"><font face="Helv">Net profit
        for the period</font></td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">1,579</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">7,919</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">12,568</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">15,406</font></p>
        </td>
    </tr>
    <tr>
        <td width="44%" height="21"><font face="Helv">Dividends</font></td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">(1,213)</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">(1,151)</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">(2,412)</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">(2,300)</font></p>
        </td>
    </tr>
    <tr>
        <td width="44%" height="22"><font face="Helv">Balance at
        end of period</font></td>
        <td width="16%" height="22"><p align="right"><font
        face="Helv">$243,468</font></p>
        </td>
        <td width="15%" height="22"><p align="right"><font
        face="Helv">$221,243</font></p>
        </td>
        <td width="13%" height="22"><p align="right"><font
        face="Helv">$243,468</font></p>
        </td>
        <td width="14%" height="22"><p align="right"><font
        face="Helv">$221,243</font></p>
        </td>
    </tr>
    <tr>
        <td width="44%" height="22">&nbsp;</td>
        <td width="16%" height="22">&nbsp;</td>
        <td width="15%" height="22">&nbsp;</td>
        <td width="13%" height="22">&nbsp;</td>
        <td width="14%" height="22">&nbsp;</td>
    </tr>
    <tr>
        <td width="44%" height="21"><font face="Helv">TOTAL
        SHAREHOLDERS' EQUITY</font></td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">$304,119</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">$267,137</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">$304,119</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">$267,137</font></p>
        </td>
    </tr>
    <tr>
        <td width="44%" height="21">&nbsp;</td>
        <td width="16%" height="21">&nbsp;</td>
        <td width="15%" height="21">&nbsp;</td>
        <td width="13%" height="21">&nbsp;</td>
        <td width="14%" height="21">&nbsp;</td>
    </tr>
</table>

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

<p>&nbsp;</p>

<p align="center">OPPENHEIMER HOLDINGS INC.</p>

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

<p><b>1. Summary of significant accounting policies</b></p>

<p>The condensed consolidated financial statements include the
accounts of Oppenheimer Holdings Inc. (formerly Fahnestock Viner
Holdings Inc.) (&quot;OPY&quot;) and its subsidiaries (together,
the &quot;Company&quot;). The principal subsidiaries of OPY are
Oppenheimer &amp; Co. Inc. (formerly Fahnestock &amp; Co. Inc.)
(&quot;Oppenheimer&quot;), a registered broker-dealer in
securities, and Oppenheimer Asset Management Inc.
(&quot;OAM&quot;), a registered investment advisor under the
Investment Advisors Act of 1940. Oppenheimer operates as
Fahnestock &amp; Co. Inc. in Latin America. Oppenheimer owns
Freedom Investments, Inc. (&quot;Freedom&quot;), 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. </p>

<p>The Company&#146;s condensed consolidated financial statements
have been prepared in accordance with accounting principles
generally accepted in the United States of America (GAAP). These
accounting principles are set out in the notes to the
Company&#146;s consolidated financial statements for the year
ended December 31, 2003 included in its Annual Report on Form
10-K for the year ended December 31, 2003. 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.</p>

<p>The financial statements include all adjustments, which in the
opinion of management are normal and recurring and necessary for
a fair statement 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.</p>

<p>Certain prior period amounts in the statement of operations have been reclassified to conform
to the current year presentation.</p>

<p>These condensed consolidated financial statements are
presented in U.S. dollars.</p>

<p><b>2. Recent Accounting Pronouncements</b></p>

<p>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;, FIN No. 46R,
&quot;Consolidation of Variable Interest Entities&quot;, SFAS No
149, &quot;Amendment of Statement 133 on Derivative Instruments
and Hedging Activities&quot;, and SFAS No. 150, &quot;Accounting
for Certain Financial Instruments with Characteristics of both
Liabilities and Equity&quot;. The Company has adopted these
statements and interpretations and their adoption did not have a
material impact on its financial results. </p>

<p>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 at this time.</p>

<p><b>3. Stock based compensation</b></p>

<p>The following presents the 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.</p>

<table border="0" cellpadding="0" cellspacing="0" width="638">
    <tr>
        <td width="40%">&nbsp;</td>
        <td colspan="2" width="30%"><p align="center"><font
        size="2">Three Months ended</font></p>
        <p align="center"><font size="2">June 30,</font></p>
        </td>
        <td colspan="2" width="30%"><p align="center"><font
        size="2">Six Months ended</font></p>
        <p align="center"><font size="2">June 30,</font></p>
        </td>
    </tr>
    <tr>
        <td width="40%">&nbsp;</td>
        <td width="15%"><p align="center"><font size="2">2004</font></p>
        </td>
        <td width="15%"><p align="center"><font size="2">2003</font></p>
        </td>
        <td width="15%"><p align="center"><font size="2">2004</font></p>
        </td>
        <td width="15%"><p align="center"><font size="2">2003</font></p>
        </td>
    </tr>
    <tr>
        <td width="40%"><font size="2">Net profit, as reported</font></td>
        <td width="15%"><p align="right"><font size="2">$1,579,000</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$7,919,000</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$12,568,000</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$15,406,000</font></p>
        </td>
    </tr>
    <tr>
        <td width="40%"><font size="2">Stock-based employee
        compensation expense included in reported net income</font></td>
        <td width="15%"><p align="right"><font size="2">-</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">-</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">-</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">-</font></p>
        </td>
    </tr>
    <tr>
        <td width="40%"><font size="2">Additional compensation
        expense</font></td>
        <td width="15%"><p align="right"><font size="2">393,000</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">451,000</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">781,000</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">896,000</font></p>
        </td>
    </tr>
    <tr>
        <td width="40%"><font size="2">Pro forma net profit</font></td>
        <td width="15%"><p align="right"><font size="2">$1,186,000</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$7,468,000</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$11,787,000</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$14,510,000</font></p>
        </td>
    </tr>
    <tr>
        <td width="40%">&nbsp;</td>
        <td width="15%">&nbsp;</td>
        <td width="15%">&nbsp;</td>
        <td width="15%">&nbsp;</td>
        <td width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="40%"><font size="2">Basic profit per share, as
        reported</font></td>
        <td width="15%"><p align="right"><font size="2">$0.12</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$0.62</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$0.94</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$1.21</font></p>
        </td>
    </tr>
    <tr>
        <td width="40%"><font size="2">Diluted profit per share,
        as reported</font></td>
        <td width="15%"><p align="right"><font size="2">$0.12</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$0.43</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$0.70</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$0.84</font></p>
        </td>
    </tr>
    <tr>
        <td width="40%">&nbsp;</td>
        <td width="15%">&nbsp;</td>
        <td width="15%">&nbsp;</td>
        <td width="15%">&nbsp;</td>
        <td width="15%">&nbsp;</td>
    </tr>
    <tr>
        <td width="40%"><font size="2">Pro forma basic profit per
        share</font></td>
        <td width="15%"><p align="right"><font size="2">$0.09</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$0.58</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$0.88</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$1.14</font></p>
        </td>
    </tr>
    <tr>
        <td width="40%"><font size="2">Pro forma diluted profit
        per share</font></td>
        <td width="15%"><p align="right"><font size="2">$0.09</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$0.41</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$0.66</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$0.80</font></p>
        </td>
    </tr>
</table>

<p>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 and six months ended June 30, 2004 and 2003,
respectively, was $48,000 and $12,000 and $1,997,000 and
$1,469,000, respectively. 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.</p>

<p><b>4. Earnings per share</b></p>

<p>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 voting 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.
</p>

<p>&nbsp;</p>

<p>Earnings per share has been calculated as follows:</p>

<table border="0" cellpadding="0" cellspacing="0" width="576">
    <tr>
        <td width="35%" height="16">&nbsp;</td>
        <td colspan="2" width="32%" height="16"><p align="center"><font
        size="2"><b>Three Months ended</b></font></p>
        </td>
        <td colspan="2" width="32%" height="16"><p align="center"><font
        size="2"><b>Six Months ended</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="35%" height="16">&nbsp;</td>
        <td colspan="4" width="65%" height="16"><p align="center"><font
        size="2"><b>June 30,</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="35%" height="16">&nbsp;</td>
        <td width="16%" height="16"><p align="center"><font
        size="2"><b>2004</b></font></p>
        </td>
        <td width="17%" height="16"><p align="center"><font
        size="2"><b>2003</b></font></p>
        </td>
        <td width="16%" height="16"><p align="center"><font
        size="2"><b>2004</b></font></p>
        </td>
        <td width="17%" height="16"><p align="center"><font
        size="2"><b>2003</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="35%" height="43"><font size="2"><b>Basic
        weighted average number of shares outstanding</b></font></td>
        <td width="16%" height="43"><p align="right"><font
        size="2">13,477,599</font></p>
        </td>
        <td width="17%" height="43"><p align="right"><font
        size="2">12,803,430</font></p>
        </td>
        <td width="16%" height="43"><p align="right"><font
        size="2">13,355,943</font></p>
        </td>
        <td width="17%" height="43"><p align="right"><font
        size="2">12,717,516</font></p>
        </td>
    </tr>
    <tr>
        <td width="35%" height="16"><font size="2"><b>Net effect,
        if converted method (1)</b></font></td>
        <td width="16%" height="16"><p align="right"><font
        size="2">-</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">6,932,000</font></p>
        </td>
        <td width="16%" height="16"><p align="right"><font
        size="2">6,932,000</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">6,932,000</font></p>
        </td>
    </tr>
    <tr>
        <td width="35%" height="16"><font size="2"><b>Net effect,
        treasury method</b></font></td>
        <td width="16%" height="16"><p align="right"><font
        size="2">216,408</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">300,780</font></p>
        </td>
        <td width="16%" height="16"><p align="right"><font
        size="2">273,501</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">249,469</font></p>
        </td>
    </tr>
    <tr>
        <td width="35%" height="17"><font size="2"><b>Diluted
        common shares (2)</b></font></td>
        <td width="16%" height="17"><p align="right"><font
        size="2">13,694,007</font></p>
        </td>
        <td width="17%" height="17"><p align="right"><font
        size="2">20,036,210</font></p>
        </td>
        <td width="16%" height="17"><p align="right"><font
        size="2">20,561,444</font></p>
        </td>
        <td width="17%" height="17"><p align="right"><font
        size="2">19,898,985</font></p>
        </td>
    </tr>
    <tr>
        <td width="35%" height="17">&nbsp;</td>
        <td width="16%" height="17">&nbsp;</td>
        <td width="17%" height="17">&nbsp;</td>
        <td width="16%" height="17">&nbsp;</td>
        <td width="17%" height="17">&nbsp;</td>
    </tr>
    <tr>
        <td width="35%" height="16"><font size="2"><b>Net profit
        for the period, as reported</b></font></td>
        <td width="16%" height="16"><p align="right"><font
        size="2">$1,579,000</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">$7,919,000</font></p>
        </td>
        <td width="16%" height="16"><p align="right"><font
        size="2">$12,568,000</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">$15,406,000</font></p>
        </td>
    </tr>
    <tr>
        <td width="35%" height="16"><font size="2"><b>Effect of
        dilutive exchangeable debentures</b></font></td>
        <td width="16%" height="16"><p align="right"><font
        size="2">-</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">661,000</font></p>
        </td>
        <td width="16%" height="16"><p align="right"><font
        size="2">1,886,000</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">1,360,000</font></p>
        </td>
    </tr>
    <tr>
        <td width="35%" height="16"><font size="2"><b>Net profit,
        available to shareholders and assumed conversions </b></font></td>
        <td width="16%" height="16"><p align="right"><font
        size="2">$1,579,000</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">$8,580,000</font></p>
        </td>
        <td width="16%" height="16"><p align="right"><font
        size="2">$14,454,000</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">$16,766,000</font></p>
        </td>
    </tr>
    <tr>
        <td width="35%" height="16">&nbsp;</td>
        <td width="16%" height="16">&nbsp;</td>
        <td width="17%" height="16">&nbsp;</td>
        <td width="16%" height="16">&nbsp;</td>
        <td width="17%" height="16">&nbsp;</td>
    </tr>
    <tr>
        <td width="35%" height="16"><font size="2"><b>Basic
        earnings per share</b></font></td>
        <td width="16%" height="16"><p align="right"><font
        size="2">$0.12</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">$0.62</font></p>
        </td>
        <td width="16%" height="16"><p align="right"><font
        size="2">$0.94</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">$1.21</font></p>
        </td>
    </tr>
    <tr>
        <td width="35%" height="16"><font size="2"><b>Diluted
        earnings per share</b></font></td>
        <td width="16%" height="16"><p align="right"><font
        size="2">$0.12</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">0.43</font></p>
        </td>
        <td width="16%" height="16"><p align="right"><font
        size="2">$0.70</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">$0.84</font></p>
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<blockquote>
    <blockquote>
        <p>As part of the consideration for the 2003 acquisition
        of the Oppenheimer divisions, the Company issued First
        and Second Variable Rate Exchangeable Debentures which
        are exchangeable for approximately 6.9 million Class A
        Shares of the Company at the rate of $23.20 per share
        (approximately 35% of the outstanding Class A Shares, if
        exchanged). In the three months ended June 30, 2004, the
        net effect of the if converted method is anti-dilutive
        and has therefore not been reflected in the calculation
        of diluted earnings per share for the quarter.</p>
        <p>The diluted EPS computations do not include the
        antidilutive effect of the following options:</p>
    </blockquote>
</blockquote>

<table border="0" cellpadding="0" cellspacing="0" width="576">
    <tr>
        <td width="33%" height="22">&nbsp;</td>
        <td colspan="2" width="34%" height="22"><p align="center">Three
        Months ended</p>
        </td>
        <td colspan="2" width="32%" height="22"><p align="center">Six
        Months ended</p>
        </td>
    </tr>
    <tr>
        <td width="33%" height="23">&nbsp;</td>
        <td colspan="4" width="67%" height="23"><p align="center">June
        30,</p>
        </td>
    </tr>
    <tr>
        <td width="33%" height="7">&nbsp;</td>
        <td width="17%" height="7"><p align="center">2004</p>
        </td>
        <td width="17%" height="7"><p align="center">2003</p>
        </td>
        <td width="16%" height="7"><p align="center">2004</p>
        </td>
        <td width="17%" height="7"><p align="center">2003</p>
        </td>
    </tr>
    <tr>
        <td width="33%">Number of antidilutive options, end of
        period</td>
        <td width="17%"><p align="right">506,000</p>
        </td>
        <td width="17%"><p align="right">298,000</p>
        </td>
        <td width="16%"><p align="right">506,000</p>
        </td>
        <td width="17%"><p align="right">373,000</p>
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p>&nbsp;</p>

<p><b>5. Securities owned and securities sold, but not yet
purchased (at fair market value)</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="564">
    <tr>
        <td width="54%">&nbsp;</td>
        <td width="20%"><p align="center">June 30,</p>
        <p align="center">2004</p>
        </td>
        <td width="3%">&nbsp;</td>
        <td width="22%"><p align="center">December 31,</p>
        <p align="center">2003</p>
        </td>
    </tr>
    <tr>
        <td width="54%">Securities owned consist of:</td>
        <td width="20%">&nbsp;</td>
        <td width="3%">&nbsp;</td>
        <td width="22%">&nbsp;</td>
    </tr>
    <tr>
        <td width="54%">Corporate equities</td>
        <td width="20%"><p align="right">$35,383,000</p>
        </td>
        <td width="3%">&nbsp;</td>
        <td width="22%"><p align="right">$34,877,000</p>
        </td>
    </tr>
    <tr>
        <td width="54%">Corporate and sovereign debt</td>
        <td width="20%"><p align="right">18,466,000</p>
        </td>
        <td width="3%">&nbsp;</td>
        <td width="22%"><p align="right">24,962,000</p>
        </td>
    </tr>
    <tr>
        <td width="54%">U.S. government and agency and state and
        municipal government obligations</td>
        <td width="20%"><p align="right">25,696,000</p>
        </td>
        <td width="3%">&nbsp;</td>
        <td width="22%"><p align="right">32,070,000</p>
        </td>
    </tr>
    <tr>
        <td width="54%">Money market funds </td>
        <td width="20%"><p align="right">2,930,000</p>
        </td>
        <td width="3%">&nbsp;</td>
        <td width="22%"><p align="right">3,288,000</p>
        </td>
    </tr>
    <tr>
        <td width="54%">Other</td>
        <td width="20%"><p align="right">35,000</p>
        </td>
        <td width="3%">&nbsp;</td>
        <td width="22%"><p align="right">26,000</p>
        </td>
    </tr>
    <tr>
        <td width="54%">&nbsp;</td>
        <td width="20%"><p align="right">$82,510,000</p>
        </td>
        <td width="3%">&nbsp;</td>
        <td width="22%"><p align="right">$95,223,000</p>
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="564">
    <tr>
        <td width="54%">&nbsp;</td>
        <td colspan="2" width="20%"><p align="center">June 30,</p>
        <p align="center">2004</p>
        </td>
        <td width="3%">&nbsp;</td>
        <td width="22%"><p align="center">December 31,</p>
        <p align="center">2003</p>
        </td>
    </tr>
    <tr>
        <td width="54%">Securities sold, but not yet purchased
        consist of:</td>
        <td width="18%">&nbsp;</td>
        <td colspan="2" width="5%">&nbsp;</td>
        <td width="22%">&nbsp;</td>
    </tr>
    <tr>
        <td width="54%">Corporate equities</td>
        <td width="18%"><p align="right">$6,900,000</p>
        </td>
        <td colspan="2" width="5%">&nbsp;</td>
        <td width="22%"><p align="right">$3,128,000</p>
        </td>
    </tr>
    <tr>
        <td width="54%">Corporate debt </td>
        <td width="18%"><p align="right">4,849,000</p>
        </td>
        <td colspan="2" width="5%">&nbsp;</td>
        <td width="22%"><p align="right">5,115,000</p>
        </td>
    </tr>
    <tr>
        <td width="54%">U.S. government and agency and state and
        municipal government obligations and other</td>
        <td width="18%"><p align="right">18,357,000</p>
        </td>
        <td colspan="2" width="5%">&nbsp;</td>
        <td width="22%"><p align="right">2,444,000</p>
        </td>
    </tr>
    <tr>
        <td width="54%">&nbsp;</td>
        <td width="18%"><p align="right">$30,106,000</p>
        </td>
        <td colspan="2" width="5%">&nbsp;</td>
        <td width="22%"><p align="right">$10,687,000</p>
        </td>
    </tr>
</table>

<p>Securities owned and securities sold, but not yet purchased,
consist of trading securities at fair market values. Included in
securities owned at June 30, 2004 are securities with fair market
values of approximately $15,917,000 ($15,781,000 at December 31,
2003), which are related to deferred compensation liabilities to
employees of the U.S. Private Client and Asset Management
Divisions of CIBC World Markets acquired by the Company in 2003
(the &quot;Oppenheimer divisions&quot;). At June 30, 2004, the
Company has pledged securities owned of approximately $4,915,000
($1,427,000 at December 31, 2003) as collateral to counterparties
for stock loan transactions, which can be sold or repledged. </p>

<p><b>6. Long term debt and exchangeable debentures</b></p>

<table border="0" cellpadding="0" cellspacing="0" width="638">
    <tr>
        <td width="43%">Issued</td>
        <td width="17%"><p align="center">Maturity Date</p>
        </td>
        <td width="16%"><p align="center">Interest Rate</p>
        </td>
        <td width="19%"><p align="center">June 30, 2004</p>
        </td>
        <td width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td width="43%">Bank loans <b>(a)</b></td>
        <td width="17%"><p align="center">1/2/2008</p>
        </td>
        <td width="16%"><p align="center">6.5%</p>
        </td>
        <td width="19%"><p align="right">$31,436,000</p>
        </td>
        <td width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td width="43%">Less current portion</td>
        <td width="17%">&nbsp;</td>
        <td width="16%">&nbsp;</td>
        <td width="19%"><p align="right">10,119,000</p>
        </td>
        <td width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td width="43%">Long term portion of bank loans</td>
        <td width="17%">&nbsp;</td>
        <td width="16%">&nbsp;</td>
        <td width="19%"><p align="right">$21,317,000</p>
        </td>
        <td width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td colspan="5">&nbsp;</td>
    </tr>
    <tr>
        <td colspan="5">&nbsp;</td>
    </tr>
    <tr>
        <td colspan="5">Zero Coupon Promissory Note, </td>
    </tr>
    <tr>
        <td width="43%">issued January 2, 2003 <b>(b)</b></td>
        <td width="17%"><p align="right">-</p>
        </td>
        <td width="16%"><p align="center">0%</p>
        </td>
        <td width="19%"><p align="right">$42,935,000</p>
        </td>
        <td width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td colspan="3" width="75%">Less current portion</td>
        <td width="19%"><p align="right">15,620,000</p>
        </td>
        <td width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td width="43%">Long term portion of long-term debt</td>
        <td width="17%">&nbsp;</td>
        <td width="16%">&nbsp;</td>
        <td width="19%"><p align="right">$27,315,000</p>
        </td>
        <td width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td colspan="5">&nbsp;</td>
    </tr>
    <tr>
        <td colspan="5">&nbsp;</td>
    </tr>
    <tr>
        <td width="43%">First and Second Variable Rate
        Exchangeable Debenture, issued <p>January 6, 2003 <b>(c)</b></p>
        </td>
        <td width="17%">1/ 2/2013</td>
        <td width="16%"><p align="center">4%</p>
        </td>
        <td width="19%"><p align="right">$160,822,000</p>
        </td>
        <td width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td colspan="5">&nbsp;</td>
    </tr>
</table>

<p>(a) Bank loans are subject to a credit arrangement with
Canadian Imperial Bank of Commerce (&quot;CIBC&quot;) dated
January 2, 2003 in the aggregate amount of $50 million dollars,
and bear interest at the U.S. base rate plus 2% per annum. The
minimum annual principal repayment under the agreement is
approximately $10,119,000. The principal repayments are tied to
certain employee notes receivable issued during 2003 and
repayments above the minimum level are triggered by the
termination of employment of these employees. In accordance with
the credit arrangement, the Company has provided certain
covenants to CIBC with respect to the maintenance of minimum
debt/equity ratios and net capital of Oppenheimer. As at June 30,
2004, the Company was in compliance with the covenants. Interest
expense on bank loans was $581,000 and $289,000 and $1,106,000
and $681,000 in the three and six months ended June 30, 2004 and
2003, respectively.</p>

<p>(b)The Zero Coupon Promissory Note is repayable as related
employee notes receivable, which are assigned to Oppenheimer,
become due and are forgiven. Such payments are to be made
notwithstanding whether any of the employees&#146; loans default.</p>

<p>(c)The First and Second Variable Rate Exchangeable Debentures
are exchangeable for approximately 6.9 million Class A Shares of
the Company at the rate of $23.20 per share. The annual interest
rate is 3% in 2003, 4% in 2004 - 2006, and 5% in 2007 through
maturity. The First and Second Variable Rate Exchangeable
Debentures, which mature on January 2, 2013, contain 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. Interest expense on the First and Second
Variable Rate Exchangeable Debentures <a name="OLE_LINK1">was
$1,626,000 and $1,139,000, respectively, and $3,252,000 and
$2,345,000, respectively, for the three and six months ended June
30, 2004 and 2003, respectively.</a></p>

<p><b>7. Net Capital Requirements</b></p>

<p>The Company's major subsidiaries, Oppenheimer and Freedom, are
subject to the uniform net capital requirements of the SEC under
Rule 15c3-1 (the &quot;Rule&quot;). Oppenheimer computes its net
capital requirements under the alternative method provided for in
the Rule which requires that Oppenheimer maintain net capital
equal to two percent of aggregate customer-related debit items,
as defined in SEC Rule 15c3-3. At June 30, 2004, the net capital
of Oppenheimer as calculated under the Rule was $184,650,000 or
17.91% of Oppenheimer's aggregate debit items. This was
$164,035,000 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 June 30, 2004, Freedom
had net capital of $4,299,000, which was $4,049,000 in excess of
the $250,000 required to be maintained at that date.</p>

<p><b>8. Securities lending activities</b></p>

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

<p>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.</p>

<p>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.</p>

<p>Included in receivable from brokers and clearing organizations
are deposits paid for securities borrowed of $222,789,000 (as at
December 31, 2003 - $237,329,000). Included in payable to brokers
and clearing organizations are deposits received for securities
loaned of $528,062,000 (as at December 31, 2003 - $444,977,000).</p>

<p><b>9. Financial instruments with off-balance sheet risk and
concentration of credit risk</b></p>

<p>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.</p>

<p>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.</p>

<p>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.</p>

<p>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 June 30, 2004, the Company had
approximately $1.3 billion<font color="#FF0000"> </font>of
customer securities under customer margin loans that are
available to be pledged of which the Company has repledged
approximately $369,503,000 under securities loan agreements. In
addition, the Company has received collateral of approximately
$216,825,000 under securities borrow agreements of which the
Company has repledged approximately $153,619,000 as collateral
under securities loan agreements. Included in receivable from
brokers and clearing organizations are receivables from four
major U.S. broker-dealers totaling $118,935,000.</p>

<p>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. </p>

<p>At June 30, 2004, the Company had outstanding commitments to
buy of $313,000 of mortgage-backed securities on a when issued
basis. These commitments have off-balance sheet risks similar to
those described above.</p>

<p>The Company has a clearing arrangement with Pershing LLC to
clear certain transactions in foreign securities. 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'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 June 30, 2004, the Company
had recorded no liabilities with regard to this right. The
Company's policy is to monitor the credit standing of this
clearing broker, all counterparties and all clients with which it
conducts business.</p>

<p><b>10. Related Party Transactions</b></p>

<p>The Company had notes and accounts receivable from employees,
net of reserves, of approximately $82,087,000 at June 30, 2004,
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 unforgiven portion of the notes become due and
payable on demand in the event the employee departs during the
service period. </p>

<p>The Company does not make loans to its officers and directors
except under normal commercial terms pursuant to client margin
account agreements. These loans are fully collateralized by such
employee-owned securities.</p>

<p><b>11. Segment Information</b></p>

<p>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, 2003. 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.</p>

<p>&nbsp;</p>

<table border="0" cellpadding="0" cellspacing="0" width="510">
    <tr>
        <td width="32%">&nbsp;</td>
        <td colspan="2" width="33%"><p align="center"><font
        size="2">Three Months ended</font></p>
        <p align="center"><font size="2">June 30,</font></p>
        </td>
        <td colspan="2" width="35%"><p align="center"><font
        size="2">Six Months ended</font></p>
        <p align="center"><font size="2">June 30,</font></p>
        </td>
    </tr>
    <tr>
        <td width="32%">&nbsp;</td>
        <td width="16%"><p align="right"><font size="2">2004</font></p>
        </td>
        <td width="16%"><p align="right"><font size="2">2003</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">2004</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">2003</font></p>
        </td>
    </tr>
    <tr>
        <td colspan="5"><font size="2">Expressed in thousands of
        dollars</font></td>
    </tr>
    <tr>
        <td width="32%">Revenue:</td>
        <td width="16%">&nbsp;</td>
        <td width="16%">&nbsp;</td>
        <td width="18%">&nbsp;</td>
        <td width="18%">&nbsp;</td>
    </tr>
    <tr>
        <td width="32%">Private Client </td>
        <td width="16%"><p align="right"><font size="2">$116,283</font></p>
        </td>
        <td width="16%"><p align="right"><font size="2">$130,256</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">$264,383</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">$244,690</font></p>
        </td>
    </tr>
    <tr>
        <td width="32%">Capital Markets</td>
        <td width="16%"><p align="right"><font size="2">24,224</font></p>
        </td>
        <td width="16%"><p align="right"><font size="2">27,427</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">48,104</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">68,764</font></p>
        </td>
    </tr>
    <tr>
        <td width="32%">Asset Management</td>
        <td width="16%"><p align="right"><font size="2">12,897</font></p>
        </td>
        <td width="16%"><p align="right"><font size="2">5,810</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">25,210</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">9,822</font></p>
        </td>
    </tr>
    <tr>
        <td width="32%" height="23">Other</td>
        <td width="16%" height="23"><p align="right"><font
        size="2">1,339</font></p>
        </td>
        <td width="16%" height="23"><p align="right"><font
        size="2">904</font></p>
        </td>
        <td width="18%" height="23"><p align="right"><font
        size="2">2,814</font></p>
        </td>
        <td width="18%" height="23"><p align="right"><font
        size="2">1,972</font></p>
        </td>
    </tr>
    <tr>
        <td width="32%">&nbsp;</td>
        <td width="16%">&nbsp;</td>
        <td width="16%">&nbsp;</td>
        <td width="18%">&nbsp;</td>
        <td width="18%">&nbsp;</td>
    </tr>
    <tr>
        <td width="32%">Total</td>
        <td width="16%"><p align="right"><font size="2">$154,743</font></p>
        </td>
        <td width="16%"><p align="right"><font size="2">$164,397</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">$340,511</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">$325,248</font></p>
        </td>
    </tr>
    <tr>
        <td width="32%">&nbsp;</td>
        <td width="16%">&nbsp;</td>
        <td width="16%">&nbsp;</td>
        <td width="18%">&nbsp;</td>
        <td width="18%">&nbsp;</td>
    </tr>
    <tr>
        <td width="32%">Operating Income:</td>
        <td width="16%">&nbsp;</td>
        <td width="16%">&nbsp;</td>
        <td width="18%">&nbsp;</td>
        <td width="18%">&nbsp;</td>
    </tr>
    <tr>
        <td width="32%">Private Client *</td>
        <td width="16%"><p align="right"><font size="2">$4,124</font></p>
        </td>
        <td width="16%"><p align="right"><font size="2">$2,108</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">$22,680</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">$(10,227)</font></p>
        </td>
    </tr>
    <tr>
        <td width="32%">Capital Markets</td>
        <td width="16%"><p align="right"><font size="2">5,809</font></p>
        </td>
        <td width="16%"><p align="right"><font size="2">8,161</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">9,249</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">11,604</font></p>
        </td>
    </tr>
    <tr>
        <td width="32%">Asset Management</td>
        <td width="16%"><p align="right"><font size="2">505</font></p>
        </td>
        <td width="16%"><p align="right"><font size="2">4,910</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">(39)</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">8,155</font></p>
        </td>
    </tr>
    <tr>
        <td width="32%">Other **</td>
        <td width="16%"><p align="right"><font size="2">(7,716)</font></p>
        </td>
        <td width="16%"><p align="right"><font size="2">(1,578)</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">(10,664)</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">16,966</font></p>
        </td>
    </tr>
    <tr>
        <td width="32%">&nbsp;</td>
        <td width="16%">&nbsp;</td>
        <td width="16%">&nbsp;</td>
        <td width="18%">&nbsp;</td>
        <td width="18%">&nbsp;</td>
    </tr>
    <tr>
        <td width="32%">Total</td>
        <td width="16%"><p align="right"><font size="2">$2,722</font></p>
        </td>
        <td width="16%"><p align="right"><font size="2">$13,601</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">$21,226</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">$26,498</font></p>
        </td>
    </tr>
</table>

<blockquote>
    <blockquote>
        <p>*Losses in the Private Client segment in 2003 are the
        result of transition services costs relating to the
        Oppenheimer &amp; Co. division, which continued until
        Oppenheimer &amp; Co division client accounts were
        converted to the Company&#146;s clearing platform at the
        end of May 2003, as well as significant litigation
        settlement costs relating to Josephthal. </p>
        <p>**Losses in the Other segment in 2004 reflect the
        increasing burden of compliance in today&#146;s
        regulatory environment, the costs of financing long-term
        debt, as well as ongoing litigation settlement costs
        relating to past acquisitions. The Other segment in the
        six months ended June 30, 2003 includes the impact of the
        favorable arbitration award received in January 2003.</p>
        <p><b></b>&nbsp;</p>
    </blockquote>
</blockquote>

<p><b>Item 2. Management&#146;s Discussion and Analysis of
Financial Condition and Results of Operations </b></p>

<p>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, 2003.</p>

<p>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 84 offices in 22 states located
throughout the United States. The Company conducts business in
South America through local broker-dealers. Client assets
entrusted to the Company as at June 30, 2004 totaled
approximately $46.4 billion. The Company provides investment
advisory services through Oppenheimer Asset Management Inc. and
Fahnestock Asset Management, operating as a division of
Oppenheimer. The Company provides trust services and products
through Oppenheimer Trust Company. At June 30, 2004, client
assets under management by the asset management groups totaled
$9.6 billion. At June 30, 2004, the Company employed
approximately 2,969 people, of whom 1,582 were financial
consultants. </p>

<p>Critical Accounting Policies</p>

<p><br>
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. </p>

<p>During the six months ended June 30, 2004, there were no
material changes to matters discussed under the heading
&quot;Critical Accounting Policies&quot; in Part II, Item 7 of
the Company&#146;s Annual Report on Form 10-K for the year ended
December 31, 2003.</p>

<p>Business Environment</p>

<p>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,
inflation, political events, investor participation levels, legal
and regulatory, accounting, tax and compliance requirements and
competition, 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.</p>

<p>The Company faced difficult market conditions in the second
quarter of 2004, compared with the same period of 2003. While
commission business and net interest revenue in the second
quarter of 2004 remained at comparable levels to the same period
of 2003, the Company&#146;s principal trading activities and
underwriting business lagged the prior year. Uncertainties about
interest rate levels, the war in Iraq and oil prices have
resulted in a stock market that has made little progress in the
first half of 2004, particularly in comparison with the same
period in 2003. This environment has reduced investor speculative
activities leading to lower year-to-date commission revenues and
substantially lower proprietary trading opportunities. The
Company&#146;s expenses in 2004 have increased compared to the
same period of 2003 due to higher compensation costs and the
increased burden of the current compliance and regulatory
environment. </p>

<p>At June 30, 2004, the Dow Jones Industrial Average was
unchanged from year end to close at 10,435.48, and the NASDAQ
Composite Index increased by 44.79 points (2%) to close at
2047.79. </p>

<p>The interest rate environment also impacts the Company&#146;s
fixed income businesses. The three and six months of 2004
produced a less favorable rate environment versus the falling
interest rate environment that occurred in the same periods of
2003. The fixed income business activity level is driven by
spreads to published rates, the direction of rates and economic
expectations. Management constantly monitors its exposure to
interest rate fluctuations to mitigate risk of loss in volatile
environments. </p>

<p>&nbsp;</p>

<p>The Company is currently focused on growing its private client
and asset management businesses with strategic additions of
experienced financial consultants in its existing branch system
and its asset management business through strategic employment of
experienced money management teams. In addition, the Company is
committed to the constant improvement of its technology
capability and the expansion of its research efforts.</p>

<p>&nbsp;Regulatory Environment</p>

<p>The brokerage business is subject to regulation by the SEC,
the NYSE, the NASD and various state securities regulators. The
events surrounding corporate accounting and other activities and
the enactment of the Sarbanes-Oxley Act have caused the various
regulatory bodies to increase their surveillance of public
companies. New regulations and new interpretations and
enforcement of existing regulations are becoming more frequent
and onerous. More recently, investigations by the SEC and state
regulators into mutual fund trading practices are another
indication of the regulators&#146; heightened commitment to
enforcement actions. This regulatory environment has resulted in
increased costs of compliance with rules and regulations, and
increased exposure to regulatory actions and could potentially
lead to the elimination of, or material changes to, certain lines
of business. The expectation is that the increased costs of
compliance in today&#146;s regulatory environment are not
temporary.</p>

<p><i>Mutual Fund Inquiry</i></p>

<p>Since the third quarter of 2003, Oppenheimer has been
responding to the SEC as part of an industry-wide review of
market timing, late trading and other activities involving mutual
funds. The Company has answered several document requests. The
inquiries have centered on Oppenheimer&#146;s activities as a
broker/dealer and as a clearing firm. The Company has conducted
its own investigation and is continuing to cooperate with the
SEC. To date, no formal investigation has been commenced by the
SEC of the Company or any of its subsidiaries or employees,
although the general inquiry remains ongoing. The Company has
determined that there is no need to set up any reserves with
respect to the mutual funds inquiry at this time.</p>

<p>With respect to the Company&#146;s potential exposure for late
trading and market timing, a very limited number of the
Company&#146;s brokers may have engaged in the activities that
are the subject of the SEC&#146;s inquiry. There is no evidence
that either the Company or its employees were engaged in
&quot;late trading&quot;. The Company continues to closely
monitor its mutual fund activities and the activities of its
employees.</p>

<p>Results of Operations </p>

<p>Net profit for the three and six months ended June 30, 2004
was $1,579,000 or $0.12 per share and $12,568,000 or $0.94 per
share, respectively, a decrease of 80% and 18%, respectively, in
net profit when compared to $7,919,000 or $0.62 per share and
$15,406,000 or $1.21 per share, respectively, in the same periods
of 2003. Revenue for the three and six months ended June 30, 2004
was $154,743,000 and $340,511,000, respectively, a decrease of 6%
and an increase of 5%, respectively, compared to revenue of
$164,397,000 and $325,248,000, respectively, in the same periods
of 2003. Expenses increased by 1% and 7%, respectively, in the
three and six months ended June 30, 2004 compared to the same
periods of 2003, primarily reflecting increased compensation
expense as well as higher occupancy costs associated with last
year&#146;s acquisition of the CIBC Private Client and Asset
Management businesses.</p>

<p>It is important to note when comparing the results of the six
months ended June 30, 2004 and 2003, that the 2003 first quarter
results were substantially impacted by non-operating items
resulting from a favorable arbitration award in the amount of
$21,750,000, litigation costs from cases involving firms acquired
in 2001 of approximately $5 million, and write-downs of
approximately $1.2 million (netting to approximately $15.5
million). In addition, during the first five months of 2003, the
Company&#146;s results were impacted by higher expenses paid to
CIBC for clearing and other services for the U.S. private client
business, which was acquired from them in January 2003. The
business was transferred to the Company&#146;s platform and
facilities at the end of May 2003. </p>

<p>The following table and discussion summarizes the changes in
the major revenue and expense categories for the periods
presented (in thousands of dollars):</p>

<table border="0" cellpadding="7" cellspacing="0" width="638">
    <tr>
        <td width="30%">&nbsp;</td>
        <td colspan="4" width="70%"><p align="center">Period to
        Period Change</p>
        </td>
    </tr>
    <tr>
        <td width="30%">&nbsp;</td>
        <td colspan="4" width="70%"><p align="center">Increase
        (Decrease)</p>
        </td>
    </tr>
    <tr>
        <td width="30%">&nbsp;</td>
        <td colspan="2" width="37%"><p align="center">Three
        Months ended June 30,</p>
        </td>
        <td colspan="2" width="33%"><p align="center">Six Months
        ended June 30,</p>
        </td>
    </tr>
    <tr>
        <td width="30%">&nbsp;</td>
        <td colspan="2" width="37%"><p align="center">2004 versus
        2003</p>
        </td>
        <td colspan="2" width="33%"><p align="center">2004 versus
        2003</p>
        </td>
    </tr>
    <tr>
        <td width="30%">&nbsp;</td>
        <td width="22%"><p align="center">Amount</p>
        </td>
        <td width="15%"><p align="center">Percentage</p>
        </td>
        <td width="17%"><p align="center">Amount</p>
        </td>
        <td width="16%"><p align="center">Percentage</p>
        </td>
    </tr>
    <tr>
        <td width="30%">&nbsp;</td>
        <td width="22%">&nbsp;</td>
        <td width="15%">&nbsp;</td>
        <td width="17%">&nbsp;</td>
        <td width="16%">&nbsp;</td>
    </tr>
    <tr>
        <td width="30%">Revenues -</td>
        <td width="22%">&nbsp;</td>
        <td width="15%">&nbsp;</td>
        <td width="17%">&nbsp;</td>
        <td width="16%">&nbsp;</td>
    </tr>
    <tr>
        <td width="30%">Commissions</td>
        <td width="22%"><p align="right">(470)</p>
        </td>
        <td width="15%"><p align="right">-0.6%</p>
        </td>
        <td width="17%"><p align="right">23,436</p>
        </td>
        <td width="16%"><p align="right">15.9%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Principal transactions, net</td>
        <td width="22%"><p align="right">(16,767)</p>
        </td>
        <td width="15%"><p align="right">-41.8%</p>
        </td>
        <td width="17%"><p align="right">(6,153)</p>
        </td>
        <td width="16%"><p align="right">-9.3%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Interest</td>
        <td width="22%"><p align="right">60</p>
        </td>
        <td width="15%"><p align="right">0.6%</p>
        </td>
        <td width="17%"><p align="right">(7)</p>
        </td>
        <td width="16%"><p align="right">-</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Underwriting fees</td>
        <td width="22%"><p align="right">(2,671)</p>
        </td>
        <td width="15%"><p align="right">-21.3%</p>
        </td>
        <td width="17%"><p align="right">(2,789)</p>
        </td>
        <td width="16%"><p align="right">-10.2%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Advisory fees</td>
        <td width="22%"><p align="right">12,731</p>
        </td>
        <td width="15%"><p align="right">87.4%</p>
        </td>
        <td width="17%"><p align="right">22,720</p>
        </td>
        <td width="16%"><p align="right">76.3%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Arbitration award</td>
        <td width="22%"><p align="right">-</p>
        </td>
        <td width="15%"><p align="right">-</p>
        </td>
        <td width="17%"><p align="right">(19,050)</p>
        </td>
        <td width="16%"><p align="right">-87.6%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Other</td>
        <td width="22%"><p align="right">(2,537)</p>
        </td>
        <td width="15%"><p align="right">-32.5%</p>
        </td>
        <td width="17%"><p align="right">(2,894)</p>
        </td>
        <td width="16%"><p align="right">-24.5%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Total revenues</td>
        <td width="22%"><p align="right">(9,654)</p>
        </td>
        <td width="15%"><p align="right">-5.9%</p>
        </td>
        <td width="17%"><p align="right">15,263</p>
        </td>
        <td width="16%"><p align="right">4.7%</p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="7" cellspacing="0" width="638">
    <tr>
        <td width="30%">Expenses -</td>
        <td width="22%">&nbsp;</td>
        <td width="15%">&nbsp;</td>
        <td width="17%">&nbsp;</td>
        <td width="16%">&nbsp;</td>
    </tr>
    <tr>
        <td width="30%">Compensation</td>
        <td width="22%"><p align="right">3,138</p>
        </td>
        <td width="15%"><p align="right">3.1%</p>
        </td>
        <td width="17%"><p align="right">25,003</p>
        </td>
        <td width="16%"><p align="right">12.6%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Clearing and exchanges fees</td>
        <td width="22%"><p align="right">(1,918)</p>
        </td>
        <td width="15%"><p align="right">-33.4%</p>
        </td>
        <td width="17%"><p align="right">(4,953)</p>
        </td>
        <td width="16%"><p align="right">-38.9%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Communications</td>
        <td width="22%"><p align="right">(4,285)</p>
        </td>
        <td width="15%"><p align="right">-26.8%</p>
        </td>
        <td width="17%"><p align="right">(2,472)</p>
        </td>
        <td width="16%"><p align="right">&#150;8.9%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Occupancy costs</td>
        <td width="22%"><p align="right">1,421</p>
        </td>
        <td width="15%"><p align="right">11.0%</p>
        </td>
        <td width="17%"><p align="right">2,557</p>
        </td>
        <td width="16%"><p align="right">10.0%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Interest</td>
        <td width="22%"><p align="right">(159)</p>
        </td>
        <td width="15%"><p align="right">-3.7%</p>
        </td>
        <td width="17%"><p align="right">666</p>
        </td>
        <td width="16%"><p align="right">8.9%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Other</td>
        <td width="22%"><p align="right">3,028</p>
        </td>
        <td width="15%"><p align="right">29.2%</p>
        </td>
        <td width="17%"><p align="right">(266)</p>
        </td>
        <td width="16%"><p align="right">-1.0%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Total expenses</td>
        <td width="22%"><p align="right">1,225</p>
        </td>
        <td width="15%"><p align="right">0.8%</p>
        </td>
        <td width="17%"><p align="right">20,535</p>
        </td>
        <td width="16%"><p align="right">6.9%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">&nbsp;</td>
        <td width="22%">&nbsp;</td>
        <td width="15%">&nbsp;</td>
        <td width="17%">&nbsp;</td>
        <td width="16%">&nbsp;</td>
    </tr>
    <tr>
        <td width="30%">Profit before taxes</td>
        <td width="22%"><p align="right">(10,879)</p>
        </td>
        <td width="15%"><p align="right">-80.0%</p>
        </td>
        <td width="17%"><p align="right">(5,272)</p>
        </td>
        <td width="16%"><p align="right">-19.9%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Income taxes</td>
        <td width="22%"><p align="right">(4,539)</p>
        </td>
        <td width="15%"><p align="right">-79.9%</p>
        </td>
        <td width="17%"><p align="right">(2,434)</p>
        </td>
        <td width="16%"><p align="right">-21.9%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Net profit</td>
        <td width="22%"><p align="right">(6,340)</p>
        </td>
        <td width="15%"><p align="right">-80.1%</p>
        </td>
        <td width="17%"><p align="right">(2,838)</p>
        </td>
        <td width="16%"><p align="right">-18.4%</p>
        </td>
    </tr>
</table>

<p>&nbsp;</p>

<p><i>Revenue, other than interest</i></p>

<p>Commission income and, to a large extent, income from
principal transactions depend on investor participation in the
markets. In the three and six months ended June 30, 2004,
commission revenue remained unchanged and increased by 16%,
respectively, compared to the same periods of 2003 primarily as a
result of the increased investor activity in the markets in the
first quarter of 2004. Investor activity in the markets fell
dramatically in the second quarter of 2004, resulting in revenues
from commissions that were 15% behind the levels achieved in the
first quarter of 2004. Net revenue from principal transactions
decreased by 42% and 9%, respectively, in the three and six
months ended June 30, 2004 compared to the comparable periods of
2003 due to the lack of volatility in the equity and fixed income
markets as well as lower trading volumes in 2004 compared to
2003. Investment banking revenues decreased 21% and 10%,
respectively, in the three and six months ended June 30, 2004
compared with the same periods of 2003 due to the drop in
investor activity in the markets in 2004 compared to 2003.
Advisory fees increased by 87% and 76%, respectively, in the
three and six months ended June 30, 2004, 2004 compared to the
same periods of 2003 as a result of the addition of the business
of Oppenheimer Asset Management Inc., following its acquisition
on June 4, 2003. Assets under management by the asset management
group were $9.6 billion and $9.1 billion at June 30, 2004 and
2003, respectively.</p>

<p><i>Interest</i></p>

<p>Net interest revenue (interest revenue less interest expense)
in the three and six months ended June 30, 2004 decreased 5% and
increased 4%, respectively, compared to the comparable periods of
2003. Interest revenue, which primarily relates to revenue from
customer margin balances and securities lending activities,
remained relatively unchanged in 2004 as in 2003. Interest
expense includes the interest cost relating to the variable rate
exchangeable debentures, which bear an annual interest rate of 4%
in 2004 compared to 3% in 2003.</p>

<p><i>Expenses, other than interest</i></p>

<p>Compensation expense increased by 3% and 13%, respectively, in
the three and six months ended June 30, 2004 compared to the
comparable periods of 2003. Compensation expense has
volume-related components and, therefore, increased with the
increased level of commission business conducted in the six
months ended June 30, 2004 compared to the comparable period of
2003. The amortization of forgivable loans to brokers is included
in compensation expense and contributed to the increase in
compensation expense in the three and six months ended June 30,
2004 compared to the comparable periods in 2003. This expense is
relatively fixed and is not influenced by increases or decreases
in revenue levels. The Company&#146;s notes receivable balance
peaked in July 2003 as a result of the acquisition of the
Oppenheimer divisions, resulting in higher amortization levels
beginning in the third quarter of 2003, which will continue
through most of 2006. The cost of clearing and exchange fees
decreased 33% and 39%, respectively, in the three and six months
ended June 30, 2004 compared to the comparable periods of 2003
due to the elimination of higher costs associated with the
clearing of Oppenheimer private client division customer accounts
by CIBC World Markets during the transition period through May
27, 2003; however, the Company&#146;s employment costs and
associated expenses for self-clearing this additional business
increased when compared to the same periods of 2003. The cost of
communications and technology decreased 27% and 9%, respectively,
in the three and six months ended June 30, 2004 compared to the
comparable periods of 2003 due to the costs associated with
upgrading the technology base across the firm after the
conversion of the Oppenheimer private client division accounts in
May 2003. The level of investment has now tapered off, reflected
in the current quarter comparisons. Occupancy costs increased by
11% and 10%, respectively, in three and six months ended June 30,
2004 compared to the same periods of 2003 primarily due to the
additional cost of space placed under lease to house new
employees added to support services for the larger business
entity, beginning in June 2003. Occupancy costs have been
aggressively addressed and previously underutilized space has
been refitted and occupied and overlapping offices have been
integrated. Other expenses continue to be affected by litigation
settlement costs, although to a lesser degree in the second
quarter of 2004. The Company may face additional unfavorable
judgments in future quarters. The Company has used its best
estimate to provide adequate reserves to cover potential
litigation losses.</p>

<p>Liquidity and Capital Resources</p>

<p>Total assets at June 30, 2004 decreased by approximately 1%
from December 31, 2003 with increases in receivable from brokers
and clearing organizations and restricted deposits being offset
by decreases in every other asset category. Liquid assets
accounted for 88% of total assets, consistent with year-end
levels. 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 Oppenheimer'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. Oppenheimer has arrangements with banks for
borrowings on an unsecured and on a fully collateralized basis.
At June 30, 2004, $65,899,000 of such borrowings were
outstanding, a decrease of 28% compared to outstanding borrowings
at December 31, 2003. At June 30, 2004, the Company had available
collateralized and uncollateralized letters of credit of
$132,000,000.</p>

<p>In connection with the acquisition of the Oppenheimer
divisions, the Company issued debentures in the amount of
approximately $161 million and a zero coupon promissory note in
the amount of approximately $66 million. The notes to the
financial statements contain a description of these instruments.
The debentures, if exchanged, would represent the addition of
approximately 35% of the then-issued Class A Shares of the
Company. The interest due on the debentures is payable
semi-annually and is being financed from internally generated
funds. The principal payments on the zero coupon promissory note
are also being 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. </p>

<p>In connection with the acquisition of the Oppenheimer
divisions, the Company arranged a credit facility in the amount
of $50 million with CIBC. In January 2003, the Company borrowed
$25 million under this facility and borrowed the balance in July
2003. The borrowings were used to finance broker retention 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.
In accordance with the credit arrangement, the Company has
provided certain covenants to CIBC with respect to the
maintenance of minimum debt/equity ratios and net capital of
Oppenheimer. In the Company&#146;s view, the most restrictive of
the covenants requires that Oppenheimer maintain minimum excess
net capital of $100 million. As at June 30, 2004, the Company was
in compliance with the covenants. The Company does not foresee
any difficulties in complying with the covenants.</p>

<p>The Company is committed to an on-going investment in its
technology and communications infrastructure including extensive
business continuity planning and investment. These costs are
on-going and the Company believes that current and future costs
will exceed historic levels due to business and regulatory
requirements. The Company believes that internally-generated
funds from operations are sufficient to finance its expenditure
program.</p>

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

<p>The Company has not made any purchases in 2004 pursuant to a
Normal Course Issuer Bid (which commenced on July 10, 2003 and
terminated on July 9, 2004). </p>

<p>On May 21, 2004, the Company paid cash dividends of U.S.$0.09
per Class A and Class B Share totaling $1,213,000 from available
cash on hand.</p>

<p>On July 27, 2004, the Board of Directors declared a regular
quarterly cash dividend of U.S. $0.09 per Class A and Class B
Share payable on August 20, 2004 to shareholders of record on
August 6, 2004.</p>

<p>The book value of the Company&#146;s Class A and Class B
Shares was $22.56 at June 30, 2004 compared to $20.84 at June 30,
2003, an increase of approximately 8%, based on total outstanding
shares of 13,355,943 and 12,821,243, respectively.</p>

<p>Contractual and Contingent Obligations</p>

<p>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. </p>

<p>The following table sets forth these contractual and
contingent commitments as at June 30, 2004:</p>

<p>Contractual Obligations (In millions of dollars)</p>

<table border="0" cellpadding="0" cellspacing="0" width="555">
    <tr>
        <td width="31%">&nbsp;</td>
        <td width="11%"><p align="right">2004</p>
        </td>
        <td width="10%"><p align="right">2005</p>
        </td>
        <td width="10%"><p align="right">2006</p>
        </td>
        <td width="9%"><p align="right">2007</p>
        </td>
        <td width="18%"><p align="right">Thereafter</p>
        </td>
        <td width="10%"><p align="right">Total</p>
        </td>
    </tr>
    <tr>
        <td width="31%">Minimum rentals</td>
        <td width="11%"><p align="right">$12</p>
        </td>
        <td width="10%"><p align="right">$22</p>
        </td>
        <td width="10%"><p align="right">$21</p>
        </td>
        <td width="9%"><p align="right">$19</p>
        </td>
        <td width="18%"><p align="right">$80</p>
        </td>
        <td width="10%"><p align="right">$154</p>
        </td>
    </tr>
    <tr>
        <td width="31%">Supplemental Executive Retirement Plan</td>
        <td width="11%"><p align="right">1</p>
        </td>
        <td width="10%"><p align="right">-</p>
        </td>
        <td width="10%"><p align="right">-</p>
        </td>
        <td width="9%"><p align="right">-</p>
        </td>
        <td width="18%"><p align="center">-</p>
        </td>
        <td width="10%"><p align="right">1</p>
        </td>
    </tr>
    <tr>
        <td width="31%">Assumed Josephthal notes</td>
        <td width="11%"><p align="right">2</p>
        </td>
        <td width="10%"><p align="right">1</p>
        </td>
        <td width="10%"><p align="right">-</p>
        </td>
        <td width="9%"><p align="right">-</p>
        </td>
        <td width="18%"><p align="right">-</p>
        </td>
        <td width="10%"><p align="right">3</p>
        </td>
    </tr>
    <tr>
        <td width="31%">Bank loans</td>
        <td width="11%"><p align="right">5</p>
        </td>
        <td width="10%"><p align="right">10</p>
        </td>
        <td width="10%"><p align="right">10</p>
        </td>
        <td width="9%"><p align="right">6</p>
        </td>
        <td width="18%">&nbsp;</td>
        <td width="10%"><p align="right">31</p>
        </td>
    </tr>
    <tr>
        <td width="31%">Debentures</td>
        <td width="11%"><p align="right">-</p>
        </td>
        <td width="10%"><p align="right">-</p>
        </td>
        <td width="10%"><p align="right">-</p>
        </td>
        <td width="9%"><p align="right">-</p>
        </td>
        <td width="18%"><p align="right">161</p>
        </td>
        <td width="10%"><p align="right">161</p>
        </td>
    </tr>
    <tr>
        <td width="31%">Zero coupon notes</td>
        <td width="11%"><p align="right">6</p>
        </td>
        <td width="10%"><p align="right">15</p>
        </td>
        <td width="10%"><p align="right">15</p>
        </td>
        <td width="9%"><p align="right">6</p>
        </td>
        <td width="18%">&nbsp;</td>
        <td width="10%"><p align="right">42</p>
        </td>
    </tr>
    <tr>
        <td width="31%">Total</td>
        <td width="11%"><p align="right">$26</p>
        </td>
        <td width="10%"><p align="right">$48</p>
        </td>
        <td width="10%"><p align="right">$46</p>
        </td>
        <td width="9%"><p align="right">$31</p>
        </td>
        <td width="18%"><p align="right">$241</p>
        </td>
        <td width="10%"><p align="right">$392</p>
        </td>
    </tr>
</table>

<p>Newly Issued Accounting Standards</p>

<p>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;, FIN No. 46R,
&quot;Consolidation of Variable Interest Entities&quot;, SFAS No
149, &quot;Amendment of Statement 133 on Derivative Instruments
and Hedging Activities&quot;, and SFAS No. 150, &quot;Accounting
for Certain Financial Instruments with Characteristics of both
Liabilities and Equity&quot;. The Company has adopted these
statements and interpretations and their adoption did not have a
material impact on its financial results. </p>

<p>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 at this time.</p>

<p>Factors Affecting &quot;Forward-Looking Statements&quot;</p>

<p>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.</p>

<p><b></b>&nbsp;</p>

<p><b>ITEM 3. Quantitative and Qualitative Disclosures About
Market Risk</b></p>

<p>During the six months ended June 30, 2004, there were no
material changes to the information contained in Part II, Item 7A
of the Company&#146;s Annual Report on Form 10-K for the year
ended December 31, 2003.</p>

<p>Risk Management</p>

<p>The Company&#146;s principal business activities by their
nature involve significant market, credit and other risks,
including the risk to the Company&#146;s business of an
interruption to its operations by factors beyond its control. The
Company&#146;s effectiveness in managing these risks is critical
to its success and stability. </p>

<p>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.</p>

<p><i>Market Risk</i></p>

<p>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. </p>

<p><i>Operational Risk</i></p>

<p>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.</p>

<p><i>Credit Risk</i></p>

<p>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. </p>

<p><i>Legal and Regulatory Risk</i></p>

<p>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.</p>

<p><i>Value-at-Risk </i></p>

<p>Value-at-risk is a statistical measure of the potential loss
in the fair value of a portfolio due to adverse movements in
underlying risk factors. In response to the SEC&#146;s market
risk disclosure requirements, the Company has performed a
value-at-risk analysis of its trading of 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.</p>

<p>At June 30, 2004 and 2003, the Company&#146;s value-at-risk
for each component of market risk was as follows:</p>
<div align="center"><center>

<table border="0" cellpadding="0" cellspacing="0" width="414">
    <tr>
        <td width="70%">&nbsp;</td>
        <td colspan="2" width="30%"><p align="center">June 30,</p>
        </td>
    </tr>
    <tr>
        <td width="70%">&nbsp;</td>
        <td width="13%"><p align="right">2004</p>
        </td>
        <td width="17%"><p align="right">2003</p>
        </td>
    </tr>
    <tr>
        <td width="70%"><font size="2">Expressed in thousands of
        dollars</font></td>
        <td width="13%">&nbsp;</td>
        <td width="17%">&nbsp;</td>
    </tr>
    <tr>
        <td width="70%">Interest rate risk</td>
        <td width="13%"><p align="right">$147</p>
        </td>
        <td width="17%"><p align="right">$174</p>
        </td>
    </tr>
    <tr>
        <td width="70%">Equity price risk</td>
        <td width="13%"><p align="right">585</p>
        </td>
        <td width="17%"><p align="right">387</p>
        </td>
    </tr>
    <tr>
        <td width="70%">Diversification benefit</td>
        <td width="13%"><p align="right">(167)</p>
        </td>
        <td width="17%"><p align="right">(86)</p>
        </td>
    </tr>
    <tr>
        <td width="70%">Total</td>
        <td width="13%"><p align="right">$565</p>
        </td>
        <td width="17%"><p align="right">$475</p>
        </td>
    </tr>
</table>
</center></div>

<p>&nbsp;</p>

<p>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 2004 from those reported in
2003 reflect changes in the size and composition of the
Company&#146;s trading portfolio at June 30, 2004 compared to
June 30, 2003, which include a larger position in equities. The
Company&#146;s portfolio included approximately $15,917,000 and
$14,006,000 in corporate equities as at June 30, 2004 and 2003,
respectively, which were co-related to deferred compensation
liabilities and which do not bear any value-at-risk to the
Company.</p>

<p>The value-at-risk estimate has limitations that should be
considered in evaluating the Company&#146;s potential future
losses based on period-end portfolio positions. Market
conditions, including market volatility, may result in
statistical relationships that result in higher or lower
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.</p>

<p><b>ITEM 4. Controls and Procedures </b></p>

<p>As of the end of the reporting period, 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-15(e) 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 over financial reporting
during the quarter ended June 30, 2004 that have materially
affected, or are reasonably likely to materially affect, the
Company&#146;s internal control over financial reporting.</p>

<p>&nbsp;</p>

<p>The Company has undertaken a complete review, with the
assistance of an outside consulting firm, of its internal
controls in order to be prepared for the requirements of the
Sarbanes-Oxley Act, which will become effective for the Company
in the fourth quarter of 2004. The Company is reviewing its
procedures to comply with the requirements of the Act and plans
to complete this process in a timely manner.</p>

<p align="center"><b>PART II</b></p>

<p align="center"><b>OTHER INFORMATION</b></p>

<p><font size="3"><b>ITEM 1. Legal Proceedings</b></font></p>

<blockquote>
    <blockquote>
        <p>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
        acquisitions made by the Company since 2001. 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.</p>
        <p><font size="1"></font>&nbsp;</p>
    </blockquote>
</blockquote>

<p><font size="3"><b>ITEM 2. Changes in Securities, Use of
Proceeds and Issuer Purchases of Equity Securities</b></font></p>

<p>Not applicable</p>

<p><font size="3"><b>ITEM 3. Defaults Upon Senior Securities</b></font></p>

<p>Not applicable</p>

<p><b>ITEM 4. Submission of Matters to a Vote of Security-Holders</b></p>

<blockquote>
    <blockquote>
        <p>At the Annual and Special Meeting of Shareholders of
        the Company held on May 17, 2004, the holders of Class B
        voting shares of the Company voted in favor of (1)
        appointing PricewaterhouseCoopers LLP as auditors of the
        Company and authorizing the directors to fix their
        remuneration, (2) electing seven directors, and (3)
        passing a resolution confirming the amendment to the
        Company&#146;s 1996 Equity Incentive Plan, increasing the
        number of Class A Shares which may be issued under the
        Plan on the exercise of options by 800,000.</p>
        <p>Proxies received from the holders of Class B Shares
        directed that the shares represented by such proxies be
        voted as set forth below. </p>
    </blockquote>
</blockquote>

<table border="0" cellpadding="0" cellspacing="0" width="583">
    <tr>
        <td width="8%">&nbsp;</td>
        <td width="38%">&nbsp;</td>
        <td width="26%"><p align="center"><font size="3">For</font></p>
        </td>
        <td width="27%"><p align="center"><font size="3">Against/Withheld</font></p>
        </td>
    </tr>
    <tr>
        <td width="8%">&nbsp;</td>
        <td width="38%">&nbsp;</td>
        <td width="26%">&nbsp;</td>
        <td width="27%">&nbsp;</td>
    </tr>
    <tr>
        <td width="8%"><font size="3">1.</font></td>
        <td width="38%"><font size="3">Appointment of Auditors</font></td>
        <td width="26%"><p align="center"><font size="3">97,248</font></p>
        </td>
        <td width="27%"><p align="center"><font size="3">0</font></p>
        </td>
    </tr>
    <tr>
        <td width="8%">&nbsp;</td>
        <td width="38%">&nbsp;</td>
        <td width="26%">&nbsp;</td>
        <td width="27%">&nbsp;</td>
    </tr>
    <tr>
        <td width="8%"><font size="3">2.</font></td>
        <td width="38%"><font size="3">Election of Directors:</font></td>
        <td width="26%"><p align="center"><font size="3">97,248</font></p>
        </td>
        <td width="27%"><p align="center"><font size="3">0</font></p>
        </td>
    </tr>
    <tr>
        <td width="8%">&nbsp;</td>
        <td width="38%"><font size="3">J.L. Bitove</font><p><font
        size="3">R. Crystal</font></p>
        <p><font size="3">A.G. Lowenthal</font></p>
        <p><font size="3">K.W. McArthur</font></p>
        <p><font size="3">A.W. Oughtred</font></p>
        <p><font size="3">E.K. Roberts</font></p>
        <p><font size="3">B. Winberg</font></p>
        </td>
        <td width="26%">&nbsp;</td>
        <td width="27%">&nbsp;</td>
    </tr>
    <tr>
        <td width="8%">&nbsp;</td>
        <td width="38%">&nbsp;</td>
        <td width="26%">&nbsp;</td>
        <td width="27%">&nbsp;</td>
    </tr>
    <tr>
        <td width="8%"><font size="3">3.</font></td>
        <td width="38%"><font size="3">Amendment to 1996 Equity
        Incentive Plan</font></td>
        <td width="26%"><p align="center"><font size="3">96,927</font></p>
        </td>
        <td width="27%"><p align="center"><font size="3">12</font></p>
        </td>
    </tr>
</table>

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

<p><b>ITEM 5. Other Information</b></p>

<p>Not applicable</p>

<p><b>ITEM 6. Exhibits and Reports on Form 8-K</b></p>

<blockquote>
    <p>Exhibits </p>
    <p>31.1 Certification of Albert G. Lowenthal </p>
    <p>31.2 Certification of Elaine K. Roberts</p>
    <p>32.1 Certification of Albert G. Lowenthal and Elaine K.
    Roberts</p>
    <blockquote>
        <p>&nbsp;</p>
    </blockquote>
    <p>Reports on Form 8-K </p>
    <p>None</p>
    <blockquote>
        <blockquote>
            <p>&nbsp;</p>
        </blockquote>
    </blockquote>
</blockquote>

<p align="center"><b>SIGNATURES</b></p>

<p>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 4th day of August, 2004.</p>

<p>OPPENHEIMER HOLDINGS INC.</p>

<p>&nbsp;</p>

<p>By: &quot;A.G. Lowenthal&quot;<br>
A.G.Lowenthal, Chairman and Chief Executive Officer <br>
(Principal Executive Officer)</p>

<p>&nbsp;</p>

<p>By: &quot;E.K. Roberts&quot;<br>
E.K.Roberts, President, Treasurer and Chief Financial Officer <br>
(Principal Financial Officer) </p>
</body>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>2
<FILENAME>ex312.htm
<DESCRIPTION>CFO CERTIFICATION
<TEXT>
<!DOCTYPE HTML PUBLIC "-//IETF//DTD HTML//EN">
<html>

<body bgcolor="#FFFFFF">

<p align="center"><font face="Arial"><b>CERTIFICATION EXHIBIT
31.2</b></font></p>

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

<p><font face="Arial">1.I have reviewed this quarterly report on
Form&nbsp;10-Q of Oppenheimer Holdings Inc.; </font></p>

<p><font face="Arial">2.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></p>

<p><font face="Arial">3.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></p>

<p><font face="Arial">4.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-15(e)) and 15d-15(e)) for the registrant and we
have: </font></p>

<table border="0" cellspacing="0" width="613">
    <tr>
        <td valign="top" width="0%">&nbsp;</td>
        <td valign="top" width="100%"><font face="Arial">a)&nbsp;designed
        such disclosure controls and procedures, or caused such
        disclosure controls and procedures to be designed under
        our supervision, 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="0%">&nbsp;</td>
        <td valign="top" width="100%"><font face="Arial">b)&nbsp;evaluated
        the effectiveness of the registrant&#146;s disclosure
        controls and procedures; and presented in this quarterly
        report our conclusions about the effectiveness of the
        disclosure controls and procedures as of the end of the
        period covered by the quarterly report based on such
        evaluation;</font></td>
        <td valign="top" width="0%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="0%">&nbsp;</td>
        <td valign="top" width="100%"><font face="Arial">c)
        disclosed in this report any change in the
        registrant&#146;s internal control over financial
        reporting that occurred during the registrant&#146;s most
        recent fiscal quarter that has materially affected, or is
        reasonably likely to materially affect, the
        registrant&#146;s internal control over financial
        reporting; and</font></td>
        <td valign="top" width="0%">&nbsp;</td>
    </tr>
</table>

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

<table border="0" cellspacing="0" width="613">
    <tr>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="99%"><font face="Arial">a)&nbsp;all
        significant deficiencies in the design or operation of
        internal control over financial reporting which are
        reasonably likely to adversely affect the
        registrant&#146;s ability to record, process, summarize
        and report financial data; and </font></td>
        <td valign="top" width="0%">&nbsp;</td>
    </tr>
    <tr>
        <td valign="top" width="1%">&nbsp;</td>
        <td valign="top" width="99%"><font face="Arial">b)&nbsp;any
        fraud, whether or not material, that involves management
        or other employees who have a significant role in the
        registrant&#146;s internal control over financial
        reporting. </font></td>
        <td valign="top" width="0%">&nbsp;</td>
    </tr>
</table>

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

<p>August 4, 2004</p>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-32
<SEQUENCE>3
<FILENAME>ex32.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//IETF//DTD HTML//EN">
<html>


<body bgcolor="#FFFFFF">

<pre><font face="Arial">EXHIBIT 32


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

         The undersigned, Albert G. Lowenthal, Chairman and Chief Executive Officer and Elaine K. Roberts, President and
Chief Financial Officer of Oppenheimer Holdings Inc. (the &quot;Company&quot;), each hereby certifies that to his/her knowledge the
Quarterly Report on Form 10-Q for the period ended June 30, 2004 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 4th day of August, 2004

                                                       &quot;A.G. Lowenthal&quot;
                                                       Albert G. Lowenthal
			       Chairman and Chief Executive Officer
</font></pre>

<pre><font face="Arial">
                                                       &quot;E.K. Roberts&quot;
                                                       Elaine K. Roberts
			       President and Chief Financial Officer</font></pre>

<p>&nbsp;</p>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-31
<SEQUENCE>4
<FILENAME>ex311.htm
<DESCRIPTION>CEO CERTIFICATION
<TEXT>
<!DOCTYPE HTML PUBLIC "-//IETF//DTD HTML//EN">
<html>


<body bgcolor="#FFFFFF">

<p align="center"><font face="Arial"><b>CERTIFICATION EXHIBIT
31.1</b></font></p>

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

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

<table border="0" cellspacing="0" width="613">
    <tr>
        <td valign="top" width="8%">&nbsp;</td>
        <td valign="top" width="92%"><font face="Arial">a)&nbsp;designed
        such disclosure controls and procedures, or caused such
        disclosure controls and procedures to be designed under
        our supervision, 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="Arial">b)&nbsp;evaluated
        the effectiveness of the registrant&#146;s disclosure
        controls and procedures; and presented in this quarterly
        l report our conclusions about the effectiveness of the
        disclosure controls and procedures as of the end of the
        period covered by the quarterly report based on such
        evaluation;</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="Arial">c)
        disclosed in this report any change in the
        registrant&#146;s internal control over financial
        reporting that occurred during the registrant&#146;s most
        recent fiscal quarter that has materially affected, or is
        reasonably likely to materially affect, the
        registrant&#146;s internal control over financial
        reporting; and&nbsp; </font></td>
        <td valign="top" width="0%">&nbsp;</td>
    </tr>
</table>

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

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

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

<p>August 4, 2004</p>
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</TEXT>
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</SEC-DOCUMENT>
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