EXHIBIT 99.1


LEHMAN BROTHERS
Press Release


For Immediate Release                           Media Contact: William J. Ahearn

                                                               212-526-4379



                            LEHMAN BROTHERS ANNOUNCES
                            SENIOR MANAGEMENT CHANGES



NEW YORK,  May 9,  2002 - Lehman  Brothers  Holdings  Inc.  (NYSE:  LEH)
announced  today  several  organizational changes.

According  to  Richard S.  Fuld,  Jr.,  Chairman  and Chief  Executive  Officer,
effective  immediately  Joseph M. Gregory and Bradley H. Jack will take on newly
established roles as Chief Operating Officers. Previously, Mr. Jack was the head
of  Investment  Banking,  and Mr.  Gregory was the Firm's  Chief  Administrative
Officer; in their new positions,  their  responsibilities will include the daily
management of Lehman Brothers' business and administrative activities around the
world.

"With the significant growth of our business, I believe we have reached a point
in the ongoing development of the Firm where our management structure should
also evolve," Mr. Fuld said. He noted that since Lehman Brothers went public in
1994, earnings have grown 30 percent per year, the Firm's capital base has
tripled, the stock price has
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outpaced all others in the industry, and the size of the Firm has almost
doubled, growing to 13,000 people.

Lehman Brothers also announced the creation of an Office of the Chairman,
including Mr. Fuld and Jeffrey Vanderbeek, who will assume responsibility for
global risk management, including Private Equity, and strategy for the Firm. Mr.
Fuld noted that the establishment of an Office of the Chairman-level
responsibility overseeing the Firm's risk profile underscores the importance the
Firm places on market and credit risk management, and on its contribution to
Lehman Brothers' success.

Mr. Fuld also announced that within the Firm's senior management:

Jeremy M. Isaacs, Chairman of Lehman Brothers' non-U.S. business activities,
will continue to oversee the global expansion of the Firm. Lehman Brothers'
percentage of non-U.S. revenues to total revenues has grown steadily over the
past few years, and we believe that there will be significant opportunities to
continue to profitably expand its activities in Europe, Asia and in other select
markets, Mr. Fuld said.

Stephen M. Lessing, Lehman Brothers' senior client contact officer, will
continue in his role expanding the Firm's focus on its clients and customers
around the world. Mr. Fuld noted that a critical aspect of Lehman Brothers'
business building has been its client focus, and that the Firm's ability to
maintain its profitable growth will be a direct result of its ability to expand
its client base and the depth of client relationships.

"With these changes, we have focused senior management resources on our
strengths, our opportunities, and the challenges the markets present. We are
strengthening those areas that have made Lehman Brothers the best operator in
the industry: our business franchise, risk management, global capabilities, and
a commitment to client focus," Mr. Fuld said.

Lehman Brothers (ticker symbol NYSE: LEH), an innovator in global finance,
serves the
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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 equity, and private client
services. The Firm is headquartered in New York, 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.