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Knight Capital Group Completes $400 Million Equity Financing Agreement

JERSEY CITY, N.J., Aug. 6, 2012 /PRNewswire/ --  Knight Capital Group, Inc. (NYSE Euronext: KCG) announced $400 million in equity financing with Wall Street firms including Jefferies Group, Inc., which conceived and structured the investment, as well as Blackstone, GETCO LLC, Stephens, Stifel Financial Corp. and TD Ameritrade Holding Corporation.

"We are grateful for the support of these leading Wall Street firms that came together to invest in Knight," said Tom Joyce, Chairman and Chief Executive Officer, Knight Capital Group. "The array of participants in this capital infusion underscores Knight's critical role in the capital markets. With our financial position strengthened and liquidity restored, we will continue to provide clients with trading in a broad range of securities, high-quality execution and outstanding client service."

Under the terms of the transaction, Knight issued two percent preferred shares that may be converted into common stock at $1.50 per share. The owners of the preferred shares may convert all or a portion of the preferred shares into Knight Class A Common Stock. Knight has committed to expand its Board of Directors by adding three new members. Additional details on the financing will be available in a Form 8-K to be filed today.

"Knight's financial position and capital base have been restored to a level that more than offsets the loss incurred last week. We thank our clients, employees and partners for their steadfastness during a brief yet difficult period and we are getting back to business as usual," added Mr. Joyce.

As previously announced, the software that led to the August 1, 2012 trading issue was removed from the company's systems. The company continues to review the matter.

The advisors to Knight on the transaction are Sandler O'Neill + Partners, L.P. and Wachtell, Lipton, Rosen & Katz.

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