Revenues for the fourth quarter ended December 31, 2002 were $16,048,000 compared to $13,974,000 for the same period in 2001, an increase of 15%. Net income for the fourth quarter of 2002 was $1,766,000, or $.03 per share, compared to $1,094,000 for the 2001 period, or $.02 per share. In 2001, the Company expanded its arbitrage trading program to include a greater risk profile trading program. The greater risk trading program resulted in after-tax losses of $250,000 in the fourth quarter of 2001, reducing the fourth quarter gain on marketable securities to $52,000. In the 2002 quarter, the Company recognized an after-tax gain of $356,000 from marketable securities. The Company recognized taxes at a rate of 48% in the 2001 period, compared to a rate of 42% in 2002.

The increase in revenues in the 2002 quarter was due to approximately $5 million from the Company’s Track ECN that commenced operations in 2002, offset by a reduction in the institutional market data services due to layoffs in that industry and, to a lesser extent, from a reduction in retail trading and market data services. Because of the uncertainties in collection of Track ECN billing, revenues were not recorded until payment could be reasonably anticipated. In the fourth quarter of 2002, due to agreements reached and payments received, revenues of $2,168,000 were recorded in that quarter for services in prior quarters. As a result of reducing its ECN fees to $2.90 per thousand shares from $7.00 per thousand shares in January, 2003, and the ability to deny access to market participants who refuse to pay for its ECN services, the Company is recognizing revenues as services are performed in 2003. Based on the lower pricing and reduced volumes since November, 2002, when Nasdaq's SuperMontage was introduced, the Company presently expects significantly lower revenues and profit contribution from its ECN in 2003.

Revenues for the year ended December 31, 2002 were $57,188,000 compared to $62,217,000 in 2001, a decrease of 8%. Net income for the year ended December 31, 2002 was $2,991,000, or $.06 per share, compared to $11,078,000 for the 2001 period, or $.19 per share. The revenue decrease in 2002 was due principally to a significant reduction in institutional market data services due to layoffs in that industry, and, to a lesser extent, a reduction in the Company's myTrack services, offset by an increase in revenues of approximately $9 million from the Company's new Track ECN. The greater risk portion (discontinued in the first quarter of 2002) of the arbitrage trading program resulted in after-tax losses of $812,000, reducing the after-tax gain on marketable securities to $330,000 for 2002. The Company recognized an after-tax gain on marketable securities of $1,897,000 in 2001. In 2002, the Company wrote off its investments in two private companies and recognized after-tax losses of $415,000. In 2001, the Company recognized an after-tax gain of $690,000 from the sale of an Internet domain name. Income taxes were provided at a rate of 42% in 2002 compared to 31% in 2001.

Barry Hertz, Chairman and CEO, commented, "We recently experienced reduced volume on the Track ECN. A new pricing model that offers the highest published rebate of $2.30 per thousand shares and the lowest fee among the major ECN's of $2.90 per thousand shares has been introduced in an attempt to recover the lost volume. We also applied for approval to self-clear our ECN services. Self clearing will allow us to be as competitive as possible, and enable us to respond to the rapid changes occurring in this business."

For professional investors, Track Data Securities offers proTrack, a direct access trading platform with fully integrated market data. proTrack offers unbiased trade routing, allowing clients control over where their orders are sent. proTrack is also available to broker-dealers as an execution platform.

The Company also owns and operates the Track ECN, an electronic communications network that allows traders to display and match limit orders for stocks. Track ECN offers subscribers a Rebate Model, which offers the highest published rebate in the industry and a Free Model, which offers no access fees to market participants who access its liquidity through Nasdaq's SuperMontage. Because of its no access fee, the Free Model is offered in Nasdaq's first tier with market makers, providing subscribers with fast executions. Track ECN offers subscribers anonymous executions and speed.

For individual investors, Track Data Securities offers myTrack, a fully integrated, Internet-based online trading and market data system. myTrack’s direct access online trading has equity commissions starting at $12.95 per trade and allows users the choice of where to route their orders. myTrack also offers trading in options at all options markets, and over 6,000 mutual funds. In addition, futures trading in the E-Minis is available, with cross-collateralization of accounts. Futures trades are routed directly to the CME at $14 per contract per round trip.

For additional information, please contact Rafi Reguer, Vice President, Corporate Communications, at 718-522-0222 or by e-mail: rafi_reguer@trackdata.com.