Exhibit 99.3
LEHMAN BROTHERS HOLDINGS INC.
CONSOLIDATED STATEMENT OF INCOME
(Preliminary and Unaudited)
(In millions, except per share data)




                                                           Three Months Ended



                                                                                               Percentage of
                                                      February 28          February 28         Dollar Change
                                                         2003                 2002               Inc/(Dec)
                                                   ---------------- --- ---------------    -------------------
                                                                                         

Revenues:
   Principal transactions                               $   768          $       569
   Investment banking                                       371                  470
   Commissions                                              262                  289
   Interest and dividends                                 2,687                2,886
   Other                                                     12                   12
                                                    ----------------     ---------------
      Total revenues                                      4,100                4,226
   Interest expense                                       2,389                2,620
                                                    ----------------     ---------------
      Net revenues                                        1,711                1,606                7%
                                                    ----------------     ---------------

Non-interest expenses:
   Compensation and benefits                                873                  819
   Technology and communications                            143                  122
   Brokerage and clearance                                   86                   75
   Occupancy                                                 82                   69
   Business development                                      32                   34
   Professional fees                                         29                   20
   Other                                                     29                   27
                                                    ----------------     ---------------
      Total non-interest expenses                         1,274                1,166                9%
                                                    ----------------     ---------------
Income before taxes and dividends
 on trust preferred securities                              437                  440
Provision for income taxes                                  122                  128
   Dividends on trust preferred securities                   14                   14
                                                    ----------------     ---------------
Net income                                                $ 301          $       298                 1%
                                                    ================     ===============

Net income applicable to common stock                     $ 290          $       262               11%
                                                    ================     ===============

Earnings per common share
   Basic                                                 $1.20               $1.07
                                                    ================     ===============
   Diluted                                               $1.15               $0.99
                                                    ================     ===============