LightPoint Capital Management LLC

LEHMAN BROTHERS TO ACQUIRE LIGHTPOINT CAPITAL MANAGEMENT

NEW YORK, July [11], 2007 – Lehman Brothers, the global investment bank, announced today that it is acquiring LightPoint Capital Management LLC, a leveraged loan investment manager with approximately $3.2 billion assets under management. The business will become an integral part of Lehman Brothers Asset Management (“LBAM”), which manages fixed income and money market assets of approximately $114 billion. Terms of the transaction were not disclosed.

“We are delighted to acquire LightPoint Capital Management, enabling us to broaden our client offerings to include leveraged loans,” said Joseph V. Amato, managing director and global head of Asset Management for Lehman Brothers. “Adding capabilities and talent are critical as we continue to build out our global asset management offerings.”

Founded in 2002, Chicago-based LightPoint manages a series of collateralized loan obligation vehicles, utilizing a research-based approach to create high-quality well-diversified portfolios. As part of the transaction, LightPoint Chief Executive Thomas A. Kramer joins Lehman Brothers Asset Management as a managing director. Together with Ann Benjamin, Mr. Kramer will co-head Leveraged Finance within the Asset Management business. As head of the LBAM High Yield team since 1997, Ms. Benjamin has helped grow the business to approximately $6 billion in assets under management. In their newly created roles, Ms. Benjamin and Mr. Kramer will report to Brad Tank, managing director and global head of Fixed Income Asset Management.

“LightPoint has developed a strong franchise managing debt securities directly and through structured vehicles which has generated superior returns for our investors,” said Mr. Kramer. “Lehman Brothers’ scale, resources, strength and diversification among fixed income asset classes combined with LightPoint’s first rate team and expertise in leveraged assets will result in an unparalleled array of financial solutions for our clients.”

The LightPoint team, including 20 investment professionals in Chicago and London, will also join Lehman Brothers Asset Management, including lead loan portfolio manager Tim Van Kirk. At LBAM, they will work closely with Tom O’Reilly as lead portfolio manager in High Yield and Patrick Flynn as head of Leveraged Finance Research for the group.

“Tom Kramer and his highly experienced team have demonstrated sustained excellence in leveraged loan investing and we look forward to working with them to deliver value to our clients,” said Mr. Tank. “We see great opportunities to continue to build this business in the Americas as well as in the fast-growing European loan market.”

Mr. Kramer has more than two decades of investment industry experience and was managing director and head of North American Leveraged Finance for ABN AMRO Bank before leaving to start LightPoint.

Lehman Brothers’ Asset Management business offers proprietary products, across traditional and alternative asset classes, through a variety of distribution channels to individuals and institutions. Asset Management is one of three businesses within Lehman Brothers’ Investment Management Division. The others are Private Investment Management, which offers comprehensive investment, wealth advisory and capital markets execution services for high net worth individuals and businesses, leveraging all of the resources of the Firm; and Private Equity, which provides investment opportunities in privately negotiated transactions across a variety of asset classes for institutional and qualified individual investors. Investment Management Division assets under management totaled $263 billion as of May 31, 2007.

Lehman Brothers (ticker symbol: LEH), an innovator in global finance, serves the financial needs of corporations, governments and municipalities, institutional clients and high net worth individuals worldwide. Founded in 1850, Lehman Brothers maintains leadership positions in equity and fixed income sales, trading and research, investment banking, private investment management, asset management and private equity. The Firm is headquartered in New York, with regional headquarters in London and Tokyo and operates in a network of offices around the world. For further information about Lehman Brothers’ services, products and recruitment opportunities, visit our Web site at www.lehman.com.

Lehman Brothers Inc., member NYSE/NASD/SIPC, is a subsidiary of Lehman Brothers Holdings Inc.

Media Contact: Kerrie Cohen 212-526-4092