NEW YORK, May 4, 2009 – Neuberger Berman Group LLC today announced the completion of an employee-led buyout of the 70-year-old company, creating one of the world’s largest private, independent money managers with approximately $158 billion in assets under management for institutions and individuals.

New York-based Neuberger Berman is now majority-owned by an employee group consisting of portfolio managers and senior professionals of the newly independent company. The firm’s previous owner, Lehman Brothers Holdings Inc., retains the remainder.

Formed in 1939, Neuberger Berman employs approximately 1,600 people, including more than 250 investment professionals, and is a leading provider of global equity, fixed income and alternative investment solutions to institutions and individuals through customized separately managed accounts and funds. Approximately 50% of the assets are managed in core and specialty fixed income and liquidity portfolios, approximately 40% in a broad range of equity portfolios, and approximately 10% in alternative investment products including hedge funds and private equity funds. Approximately two-thirds of Neuberger Berman’s equity mutual fund assets are in funds that have earned 4- and 5-star rankings from Morningstar, Inc. for the 3-year performance time period.

“We are thrilled to begin this new chapter in Neuberger Berman’s rich investment history,” said George Walker, chairman and chief executive officer of Neuberger Berman. “Our newly independent company offers enduring qualities for all investment seasons: deep experience, solid performance, and a lasting partnership with our clients.’’

“Neuberger Berman brings to the marketplace seven decades of experience in managing the valued assets of families and institutions,” said Joseph V. Amato, president of Neuberger Berman. “We are confident our clients and colleagues will continue to benefit from our distinct investment culture, intense focus on research, and commitment to client service.”

“This is a particularly proud day for me,” said Roy R. Neuberger, who co-founded Neuberger Berman in 1939. “It is wonderful to see the firm independent once again, and moving forward with a continuing commitment to common-sense investing and putting its clients first.”

William J. Fox and Jack D. McCarthy, Jr., managing directors of Alvarez & Marsal, the professional services firm overseeing Lehman Brothers Holdings and working to maximize value for creditors, will both serve on the board of the newly independent firm.

“This transaction represents a superb outcome for the Lehman estate and its creditors, as well as for Neuberger Berman’s clients and employees,” said Mr. Fox. “We are pleased to be able to support Neuberger Berman as it re-establishes its independence.”

“For seven decades – including more than 60 years as an independent company – Neuberger Berman has been a highly successful asset management business,’’ said Mr. McCarthy. “The firm's strong management, long-term track record and stability position it well for great opportunities ahead.”

About Neuberger Berman
Established in 1939, Neuberger Berman is one of the world’s largest private, independent asset management companies. With approximately 1,600 employees, including more than 250 investment professionals, Neuberger Berman is a leader in providing a broad range of global investment solutions – equity, fixed income, and alternatives – to institutions and individuals through customized separately managed accounts and funds. For more information please visit our website at www.nb.com.