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<SEC-DOCUMENT>0000791963-06-000005.txt : 20060509
<SEC-HEADER>0000791963-06-000005.hdr.sgml : 20060509
<ACCEPTANCE-DATETIME>20060509145807
ACCESSION NUMBER:		0000791963-06-000005
CONFORMED SUBMISSION TYPE:	10-Q
PUBLIC DOCUMENT COUNT:		4
CONFORMED PERIOD OF REPORT:	20060331
FILED AS OF DATE:		20060509
DATE AS OF CHANGE:		20060509

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:		06820342

	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>sec306.htm
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
<HTML>
<HEAD>
<TITLE>_________________________________________________________</TITLE>
<META NAME="author" CONTENT="eroberts">
<META NAME="date" CONTENT="05/09/2006">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>_________________________________________________________</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><B><BR></B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>UNITED STATES</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>SECURITIES AND EXCHANGE COMMISSION</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>Washington, D.C. &nbsp;&nbsp;20549</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><B><BR></B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>FORM 10-Q</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">[ x ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE </P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECURITIES EXCHANGE ACT OF 1934 </P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">For the Quarterly Period ended <B>March 31, 2006</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">or</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">[ &nbsp;&nbsp;] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECURITIES EXCHANGE ACT OF 1934 </P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">for the transition period from ___to___</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>Commission File Number: 1-12043</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center><B>OPPENHEIMER HOLDINGS INC.</B></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(Exact name of registrant as specified in its charter)</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-13pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Ontario, Canada &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin-top:0pt; margin-bottom:-13pt; text-indent:252pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">&nbsp;&nbsp;</P>
<P style="margin:0pt; text-indent:288pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">98-0080034</P>
<P style="margin-top:0pt; margin-bottom:-13pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">(State or other jurisdiction of &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; text-indent:288pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">(I.R.S. Employer</P>
<P style="margin-top:0pt; margin-bottom:-13pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">incorporation or organization) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; text-indent:288pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Identification No.)</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>P.O. Box 2015, Suite 1110</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>20 Eglinton Avenue West</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>Toronto, Ontario, Canada &nbsp;&nbsp;M4R 1K8</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(Address of principal executive offices)</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(Zip Code)</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=center><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>416-322-1515</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(Registrant&#146;s telephone number, including area code)</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>None</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>(Former name, former address and former fiscal year, if changed since last report)</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; text-indent:36pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>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. &nbsp;&nbsp;Yes [ X ] &nbsp;No [ &nbsp;]</P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; text-indent:36pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of &#147;accelerated filer and large accelerated filer&#148; in Rule 12b-2 of the Exchange Act. (Check one):</P>
<P style="margin:0pt; text-indent:36pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Large accelerated filer [ &nbsp;] &nbsp;Accelerated filer [ X ] &nbsp;Non-accelerated filer [ &nbsp;]</P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; text-indent:36pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Indicate by a check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). &nbsp;Yes [ &nbsp;] &nbsp;No [ X ]</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR></P>
<P style="margin:0pt; text-indent:36pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>The number of shares of the Company&#146;s Class A non-voting shares and Class B voting shares (being the only classes of common stock of the Company) outstanding on May 8, 2006 was 12,550,607 and 99,680 shares, respectively.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR>
<BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Arial; font-size:11pt" align=center><BR></P>
<P style="margin:0pt; line-height:15pt; font-family:Arial; font-size:13pt" align=center>OPPENHEIMER HOLDINGS INC.</P>
<P style="margin:0pt; line-height:15pt; font-family:Arial; font-size:13pt" align=center>INDEX</P>
<P style="margin:0pt; font-family:Arial; font-size:11pt" align=center><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=78>&nbsp;</TD><TD valign=top width=438>&nbsp;</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>Page No.</P>
</TD></TR>
<TR><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">PART I</P>
</TD><TD valign=top width=438><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">FINANCIAL INFORMATION</P>
</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Item 1. &nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=438><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Financial Statements (unaudited)</P>
</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=78>&nbsp;</TD><TD valign=top width=438><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Condensed Consolidated Balance Sheets</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">as of March 31, 2006 and December 31, 2005</P>
</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>1</P>
</TD></TR>
<TR><TD valign=top width=78>&nbsp;</TD><TD valign=top width=438>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=78>&nbsp;</TD><TD valign=top width=438><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Condensed Consolidated Statements of Operations</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">for the three months ended March 31, 2006 and 2005</P>
</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>3</P>
</TD></TR>
<TR><TD valign=top width=78>&nbsp;</TD><TD valign=top width=438>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=78>&nbsp;</TD><TD valign=top width=438><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Condensed Consolidated Statements of Cash Flow</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">for the three months ended March 31, 2006 and 2005</P>
</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>4</P>
</TD></TR>
<TR><TD valign=top width=78>&nbsp;</TD><TD valign=top width=438>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=78>&nbsp;</TD><TD valign=top width=438><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Condensed Consolidated Statements of Changes in Shareholders&#146; Equity for the three months ended March 31, 2006 and 2005</P>
</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>6</P>
</TD></TR>
<TR><TD valign=top width=78>&nbsp;</TD><TD valign=top width=438>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=78>&nbsp;</TD><TD valign=top width=438><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Notes to Condensed Consolidated Financial Statements </P>
</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>7</P>
</TD></TR>
<TR><TD valign=top width=78>&nbsp;</TD><TD valign=top width=438>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Item 2.</P>
</TD><TD valign=top width=438><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations</P>
</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>18</P>
</TD></TR>
<TR><TD valign=top width=78>&nbsp;</TD><TD valign=top width=438>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Item 3.</P>
</TD><TD valign=top width=438><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Quantitative and Qualitative Disclosures About Market Risk</P>
</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>28</P>
</TD></TR>
<TR><TD valign=top width=78>&nbsp;</TD><TD valign=top width=438>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Item 4.</P>
</TD><TD valign=top width=438><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Controls and Procedures</P>
</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>28</P>
</TD></TR>
<TR><TD valign=top width=78>&nbsp;</TD><TD valign=top width=438>&nbsp;</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">PART II</P>
</TD><TD valign=top width=438><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">OTHER INFORMATION</P>
</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Item 1. &nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=438><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Legal Proceedings </P>
</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>29</P>
</TD></TR>
<TR><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Item 1A.</P>
</TD><TD valign=top width=438><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Risk Factors</P>
</TD><TD valign=top width=66>&nbsp;</TD></TR>
<TR><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Item 2. &nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=438><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Unregistered Sales of Equity Securities and Use of Proceeds</P>
</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>29</P>
</TD></TR>
<TR><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Item 3. &nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=438><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Defaults Upon Senior Securities</P>
</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>29</P>
</TD></TR>
<TR><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Item 4. &nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=438><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Submission of Matters to a Vote of Security Holders</P>
</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>29</P>
</TD></TR>
<TR><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Item 5. &nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=438><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Other Information</P>
</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>29</P>
</TD></TR>
<TR><TD valign=top width=78><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Item 6. &nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=438><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Exhibits</P>
</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>29</P>
</TD></TR>
<TR><TD valign=top width=78>&nbsp;</TD><TD valign=top width=438><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">SIGNATURES</P>
</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>30</P>
</TD></TR>
<TR><TD valign=top width=78>&nbsp;</TD><TD valign=top width=438><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">Certifications</P>
</TD><TD valign=top width=66><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=center>31</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Arial; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt"><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Arial; font-size:11pt"><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center><B>PART 1 </B></P>
<P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center><B>FINANCIAL INFORMATION</B></P>
<P style="margin:0pt; font-family:Arial; font-size:11pt" align=center><B><BR></B></P>
<P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt"><B>Item. 1 &nbsp;Financial Statements </B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=541><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center>OPPENHEIMER HOLDINGS INC.</P>
</TD></TR>
<TR><TD valign=top width=541><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center>CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Arial"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=362.4>&nbsp;</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>March 31,</P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>December 31,</P>
</TD></TR>
<TR><TD style="border-bottom:1.5pt solid #000000" valign=top width=362.4><P style="margin:0pt; font-family:Arial; font-size:11pt">&nbsp;</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>2006 </P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>2005</P>
</TD></TR>
<TR><TD valign=top width=362.4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt"><I>Expressed in thousands of U.S. dollars</I></P>
</TD><TD valign=top width=87.533>&nbsp;</TD><TD valign=top width=87.533>&nbsp;</TD></TR>
<TR><TD valign=top width=362.4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">ASSETS</P>
</TD><TD valign=top width=87.533>&nbsp;</TD><TD valign=top width=87.533>&nbsp;</TD></TR>
<TR><TD valign=top width=362.4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Cash and cash equivalents</P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$25,988</P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$32,013</P>
</TD></TR>
<TR><TD valign=top width=362.4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Cash and securities segregated under federal and </P>
</TD><TD valign=top width=87.533>&nbsp;</TD><TD valign=top width=87.533>&nbsp;</TD></TR>
<TR><TD valign=top width=362.4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;other regulations</P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>29,481</P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>23,526</P>
</TD></TR>
<TR><TD valign=top width=362.4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Deposits with clearing organizations</P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>12,891</P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>14,240</P>
</TD></TR>
<TR><TD valign=top width=362.4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Receivable from brokers and clearing &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
</TD><TD valign=top width=87.533>&nbsp;</TD><TD valign=top width=87.533>&nbsp;</TD></TR>
<TR><TD valign=top width=362.4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;organizations</P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>530,611</P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>527,490</P>
</TD></TR>
<TR><TD valign=top width=362.4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Receivable from customers</P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>1,173,941</P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>1,117,214</P>
</TD></TR>
<TR><TD valign=top width=362.4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Securities owned including amounts pledged of $1,575 </P>
</TD><TD valign=top width=87.533>&nbsp;</TD><TD valign=top width=87.533>&nbsp;</TD></TR>
<TR><TD valign=top width=362.4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;($1,042 in 2004), at market value</P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>152,637</P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>146,645</P>
</TD></TR>
<TR><TD valign=top width=362.4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Notes receivable</P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>59,491</P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>59,874</P>
</TD></TR>
<TR><TD valign=top width=362.4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Other </P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>49,878</P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>72,394</P>
</TD></TR>
<TR><TD valign=top width=362.4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Property, plant and equipment, net </P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>17,687</P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>18,787</P>
</TD></TR>
<TR><TD valign=top width=362.4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Intangible assets, net of amortization</P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>34,211</P>
</TD><TD valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>34,395</P>
</TD></TR>
<TR><TD valign=top width=362.4><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Goodwill</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>137,889</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>137,889</P>
</TD></TR>
<TR><TD valign=top width=362.4>&nbsp;</TD><TD valign=top width=87.533>&nbsp;</TD><TD valign=top width=87.533>&nbsp;</TD></TR>
<TR><TD valign=top width=362.4>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$2,224,705</P>
</TD><TD style="border-bottom:3pt double #000000" valign=top width=87.533><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$2,184,467</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Arial"><BR></P>
<P style="margin:0pt; font-family:Arial"><BR></P>
<P style="margin:0pt; font-family:Arial"><BR></P>
<P style="margin:0pt; font-family:Arial">The accompanying notes are an integral part of these condensed consolidated financial statements.</P>
<P style="margin:0pt; font-family:Arial"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>1</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=541><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center>OPPENHEIMER HOLDINGS INC.</P>
</TD></TR>
<TR><TD valign=top width=541><P style="margin:0pt; line-height:14pt; font-family:Arial; font-size:12pt" align=center>CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=361>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>March 31,</P>
</TD><TD valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>December 31,</P>
</TD></TR>
<TR><TD style="border-bottom:1.5pt solid #000000" valign=top width=361><P style="margin:0pt; font-family:Arial; font-size:11pt">&nbsp;</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>2006 </P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>2005</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt"><I>Expressed in thousands of U.S. dollars</I></P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=88.933>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">LIABILITIES AND SHAREHOLDERS' EQUITY</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=88.933>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Liabilities</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=88.933>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Drafts payable</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$54,734</P>
</TD><TD valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$46,012</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Bank call loans</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>238,822</P>
</TD><TD valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>139,700</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Payable to brokers and clearing organizations</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>959,356</P>
</TD><TD valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>830,478</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Payable to customers</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>314,755</P>
</TD><TD valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>473,212</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Securities sold, but not yet purchased, at market </P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=88.933>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;value</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>8,754</P>
</TD><TD valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>9,786</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Accrued compensation</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>60,068</P>
</TD><TD valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>87,040</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Accounts payable and other liabilities</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>63,703</P>
</TD><TD valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>80,811</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Income taxes payable</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>7,353</P>
</TD><TD valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>6,584</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Bank loans </P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>-</P>
</TD><TD valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>14,524</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Zero coupon promissory note</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>20,436</P>
</TD><TD valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>22,822</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Exchangeable debentures</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>160,822</P>
</TD><TD valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>160,822</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Deferred income tax, net</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>9,720</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>4,553</P>
</TD></TR>
<TR><TD valign=top width=361>&nbsp;</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>1,898,522</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>1,876,344</P>
</TD></TR>
<TR><TD valign=top width=361>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=88.933>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Shareholders' equity</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=88.933>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Share capital</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=88.933>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12,555,207 Class A non-voting shares</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=88.933>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2005 &#150; 12,496,141 shares)</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>33,703</P>
</TD><TD valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>32,498</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;99,680 Class B voting shares</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>133</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>133</P>
</TD></TR>
<TR><TD valign=top width=361>&nbsp;</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>33,836</P>
</TD><TD valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>32,631</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contributed capital</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>9,724</P>
</TD><TD valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>8,810</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Retained earnings</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>282,623</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>266,682</P>
</TD></TR>
<TR><TD valign=top width=361>&nbsp;</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>326,183</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>308,123</P>
</TD></TR>
<TR><TD valign=top width=361>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=88.933>&nbsp;</TD></TR>
<TR><TD valign=top width=361>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$2,224,705</P>
</TD><TD style="border-bottom:3pt double #000000" valign=top width=88.933><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$2,184,467</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Arial">The accompanying notes are an integral part of these condensed consolidated financial statements.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>2</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=541 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>OPPENHEIMER HOLDINGS INC.</P>
</TD></TR>
<TR><TD valign=top width=541 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)</P>
</TD></TR>
<TR><TD valign=top width=541 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>FOR THE THREE MONTHS ENDED MARCH 31,</P>
</TD></TR>
<TR><TD valign=top width=361>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD></TR>
<TR><TD style="border-bottom:1.5pt solid #000000" valign=top width=361><P style="margin:0pt; font-family:Arial; font-size:11pt">&nbsp;</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>2006</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=center>2005</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">(Expressed in thousands of U.S. dollars, except per share amounts)</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">REVENUE:</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Commissions</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$92,314</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$81,049</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Principal transactions, net</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>31,405</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>20,386</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Interest</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>26,013</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>14,544</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Investment banking</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>10,400</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>12,300</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Advisory fees</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>24,549</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>26,851</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Other</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>16,369</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>2,116</P>
</TD></TR>
<TR><TD valign=top width=361>&nbsp;</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>201,050</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>157,246</P>
</TD></TR>
<TR><TD valign=top width=361>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">EXPENSES:</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Compensation and related expenses</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>113,005</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>103,956</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Clearing and exchange fees</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>5,144</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>4,268</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Communications and technology</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>12,928</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>12,606</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Occupancy and equipment costs</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>12,465</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>11,912</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Interest</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>14,327</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>6,741</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;Other</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>13,770</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>11,272</P>
</TD></TR>
<TR><TD valign=top width=361>&nbsp;</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>171,639</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>150,755</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Profit before income taxes </P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>29,411</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>6,491</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Income tax provision</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>12,194</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>2,726</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">NET PROFIT FOR THE PERIOD</P>
</TD><TD style="border-bottom:3pt double #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$17,217</P>
</TD><TD style="border-bottom:3pt double #000000" valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$3,765</P>
</TD></TR>
<TR><TD valign=top width=361>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Earnings per share: </P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;&nbsp;Basic </P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$1.36</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$0.28</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">&nbsp;&nbsp;&nbsp;Diluted </P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$0.93</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$0.24</P>
</TD></TR>
<TR><TD valign=top width=361>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt">Dividends declared per share</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$0.10</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:13pt; font-family:Arial; font-size:11pt" align=right>$0.09</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Arial">The accompanying notes are an integral part of these condensed consolidated financial statements.</P>
<P style="margin:0pt; font-family:Arial"><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>3</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Arial"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=535 colspan=3><P style="margin:0pt; font-family:Arial" align=center>OPPENHEIMER HOLDINGS INC.</P>
</TD></TR>
<TR><TD valign=top width=535 colspan=3><P style="margin:0pt; font-family:Arial" align=center>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)</P>
</TD></TR>
<TR><TD valign=top width=535 colspan=3><P style="margin:0pt; font-family:Arial" align=center>FOR THE THREE MONTHS ENDED MARCH 31, </P>
</TD></TR>
<TR><TD style="border-bottom:1.5pt solid #000000" valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=90><P style="margin:0pt; font-family:Arial" align=center>2006</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=84><P style="margin:0pt; font-family:Arial" align=center>2005</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">(Expressed in thousands of U.S. dollars)</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Cash flows from operating activities:</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Net profit for the period</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>$17,217</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>$3,765</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Adjustments to reconcile net profit to net cash provided by (used in) operating activities:</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;Non-cash items included in net profit:</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>2,434</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>2,319</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income tax</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>5,167</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>2,358</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax benefit from employee stock options exercised</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>30</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amortization of notes receivable</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>5,297</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>5,878</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Change in allowance for doubtful accounts</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>24</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>(15)</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock option expense, net</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>914</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;Decrease (increase) in operating assets: </P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash and securities segregated under federal and </P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;other regulations</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>(5,955)</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>401</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deposits with clearing organizations</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>1,349</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>5,641</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivable from brokers and clearing organizations</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>(3,121)</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>29,285</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Receivable from customers</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>(56,727)</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>(39,301)</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities owned</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>(5,992)</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>2,155</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notes receivable</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>(4,914)</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>(520)</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>22,492</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>1,403</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;Increase (decrease) in operating liabilities: </P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Drafts payable</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>8,722</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>(10,995)</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable to brokers and clearing organizations</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>128,878</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>39,344</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payable to customers</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>(158,457)</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>(15,042)</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities sold, but not yet purchased</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>(1,032)</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>(950)</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued compensation</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>(26,972)</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>(21,810)</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable and other liabilities</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>(17,109)</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>(3,340)</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes payable</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>769</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>(2,382)</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash (used in) operating activities</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>(87,016)</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>(1,776)</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Cash flows from investing and other activities:</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;Purchase of fixed assets</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>(1,150)</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>(518)</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash (used in) investing and other </P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;activities</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>(1,150)</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>(518)</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>4</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=535 colspan=3><P style="margin:0pt; font-family:Arial" align=center>OPPENHEIMER HOLDINGS INC.</P>
</TD></TR>
<TR><TD valign=top width=535 colspan=3><P style="margin:0pt; font-family:Arial" align=center>CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) CONTINUED</P>
</TD></TR>
<TR><TD valign=top width=535 colspan=3><P style="margin:0pt; font-family:Arial" align=center>FOR THE THREE MONTHS ENDED MARCH 31, </P>
</TD></TR>
<TR><TD style="border-bottom:1.5pt solid #000000" valign=top width=361>&nbsp;</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=90><P style="margin:0pt; font-family:Arial" align=center>2006</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=84><P style="margin:0pt; font-family:Arial" align=center>2005</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;(Expressed in thousands of U.S. dollars)</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Cash flows from financing activities:</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;Cash dividends paid on Class A non-voting and Class</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B voting shares</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>(1,276)</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>(1,214)</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;Issuance of Class A non-voting shares</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>3,363</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>2,629</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;Repurchase of Class A non-voting shares for </P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;cancellation</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>(2,158)</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>(4,980)</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;Zero coupon promissory note repayments</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>(2,386)</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>(3,631)</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;Bank loan repayments</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>(14,524)</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>(2,530)</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;Increase in bank call loans</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>99,122</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>23,927</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cash provided by financing </P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;activities</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>82,141</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>14,201</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Net (decrease) increase in cash and cash equivalents</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>(6,025)</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>11,907</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Cash and cash equivalents, beginning of period</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>32,013</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>33,390</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Cash and cash equivalents, end of period</P>
</TD><TD style="border-bottom:3pt double #000000" valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>$25,988</P>
</TD><TD style="border-bottom:3pt double #000000" valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>$45,297</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Arial; font-size:8pt"><BR></P>
<P style="margin:0pt; font-family:Arial; font-size:8pt"><BR></P>
<P style="margin:0pt; font-family:Arial">The accompanying notes are an integral part of these condensed consolidated financial statements.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>5</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=535 colspan=3><P style="margin:0pt; font-family:Arial" align=center>OPPENHEIMER HOLDINGS INC.</P>
</TD></TR>
<TR><TD valign=top width=535 colspan=3><P style="margin:0pt; font-family:Arial" align=center>CONDENSED CONSOLIDATED STATEMENTS OF CHANGES </P>
<P style="margin:0pt; font-family:Arial" align=center>IN SHAREHOLDERS&#146; EQUITY (unaudited)</P>
</TD></TR>
<TR><TD valign=top width=535 colspan=3><P style="margin:0pt; font-family:Arial" align=center>FOR THE THREE MONTHS ENDED MARCH 31,</P>
</TD></TR>
<TR><TD valign=top width=535 colspan=3>&nbsp;</TD></TR>
<TR><TD style="border-bottom:1.5pt solid #000000" valign=top width=361>&nbsp;</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=90><P style="margin:0pt; font-family:Arial" align=center>2006</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=84><P style="margin:0pt; font-family:Arial" align=center>2005</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">(Expressed in thousands of U.S. dollars)</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Share capital</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Balance at beginning of period</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>$32,631</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>$49,637</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial"><BR></P>
<P style="margin:0pt; font-family:Arial">Issue of 165,166 Class A non-voting shares (of which 104,725 were issued to the Oppenheimer &amp; Co. Inc. 401(k) Plan for $2,074); 115,533 in 2005 (of which 64,176 were issued to the Oppenheimer &amp; Co. Inc. 401(k) Plan for $1,629)</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right>3,363</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right>2,629</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial"><BR></P>
<P style="margin:0pt; font-family:Arial">Repurchase of 106,100 Class A non-voting shares for cancellation; 214,468 in 2005</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>&nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Arial" align=right>(2,158)</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=84><P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right>(4,980)</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial"><BR></P>
<P style="margin:0pt; font-family:Arial">Balance at end of period</P>
</TD><TD style="border-bottom:3pt double #000000" valign=top width=90><P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right>$33,836</P>
</TD><TD style="border-bottom:3pt double #000000" valign=top width=84><P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right>$47,286</P>
</TD></TR>
<TR><TD valign=top width=361>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Contributed capital</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Balance at beginning of period</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>$8,810</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>$8,780</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Tax benefit from employee stock options exercised</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>30</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Stock option expense </P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>1,254</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Deferred tax pool for stock option expense </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>(340)</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>-</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Balance at end of period</P>
</TD><TD style="border-bottom:3pt double #000000" valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>$9,724</P>
</TD><TD style="border-bottom:3pt double #000000" valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>$8,810</P>
</TD></TR>
<TR><TD valign=top width=361>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Retained earnings</P>
</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Balance at beginning of period</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>$266,682</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>$248,467</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Net profit for the period</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>17,217</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>3,765</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Dividends ($0.10 per share; &nbsp;$0.09 per share in 2005)</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=90><P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right>(1,276)</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=84><P style="margin:0pt; font-family:Arial" align=right><BR></P>
<P style="margin:0pt; font-family:Arial" align=right>(1,214)</P>
</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Balance at end of period</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>$282,623</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>$251,018</P>
</TD></TR>
<TR><TD valign=top width=361>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=361><P style="margin:0pt; font-family:Arial">Shareholders&#146; equity</P>
</TD><TD style="border-bottom:3pt double #000000" valign=top width=90><P style="margin:0pt; font-family:Arial" align=right>$326,183</P>
</TD><TD style="border-bottom:3pt double #000000" valign=top width=84><P style="margin:0pt; font-family:Arial" align=right>$307,114</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Arial"><BR></P>
<P style="margin:0pt; font-family:Arial"><BR></P>
<P style="margin:0pt; font-family:Arial">The accompanying notes are an integral part of these condensed consolidated financial statements.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>6</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman; font-size:12pt" align=center>OPPENHEIMER HOLDINGS INC.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center>Notes to Condensed Consolidated Financial Statements &nbsp;&nbsp;&nbsp;(Unaudited)</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B>1. &nbsp;&nbsp;&nbsp;Summary of significant accounting policies</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The condensed consolidated financial statements include the accounts of Oppenheimer Holdings Inc. (&#147;OPY&#148;) and its subsidiaries (together, the &#147;Company&#148;). The principal subsidiaries of OPY are Oppenheimer &amp; Co. Inc. (&#147;Oppenheimer&#148;), a registered broker-dealer in securities, and Oppenheimer Asset Management Inc. (&#147;OAM&#148;), a registered investment advisor under the Investment Advisers Act of 1940. Oppenheimer operates as Fahnestock &amp; Co. Inc. in Latin America. Oppenheimer owns Freedom Investments, Inc. (&#147;Freedom&#148;), 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, securities lending activities, trust services and investment advisory and asset management services. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>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, 2005 included in its Annual Report on Form 10-K for the year ended December 31, 2005. &nbsp;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 (&#147;SEC&#148;) with respect to quarterly financial reporting.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>The condensed consolidated 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 style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>These condensed consolidated financial statements are presented in U.S. dollars.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><B>2. Recent Accounting Pronouncements</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><I>Limited Partnerships - </I>In June 2005, the FASB ratified the consensus reached in Emerging Issues Task Force (&#147;EITF&#148;) Issue No. 04-5, &#147;Determining Whether a General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar Entity When the Limited Partners Have Certain Rights&#148; which requires a general partner(s) (or managing member(s) in the case of limited liability companies) to consolidate its partnerships or to provide limited partners with rights to remove the general partner(s) or to terminate the partnership. &nbsp;The Company serves as a general partner for a number of asset management limited partnerships through OAM and, therefore, was required to adopt the provisions of EITF Issue No. 04-5 immediately for partnerships formed or modified after June 29, 2005. For partnerships formed on or before June&nbsp;29, 2005 that were</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>7</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>&nbsp;not modified, the Company was required to adopt EITF 04-5 on January 1, 2006. &nbsp;The adoption of EITF Issue No. 04-5 did not have a material impact on the Company&#146;s consolidated financial statements. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>8</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><B>3. Share-based compensation</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Effective January 1, 2006, the Company adopted SFAS No. 123-R, &#147;<A NAME="OLE_LINK5"></A>Shares-Based Payment&#148;, which is a revision to SFAS No. 123, &#147;Accounting for Stock-Based Compensation&#148;. SFAS 123-R, which requires that stock options be accounted for at fair value, focuses primarily on transactions in which an entity exchanges its equity instruments for employee services. Under SFAS No. 123-R, share-based compensation awards that require future service (ie. are subject to a vesting schedule) are amortized over the relevant service period. The Company is applying SFAS No. 123-R under the &#145;modified prospective method&#146;. Under that method, the provisions of SFAS No. 123-R are applied to remaining unvested share-based awards outstanding at December 31, 2005 as well as to share-based awards granted subsequent to adoption. The consolidated financial statements for periods prior to adop
tion are not restated for the effects of adopting SFAS No. 123-R.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>The Company estimates the fair value of share-based awards using the Black-Scholes option-pricing model. Key input assumptions used to estimate the fair value of share -based awards include the exercise price of the award, the expected term, the expected volatility of the Company&#146;s Class A Shares over the term of the award, the risk-free interest rate over the expected term, and the Company&#146;s expected annual dividend yield. The Company believes that the valuation technique and the approach utilized to develop the underlying assumptions are appropriate in calculating fair values of the Company&#146;s outstanding unvested share-based awards as of January 1, 2006 together with awards granted during the three months ended March 31, 2006. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by persons who receive share-based awards.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>The fair value of each award grant was estimated on the grant date using the Black-Scholes option- pricing model with the following assumptions:</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=163.2>&nbsp;</TD><TD valign=top width=450 colspan=6><P style="margin:0pt; font-family:Times New Roman" align=center>Grant date assumptions</P>
</TD></TR>
<TR><TD valign=top width=163.2>&nbsp;</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=72><P style="margin:0pt; font-family:Times New Roman" align=center>2006</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=72><P style="margin:0pt; font-family:Times New Roman" align=center>2005</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=78><P style="margin:0pt; font-family:Times New Roman" align=center>2004</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=78><P style="margin:0pt; font-family:Times New Roman" align=center>2003</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=72><P style="margin:0pt; font-family:Times New Roman" align=center>2002</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=78><P style="margin:0pt; font-family:Times New Roman" align=center>2001</P>
</TD></TR>
<TR><TD valign=top width=163.2>&nbsp;</TD><TD valign=top width=72>&nbsp;</TD><TD valign=top width=72>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=72>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD></TR>
<TR><TD valign=top width=163.2><P style="margin:0pt; font-family:Times New Roman">Expected term (1)</P>
</TD><TD valign=top width=72><P style="margin:0pt; font-family:Times New Roman" align=center>5 years</P>
</TD><TD valign=top width=72><P style="margin:0pt; font-family:Times New Roman" align=center>5 years</P>
</TD><TD valign=top width=78><P style="margin:0pt; font-family:Times New Roman" align=center>5 years</P>
</TD><TD valign=top width=78><P style="margin:0pt; font-family:Times New Roman" align=center>5 years</P>
</TD><TD valign=top width=72><P style="margin:0pt; font-family:Times New Roman" align=center>5 years</P>
</TD><TD valign=top width=78><P style="margin:0pt; font-family:Times New Roman" align=center>5 years</P>
</TD></TR>
<TR><TD valign=top width=163.2><P style="margin:0pt; font-family:Times New Roman">Expected volatility factor (2)</P>
</TD><TD valign=top width=72><P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>22.71%</P>
</TD><TD valign=top width=72><P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>23.50%</P>
</TD><TD valign=top width=78><P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>21.08%</P>
</TD><TD valign=top width=78><P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>22.61%</P>
</TD><TD valign=top width=72><P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>27.49%</P>
</TD><TD valign=top width=78><P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>28.43%</P>
</TD></TR>
<TR><TD valign=top width=163.2><P style="margin:0pt; font-family:Times New Roman">Risk-free interest rate (3)</P>
</TD><TD valign=top width=72><P style="margin:0pt; font-family:Times New Roman" align=center>4.32%</P>
</TD><TD valign=top width=72><P style="margin:0pt; font-family:Times New Roman" align=center>3.89%</P>
</TD><TD valign=top width=78><P style="margin:0pt; font-family:Times New Roman" align=center>3.01%</P>
</TD><TD valign=top width=78><P style="margin:0pt; font-family:Times New Roman" align=center>2.92%</P>
</TD><TD valign=top width=72><P style="margin:0pt; font-family:Times New Roman" align=center>4.10%</P>
</TD><TD valign=top width=78><P style="margin:0pt; font-family:Times New Roman" align=center>4.78%</P>
</TD></TR>
<TR><TD valign=top width=163.2><P style="margin:0pt; font-family:Times New Roman">Expected annual dividend yield (4)</P>
</TD><TD valign=top width=72><P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>$0.37</P>
</TD><TD valign=top width=72><P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>$0.36</P>
</TD><TD valign=top width=78><P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>$0.36</P>
</TD><TD valign=top width=78><P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>$0.36</P>
</TD><TD valign=top width=72><P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>$0.36</P>
</TD><TD valign=top width=78><P style="margin:0pt; font-family:Times New Roman" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>$0.36</P>
</TD></TR>
<TR><TD style="border-bottom:1.5pt solid #000000" valign=top width=163.2>&nbsp;</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=72>&nbsp;</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=72>&nbsp;</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=78>&nbsp;</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=78>&nbsp;</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=72>&nbsp;</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=78>&nbsp;</TD></TR>
<TR><TD valign=top width=613.2 colspan=7><P style="margin:0pt; font-family:Times New Roman" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=justify>(1) The expected term was determined based on actual awards, typically five years.</P>
</TD></TR>
<TR><TD valign=top width=613.2 colspan=7><P style="margin:0pt; font-family:Times New Roman" align=justify>(2) The volatility factor was measured using the weighted average of historical daily price changes of the Company&#146;s Class A Shares over the previous 100 days, using a 400 day annualization factor.</P>
</TD></TR>
<TR><TD valign=top width=613.2 colspan=7><P style="margin:0pt; font-family:Times New Roman" align=justify>(3) The risk-free interest rate was based on periods equal to the expected term of the awards based on the U.S. Treasury yield curve in effect at the time of grant.</P>
</TD></TR>
<TR><TD valign=top width=613.2 colspan=7><P style="margin:0pt; font-family:Times New Roman" align=justify>(4) The annual dividend yield was based on actual dividends.</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>9</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>The Company did not recognize compensation expense for outstanding stock options during the three months ended March 31, 2005. 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 under SFAS No. 123 with respect to stock options granted prior to January 1, 2006. Amounts are expressed in thousands of U.S. dollars except per share amounts.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=378>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=162><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Three months ended March 31, 2005</P>
</TD></TR>
<TR><TD valign=top width=378><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Stock-based employee compensation expense included in reported net income</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=162><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>-</P>
</TD></TR>
<TR><TD valign=top width=378><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Net profit, as reported</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=162><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$3,765</P>
</TD></TR>
<TR><TD valign=top width=378><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Stock-based compensation expense that would have been reported in net profit if the fair value provisions of FAS No. 123 had been applied to all awards</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=162><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>381</P>
</TD></TR>
<TR><TD valign=top width=378><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Pro forma net profit</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=162><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$3,384</P>
</TD></TR>
<TR><TD valign=top width=378>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=162>&nbsp;</TD></TR>
<TR><TD valign=top width=378><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Basic profit per share, as reported</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=162><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$0.28</P>
</TD></TR>
<TR><TD valign=top width=378><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Diluted profit per share, as reported</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=162><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$0.24</P>
</TD></TR>
<TR><TD valign=top width=378>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=162>&nbsp;</TD></TR>
<TR><TD valign=top width=378><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Pro forma basic profit per share</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=162><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$0.25</P>
</TD></TR>
<TR><TD valign=top width=378><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Pro forma diluted profit per share</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=162><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$0.22</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-14pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Equity Incentive Plan</I></P>
<I><P style="margin:0pt; text-indent:396pt; font-family:Times New Roman; font-size:12pt"><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Under the Company&#146;s 1996 Equity Incentive Plan, as amended March 10, 2005 (&#147;EIP&#148;), the compensation and stock option committee of the board of directors of the Company may grant options to purchase Class A Shares to officers and key employees of the Company and its subsidiaries. Grants of options are made to the Company&#146;s independent directors on a formula basis. Options are generally granted for a five-year term and generally vest at the rate of 25% of the amount granted beginning after two years and become fully vested after 4.5 years. The aggregate number of Class A Shares available under the EIP is 5,015,000.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>10</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Stock option activity under the EIP since January 1, 2004 is summarized as follows:</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=127.2>&nbsp;</TD><TD valign=top width=162 colspan=2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Three months ended March 31, 2006</P>
</TD><TD valign=top width=162 colspan=2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Year ended </P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>December 31, 2005</P>
</TD><TD valign=top width=168 colspan=2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Year ended </P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>December 31, 2004</P>
</TD></TR>
<TR><TD valign=top width=127.2>&nbsp;</TD><TD valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>Number of shares</P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>Weighted average exercise price</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>Number of shares</P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>Weighted average exercise price</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>Number of shares</P>
</TD><TD valign=top width=84><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>Weighted average exercise price</P>
</TD></TR>
<TR><TD valign=top width=127.2>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD></TR>
<TR><TD valign=top width=127.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Options outstanding, beginning of year</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>1,775,641</P>
</TD><TD valign=top width=78><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$27.04</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>1,659,370</P>
</TD><TD valign=top width=78><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$27.19</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>1,884,983</P>
</TD><TD valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$21.81</P>
</TD></TR>
<TR><TD valign=top width=127.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Options granted </P>
</TD><TD valign=top width=84><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>28,632</P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$20.03</P>
</TD><TD valign=top width=84><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>231,798</P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$23.38</P>
</TD><TD valign=top width=84><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>510,606</P>
</TD><TD valign=top width=84><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$32.58</P>
</TD></TR>
<TR><TD valign=top width=127.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Options exercised</P>
</TD><TD valign=top width=84><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>-</P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>-</P>
</TD><TD valign=top width=84><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>(51,357)</P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$19.48</P>
</TD><TD valign=top width=84><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>(534,319)</P>
</TD><TD valign=top width=84><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$16.02</P>
</TD></TR>
<TR><TD valign=top width=127.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Options forfeited or expired</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>(248,481)</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=78><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$22.93</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>(64,170)</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=78><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$20.93</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>(201,900)</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$13.64</P>
</TD></TR>
<TR><TD valign=top width=127.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Options outstanding, end of period</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>1,555,792</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=78><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$27.56</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>1,775,641</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=78><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$27.04</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>1,659,370</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$27.19</P>
</TD></TR>
<TR><TD valign=top width=127.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Options vested, end of period</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>655,699</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=78><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$27.40</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>622,107</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=78><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$24.98</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>312,171</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$23.45</P>
</TD></TR>
<TR><TD valign=top width=127.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Weighted average fair value of options granted</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$4.46</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=78>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>-</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=78>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>-</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=84>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><B><I><BR></I></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><B><I><BR></I></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>The following table summarizes stock options outstanding and exercisable as at March 31, 2006.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><B><I><BR></I></B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=127.2><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Range of exercise prices </P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Number outstanding</P>
</TD><TD valign=top width=90><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<A NAME="OLE_LINK8"></A><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Weighted average remaining contractual life</P>
</TD><TD valign=top width=109.667><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Weighted average exercise price</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>of outstanding</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>options</P>
</TD><TD valign=top width=94.333><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Number exercisable</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>(vested)</P>
</TD><TD valign=top width=79.267><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Weighted average exercise price of</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>vested</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>options</P>
</TD></TR>
<TR><TD valign=top width=127.2>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=109.667>&nbsp;</TD><TD valign=top width=94.333>&nbsp;</TD><TD valign=top width=79.267>&nbsp;</TD></TR>
<TR><TD valign=top width=127.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>$19.99 - $25.00</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>693,346</P>
</TD><TD valign=top width=90><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>2.43 years</P>
</TD><TD valign=top width=109.667><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$23.60</P>
</TD><TD valign=top width=94.333><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>241,332</P>
</TD><TD valign=top width=79.267><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$24.02</P>
</TD></TR>
<TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=127.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>$25.01 - $33.80</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=90><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>862,446</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=90><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>2.07 years</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=109.667><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$30.75</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=94.333><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>414,367</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=79.267><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$29.37</P>
</TD></TR>
<TR><TD valign=top width=127.2>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=90>&nbsp;</TD><TD valign=top width=109.667>&nbsp;</TD><TD valign=top width=94.333>&nbsp;</TD><TD valign=top width=79.267>&nbsp;</TD></TR>
<TR><TD style="border-bottom:2pt double #000000" valign=top width=127.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>$19.99 - $33.80</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=90><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>1,555,792</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=90><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>2.23 years</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=109.667><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$27.56</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=94.333><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>655,699</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=79.267><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$27.40</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt">The aggregate intrinsic value of options outstanding as of March 31, 2006 was $67,000. The intrinsic value of options vested during the period was $11,000.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>11</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt">The following table summarizes the status of the Company&#146;s nonvested options since December 31, 2005.</P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=271.2>&nbsp;</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center>Number outstanding</P>
</TD><TD valign=top width=114><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center>Weighted average fair value</P>
</TD></TR>
<TR><TD valign=top width=271.2>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=271.2><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Nonvested at 12/31/05</P>
</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>1,153,534</P>
</TD><TD valign=top width=114><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center>$5.44</P>
</TD></TR>
<TR><TD valign=top width=271.2><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Granted</P>
</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>28,632</P>
</TD><TD valign=top width=114><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center>$4.46</P>
</TD></TR>
<TR><TD valign=top width=271.2><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Vested</P>
</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>(282,073)</P>
</TD><TD valign=top width=114><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center>$6.84</P>
</TD></TR>
<TR><TD valign=top width=271.2><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Forfeited or expired</P>
</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>-</P>
</TD><TD valign=top width=114><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center>-</P>
</TD></TR>
<TR><TD valign=top width=271.2><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Nonvested at March 31, 2006</P>
</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>900,093</P>
</TD><TD valign=top width=114><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center>$6.17</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>In the first quarter of 2006, the Company has included approximately $1,254,000 of compensation expense in its statement of operations relating to the expensing of stock options.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>As of March 31, 2006, there was $5.1 million of total unrecognized compensation cost related to unvested share-based compensation arrangements granted under the EIP. The cost is expected to be recognized over a weighted average period of 2.23 years.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt">The adoption of SFAS No. 123-R did not materially impact the accounting treatment for the Company&#146;s other share-based compensation arrangements. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B>4. Earnings per share</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Earnings per share was computed by dividing net profit by the weighted average number of Class A non-voting shares (&#147;Class A Shares&#148;) and Class B voting shares (&#147;Class B Shares&#148;) 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 style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>12</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Earnings per share has been calculated as follows:</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=300>&nbsp;</TD><TD valign=top width=246 colspan=3><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center>Three Months ended March 31,</P>
</TD></TR>
<TR><TD valign=top width=300>&nbsp;</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=102><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>2006</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=18>&nbsp;</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=126><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>2005</P>
</TD></TR>
<TR><TD valign=top width=300><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Basic weighted average number of shares outstanding</P>
</TD><TD valign=top width=102><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>12,679,536</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=126><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>13,420,231</P>
</TD></TR>
<TR><TD valign=top width=300><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Net effect, if converted method (1)</P>
</TD><TD valign=top width=102><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>6,932,000</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=126><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>6,932,000</P>
</TD></TR>
<TR><TD valign=top width=300><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Net effect, treasury method</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=102><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>-</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=126><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>25,101</P>
</TD></TR>
<TR><TD valign=top width=300><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Diluted common shares (2)</P>
</TD><TD style="border-bottom:3pt double #000000" valign=top width=102><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>19,611,536</P>
</TD><TD style="border-bottom:3pt double #000000" valign=top width=18>&nbsp;</TD><TD style="border-bottom:3pt double #000000" valign=top width=126><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>20,377,332</P>
</TD></TR>
<TR><TD valign=top width=300>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=126>&nbsp;</TD></TR>
<TR><TD valign=top width=300><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Net profit for the period, as reported</P>
</TD><TD valign=top width=102><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>$17,217,000</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=126><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>$3,765,000</P>
</TD></TR>
<TR><TD valign=top width=300><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Effect of dilutive exchangeable debentures</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=102><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>1,059,000</P>
</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=18>&nbsp;</TD><TD style="border-bottom:0.75pt solid #000000" valign=top width=126><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>1,049,000</P>
</TD></TR>
<TR><TD valign=top width=300><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Net profit available to shareholders and assumed conversions </P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=102><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>$18,276,000</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=18>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=126><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>$4,814,000</P>
</TD></TR>
<TR><TD valign=top width=300>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=126>&nbsp;</TD></TR>
<TR><TD valign=top width=300><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Basic earnings per share</P>
</TD><TD valign=top width=102><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>$1.36</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=126><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>$0.28</P>
</TD></TR>
<TR><TD valign=top width=300><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Diluted earnings per share</P>
</TD><TD valign=top width=102><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>$0.93</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=126><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>$0.24</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>(1)</P>
<P style="margin:0pt; padding-left:36pt; font-family:Times New Roman; font-size:12pt" align=justify>As part of the consideration for the 2003 acquisition of the Oppenheimer divisions from CIBC World Markets, 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 36% of the outstanding Class A Shares, if exchanged). </P>
<P style="margin:0pt; padding-left:18pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin-top:0pt; margin-bottom:-14pt; padding-left:36pt; text-indent:-18pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>(2)</P>
<P style="margin:0pt; padding-left:36pt; font-family:Times New Roman; font-size:12pt" align=justify>The diluted EPS computations do not include the antidilutive effect of 1,583,000 and 1,270,000 Class A Shares granted under share-based compensation arrangements, respectively, at March 31, 2006 and 2005. Antidilution arises when the exercise price of the options exceeds the market price for the period.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><B>5. Securities owned and securities sold, but not yet purchased (at market value)</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><B><BR></B></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=318>&nbsp;</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=102><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>March 31,</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>2006</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=18>&nbsp;</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=126><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>December 31,</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>2005</P>
</TD></TR>
<TR><TD valign=top width=318><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Securities owned consist of:</P>
</TD><TD valign=top width=102>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=126>&nbsp;</TD></TR>
<TR><TD valign=top width=318><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Corporate equities and warrants</P>
</TD><TD valign=top width=102><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$51,354,000</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=126><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$35,895,000</P>
</TD></TR>
<TR><TD valign=top width=318><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Corporate and sovereign obligations</P>
</TD><TD valign=top width=102><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>51,591,000</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=126><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>46,482,000</P>
</TD></TR>
<TR><TD valign=top width=318><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">U.S. government and agency and state and</P>
</TD><TD valign=top width=102>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=126>&nbsp;</TD></TR>
<TR><TD valign=top width=318><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">municipal government obligations </P>
</TD><TD valign=top width=102><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>48,491,000</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=126><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>61,590,000</P>
</TD></TR>
<TR><TD valign=top width=318><P style="margin-top:0pt; margin-bottom:-14pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Money market funds and other</P>
<P style="margin:0pt; text-indent:216pt; font-family:Times New Roman; font-size:12pt"><BR></P>
</TD><TD valign=top width=102><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>1,201,000</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=126><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>2,678,000</P>
</TD></TR>
<TR><TD valign=top width=318>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:2pt double #000000" valign=top width=102><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$152,637,000</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:2pt double #000000" valign=top width=126><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$146,645,000</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>13</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=318>&nbsp;</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=102><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>March 31,</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>2006</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=18>&nbsp;</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=126><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>December 31,</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>2005</P>
</TD></TR>
<TR><TD valign=top width=318><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Securities sold, but not yet purchased consist of:</P>
</TD><TD valign=top width=102>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=126>&nbsp;</TD></TR>
<TR><TD valign=top width=318><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Corporate equities</P>
</TD><TD valign=top width=102><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$3,425,000</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=126><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$4,685,000</P>
</TD></TR>
<TR><TD valign=top width=318><P style="margin-top:0pt; margin-bottom:-14pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Corporate obligations</P>
<P style="margin:0pt; text-indent:108pt; font-family:Times New Roman; font-size:12pt"><BR></P>
</TD><TD valign=top width=102><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>4,109,000</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=126><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>3,722,000</P>
</TD></TR>
<TR><TD valign=top width=318><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">U.S. government and agency and state and</P>
</TD><TD valign=top width=102>&nbsp;</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=126>&nbsp;</TD></TR>
<TR><TD valign=top width=318><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">municipal government obligations and other</P>
</TD><TD valign=top width=102><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>1,220,000</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD valign=top width=126><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>1,379,000</P>
</TD></TR>
<TR><TD valign=top width=318>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:2pt double #000000" valign=top width=102><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$8,754,000</P>
</TD><TD valign=top width=18>&nbsp;</TD><TD style="border-top:0.5pt solid #000000; border-bottom:2pt double #000000" valign=top width=126><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$9,786,000</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Securities owned and securities sold, but not yet purchased, consist of trading and investment securities at market values. Included in securities owned at March 31, 2006 are corporate equities with market values of approximately $15,072,000 ($14,660,000 at December 31, 2005), which are correlated to deferred compensation liabilities to certain employees. Also included in corporate equities in securities owned are investments with estimated fair values of approximately $15,200,000, of which approximately $12,700,000 relates to restricted shares of NYSE Group. At March 31, 2006, the Company had pledged securities owned of approximately $1,575,000 ($1,042,000 at December 31, 2005) as collateral to counterparties for stock loan transactions, which can be sold or repledged. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The New York Stock Exchange (&#147;NYSE&#148;)/Archipelago merger (collectively referred to as &#147;NYSE Group&#148;), which took place in March 2006, had a significant impact on the Company&#146;s financial results for the first quarter of 2006. Oppenheimer had been a member of the NYSE since 1880 and was the beneficial owner of three memberships (seats) carried at a cost of &nbsp;$2.2 million. Pursuant to the plan of merger between NYSE and Archipelago, Oppenheimer surrendered its memberships in exchange for approximately $809,000 in cash and 241,901 NYSE Group common shares, par value $0.01 per share, in the aggregate. In lieu of the rights conferred by membership, Oppenheimer purchased the rights to an annual renewable trading license. This license allows Oppenheimer continued physical and electronic access to the NYSE trading facilities. The NYSE Group common shares are subject to a three-year restriction
 on transfer, which were scheduled to expire in equal one-third installments in March 2007, 2008, and 2009. The Company has estimated the fair value on these restricted shares to be approximately $12.7 million. &nbsp;The Company&#146;s pre-tax results of operations for the first quarter of 2006 reflect a gain of $11.3 million related to the exchange of seats for cash and NYSE Group common shares ($0.52 per share).<A NAME="OLE_LINK9"></A></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>14</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><B>6. Long term debt and exchangeable debentures</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="border-bottom:1.5pt solid #000000" valign=top width=271.667><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>Issued</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=108><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center>Maturity Date</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=102><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center>Interest Rate</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center>March 31, 2006</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=36.733>&nbsp;</TD></TR>
<TR><TD valign=top width=271.667>&nbsp;</TD><TD valign=top width=108>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD><TD valign=top width=36.733>&nbsp;</TD></TR>
<TR><TD valign=top width=638.4 colspan=5><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>Zero Coupon Promissory Note, </P>
</TD></TR>
<TR><TD valign=top width=271.667><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>issued January 2, 2003 <B>(a)</B></P>
</TD><TD valign=top width=108><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>-</P>
</TD><TD valign=top width=102><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center>0%</P>
</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>$20,436,000</P>
</TD><TD valign=top width=36.733>&nbsp;</TD></TR>
<TR><TD valign=top width=481.667 colspan=3><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">&nbsp;&nbsp;Less current portion</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>6,452,000</P>
</TD><TD valign=top width=36.733>&nbsp;</TD></TR>
<TR><TD valign=top width=271.667><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>Long term portion of long-term debt</P>
</TD><TD valign=top width=108>&nbsp;</TD><TD valign=top width=102>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman; color:#0000FF" align=right><U>$13,984,000</U></P>
</TD><TD valign=top width=36.733>&nbsp;</TD></TR>
<TR><TD valign=top width=638.4 colspan=5>&nbsp;</TD></TR>
<TR><TD valign=top width=638.4 colspan=5><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">&nbsp;</P>
</TD></TR>
<TR><TD valign=top width=271.667><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">First and Second Variable Rate Exchangeable Debentures, issued </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt">January 6, 2003 and May 12, 2003, respectively <B>(b)</B></P>
</TD><TD valign=top width=108><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center>1/2/2013</P>
</TD><TD valign=top width=102><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center>4.5%</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>$160,822,000</P>
</TD><TD valign=top width=36.733>&nbsp;</TD></TR>
<TR><TD valign=top width=638.4 colspan=5>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">(a) 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 style="margin:0pt; padding-left:18pt; font-family:Times New Roman; font-size:12pt" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>(b) 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"></A>was $1,809,000 for the three months ended March 31, 2006 and 2005. Under the interest method, the effective annual interest rate over the life of the First and Second Variable Rate Exchangeable Debentures is 4.5%.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><B><BR></B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><B>7. Net Capital Requirements</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The Company's major subsidiaries, Oppenheimer and Freedom, are subject to the uniform net capital requirements of the SEC under Rule 15c3-1 (the &#147;Rule&#148;). 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 March 31, 2006, the net capital of Oppenheimer as calculated under the Rule was $182,033,000 or 13.4% of Oppenheimer's aggregate debit items. This was $154,860,000 in excess of the minimum required net capital. Freedom computes its net capital requirement under the basic method provided for in the Rule, which requires that Freedom maintain net capital equal to the greater of $250,000 or 6 2/3% of aggregate indebtedness, as defined. At March 31, 2006, Freedom had net capital of $7,474,000, which was $
7,224,000 in excess of the $250,000 required to be maintained at that date.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>15</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><B>8. Securities lending activities</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Securities borrowed and securities loaned are carried at the amounts of cash collateral advanced or received.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>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 style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>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 style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Included in receivable from brokers and clearing organizations are deposits paid for securities borrowed of $461,777,000 (at December 31, 2005 - $472,499,000). Included in payable to brokers and clearing organizations are deposits received for securities loaned of $920,806,000 (at December 31, 2005 - $794,353,000).</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; padding-left:36pt; text-indent:-36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>9. Financial instruments with off-balance sheet risk and concentration of credit risk</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>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 style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>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 style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>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 style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The Company's customer financing and securities lending activities require the Company to pledge customer securities as collateral for various financing sources such as bank loans and securities lending. At March 31, 2006, the Company had approximately $1.7 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 $511,761,000 under securities loan agreements and approximately $124,617,000 with respect to bank call loans. In addition, the Company has received collateral of approximately $444,349,000 under securities borrow agreements of which the Company has repledged approximately $361,233,000 as collateral under securities loan agreements. Included in receivable from brokers and clearing organizations are receivables from four major U.S. broker-dealers totaling $194,784,000. Included in receivable fro
m customers is a receivable from one customer in </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>16</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>the amount of $188,310,000, which is collateralized with fixed income securities in the amount of $260,894,000.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>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 style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>At March 31, 2006, the Company had outstanding commitments to buy and sell of $718,000 and $998,000, respectively, of mortgage-backed securities on a when issued basis. These commitments have off-balance sheet risks similar to those described above.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Futures contracts represent commitments to purchase or sell securities at a future date and at a specified price. Credit risk and market risk exist with respect to these instruments. Credit risk associated with the contracts is limited to amounts recorded in the balance sheet. Notional or contractual amounts are used to express the volume of these transactions, and do not represent the amounts potentially subject to market risk. At March 31, 2006, the Company had open contracts with notional values of approximately $44 million. The fair value of these derivative financial instruments, included in receivables from brokers and clearing organizations at March 31, 2006, was approximately $2.7 million.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>The Company has a clearing arrangement with Pershing LLC to clear certain transactions in foreign securities. The clearing broker has the right to charge the Company for losses that result from a client's failure to fulfill its contractual obligations. The Company has a relationship with R.J. O&#146;Brien &amp; Associates, which maintains an omnibus account on behalf of Oppenheimer and executes commodities transactions on all exchanges. Accordingly, the Company has credit exposures with these clearing brokers. The clearing brokers can rehypothecate the securities held on behalf of the Company. As the right to charge the Company has no maximum amount and applies to all trades executed through the clearing brokers, the Company believes there is no maximum amount assignable to this right. At March 31, 2006, the Company had recorded no liabilities with regard to this right. The Company's policy is to monitor the credit standing of t
hese clearing brokers, all counterparties and all clients with which it conducts business.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><B>10. Related Party Transactions</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>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 style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><B>11. Segment Information</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>The table below presents information about the reported operating income of the Company for the periods noted. The Company&#146;s segments are described in the Company&#146;s Annual Report on Form 10-K for the year ended December 31, 2005. The Company&#146;s business is conducted primarily in the United States. &nbsp;&nbsp;Asset information by reportable segment is not reported, since the Company does not produce such information for internal use.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>17</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=210>&nbsp;</TD><TD valign=top width=258 colspan=3><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=center>Three Months ended March 31,</P>
</TD></TR>
<TR><TD style="border-bottom:1.5pt solid #000000" valign=top width=210>&nbsp;</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>2006</P>
</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=24>&nbsp;</TD><TD style="border-bottom:1.5pt solid #000000" valign=top width=114><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>2005</P>
</TD></TR>
<TR><TD valign=top width=210><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Revenue:</P>
</TD><TD valign=top width=120>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=210><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Private Client </P>
</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>$147,618,000</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>$124,454,000</P>
</TD></TR>
<TR><TD valign=top width=210><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Capital Markets</P>
</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>26,281,000</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>17,505,000</P>
</TD></TR>
<TR><TD valign=top width=210><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Asset Management**</P>
</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>13,354,000</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>14,374,000</P>
</TD></TR>
<TR><TD valign=top width=210><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Other*</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>13,797,000</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>913,000</P>
</TD></TR>
<TR><TD valign=top width=210><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Total</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>$201,050,000</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=114><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>$157,246,000</P>
</TD></TR>
<TR><TD valign=top width=210>&nbsp;</TD><TD valign=top width=120>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=210><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Operating Income:</P>
</TD><TD valign=top width=120>&nbsp;</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD></TR>
<TR><TD valign=top width=210><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Private Client </P>
</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>$13,681,000</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>$7,242,000</P>
</TD></TR>
<TR><TD valign=top width=210><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Capital Markets</P>
</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>4,578,000</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>672,000</P>
</TD></TR>
<TR><TD valign=top width=210><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Asset Management</P>
</TD><TD valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>539,000</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>871,000</P>
</TD></TR>
<TR><TD valign=top width=210><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Other* </P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>10,613,000</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>(2,294,000)</P>
</TD></TR>
<TR><TD valign=top width=210><P style="margin:0pt; font-family:Times New Roman; font-size:12pt">Total</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=120><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>$29,411,000</P>
</TD><TD valign=top width=24>&nbsp;</TD><TD style="border-bottom:2pt double #000000" valign=top width=114><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right>$6,491,000</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">* &nbsp;Other includes the gain of $11.3 million on the NYSE Group shares, described in note 5.</P>
<P style="margin-top:0pt; margin-bottom:-14pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">** Advisory fees earned in 2005 included fees for the India and Asia Tigers Funds, which ceased to be managed by the Company in December 2005. </P>
<P style="margin:0pt; text-indent:51006.435pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>12. Subsequent event</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">On May 4, 2006, the Company sold 136,052 shares of NYSE Group (consisting of 80,635 and 55,417 NYSE Group shares that were originally restricted until March 2007 and March 2008, respectively) at a price of $61.50 per share (before commission) as part of a secondary offering by NYSE Group shareholders. The Company may sell additional shares pursuant to the underwriters' over-allotment option, which expires on June 5, 2006. The Company is recording an additional gain from the sale of approximately $476,000, net of transaction related costs. See note 5.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>18</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>Item 2. &nbsp;Management&#146;s Discussion and Analysis of Financial Condition and Results of Operations &nbsp;</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The Company&#146;s condensed consolidated 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, 2005. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>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 81 offices in 21 states located throughout the United States. The Company conducts business from 2 offices in Latin America through local broker-dealers. Client assets entrusted to the Company as at March 31, 2006 totaled approximately $56.4 billion. The Company provides investment advisory services through Oppenheimer Asset Management Inc. and Fahnestock Asset Management, operating as a division of Oppenheimer. At March 31, 2006, client assets under management by the asset management groups totaled $12.4 billion (of which $1.2 billion applies to a new transaction-based investment advisory p
rogram effective January 2006). 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 March 31, 2006, the Company employed approximately 2,947 people, of whom 1,731 were financial consultants. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Critical Accounting Policies</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
The Company&#146;s accounting policies are essential to understanding and interpreting the financial results reported in the condensed consolidated financial statements. The significant accounting policies used in the preparation of the Company&#146;s condensed consolidated financial statements are summarized in note 1 to those statements. Certain of those policies are considered to be particularly important to the presentation of the Company&#146;s financial results because they require management to make difficult, complex or subjective judgments, often as a result of matters that are inherently uncertain. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>As of January 1, 2006, the Company adopted Statement of Financial Accounting Standards (&#147;SFAS&#148;) 123-R, &#147;Share-Based Payment&#148; (related to the Company&#146;s outstanding stock options) resulting in approximately $1,254,000 in additional compensation expense in the first quarter of 2006. In prior periods the cost of stock options was presented on a pro forma basis in the notes to the consolidated financial statements.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>During the three months ended March 31, 2006, there were no other material changes to matters discussed under the heading &#147;Critical Accounting Policies&#148; in Part II, Item 7 of the Company&#146;s Annual Report on Form 10-K for the year ended December 31, 2005.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>19</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Business Environment</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>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 style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<A NAME="OLE_LINK6"></A><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The New York Stock Exchange (&#147;NYSE&#148;)/Archipelago merger (collectively referred to as &#147;NYSE Group&#148;), which took place in March 2006, had a significant impact on the Company&#146;s financial results for the first quarter of 2006. Oppenheimer had been a member of the NYSE since 1880 and was the beneficial owner of three memberships (seats) carried at a cost of &nbsp;$2.2 million. Pursuant to the plan of merger between NYSE and Archipelago, Oppenheimer surrendered its memberships in exchange for approximately $809,000 in cash and 241,901 NYSE Group common shares, par value $0.01 per share, in the aggregate. In lieu of the rights conferred by membership, Oppenheimer purchased the rights to an annual renewable trading license. This license allows Oppenheimer continued physical and electronic access to the NYSE trading facilities. The NYSE Group common shares are subject to 
a three-year restriction on transfer, which were scheduled to expire in equal one-third installments in March 2007, 2008, and 2009. The Company has estimated the fair value on these restricted shares to be approximately $12.7 million. &nbsp;The Company&#146;s pre-tax results of operations for the first quarter of 2006 reflect a gain of $11.3 million related to the exchange of seats for cash and NYSE Group common shares.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">On May 4, 2006, the Company sold 136,052 shares of NYSE Group (consisting of 80,635 and 55,417 NYSE Group shares that were originally restricted until March 2007 and March 2008, respectively) at a price of $61.50 per share (before commission) as part of a secondary offering by NYSE Group shareholders. The Company may sell additional shares pursuant to the underwriters' over-allotment option, which expires on June 5, 2006. The Company is recording an additional gain from the sale of approximately $476,000, net of transaction related costs. See note 5.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>U.S. economic growth is strong, and despite a rising trend in interest rates and commodity prices, inflation continues to be remarkably low. The equity markets are reacting to strong corporate earnings fueled by the strong economy and continuing consumer demand. This positive environment resulted in stronger comparisons in our results for 2006 compared to 2005. Without including the gain on the valuation of its shares of NYSE Group, the Company&#146;s revenue in the first quarter of 2006 increased by approximately 21% compared to its revenue in the first quarter of 2005. Higher revenue from commissions, principal trading activities and interest contributed to the increase in revenue. The increase in interest revenue was due to higher rates, larger customer debit balances and increased stock borrow / stock loan activity. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Interest rate changes also impact the Company&#146;s fixed income businesses as well as its cost of borrowed funds. Interest rates were higher in the first three months of 2006 compared to the same period in 2005. 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 style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>20</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>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 style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>&nbsp;Regulatory Environment</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>&nbsp;</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>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 regulation 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. 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.<B> </B>This regulatory environment has resulted in increased costs of compliance with rules and regulations<B>,</B> in particular, the impact of the rules and req
uirements that were created by the passage of the Patriot Act, and the anti-money laundering regulations (AML) that are related thereto. The expectation is that the increased costs of compliance in today&#146;s regulatory environment are not temporary.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The NASD (Rule 3013) and the NYSE (Rule 342) have instituted new rules relating to supervisory control processes. On March 31, 2006, the Chief Executive Officers (&#147;CEOs&#148;) of regulated broker-dealers (including the CEO of Oppenheimer) certified that their companies have processes to establish and test policies and procedures reasonably designed to achieve compliance with federal securities laws and regulations, including applicable regulations of self-regulatory organizations. The CEO of the Company will be required to make such certification on an annual basis.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><I>Mutual Fund Inquiry </I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Since the third quarter of 2003, Oppenheimer has been responding to the SEC, the NY State Attorney General (the &#147;NYAG&#148;), the NYSE, the NASD and other regulators as part of an industry-wide review of market timing, late trading and other activities involving mutual funds. &nbsp;The Company has answered several document requests and subpoenas and there have been on-the-record interviews of Company personnel. &nbsp;The inquiries have centered on Oppenheimer&#146;s activities as a broker/dealer and as a clearing firm. &nbsp;The Company has conducted its own investigation and is continuing to cooperate with the investigating entities. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>21</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The Company believes that a few of its former financial advisors, working from a single branch office, engaged in activities that are the subject of the SEC's inquiry largely during the period before the Company acquired the U.S. Private Client Division of CIBC World Markets on January 3, 2003. &nbsp;The former employees and a current employee who had a supervisory role with respect to such financial advisors are being investigated by the SEC and the NYAG and have received &quot;Wells Notices&quot; from the SEC; the Company has received no such Notice. There is no </P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>evidence that either the Company or its employees were engaged in &quot;late trading&quot;. &nbsp;The Company has set aside reserves that it believes should address its financial exposure with respect to these matters. The Company continues to closely monitor its mutual fund activities and the activities of its employees. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><I>Other Regulatory Matters</I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The Company has been the subject of various regulatory investigations with respect to its operations up to and including 2005. Most of these matters revolve around the period when the Company was transferring the business and client accounts of various acquisitions it has made to a common systems platform between September 2001 and June 2003. During that period of time, the Company absorbed approximately 35 branch offices and 1,000 financial advisors, and transitioned more than 250,000 client accounts from four separate and distinct companies, each of which utilized a different technology platform. &nbsp;The Company's business doubled during this period. As previously reported, certain of the Company&#146;s operations were impacted beginning in June 2003 and the Company experienced client service issues, which were subsequently corrected. The new businesses undertaken by the Company and the effect on the Compan
y&#146;s operations for the period described above has resulted in investigations by the SEC, the NYSE, and the NASD. With the exception of the mutual funds timing matter described above, the Company has settled substantially all outstanding matters with the NYSE. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>&nbsp;</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>On May 3, 2005, the NASD filed a complaint against Oppenheimer for matters arising prior to 2004 with respect to the timeliness and accuracy of its municipal bond reporting, the adequacy of its email retention, the adequacy of its supervisory systems and procedures, as well as the timeliness of its response to certain NASD requests for information. &nbsp;The Company believes that it has made and continues to make every effort to cooperate with the NASD and all other regulators. The Company worked diligently to provide tens of thousands of documents and all requested information and will continue to work with the NASD toward a resolution of this matter.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>On January 9, 2006,&nbsp;the NASD filed an action against Oppenheimer and its Chairman and CEO (the &#147;2006 Complaint&#148;) for alleged violations with respect to the Company&#146;s filing of the NASD mutual fund breakpoint survey in 2003. This action could result in, among other things, monetary penalty, censure, suspension and/or other remedial sanctions. As previously disclosed, Oppenheimer had previously informed the NASD of certain limitations within its system relative to selecting out and generating data in the form requested by the NASD, and the NASD had stated that no extensions to file would be granted to any firm. &nbsp;As a result, just prior to the deadline, Oppenheimer submitted the data it then had available. &nbsp;The NASD informed Oppenheimer within two days that its submission was deficient. The Company and Mr. Lowenthal, the Chairman and CEO, maintain that the assignment of overall respon
sibility for the response to the 2003 survey was properly delegated by its CEO to individuals who had the requisite experience and background to </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>22</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>complete and file the survey with the NASD. The Company and Mr. Lowenthal believe that they have strong defenses for the action brought against them because of these issues and intend to vigorously defend the action. As the NASD itself notes, the issuance of a disciplinary complaint represents the initiation of a formal proceeding by the NASD in which the allegations have not been heard or determined and does not represent a decision as to any of the allegations contained in the complaint.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Prior to the filing of the 2006 Complaint, the Company advised the NASD that it had reviewed the actual breakpoints applied for the period 2001 through 2005, a period longer than required by the NASD of similar member firms, and had returned to customers approximately $450,000 in breakpoint credits and had revised and enhanced its procedures for determining applicable breakpoints. The Company has now completed its review of breakpoint charges and increased the amount cited above to $600,000. The additional $150,000 will be credited to customers shortly. The Company believes that, upon the completion of this process, that it will have made all reasonable steps to resolve this industry-wide issue. The Company believes that the breakpoint survey matter was an industry-wide problem and that the Company has appropriately addressed in all respects the breakpoint issue with it clients. &nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The Company and Mr.&nbsp;Lowenthal are cooperating, have been cooperating and intend to continue to cooperate with all regulators and hope to reach a fair resolution of all outstanding regulatory issues. The Company has and continues to request an expedited adjudication of the matters in dispute. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>As noted above, certain regulatory issues between the Company, and the NYSE and NASD remain outstanding. &nbsp;As part of its ongoing business, the Company records reserves for legal expenses, judgments, fines and/or awards attributable to litigation and regulatory matters. In connection therewith, the Company has maintained its legal reserves at levels it believes will resolve outstanding matters, but may increase or decrease such reserves as matters warrant.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>Business Continuity</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>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 style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Results of Operations </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Net profit for the three months ended <A NAME="OLE_LINK2"></A>March 31, 2006 was $17,217,000 or $1.36 per share, an increase of approximately 4.5 times compared to $3,765,000 or $0.28 per share in the same period of 2005. Revenue for the three months ended March 31, 2006 was $201,050,000, an increase of 28% compared to revenue of $157,246,000 in the same period of 2005, with $11.3 million relating to the valuation gain on the shares of NYSE Group, discussed above. &nbsp;Expenses increased by 14% in the three months ended March 31, 2006 compared to the same period of 2005, primarily reflecting increased volume-related compensation expense, which varies with the increased levels of commission revenue and principal transactions, as well as due to higher interest expense.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>23</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The following table and discussion summarizes the changes in the major revenue and expense categories for the periods presented (in thousands of dollars):</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=295.2>&nbsp;</TD><TD valign=top width=210 colspan=2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Three Months ended </P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>March 31,</P>
</TD></TR>
<TR><TD valign=top width=295.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=210 colspan=2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>2006 versus 2005</P>
</TD></TR>
<TR><TD valign=top width=295.2>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Period to Period Change</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=96><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Percentage Change</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Revenue -</P>
</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Commissions</P>
</TD><TD valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$11,265</P>
</TD><TD valign=top width=96><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>+ 14%</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Principal transactions, net</P>
</TD><TD valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>11,019</P>
</TD><TD valign=top width=96><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>+ 54%</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Interest</P>
</TD><TD valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>11,469</P>
</TD><TD valign=top width=96><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>+ 79%</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Underwriting fees</P>
</TD><TD valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>(1,900)</P>
</TD><TD valign=top width=96><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>- 15%</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Advisory fees</P>
</TD><TD valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>(2,302)</P>
</TD><TD valign=top width=96><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>- 9%</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Other</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>14,253</P>
</TD><TD valign=top width=96><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>+ 674%</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Total revenue</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>43,804</P>
</TD><TD valign=top width=96><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>+28%</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=295.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Expenses -</P>
</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Compensation</P>
</TD><TD valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>9,049</P>
</TD><TD valign=top width=96><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>+ 9%</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Clearing and exchanges fees</P>
</TD><TD valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>876</P>
</TD><TD valign=top width=96><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>+ 21%</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Communications and technology</P>
</TD><TD valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>322</P>
</TD><TD valign=top width=96><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>+ 3%</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Occupancy and equipment costs</P>
</TD><TD valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>553</P>
</TD><TD valign=top width=96><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>+5%</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Interest</P>
</TD><TD valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>7,586</P>
</TD><TD valign=top width=96><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>+113%</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Other</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>2,498</P>
</TD><TD valign=top width=96><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>+22%</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Total expenses</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>20,884</P>
</TD><TD valign=top width=96><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>+ 14%</P>
</TD></TR>
<TR><TD valign=top width=295.2>&nbsp;</TD><TD valign=top width=114>&nbsp;</TD><TD valign=top width=96>&nbsp;</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Profit before taxes</P>
</TD><TD valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>22,920</P>
</TD><TD valign=top width=96><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>+ 353%</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Income taxes</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>9,468</P>
</TD><TD valign=top width=96><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>+ 347%</P>
</TD></TR>
<TR><TD valign=top width=295.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Net profit</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$13,452</P>
</TD><TD valign=top width=96><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>+ 357%</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><I>Revenue, other than interest</I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Commission income and, to a large extent, income from principal transactions depend on investor participation in the markets. In the three months ended March 31, 2006, commission revenue increased by 14% compared to the same period of 2005 primarily as a result of increased investor activity in the equity markets. Net revenue from principal transactions increased by 54% in the three months ended March 31, 2006 compared to the comparable period of 2005 due primarily to stronger market conditions.. &nbsp;Investment banking revenues decreased 15% in the three months ended March 31, 2006 compared with the same period of 2005 due to the drop in new issue and secondary issuance in 2006 compared to 2005. Advisory fees decreased by 9% for the three months ended March 31, 2006 compared to the same period of 2005. The level of advisory fees earned in the first quarter of 2006 reflects the loss of the advisory contracts f
or the Asia Tigers and India Funds in December 2005. Assets under management by the asset management group were $12.4 billion at March 31, 2006 (of which $1.2 billion applies to a new transaction-based investment advisory program effective January 2006) compared to $10.5 billion at March 31, 2005, reflecting that clients are increasingly interested in fee-based services. Other revenue in 2006 includes a gain on the valuation of the Company&#146;s shares in NYSE Group of $11.3 million, as described above.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>24</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><I>Interest</I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Net interest revenue (interest revenue less interest expense) increased by 50% in the three months ended March 31, 2006 compared to the same period of 2005. Interest revenue, which primarily relates to revenue from customer margin balances and securities lending activities, increased by 79% in 2006 compared to 2005 primarily as a result of higher interest rates in 2006 and higher customer debit balances. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><I><BR></I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><I>Expenses, other than interest</I></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Compensation expense increased by 9% in the three months ended March 31, 2006 compared to the comparable period of 2005. Compensation expense has volume-related components and, therefore, increased with the increased levels of commission and principal transactions business conducted in the three months ended March 31, 2006 compared to the comparable period of 2005. The amortization of forgivable loans to brokers is included in compensation expense. This expense is relatively fixed and is not influenced by increases or decreases in revenue levels. As of January 1, 2006, the Company adopted SFAS 123-R, &#147;Shares-Based Payment&#148;, resulting in approximately $1,254,000 in compensation expense in the first quarter of 2006 relating to the expensing of stock options. In prior periods, the Company provided pro forma disclosure of the impact of employee stock options in the notes to its consolidated financial stat
ements. The cost of clearing and exchange fees increased by 21% in the three months ended March 31, 2006 compared to the comparable period of 2005 due to increased floor brokerage costs arising from increased institutional revenue. The cost of communications and technology increased 3% in the three months ended March 31, 2006 compared to the comparable period of 2005. While the Company continues to build out its technology platform for supporting its increasingly more complex business, it has been successful in reducing its costs through reviewing vendor charges and renegotiating more favorable terms. Occupancy and equipment costs increased by 5% in the three months ended March 31, 2006 compared to the same period of 2005 due to the expansion and relocation of several branch offices. Other expenses increased by 22% in the first three months ended March 31, 2006 compared to the comparable period in 2005 due to a $400,000 decrease in bad debt expense and approximately a $2,000,000 increase in litigation settle
ment costs, and legal and regulatory costs in the first quarter of 2006 compared to the same period in the prior year. Other expenses may continue to be impacted by litigation and regulatory settlement costs. 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 and regulatory losses. The costs of compliance with regulatory authorities, as well as Sarbanes-Oxley Act compliance, continue to be expensive.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Liquidity and Capital Resources</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Total assets at March 31, 2006 approximated December 31, 2005 levels, in total. The Company satisfies its need for funds from its own cash resources, internally generated funds, collateralized and uncollateralized borrowings, consisting primarily of bank loans, and uncommitted lines of credit. The amount of Oppenheimer's bank borrowings fluctuates in response to changes in the level of the Company's securities inventories and customer margin debt, changes in stock loan balances and changes in notes receivable from employees. Oppenheimer has arrangements with banks for borrowings on an unsecured and on a fully collateralized basis. At March 31, 2006, $238,822,000 of such borrowings were outstanding compared to outstanding borrowings of $139,700,000 at </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>25</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>December 31, 2005. At March 31, 2006, the Company had available collateralized and uncollateralized letters of credit of $160,200,000.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>In connection with the acquisition of the Oppenheimer divisions from CIBC World Markets in January 2003, 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 consolidated financial statements contain a description of these instruments. The debentures, if exchanged, would represent the addition of approximately 36% of the outstanding Class A Shares of the Company. The interest due on the debentures is payable semi-annually and is generally being financed from internally generated funds and bank call loans. 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 businesses. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify>In connection with the acquisition of the Oppenheimer divisions from CIBC World Markets in January 2003, the Company arranged a credit facility in the amount of $50 million with CIBC. In January 2003, the Company borrowed $25 million under this facility and borrowed the balance in July 2003. The borrowings were used to finance broker retention notes and were repayable, together with interest, at the CIBC U.S. base rate plus 2% over five years or earlier if any broker notes become due earlier. The Company fully retired this credit facility in January 2006 out of internally generated funds and bank call loans.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Funding Risk</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=385.2>&nbsp;</TD><TD valign=top width=216 colspan=2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center>Three months ended March 31,</P>
</TD></TR>
<TR><TD valign=top width=385.2>&nbsp;</TD><TD valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>2006</P>
</TD><TD valign=top width=102><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>2005</P>
</TD></TR>
<TR><TD valign=top width=385.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Cash (used in) operations</P>
</TD><TD valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$(87,016)</P>
</TD><TD valign=top width=102><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$(1,776)</P>
</TD></TR>
<TR><TD valign=top width=385.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Cash used in investing activities</P>
</TD><TD valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>(1,150)</P>
</TD><TD valign=top width=102><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$(518)</P>
</TD></TR>
<TR><TD valign=top width=385.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Cash provided by financing activities</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>82,141</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=102><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$14,201</P>
</TD></TR>
<TR><TD valign=top width=385.2><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Net increase (decrease) in cash and cash equivalents</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=114><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$(6,025)</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=102><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$11,907</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The Company made significant reductions in its long-term debt load, offset by earnings and increased bank call loans. With stronger market conditions in the first quarter of 2006, the Company&#146;s &nbsp;cash available was impacted &nbsp;by funding higher net customer debits, as customers increased borrowings and reduced credit balances.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>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 &#147;Forward-Looking Statements&#148;).</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Other Matters</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>During the first quarter of 2006, the Company purchased 106,100 Class A Shares pursuant to a Normal Course Issuer Bid at an average cost per share of $20.34.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>26</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The following table describes the purchases in the first quarter of 2006 of Class A Shares made by the Company pursuant to Normal Course Issuer Bids in effect from July 22, 2005 through July 21, 2006 for a maximum of 644,000 shares.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD style="border-bottom:0.5pt solid #000000" valign=top width=114.467><P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Period</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=119.533><P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Total Number of Class A Shares Purchased</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=135.8><P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Average Price Paid Per Share</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=127.667><P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=127.733><P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs</P>
</TD></TR>
<TR><TD valign=top width=114.467>&nbsp;</TD><TD valign=top width=119.533>&nbsp;</TD><TD valign=top width=135.8>&nbsp;</TD><TD valign=top width=127.667>&nbsp;</TD><TD valign=top width=127.733>&nbsp;</TD></TR>
<TR><TD valign=top width=114.467><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">January 2006</P>
</TD><TD valign=top width=119.533><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>-</P>
</TD><TD valign=top width=135.8><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>-</P>
</TD><TD valign=top width=127.667><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>-</P>
</TD><TD valign=top width=127.733><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>259,100</P>
</TD></TR>
<TR><TD valign=top width=114.467><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">February 2006</P>
</TD><TD valign=top width=119.533><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>30,100</P>
</TD><TD valign=top width=135.8><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$20.31</P>
</TD><TD valign=top width=127.667><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>30,100</P>
</TD><TD valign=top width=127.733><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>229,000</P>
</TD></TR>
<TR><TD valign=top width=114.467><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">March 2006</P>
</TD><TD valign=top width=119.533><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>76,000</P>
</TD><TD valign=top width=135.8><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$20.35</P>
</TD><TD valign=top width=127.667><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>106,100</P>
</TD><TD valign=top width=127.733><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>153,000</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>During the first quarter of 2006, the Company issued 165,166 Class A Shares for a total consideration of $3,363,000 to employees under its employee shares plans, of which 104,725 Class A Shares ($2,074,000) were purchased by the Oppenheimer &amp; Co. Inc. 401(k) Plan.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>On February 28, 2006, the Company paid cash dividends of U.S.$0.10 per Class A and Class B Share totaling $1,276,000 from available cash on hand.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>On April 27, 2006, the Board of Directors declared a regular quarterly cash dividend of U.S. $0.10 per Class A and Class B Share payable on May 19, 2006, to shareholders of record on May 5, 2006.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The book value of the Company&#146;s Class A and Class B Shares was $25.78 at March 31, 2006 compared to $23.10 at March 31, 2005, an increase of approximately 12%, based on total outstanding shares of 12,654,887 and 13,297,621, respectively.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Off-Balance Sheet Arrangements</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Information concerning the Company&#146;s off-balance sheet arrangements is included in note 9 of the notes to the condensed consolidated financial statements. Such information is hereby incorporated by reference.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Contractual and Contingent Obligations</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The Company has contractual obligations to make future payments in connection with non-cancelable lease obligations, certain retirement plans and debt assumed upon the 2003 acquisition of the Oppenheimer divisions from CIBC World Markets. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>27</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">The following table sets forth these contractual and contingent commitments as at March 31, 2006:</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Contractual Obligations &nbsp;&nbsp;(In millions of dollars)</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=171.133>&nbsp;</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=88.067><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>Total</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=84><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>Less than 1 Year</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=72><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>1-3 Years</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=72><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>3-5 Years</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=78><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>More than 5 Years</P>
</TD></TR>
<TR><TD valign=top width=171.133>&nbsp;</TD><TD valign=top width=88.067>&nbsp;</TD><TD valign=top width=84>&nbsp;</TD><TD valign=top width=72>&nbsp;</TD><TD valign=top width=72>&nbsp;</TD><TD valign=top width=78>&nbsp;</TD></TR>
<TR><TD valign=top width=171.133><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Minimum rentals</P>
</TD><TD style="border-top:0.5pt solid #000000" valign=top width=88.067><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$152</P>
</TD><TD style="border-top:0.5pt solid #000000" valign=top width=84><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$20</P>
</TD><TD style="border-top:0.5pt solid #000000" valign=top width=72><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$49</P>
</TD><TD style="border-top:0.5pt solid #000000" valign=top width=72><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$38</P>
</TD><TD style="border-top:0.5pt solid #000000" valign=top width=78><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$45</P>
</TD></TR>
<TR><TD valign=top width=171.133><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Debentures</P>
</TD><TD valign=top width=88.067><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>161</P>
</TD><TD valign=top width=84><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>-</P>
</TD><TD valign=top width=72><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>-</P>
</TD><TD valign=top width=72><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>-</P>
</TD><TD valign=top width=78><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>161</P>
</TD></TR>
<TR><TD valign=top width=171.133><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Zero coupon promissory notes</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=88.067><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>20</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=84><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>6</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=72><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>5</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=72><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>3</P>
</TD><TD style="border-bottom:0.5pt solid #000000" valign=top width=78><P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=right><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>6</P>
</TD></TR>
<TR><TD valign=top width=171.133><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Total</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=88.067><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$333</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=84><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$26</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=72><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$54</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=72><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$41</P>
</TD><TD style="border-bottom:2pt double #000000" valign=top width=78><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=right>$212</P>
</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Newly Issued Accounting Standards</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><I>Limited Partnerships </I>- In June 2005, the FASB ratified the consensus reached in Emerging Issues Task Force (&#147;EITF&#148;) Issue No. 04-5, &#147;Determining Whether a General Partner, or the General Partners as a Group, Controls a Limited Partnership or Similar Entity When the Limited Partners Have Certain Rights&#148; which requires a general partner(s) (or managing member(s) in the case of limited liability companies) to consolidate its partnerships or to provide limited partners with rights to remove the general partner(s) or to terminate the partnership. &nbsp;The Company serves as a general partner for a number of asset management limited partnerships through OAM and, therefore, was required to adopt the provisions of EITF Issue No. 04-5 immediately for partnerships formed or modified after June 29, 2005. For partnerships formed on or before June&nbsp;29, 2005 that were not modified, the Company was required t
o adopt EITF 04-5 on January 1, 2006. &nbsp;The adoption of EITF Issue No. 04-5 did not have a material impact on the Company&#146;s consolidated financial statements. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Factors Affecting &#147;Forward-Looking Statements&#148;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>This report contains &#147;forward-looking statements&#148; within the meaning of Section 27A of the Securities Act of 1933, as amended (the &#147;Act&#148;), and Section 21E of the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;). 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 </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>28</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>economic developments affecting the litigation &nbsp;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. See &#147;Risk Factors&#148; in the Company&#146;s Annual Report on Form 10-K for the year ended December 31, 2006. 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 style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><B>ITEM 3. Quantitative and Qualitative Disclosures About Market Risk</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>During the three months ended March 31, 2006, 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, 2005.</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>&nbsp;&nbsp;</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify><B>ITEM 4. <A NAME="OLE_LINK3"></A>Controls and Procedures </B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The Company carried out an evaluation, under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of its disclosure controls and procedures pursuant to Rule&nbsp;13a&#150;15(e) of the Exchange Act. Based on this evaluation, the Company&#146;s Chief Executive Officer and Chief Financial Officer concluded that the Company&#146;s disclosure controls and procedures were effective as of the end of the period covered by this report. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Management, including the Chief Executive Officer and Chief Financial Officer, does not expect that the Company&#146;s disclosure controls and procedures or its internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are 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, but are not limited to, the realities that judgments in decision&#150;making can be faulty and that break-downs can occur b
ecause of a simple error or omission. Additionally, controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of controls also 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 the degree of compliance with the policies or procedures may deteriorate. Because of the inherent limitations in a cost&#150;effective control system, misstatements due to error or fraud may occur and not be detected. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<A NAME="OLE_LINK7"></A><P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Changes in Internal Control over Financial Reporting </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>No changes in the Company&#146;s internal controls over financial reporting (as defined in Rule 13a-15(f) of the Exchange Act) that have materially affected, or are reasonably likely to materially affect, the Company&#146;s internal controls over financial reporting, occurred during the quarter ended March 31, 2006.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>29</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>PART II</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>OTHER INFORMATION</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>ITEM 1. Legal Proceedings</B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>Many aspects of the Company&#146;s business involve substantial risks of liability. In the normal course of business, the Company has been named as defendant or co-defendant in lawsuits creating substantial exposure. The Company is also involved from time to time in governmental and self-regulatory agency investigations and proceedings. There has been an increased incidence of litigation and regulatory investigations in the financial services industry in recent years, including customer claims seeking, in total, substantial damages. </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>The Company is the subject of customer complaints, has been named as defendant or codefendant in various lawsuits seeking, in total, substantial damages and is involved in certain governmental and self-regulatory agency investigations and proceedings. These proceedings arise primarily from securities brokerage, asset management and investment banking activities. While the ultimate resolution of pending litigation and other matters cannot be currently determined, in the opinion of management, after consultation with legal counsel, the Company has no reason to believe that the resolution of these matters will have a material adverse effect on its financial condition. However, the Company&#146;s results of operations could be materially affected during any period if liabilities in that period differ from prior estimates. The materiality of legal matters to the Company&#146;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 style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>ITEM 1A. Risk Factors</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><B><BR></B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">During the three months ended March 31, 2006, there were no material changes to the information contained in Part I, Item 1A of the Company&#146;s Annual Report on Form 10-K for the year ended December 31, 2006.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-14pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds</B></P>
<P style="margin:0pt; text-indent:360pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; text-indent:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Not applicable</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>ITEM 3. Defaults Upon Senior Securities</B></P>
<P style="margin:0pt; text-indent:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Not applicable</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>ITEM 4. Submission of Matters to a Vote of Security Holders</B></P>
<P style="margin:0pt; text-indent:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">None</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>ITEM 5. Other Information</B></P>
<P style="margin:0pt; text-indent:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Not applicable</P>
<P style="margin:0pt; text-indent:36pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt"><B>ITEM 6. Exhibits </B></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">Exhibits </P>
<P style="margin:0pt; padding-left:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">31.1 Certification of Albert G. Lowenthal </P>
<P style="margin:0pt; padding-left:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">31.2 Certification of Elaine K. Roberts</P>
<P style="margin:0pt; padding-left:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">32.1 Certification of Albert G. Lowenthal and Elaine K. Roberts</P>
<P style="margin:0pt; padding-left:36pt; font-family:Times New Roman; font-size:12pt"><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>30</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="page-break-before:always; margin:0pt; padding-left:36pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>&nbsp;SIGNATURES</B></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>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 8 day of May, 2006.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin-top:0pt; margin-bottom:-14pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">&nbsp;</P>
<P style="margin:0pt; text-indent:108pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">&nbsp;OPPENHEIMER HOLDINGS INC.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By: &#147;A.G. Lowenthal&#148;</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.G. Lowenthal, Chairman and Chief Executive Officer</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Principal Executive Officer)</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By: &#147;E.K. Roberts&#148;</P>
<P style="margin:0pt; text-indent:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.K. Roberts, President, Treasurer and Chief Financial Officer</P>
<P style="margin:0pt; padding-left:72pt; text-indent:36pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>&nbsp;&nbsp;(Principal Financial Officer) &nbsp;&nbsp;</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR>
<BR></P>
<P style="margin:0pt; font-family:Times New Roman" align=center>31</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; padding-right:18pt; font-family:Times New Roman; font-size:12pt" align=center><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
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<TYPE>EX-32
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<FILENAME>ex32.htm
<TEXT>
<!doctype html public "-//IETF//DTD HTML//EN">
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<HEAD>
<TITLE>EXHIBIT 32</TITLE>
<META NAME="author" CONTENT="eroberts">
<META NAME="date" CONTENT="05/09/2006">
</HEAD>
<BODY style="line-height:12pt; font-size:10pt; color:#000000">
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt"><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>EXHIBIT 32.1</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>CERTIFICATION PURSUANT TO</P>
<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=justify>18 U.S.C. SECTION 1350</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:12pt" align=justify><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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 March 31, 2006 of the Company filed with the Securities and Exchange Commission on the date hereof &nbsp;(the &#147;Report&#148;) 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.</P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Signed at the New York, New York, this 8th day of March, 2006</P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><U>/s/ A.G. Lowenthal</U></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Albert G. Lowenthal</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Chairman and Chief Executive Officer</P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><U>/s/ E.K. Roberts</U></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Elaine K. Roberts</P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>President and Chief Financial Officer</P>
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<P style="margin:0pt; font-family:Times New Roman">1</P>
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<FILENAME>ex311.htm
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<TITLE>CERTIFICATION </TITLE>
<META NAME="author" CONTENT="eroberts">
<META NAME="date" CONTENT="05/09/2006">
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>CERTIFICATION &nbsp;&nbsp;&nbsp;&nbsp;EXHIBIT 31.1</B></P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>I, Albert G. Lowenthal, certify that: </P>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=48 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>1.</P>
</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>I have reviewed this quarterly report on Form&nbsp;10-Q of Oppenheimer Holdings Inc.;</P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=48 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>2.</P>
</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>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; </P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=48 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>3.</P>
</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>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; </P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=48 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>4.</P>
</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>The registrant&#146;s other certifying officer 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: </P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=48 colspan=2>&nbsp;</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>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; </P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=48 colspan=2>&nbsp;</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=48 colspan=2>&nbsp;</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>c)&nbsp;evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this quarterly &nbsp;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;</P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=48 colspan=2>&nbsp;</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>d) 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; </P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=48 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>5.</P>
</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>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):</P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=48 colspan=2><P style="margin-top:0pt; margin-bottom:-13pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; text-indent:36pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>&nbsp;</P>
</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>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 </P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=48 colspan=2>&nbsp;</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>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.</P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=24>&nbsp;</TD><TD valign=top width=178.4 colspan=2><P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><U>/s/ A.G. Lowenthal</U></P>
</TD><TD valign=top width=410.933 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=top width=24>&nbsp;</TD><TD valign=top width=240 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Name: Albert G. Lowenthal </P>
</TD><TD valign=top width=349.333 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=24>&nbsp;</TD><TD valign=top width=240 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Title: Chief Executive Officer </P>
</TD><TD valign=top width=349.333 colspan=2>&nbsp;</TD></TR>
</TABLE>
<P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">May 8, 2006</P>
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<FILENAME>ex312.htm
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<TITLE>CERTIFICATION </TITLE>
<META NAME="author" CONTENT="eroberts">
<META NAME="date" CONTENT="05/09/2006">
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<P style="margin:0pt; line-height:14pt; font-family:Times New Roman; font-size:12pt" align=center><B>CERTIFICATION &nbsp;&nbsp;&nbsp;&nbsp;EXHIBIT 31.2</B></P>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>I, Elaine K. Roberts, certify that: </P>
<P style="margin:0pt; padding-left:18pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<TABLE style="font-size:10pt" cellspacing=0><TR><TD valign=top width=48 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>1.</P>
</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>I have reviewed this quarterly report on Form&nbsp;10-Q of Oppenheimer Holdings Inc.;</P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=48 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>2.</P>
</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>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; </P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=48 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>3.</P>
</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>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; </P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=48 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>4.</P>
</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>The registrant&#146;s other certifying officer 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: </P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=48 colspan=2>&nbsp;</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>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; </P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=48 colspan=2>&nbsp;</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;</P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=48 colspan=2>&nbsp;</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>c)&nbsp;evaluated the effectiveness of the registrant&#146;s disclosure controls and procedures and presented in this quarterly &nbsp;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;</P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=48 colspan=2>&nbsp;</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>d) 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; </P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=48 colspan=2><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>5.</P>
</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>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):</P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=48 colspan=2><P style="margin-top:0pt; margin-bottom:-13pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>
<P style="margin:0pt; text-indent:36pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>&nbsp;</P>
</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>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 </P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=48 colspan=2>&nbsp;</TD><TD valign=top width=564 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>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.</P>
</TD><TD valign=top width=1.333>&nbsp;</TD></TR>
<TR><TD valign=top width=24>&nbsp;</TD><TD valign=top width=178.4 colspan=2><P style="margin:0pt; font-family:Times New Roman; font-size:11pt" align=justify><BR></P>
<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify><U>/s/ E.K. Roberts</U></P>
</TD><TD valign=top width=410.933 colspan=3>&nbsp;</TD></TR>
<TR><TD valign=top width=24>&nbsp;</TD><TD valign=top width=240 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Name: Elaine K. Roberts </P>
</TD><TD valign=top width=349.333 colspan=2>&nbsp;</TD></TR>
<TR><TD valign=top width=24>&nbsp;</TD><TD valign=top width=240 colspan=3><P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt" align=justify>Title: Chief Financial Officer </P>
</TD><TD valign=top width=349.333 colspan=2>&nbsp;</TD></TR>
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<P style="margin:0pt; line-height:13pt; font-family:Times New Roman; font-size:11pt">May 8, 2006</P>
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