eSpeed and BGC to Combine

eSpeed and BGC to Combine

Pre-Eminent Provider of Electronic Marketplaces for the World’s Capital Markets to Join With Leading Global Inter-Dealer Broker

Combination Expected to be Immediately Accretive to eSpeed Stockholders

Combined Company to be Called BGC Partners, Inc.

eSpeed, Inc. (NASDAQ: ESPD), a leader in electronic marketplaces and related trading technology for the global capital markets, and BGC Partners (“BGC”), one of the largest and fastest growing inter-dealer brokers of financial instruments for wholesale market participants worldwide, today announced that eSpeed and BGC will merge, and the combined company will be named “BGC Partners, Inc.”

The combined company will be a world-class provider of voice and electronic brokerage services in the global marketplace, and will be positioned to achieve significant growth and to maximize value for its stockholders. It will benefit from a streamlined product development pipeline, larger capital base, enhanced ability to attract and retain brokers, complementary cultures and values, and a management team of exceptional depth and breadth, all providing a stronger, integrated platform for continued growth. In addition, the combination is expected to deliver tangible structural and operating synergies that will drive expense reductions and revenue enhancements.

After taking into account the effects of the full formation and final separation from Cantor Fitzgerald, L.P. (“Cantor”), BGC’s revenues were approximately $249 million in the first quarter of 2007 and pre-tax income was approximately $24 million. BGC’s projected revenues for the full year of 2007 are expected to be in excess of $900 million with pre-tax income in excess of $93 million, excluding costs associated with the formation, separation and merger transactions. The combined company’s 2007 projected revenues are expected to be approximately $1 billion. For 2008, the combined company’s projected revenues are expected to increase by more than 12% and to exceed $1.1 billion in annual revenues. The combined company expects to generate a pre-tax profit margin of approximately 13% and expects to have an effective tax rate of no higher than 27%, after the effects of the net operating loss carry forwards. The above revenues and expenses for the combined company in 2007 and 2008 reflect reductions of approximately $57 million and $61 million, respectively, because of amounts that have historically been associated with intercompany revenue sharing transactions that will now be eliminated subsequent to the merger.

Howard W. Lutnick, Chairman, Chief Executive Officer and President of eSpeed, commented, “We are extremely proud of each of these two companies and their strong positions in the marketplace. eSpeed is the technology driver of BGC’s voice and electronic broking business, and BGC’s performance drives eSpeed’s growth. The integration of BGC’s superior customer service, execution, and innovation with eSpeed’s powerful technology platform represents an ideal strategic fit. By combining these considerable strengths, we will achieve improved operating efficiencies and strengthen our market position, serving the best long-term interests of eSpeed’s stockholders, both companies’ customers and BGC’s employee-owners.”

Mr. Lutnick added, “Upon closing, we expect this combination will be immediately accretive to eSpeed stockholders, and it represents an important milestone in the building of BGC’s global brand. We fully expect to realize tremendous additional value over the long term by further building upon the combined company’s position as a market innovator and leader.”