Convertibles

Lehman Brothers excels in underwriting conventional and highly structured convertible securities. These securities offer issuers vast corporate finance flexibility and are an increasingly important part of the capital markets.

The Firm's Convertibles Sales, Trading and Research team continues to build strong relationships with our clients servicing both the fundamental and hedge fund investor community. Our Sales and Trading team is active in all markets, buying and selling convertible securities throughout the world.

For the fourth consecutive year, the Convertibles Research team achieved a first place ranking in Institutional Investor's "All-America Research Team" survey in 2007, which recognized the in-depth product-specific research we provide to clients in conjunction with the Firm's macro-economic analysis. Lehman Brothers also launched a U.S. Convertibles Index which tracks over 780 securities across 65 sub-indices — one of the most comprehensive convertible indices published.

The Firm continues its tradition of providing innovative solutions, as well as a proven track record for excellence in execution, to meet our client's objectives. Our creative financing abilities offer extensive opportunities for all types of companies and investors.

Recent Notable Transactions*

•	Acted as joint bookrunner on $5.0 billion convertible note offering for Amgen Inc. — one of the largest U.S. convertible debt offerings and the largest equity or equity-linked offerings by a healthcare company in history.
•	Acted as joint bookrunner on $5.0 billion convertible note offering for Ford Motor Company — the second largest convertible offering in 2006.
•	Acted as lead bookrunner on $2.8 billion convertible note offering for Nabors Industries — the largest U.S. convertible transaction ever in the natural resources sector.
•	Acted as sole manager on $2.5 billion convertible note offering for U.S. Bancorp — the largest U.S. convertible offering in 2005.

Internet Access
LehmanLive® Web site enables clients to track their portfolio through secure, password-enabled Internet access. Our dedicated convertible portal also offers clients access to new issue deal information, analytical charting, research reports, Webcasting and bond valuations.

*	As of December 2006. This announcement is for informational purposes only and is not an offer of securities.