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<SEC-DOCUMENT>0000791963-04-000010.txt : 20041103
<SEC-HEADER>0000791963-04-000010.hdr.sgml : 20041103
<ACCEPTANCE-DATETIME>20041103155917
ACCESSION NUMBER:		0000791963-04-000010
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20040930
FILED AS OF DATE:		20041103
DATE AS OF CHANGE:		20041103

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:		041116462

	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>sec904.htm
<TEXT>
<!DOCTYPE HTML PUBLIC "-//IETF//DTD HTML//EN">
<html>


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

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

<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>September 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>&nbsp;</p>

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

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

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

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

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

<p align="center"><font size="3">None<br>
(Former name, former address and former fiscal year, if changed
since last report)</font></p>

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

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

<p><font size="3">The number of shares of the Company&#146;s
Class A non-voting shares and Class B voting shares (being the
only classes of common stock of the Company) outstanding on
October 29, 2004 was x 13,276,561 and 99,680 shares,
respectively.</font></p>

<p>&nbsp;</p>

<p align="center">&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">&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 September 30, 2004 and December 31, 2003</font></p>

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

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

<p>&nbsp;</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>&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. Unregistered Sales of
Equity Securities and Use of Proceeds </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>&nbsp;</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>&nbsp;</p>

<p>&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">September 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">$24,868</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">13,682</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">16,220</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">426,311</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">851,863</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 $2,469</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">74,771</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">76,161</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">51,469</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">1,535,345</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">$4,220;
        $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 $38,966; $32,150 in 2003</font></td>
        <td width="18%" height="21"><p align="right"><font
        face="Helvetica">21,852</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">35,314</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">198,049</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">$1,733,394</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>&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">September 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">$41,505</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">4,200</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">638,774</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">372,123</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">13,272</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">66,184</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">51,195</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">1,730</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">11,900</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">1,211,002</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">18,753</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">27,210</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">14,070</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">220,855</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">13,254,761
        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">48,844</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">48,977</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">8,708</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">243,852</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">301,537</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">$1,733,394</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="26%" height="21"><p align="center"><font
        size="2" face="Helv">Three Months ended </font></p>
        <p align="center"><font size="2" face="Helv">September
        30, </font></p>
        </td>
        <td colspan="2" width="31%" height="21"><p align="center"><font
        size="2" face="Helv">Nine Months ended </font></p>
        <p align="center"><font size="2" face="Helv">September
        30,</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="22">&nbsp;</td>
        <td width="14%" 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="16%" 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="14%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="16%" 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="14%" height="21"><p align="right"><font
        face="Helv">$70,804</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        face="Helv">$85,762</font></p>
        </td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">$241,394</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">$232,916</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Principal
        transactions, net</font></td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">22,331</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        face="Helv">35,822</font></p>
        </td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">82,385</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">102,029</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Interest</font></td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">11,026</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        face="Helv">10,570</font></p>
        </td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">32,185</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">31,736</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Underwriting
        fees</font></td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">9,476</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        face="Helv">12,948</font></p>
        </td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">34,082</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">40,343</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Advisory
        fees</font></td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">23,503</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        face="Helv">25,211</font></p>
        </td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">75,983</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">54,971</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Arbitration
        awards</font></td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">1,200</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        face="Helv">-</font></p>
        </td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">3,900</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="14%" height="21"><p align="right"><font
        face="Helv">3,981</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        face="Helv">6,091</font></p>
        </td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">12,903</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">17,907</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21">&nbsp;</td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">142,321</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        face="Helv">176,404</font></p>
        </td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">482,832</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">501,652</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">EXPENSES:</font></td>
        <td width="14%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="16%" 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="14%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="16%" 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="14%" height="21"><p align="right"><font
        face="Helv">95,117</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        face="Helv">114,499</font></p>
        </td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">319,083</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">313,462</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Clearing
        and exchange fees</font></td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">3,824</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        face="Helv">3,544</font></p>
        </td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">11,593</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">16,266</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Communications</font></td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">10,985</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        face="Helv">12,713</font></p>
        </td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">36,295</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">40,495</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Occupancy
        costs</font></td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">13,987</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        face="Helv">15,403</font></p>
        </td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">42,154</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">41,013</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Interest</font></td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">4,769</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        face="Helv">3,973</font></p>
        </td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">12,927</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">11,465</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Other</font></td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">10,845</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        face="Helv">14,974</font></p>
        </td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">36,760</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">41,155</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21">&nbsp;</td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">139,527</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        face="Helv">165,106</font></p>
        </td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">458,812</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">463,856</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Profit
        before income taxes</font></td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">2,794</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        face="Helv">11,298</font></p>
        </td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">24,020</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">37,796</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Income tax
        provision</font></td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">1,198</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        face="Helv">4,682</font></p>
        </td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">9,856</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">15,774</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="22">&nbsp;</td>
        <td width="14%" height="22">&nbsp;</td>
        <td width="12%" height="22">&nbsp;</td>
        <td width="16%" 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="14%" height="22"><p align="right"><font
        face="Helv">$1,596</font></p>
        </td>
        <td width="12%" height="22"><p align="right"><font
        face="Helv">$6,616</font></p>
        </td>
        <td width="16%" height="22"><p align="right"><font
        face="Helv">$14,164</font></p>
        </td>
        <td width="15%" height="22"><p align="right"><font
        face="Helv">$22,022</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="22">&nbsp;</td>
        <td width="14%" height="22">&nbsp;</td>
        <td width="12%" height="22">&nbsp;</td>
        <td width="16%" 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="14%" height="22"><p align="right"><font
        face="Helv">$0.12</font></p>
        </td>
        <td width="12%" height="22"><p align="right"><font
        face="Helv">$0.52</font></p>
        </td>
        <td width="16%" height="22"><p align="right"><font
        face="Helv">$1.06</font></p>
        </td>
        <td width="15%" height="22"><p align="right"><font
        face="Helv">$1.74</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21"><font face="Helv">Diluted
        earnings per share</font></td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">$0.12</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        face="Helv">$0.36</font></p>
        </td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">$0.83</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">$1.21</font></p>
        </td>
    </tr>
    <tr>
        <td width="43%" height="21">&nbsp;</td>
        <td width="14%" height="21">&nbsp;</td>
        <td width="12%" height="21">&nbsp;</td>
        <td width="16%" 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="14%" height="21"><p align="right"><font
        face="Helv">$0.09</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        face="Helv">$0.09</font></p>
        </td>
        <td width="16%" height="21"><p align="right"><font
        face="Helv">$0.27</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">$0.27</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
        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">September
        30, </font></p>
        </td>
        <td colspan="2" width="23%" height="21"><p align="center"><font
        size="2" face="Helv">Nine Months ended </font></p>
        <p align="center"><font size="2" face="Helv">September
        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">$1,596</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">$6,616</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">$14,164</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">$22,022</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">2,478</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">2,686</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">7,368</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">7,027</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">3,699</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">882</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">4,597</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">3,346</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">34</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">150</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">2,742</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">905</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">1,637</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(37,756)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">784</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(41,094)</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">153</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(2,219)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">1,638</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(9,264)</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">(95,862)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">334,627</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(147,790)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">180,444</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">32,615</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">5,497</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">54,624</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(545,346)</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">7,739</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">7,896</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">20,452</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(21,591)</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">5,926</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(11,647)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">21,758</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(23,241)</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">(6,603)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">5,191</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">12,141</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(13,769)</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">(6,290)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(21,316)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(26,643)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">16,848</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">64,558</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(242,388)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">170,808</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(118,928)</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">65,157</font></p>
        </td>
        <td width="12%" height="22"><p align="right"><font
        size="2" face="Helv">(53,870)</font></p>
        </td>
        <td width="11%" height="22"><p align="right"><font
        size="2" face="Helv">(34,014)</font></p>
        </td>
        <td width="12%" height="22"><p align="right"><font
        size="2" face="Helv">367,309</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">(16,834)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">2,132</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">2,585</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">5,410</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">(1,440)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">28,125</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(22,815)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">48,304</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">7,735</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(18,899)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">17,338</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(5,404)</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">1,730</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">285</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">1,663</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">3,673</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">68,028</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">5,992</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">101,400</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(123,349)</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">-</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">(1,482)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(3,993)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(4,862)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(9,106)</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">(1,482)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(3,993)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(4,862)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(25,796)</font></p>
        </td>
    </tr>
</table>

<table border="0" cellpadding="0" cellspacing="0" width="601">
    <tr>
        <td width="54%" height="21">&nbsp;</td>
    </tr>
    <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">(1,212)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(1,155)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(3,624)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(3,455)</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">91</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">870</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">10,415</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">7,095</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">(3,091)</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">(3,091)</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">(3,825)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(3,616)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(11,765)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(10,961)</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">25,000</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">50,000</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">(2,564)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(3,389)</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(10,783)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">(6,246)</font></p>
        </td>
    </tr>
    <tr>
        <td width="54%" height="21"><font size="2" face="Helv">(Decrease)
        increase in bank loans</font></td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(61,699)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">2,025</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(87,300)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">153,900</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">(72,300)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">19,735</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(106,148)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">189,748</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">(5,754)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">21,734</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">(9,610)</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">40,603</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">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">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">$24,868</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">$56,718</font></p>
        </td>
        <td width="11%" height="21"><p align="right"><font
        size="2" face="Helv">$24,868</font></p>
        </td>
        <td width="12%" height="21"><p align="right"><font
        size="2" face="Helv">$56,718</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">September 30,</font></p>
        </td>
        <td colspan="2" width="26%" height="21"><p align="center"><font
        face="Helv">Nine Months ended</font></p>
        <p align="center"><font face="Helv">September 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">$51,977</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">$40,111</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">91</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">870</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">10,415</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">7,095</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">(3,091)</font></p>
        </td>
        <td width="15%" height="22"><p align="right"><font
        face="Helv">-</font></p>
        </td>
        <td width="13%" height="22"><p align="right"><font
        face="Helv">(3,091)</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">$48,977</font></p>
        </td>
        <td width="15%" height="23"><p align="right"><font
        face="Helv">$40,981</font></p>
        </td>
        <td width="13%" height="23"><p align="right"><font
        face="Helv">$48,977</font></p>
        </td>
        <td width="14%" height="23"><p align="right"><font
        face="Helv">$40,981</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">$8,674</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">$5,783</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">34</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">150</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">2,742</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">905</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">$8,708</font></p>
        </td>
        <td width="15%" height="22"><p align="right"><font
        face="Helv">$5,933</font></p>
        </td>
        <td width="13%" height="22"><p align="right"><font
        face="Helv">$8,708</font></p>
        </td>
        <td width="14%" height="22"><p align="right"><font
        face="Helv">$5,933</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">$243,468</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">$221,243</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">1,596</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">6,616</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">14,164</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">22,022</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">(1,212)</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">(1,155)</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">(3,624)</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">(3,455)</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">$243,852</font></p>
        </td>
        <td width="15%" height="22"><p align="right"><font
        face="Helv">$226,704</font></p>
        </td>
        <td width="13%" height="22"><p align="right"><font
        face="Helv">$243,852</font></p>
        </td>
        <td width="14%" height="22"><p align="right"><font
        face="Helv">$226,704</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">$301,537</font></p>
        </td>
        <td width="15%" height="21"><p align="right"><font
        face="Helv">$273,618</font></p>
        </td>
        <td width="13%" height="21"><p align="right"><font
        face="Helv">$301,537</font></p>
        </td>
        <td width="14%" height="21"><p align="right"><font
        face="Helv">$273,618</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>&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 consolidated balance sheets, consolidated
statements of operations or consolidated statements of cash
flows. </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">September 30,</font></p>
        </td>
        <td colspan="2" width="30%"><p align="center"><font
        size="2">Nine Months ended</font></p>
        <p align="center"><font size="2">September 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">$1,596,000</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$6,616,000</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$14,164,000</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$22,022,000</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">390,000</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">455,000</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">1,171,000</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">1,352,000</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">$1,206,000</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$6,161,000</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$12,993,000</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$20,670,000</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">$0.52</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$1.06</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$1.74</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">$0.36</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$0.83</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$1.21</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">$0.48</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$0.97</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$1.63</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">$0.34</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$0.77</font></p>
        </td>
        <td width="15%"><p align="right"><font size="2">$1.14</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 nine months ended September 30, 2004 and 2003,
respectively, was nil and $121,000, respectively and $2,309,000
and $1,239,000, 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>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>Nine Months ended</b></font></p>
        </td>
    </tr>
    <tr>
        <td width="35%" height="16">&nbsp;</td>
        <td colspan="2" width="32%" height="16"><p align="center"><font
        size="2"><b>September 30,</b></font></p>
        </td>
        <td colspan="2" width="32%" height="16"><p align="center"><font
        size="2"><b>September 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">13,442,014</font></p>
        </td>
        <td width="17%" height="43"><p align="right"><font
        size="2">12,835,795</font></p>
        </td>
        <td width="16%" height="43"><p align="right"><font
        size="2">13,384,113</font></p>
        </td>
        <td width="17%" height="43"><p align="right"><font
        size="2">12,690,313</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">84,328</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">333,199</font></p>
        </td>
        <td width="16%" height="16"><p align="right"><font
        size="2">204,690</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">262,339</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">13,526,342</font></p>
        </td>
        <td width="17%" height="17"><p align="right"><font
        size="2">20,100,994</font></p>
        </td>
        <td width="16%" height="17"><p align="right"><font
        size="2">20,520,804</font></p>
        </td>
        <td width="17%" height="17"><p align="right"><font
        size="2">19,884,651</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">$1,596,000</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">$6,616,000</font></p>
        </td>
        <td width="16%" height="16"><p align="right"><font
        size="2">$14,164,000</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">$22,022,000</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">680,000</font></p>
        </td>
        <td width="16%" height="16"><p align="right"><font
        size="2">2,840,000</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">2,040,000</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">$1,596,000</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">$7,296,000</font></p>
        </td>
        <td width="16%" height="16"><p align="right"><font
        size="2">$17,004,000</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">$24,062,000</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">$0.52</font></p>
        </td>
        <td width="16%" height="16"><p align="right"><font
        size="2">$1.06</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">$1.74</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">$0.36</font></p>
        </td>
        <td width="16%" height="16"><p align="right"><font
        size="2">$0.83</font></p>
        </td>
        <td width="17%" height="16"><p align="right"><font
        size="2">$1.21</font></p>
        </td>
    </tr>
</table>

<blockquote>
    <p>(1) 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 September 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>(2) The diluted EPS computations do not include the
    antidilutive effect of the following options:</p>
</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">Nine
        Months ended</p>
        </td>
    </tr>
    <tr>
        <td width="33%" height="7">&nbsp;</td>
        <td colspan="2" width="34%" height="7"><p align="center">September
        30,</p>
        </td>
        <td colspan="2" width="32%" height="7"><p align="center">September
        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, for the
        period</td>
        <td width="17%"><p align="right">904,000</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">333,000</p>
        </td>
    </tr>
</table>

<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">September 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">$32,388,000</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">16,048,000</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">23,198,000</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 and other </td>
        <td width="20%"><p align="right">3,137,000</p>
        </td>
        <td width="3%">&nbsp;</td>
        <td width="22%"><p align="right">3,314,000</p>
        </td>
    </tr>
    <tr>
        <td width="54%">&nbsp;</td>
        <td width="20%"><p align="right">$74,771,000</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">September
        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">$8,012,000</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">3,296,000</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">1,964,000</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">$13,272,000</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 September 30, 2004 are securities with fair
market values of approximately $15,398,000 ($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
September 30, 2004, the Company has pledged securities owned of
approximately $2,469,000 ($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">September 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">$28,872,000</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">$18,753,000</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">$39,110,000</p>
        </td>
        <td width="6%">&nbsp;</td>
    </tr>
    <tr>
        <td colspan="3" width="75%">Less current portion</td>
        <td width="19%"><p align="right">11,900,000</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">$27,210,000</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
September 30, 2004, the Company was in compliance with the
covenants. Interest expense on bank loans was $518,000 and
$665,000, respectively, and $1,624,000 and $1,346,000,
respectively, for the three and nine months ended September 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 or 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
$1,644,000 and $1,173,000, respectively, and $4,896,000 and
$3,518,000, respectively, for the three and nine months ended
September 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 September 30, 2004, the net
capital of Oppenheimer as calculated under the Rule was
$193,087,000 or 19.1% of Oppenheimer's aggregate debit items.
This was $172,876,000 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 September 30,
2004, Freedom had net capital of $4,757,000, which was $4,507,000
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 $334,576,000 (at
December 31, 2003 - $237,329,000). Included in payable to brokers
and clearing organizations are deposits received for securities
loaned of $601,817,000 (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. 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 purchase 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 September 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 $358,734,000 under securities loan agreements. In
addition, the Company has received collateral of approximately
$324,126,000 under securities borrow agreements of which the
Company has repledged approximately $240,589,000 as collateral
under securities loan agreements. Included in receivable from
brokers and clearing organizations are receivables from four
major U.S. broker-dealers totaling $196,078,000.</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 September 30, 2004, the Company had outstanding commitments
to buy of $1,269,000 primarily 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 September 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 $76,161,000 at September 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">September 30,</font></p>
        </td>
        <td colspan="2" width="35%"><p align="center"><font
        size="2">Nine Months ended</font></p>
        <p align="center"><font size="2">September 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">$106,985</font></p>
        </td>
        <td width="16%"><p align="right"><font size="2">$133,530</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">$371,368</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">$386,000</font></p>
        </td>
    </tr>
    <tr>
        <td width="32%">Capital Markets</td>
        <td width="16%"><p align="right"><font size="2">22,025</font></p>
        </td>
        <td width="16%"><p align="right"><font size="2">27,707</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">70,129</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">96,472</font></p>
        </td>
    </tr>
    <tr>
        <td width="32%">Asset Management</td>
        <td width="16%"><p align="right"><font size="2">12,816</font></p>
        </td>
        <td width="16%"><p align="right"><font size="2">13,923</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">38,026</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">15,965</font></p>
        </td>
    </tr>
    <tr>
        <td width="32%" height="23">Other</td>
        <td width="16%" height="23"><p align="right"><font
        size="2">495</font></p>
        </td>
        <td width="16%" height="23"><p align="right"><font
        size="2">1,244</font></p>
        </td>
        <td width="18%" height="23"><p align="right"><font
        size="2">3,309</font></p>
        </td>
        <td width="18%" height="23"><p align="right"><font
        size="2">3,215</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">$142,321</font></p>
        </td>
        <td width="16%"><p align="right"><font size="2">$176,404</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">$482,832</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">$501,652</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">$3,026</font></p>
        </td>
        <td width="16%"><p align="right"><font size="2">$3,707</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">$25,706</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">$1,259</font></p>
        </td>
    </tr>
    <tr>
        <td width="32%">Capital Markets</td>
        <td width="16%"><p align="right"><font size="2">4,109</font></p>
        </td>
        <td width="16%"><p align="right"><font size="2">5,388</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">13,358</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">16,992</font></p>
        </td>
    </tr>
    <tr>
        <td width="32%">Asset Management</td>
        <td width="16%"><p align="right"><font size="2">880</font></p>
        </td>
        <td width="16%"><p align="right"><font size="2">2,028</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">841</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">2,404</font></p>
        </td>
    </tr>
    <tr>
        <td width="32%">Other *</td>
        <td width="16%"><p align="right"><font size="2">(5,221)</font></p>
        </td>
        <td width="16%"><p align="right"><font size="2">175</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">(15,885)</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">17,141</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">$2,794</font></p>
        </td>
        <td width="16%"><p align="right"><font size="2">$11,298</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">$24,020</font></p>
        </td>
        <td width="18%"><p align="right"><font size="2">$37,796</font></p>
        </td>
    </tr>
</table>

<blockquote>
    <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 nine months ended
    September 30, 2003 includes the impact of the favorable
    arbitration award received in January 2003.</p>
    <blockquote>
        <p>&nbsp;</p>
        <p>&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 83 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 September 30, 2004 totaled
approximately $45.6 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. The Company provides discount
brokerage services through Freedom Investments Inc. and through
BUYandHOLD, a division of Freedom. At September 30, 2004, client
assets under management by the asset management groups totaled
$9.3 billion. At September 30, 2004, the Company employed
approximately 2,900 people, of whom 1,542 were financial
consultants. </p>

<p>Critical Accounting Policies</p>

<p>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 nine months ended September 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, firm
trading, fees from accounts under investment management, 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 third
quarter of 2004, compared with the same period of 2003, with
commission business, principal trading and net interest revenue
in the third quarter of 2004 lagging the prior year. While the
U.S. economy has continued to expand, the lack of significant new
job creation, the record trade and budget deficits, and the
troubled geopolitical environment have placed a pall over
securities markets during the first nine months of 2004. The
third quarter of 2004 was marked by one of the slowest summer
periods in recent years, depressed market sentiment and low
activity levels. Investors&#146; focus on the presidential
election, rapidly rising oil prices and interest rate concerns
led to lower commission revenues, lower proprietary trading
profits, as well as reduced underwriting revenue and advisory fee
income compared to the same period in 2003. The Company&#146;s
expenses in the three and nine months ended September 30, 2004
are lower compared to the same periods of 2003 due primarily to
lower variable compensation costs although there has been an
increased burden of compliance and regulatory expenses. </p>

<p>Interest rate changes also impact the Company&#146;s fixed
income businesses as well as its cost of borrowed funds. The
three and nine months of 2004 produced higher rates and a less
favorable rate environment compared to the falling interest rate
environment in the same periods of 2003. Investor interest in
fixed income securities is driven by attractiveness of published
rates, the direction of rates and economic expectations.
Volatility in bond prices also impacts opportunities for profits
in fixed income proprietary trading. Management constantly
monitors its exposure to interest rate fluctuations to mitigate
risk of loss in volatile environments. </p>

<p>The Company is focused on growing its private client and asset
management businesses through strategic additions of experienced
financial consultants in its existing branch system and
employment of experienced money management personnel in its asset
management business. In addition, the Company is committed to
improvement of its technology capability to support client
service and the expansion of its capital markets capabilities.</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.
Events in recent years surrounding corporate accounting and other
activities leading to investor losses resulted in the enactment
of the Sarbanes-Oxley Act and have caused increased surveillance
of public companies. New regulations and new interpretations and
enforcement of existing regulations are creating increased costs
of compliance and increased investment in systems and procedures
to comply with these more complex and onerous requirements.
Investigations by the SEC and state regulators into mutual fund
trading practices are another indication of the regulators&#146;
heightened commitment to enforcement actions. Increasingly, the
various states are imposing their own regulations that make the
uniformity of regulation a thing of the past, and make compliance
more difficult and more expensive to monitor. This regulatory
environment has resulted in increased costs of compliance with
rules and regulations, in particular, the impact of the rules and
requirements that were created by the passage of the Patriot Act,
and the anti-money laundering regulations (AML) that are related
thereto. The Company&#146;s increased exposure to regulatory
actions 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, the NY State Attorney General and other
regulators 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 and subpoenas and
there have been on-the-record interviews of cCompany personnel.
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
investing entities. </p>

<p>The Company believes that a limited number of its financial
advisors may have engaged in 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. The
Company has determined that there is no need to set up any
reserves with respect to these inquiries at this time.</p>

<p>Results of Operations </p>

<p>Net profit for the three and nine months ended September 30,
2004 was $1,596,000 or $0.12 per share and $14,164,000 or $1.06
per share, respectively, a decrease of 76% and 36%, respectively,
when compared to $6,616,000 or $0.52 per share and $22,022,000 or
$1.74 per share, respectively, in the same periods of 2003.
Revenue for the three and nine months ended September 30, 2004
was $142,321,000 and $482,832,000, respectively, a decrease of
19% and 4%, respectively, compared to revenue of $176,404,000 and
$501,652,000, respectively, in the same periods of 2003. Expenses
decreased by 16% and 1%, respectively, in the three and nine
months ended September 30, 2004 compared to the same periods of
2003, primarily reflecting decreased volume-related compensation
expense, which varies with the level of commission revenue.</p>

<p>It is important to note when comparing the results of the nine
months ended September 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 September 30,</p>
        </td>
        <td colspan="2" width="33%"><p align="center">Nine Months
        ended September 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%">Revenue -</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">$(14,958)</p>
        </td>
        <td width="15%"><p align="right">-17.4%</p>
        </td>
        <td width="17%"><p align="right">$8,478</p>
        </td>
        <td width="16%"><p align="right">3.6%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Principal transactions, net</td>
        <td width="22%"><p align="right">(13,491)</p>
        </td>
        <td width="15%"><p align="right">-37.7%</p>
        </td>
        <td width="17%"><p align="right">(19,644)</p>
        </td>
        <td width="16%"><p align="right">-19.3%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Interest</td>
        <td width="22%"><p align="right">456</p>
        </td>
        <td width="15%"><p align="right">4.3%</p>
        </td>
        <td width="17%"><p align="right">449</p>
        </td>
        <td width="16%"><p align="right">1.4%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Underwriting fees</td>
        <td width="22%"><p align="right">(3,472)</p>
        </td>
        <td width="15%"><p align="right">-26.8%</p>
        </td>
        <td width="17%"><p align="right">(6,261)</p>
        </td>
        <td width="16%"><p align="right">-15.5%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Advisory fees</td>
        <td width="22%"><p align="right">(1,708)</p>
        </td>
        <td width="15%"><p align="right">-6.8%</p>
        </td>
        <td width="17%"><p align="right">21,012</p>
        </td>
        <td width="16%"><p align="right">38.2%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Arbitration awards</td>
        <td width="22%"><p align="right">1,200</p>
        </td>
        <td width="15%"><p align="right">100.0%</p>
        </td>
        <td width="17%"><p align="right">(17,850)</p>
        </td>
        <td width="16%"><p align="right">-82.1%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Other</td>
        <td width="22%"><p align="right">(2,110)</p>
        </td>
        <td width="15%"><p align="right">-34.7%</p>
        </td>
        <td width="17%"><p align="right">(5,004)</p>
        </td>
        <td width="16%"><p align="right">-27.9%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Total revenue</td>
        <td width="22%"><p align="right">(34,083)</p>
        </td>
        <td width="15%"><p align="right">-19.3%</p>
        </td>
        <td width="17%"><p align="right">(18,820)</p>
        </td>
        <td width="16%"><p align="right">-3.8%</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">(19,382)</p>
        </td>
        <td width="15%"><p align="right">-16.9%</p>
        </td>
        <td width="17%"><p align="right">5,621</p>
        </td>
        <td width="16%"><p align="right">1.8%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Clearing and exchanges fees</td>
        <td width="22%"><p align="right">280</p>
        </td>
        <td width="15%"><p align="right">7.9%</p>
        </td>
        <td width="17%"><p align="right">(4,673)</p>
        </td>
        <td width="16%"><p align="right">-28.7%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Communications</td>
        <td width="22%"><p align="right">(1,728)</p>
        </td>
        <td width="15%"><p align="right">-13.6%</p>
        </td>
        <td width="17%"><p align="right">(4,200)</p>
        </td>
        <td width="16%"><p align="right">-10.4%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Occupancy costs</td>
        <td width="22%"><p align="right">(1,416)</p>
        </td>
        <td width="15%"><p align="right">-9.2%</p>
        </td>
        <td width="17%"><p align="right">1,141</p>
        </td>
        <td width="16%"><p align="right">2.8%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Interest</td>
        <td width="22%"><p align="right">796</p>
        </td>
        <td width="15%"><p align="right">20.0%</p>
        </td>
        <td width="17%"><p align="right">1,462</p>
        </td>
        <td width="16%"><p align="right">12.8%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Other</td>
        <td width="22%"><p align="right">(4,129)</p>
        </td>
        <td width="15%"><p align="right">-27.6%</p>
        </td>
        <td width="17%"><p align="right">(4,395)</p>
        </td>
        <td width="16%"><p align="right">-10.7%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Total expenses</td>
        <td width="22%"><p align="right">(25,579)</p>
        </td>
        <td width="15%"><p align="right">-15.5%</p>
        </td>
        <td width="17%"><p align="right">(5,044)</p>
        </td>
        <td width="16%"><p align="right">-1.1%</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">(8,504)</p>
        </td>
        <td width="15%"><p align="right">-75.3%</p>
        </td>
        <td width="17%"><p align="right">(13,776)</p>
        </td>
        <td width="16%"><p align="right">-36.4%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Income taxes</td>
        <td width="22%"><p align="right">(3,484)</p>
        </td>
        <td width="15%"><p align="right">-74.4%</p>
        </td>
        <td width="17%"><p align="right">(5,918)</p>
        </td>
        <td width="16%"><p align="right">-37.5%</p>
        </td>
    </tr>
    <tr>
        <td width="30%">Net profit</td>
        <td width="22%"><p align="right">$(5,020)</p>
        </td>
        <td width="15%"><p align="right">-75.9%</p>
        </td>
        <td width="17%"><p align="right">$(7,858)</p>
        </td>
        <td width="16%"><p align="right">-35.7%</p>
        </td>
    </tr>
</table>

<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 months ended September 30, 2004, commission
revenue decreased by 17% compared to the same period of 2003
primarily as a result of decreased investor activity in the
markets. In the nine months ended September 30, 2004, commission
revenue increased by 4% compared to the same period of 2003 due
to a reasonably strong first quarter in 2004. However, investor
activity in the markets fell dramatically in the second and third
quarters of 2004. Net revenue from principal transactions
decreased by 38% and 19%, respectively, in the three and nine
months ended September 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 27% and
16%, respectively, in the three and nine months ended September
30, 2004 compared with the same periods of 2003 due to the drop
in new issue and secondary issuance in 2004 compared to 2003.
Advisory fees decreased by 7% for the three months ended
September 30, 2004 but increased by 38% for the nine months ended
September 30, 2004 compared to the same periods of 2003. The
third quarter of 2004&#146;s results reflected current listless
market conditions compared to the comparable period of 2003. The
nine months ending September 30, 2004 includes the operations of
Oppenheimer Asset Management Inc. for the full period, while the
2003 comparative period includes results following its
acquisition on June 4, 2003. Assets under management by the asset
management group were $9.3 billion at September 30, 2004 and
2003.</p>

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

<p>Net interest revenue (interest revenue less interest expense)
decreased by 5% in the three and nine months ended September 30,
2004. 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 decreased by 17% in the three months
ended September 30, 2004 and increased by 2% for the nine months
ended September 30, 2004 compared to the comparable periods of
2003. Compensation expense has volume-related components and,
therefore, decreased with the decreased level of commission
business conducted in the three months ended September 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
nine months ended September 30, 2004, compared to the comparable
period 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 increased by 8% in the three months
ended September 30, 2004 and decreased by 29% in the nine months
ended September 30, 2004, compared to the comparable periods of
2003. The change in the year to date comparison is primarily 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 14% and 10%,
respectively, in the three and nine months ended September 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 tapered off,
reflected in the current quarterly comparisons. Occupancy costs
decreased by 9% in the three months ended September 30, 2004 and
increased by 3% in the nine months ended September 30, 2004
compared to the same periods of 2003. On the year to date
comparison, the change is 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.
On the three month comparison, occupancy costs have been
aggressively addressed and previously underutilized space has
been refitted and occupied and overlapping offices have been
integrated, resulting in a reduction in occupancy-related
expenses in 2004 compared to 2003. Other expenses continue to be
affected by litigation settlement costs, although to a lesser
degree in the third 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 September 30, 2004 increased by approximately
1% from December 31, 2003 with increases in receivable from
brokers and clearing organizations being offset by decreases in
every other liquid asset category. Liquid assets accounted for
89% 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 as well as bonded debt. 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 September 30, 2004, $4,200,000 of such
borrowings were outstanding, a decrease of 95% compared to
outstanding borrowings at December 31, 2003. At September 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 September 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. (See Factors Affecting &quot;Forward-Looking
Statements&quot;).</p>

<p>In the third quarter of 2004, the Company purchased 130,800
Class A Shares pursuant to a Normal Course Issuer Bid (which
commenced on July 22, 2004, and will terminate on July 21, 2005)
at an average cost per share of $23.63.</p>

<p>On August 20, 2004, the Company paid cash dividends of
U.S.$0.09 per Class A and Class B Share totaling $1,212,000 from
available cash on hand.</p>

<p>On October 25, 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 November 19, 2004, to shareholders of record on
November 5, 2004.</p>

<p>The book value of the Company&#146;s Class A and Class B
Shares was $22.58 at September 30, 2004 compared to $21.24 at
September 30, 2003, an increase of approximately 6%, based on
total outstanding shares of 13,354,441 and 12,880,020,
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 &amp; Co. Inc. </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">$6</p>
        </td>
        <td width="10%"><p align="right">$22</p>
        </td>
        <td width="10%"><p align="right">$22</p>
        </td>
        <td width="9%"><p align="right">$20</p>
        </td>
        <td width="18%"><p align="right">$89</p>
        </td>
        <td width="10%"><p align="right">$159</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">1</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">2</p>
        </td>
    </tr>
    <tr>
        <td width="31%">Bank loans</td>
        <td width="11%"><p align="right">3</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">29</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">3</p>
        </td>
        <td width="10%"><p align="right">12</p>
        </td>
        <td width="10%"><p align="right">12</p>
        </td>
        <td width="9%"><p align="right">12</p>
        </td>
        <td width="18%"><p align="right">-</p>
        </td>
        <td width="10%"><p align="right">39</p>
        </td>
    </tr>
    <tr>
        <td width="31%">Total</td>
        <td width="11%"><p align="right">14</p>
        </td>
        <td width="10%"><p align="right">45</p>
        </td>
        <td width="10%"><p align="right">44</p>
        </td>
        <td width="9%"><p align="right">38</p>
        </td>
        <td width="18%"><p align="right">250</p>
        </td>
        <td width="10%"><p align="right">391</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 consolidated balance sheets, consolidated
statements of operations or consolidated statements of cash
flows. </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 (xiii) the
Company&#146;s ability to achieve its business plan and (xiv)
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>ITEM 3. Quantitative and Qualitative Disclosures About
Market Risk</b></p>

<p>During the three months ended September 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><b>ITEM 4. Controls and Procedures </b></p>

<p><a name="OLE_LINK2">As of the end of the period covered by
this report, the Company evaluated the effectiveness of the
design and operation of its disclosure controls and procedures.
This evaluation was performed under the supervision and with the
participation of management, including the Chief Executive
Officer and Chief Financial Officer. The Company hired Grant
Thornton LLP to assist the Company in this effort.</a></p>

<p><a name="OLE_LINK2">Disclosure Controls are procedures
designed to ensure that information required to be disclosed in
the Company&#146;s reports filed under the Exchange Act, such as
this Quarterly Report, is recorded, processed, summarized and
reported within the time periods specified in the SEC rules and
forms. Disclosure Controls are also designed to ensure that such
information is accumulated and communicated to management,
including the CEO and CFO, as appropriate to allow timely
decisions regarding required disclosure. Disclosure Controls
include components of the Company&#146;s internal control over
financial reporting, which consist of control processes designed
to provide reasonable assurance regarding the reliability of the
Company&#146;s financial reporting and the preparation of
financial statements in conformity with generally accepted
accounting principles in the U.S. To the extent that components
of the Company&#146;s internal control over financial reporting
are included within the Company&#146;s Disclosure Controls, they
are included in the scope of the Company&#146;s quarterly
controls evaluation.</a></p>

<p><a name="OLE_LINK2">The Company's management, including the
CEO and CFO, does not expect that the Disclosure Controls or the
Company&#146;s internal controls over financial reporting will
prevent all error and all fraud. A control system, no matter how
well designed and operated, can provide only reasonable, not
absolute, assurance that the control system's objectives will be
met. Further, the design of a control system must reflect the
fact that there are resource constraints, and the benefits of
controls must be considered relative to their costs. Because of
the inherent limitations in all control systems, no evaluation of
controls can provide absolute assurance that all control issues
and instances of fraud, if any, within the Company have been
detected. These inherent limitations include the realities that
judgments in decision-making can be faulty and that breakdowns
can occur because of simple error or mistake. Controls can also
be circumvented by the individual acts of some persons, by
collusion of two or more people, or by management override of the
controls. The design of any system of controls is based in part
upon certain assumptions about the likelihood of future events,
and there can be no assurance that any design will succeed in
achieving its stated goals under all potential future conditions.
Over time, controls may become inadequate because of changes in
conditions or deterioration in the degree of compliance with its
policies or procedures. Because of the inherent limitations in a
cost effective control system, misstatements due to error or
fraud may occur and not be detected.</a></p>

<p><a name="OLE_LINK2">The evaluation of controls included a
review of the controls' objectives and design, the Company's
implementation of the controls, and the effect of the controls on
the information generated for use in this Quarterly Report. In
the course of the evaluation of controls, management sought to
identify data errors, controls problems or acts of fraud and
confirm that appropriate corrective actions, including process
improvements, were being undertaken. This type of evaluation is
performed on a quarterly basis so that the conclusions of
management, including the CEO and CFO, concerning controls
effectiveness can be reported in the Company&#146;s Quarterly
Reports on Form 10-Q and Annual Report on Form 10-K. Many of the
components of the Company&#146;s Disclosure Controls are also
evaluated on an ongoing basis by the Internal Audit Department
and by other personnel of the Company who evaluate them in
connection with determining their auditing procedures related to
their report on the Company&#146;s annual financial statements
and not to provide assurance on the Company&#146;s Controls. The
overall goals of these various evaluation activities are to
monitor Disclosure Controls and to modify them as necessary. The
Company intends to maintain the Disclosure Controls as dynamic
systems that change as conditions warrant.</a></p>

<p><a name="OLE_LINK2">Based upon the Controls Evaluation, the
CEO and CFO have concluded that, subject to the limitations noted
above, as of the end of the period covered by this Quarterly
Report, the Disclosure Controls were effective to provide
reasonable assurance that material information relating to the
Company and its consolidated subsidiaries is made known to
management, including the CEO and CFO, particularly during the
period when the periodic reports are being prepared.</a></p>

<p><a name="OLE_LINK2">During the quarter ended September 30,
2004, there have been no changes in the Company&#146;s internal
controls over financial reporting that have materially affected,
or are reasonably likely to materially affect, the Company&#146;s
internal controls over financial reporting.</a></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>

<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><b>ITEM 2. Unregistered Sales of Equity Securities and Use of
Proceeds</b><font size="3"> </font>Not applicable</p>

<p><b>ITEM 3. Defaults Upon Senior Securities</b></p>

<p>Not applicable</p>

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

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

<p>(a) Exhibits </p>

<blockquote>
    <blockquote>
        <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>
</blockquote>

<p>(b) Reports on Form 8-K </p>

<blockquote>
    <blockquote>
        <p>1.1 Form 8-K/A, Amendment No. 3, filed August 9, 2004
        &#150; reporting pursuant to Item 7 of such Form the
        audited historical financial statements of the businesses
        acquired.</p>
        <p>&nbsp;</p>
    </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 this 3rd day of November,
2004.</p>

<p>OPPENHEIMER HOLDINGS INC.</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>

<p>&nbsp;</p>
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<TYPE>EX-31
<SEQUENCE>2
<FILENAME>ex312.htm
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<body bgcolor="#FFFFFF">

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

<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 width="0%">&nbsp;</td>
        <td 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 width="0%">&nbsp;</td>
    </tr>
    <tr>
        <td width="0%">&nbsp;</td>
        <td 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 width="0%">&nbsp;</td>
    </tr>
    <tr>
        <td width="0%">&nbsp;</td>
        <td 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 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 width="1%">&nbsp;</td>
        <td 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 width="0%">&nbsp;</td>
    </tr>
    <tr>
        <td width="1%">&nbsp;</td>
        <td 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 width="0%">&nbsp;</td>
    </tr>
</table>

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

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

<p><font face="Arial">November 3, 2004</font></p>

<p><font face="Arial"></font>&nbsp;</p>
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<SEQUENCE>3
<FILENAME>ex32.htm
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<body bgcolor="#FFFFFF">

<pre><font face="Arial">EXHIBIT 32.1


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 September 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 3rd day of November, 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>
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</TEXT>
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<FILENAME>ex311.htm
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<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 width="8%">&nbsp;</td>
        <td 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 width="0%">&nbsp;</td>
    </tr>
    <tr>
        <td width="8%">&nbsp;</td>
        <td 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 width="0%">&nbsp;</td>
    </tr>
    <tr>
        <td width="8%">&nbsp;</td>
        <td 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 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 width="8%">&nbsp;</td>
        <td 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 width="0%">&nbsp;</td>
    </tr>
    <tr>
        <td width="8%">&nbsp;</td>
        <td 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 width="0%">&nbsp;</td>
    </tr>
</table>

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

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

<p><font face="Arial">November 3, 2004</font></p>
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