RFX Refco Inc.

NEW YORK, Oct. 17 /PRNewswire-FirstCall/ -- Refco, Inc. announced today that it is in advanced negotiations with a group of investors led by J.C. Flowers & Co. for the sale of the Company's futures brokerage business conducted through Refco LLC, Refco Overseas Ltd., Refco Singapore Pte. Ltd., and certain related subsidiaries and other assets. The Company expects that it will reach a memorandum of understanding with The J.C. Flowers & Co. Group shortly and will execute definitive agreements soon thereafter. There can be no assurance that any agreement ultimately will be reached or that the sale will be completed. About Refco Inc. Refco Inc. (NYSE:RFX) is a diversified financial services organization with operations in 14 countries and an extensive global institutional and retail client base. Refco's worldwide subsidiaries are members of principal U.S. and international exchanges, and are among the most active members of futures exchanges in Chicago, New York, London and Singapore. In addition to its futures brokerage activities, Refco is a major broker of cash market products, including foreign exchange, foreign exchange options, government securities, domestic and international equities, emerging market debt, and OTC financial and commodity products. Refco is one of the largest global clearing firms for derivatives. For more information, visit http://www.refco.com/. About J.C. Flowers Group J. C. Flowers & Co. is an investment firm specializing in financial services. Mr. Flowers is the largest shareholder of Shinsei Bank Ltd and The Enstar Group Inc. Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of the 1995. In this press release, all statements other than statements of historical fact are forward looking statements that involve risks and uncertainties and actual results could differ. These forward-looking statements are based on assumptions that we have made in light of our experience and on our perceptions of historical events, current conditions, expected future developments and other factors we believe are appropriate under the circumstances. Although we believe that these forward-looking statements have a reasonable basis, you should be aware that numerous factors, including the outcome of the Audit Committee's investigation; our ability to obtain financing arrangement or alternatives; changes in domestic and international market conditions; competition; our ability to attract and retain customers; our relationships with introducing brokers; retention of our management team; our ability to manage our growth or integrate future acquisitions, our exposure to significant credit risks with respect to our customers, international operations and exchange membership requirements, the effectiveness of compliance and risk management methods, potential litigation or investigations, employee or introducing broker misconduct or errors, reputational harm, and changes in capital requirements, could cause actual results to differ materially from our expectations. Because of these factors, we caution that you should no place undue reliance on any of our forward-looking statements. Further, any forward looking statement speaks only as of today. It is impossible for us to predict how new events or developments may affect us. The Company disclaims any intention or obligation to update or revise any forward-looking statements, either to reflect new information or developments or for any other reason. DATASOURCE: Refco Inc. CONTACT: For investors - Dennis Klejna, Gen. Counsel, Refco, +1-212-587-6035; or Marcia Horowitz, +1-212-843-8014, or Rob Solomon, +1-212- 843-8050, both of Rubenstein Associates for Refco Inc Web site: http://www.refco.com/

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