Lehman Brothers Holdings Inc. Announces Filing of Motion Seeking Restrictions on Trading in Lehman Stock by "Substantial Equityholders," Effective as of October 15, 2008

Lehman Brothers Holdings Inc. stated that on October 15, 2008 it and its affiliated chapter 11 debtors (the “Debtors”) filed a motion (the “Motion”) with the United States Bankruptcy Court for the Southern District of New York seeking an order restricting certain transfers of interest in stock of the Debtors. The Motion only applies to transactions by “Substantial Equityholders,” as defined in the Motion. Generally speaking, these are persons who are, or as a result of a transaction would become, the beneficial owner of 4% of the outstanding shares of Lehman common stock or 4.5% of the outstanding shares of any series of Lehman convertible preferred stock.

Although the hearing on the Motion is scheduled for November 5, 2008, the Debtors are requesting that the relief be retroactive to the date of the filing of the Motion. If the requested relief is granted, any acquisition, disposition, or other transfer in violation of the restrictions set forth in the proposed order (attached to the Motion) on or after October 14, 2008 shall be null and void ab initio as an act in violation of the automatic stay under sections 105(a) and 362 of the Bankruptcy Code.

The Motion only applies to transactions by “Substantial Equityholders,” as defined in the Motion.

A copy of the Motion and additional information about the chapter 11 cases are available on the website of the Debtors’ claims agent: www.lehman-docket.com.

Lehman Brothers (ticker symbol: LEHMQ) is headquartered in New York. For further information about Lehman Brothers, visit the Firm’s Web site at www.lehman.com.