QUANTUMONLINE.COM SECURITY DESCRIPTION:  Lehman Brothers Holdings Inc., 6.25% Premium Income Exchangeable Securities (PIES), Exchangeable Notes due 10/15/2007, subject to exchange into shares of common stock on General Mills Inc., liquidation preference $25 per share. The PIES are mandatorily convertible on 10/15/2007 into a variable number of General Mills Inc. (NYSE: GIS) common shares based on the then current average price of the common shares for 20 consecutive trading days immediate prior to the conversion date. The conversion settlement rate will be 0.4609 shares (0.5531 times 0.8333) per unit if the then current market price is equal to or greater than $54.24 and 0.5531 shares per unit if the market price is equal to or less than $45.20. For market prices between those values the settlement rate will be $25 divided by the average market value. The last reported sale price of the common stock on 10/4/2004 was $45.26. Distributions of 6.25% ($1.5625) per annum will be paid quarterly on 1/15, 4/15, 7/15 & 10/15 to holders of record on 1/1, 4/1, 7/1 & 10/1 respectively. In certain circumstances the issuer has the right to defer coupon payments (but not beyond the conversion date). In the event of a bankruptcy of General Mills all obligations of the issuer will terminate and the holder will not receive any further coupon payments, principal payments, shares of General Mills, cash or any other property. In regards to payment of dividends and upon liquidation, the notes rank equally with other senior unsecured obligations of the issuer and senior to the preferred and common shares of the issuer. See the IPO prospectus for further information on the PIES and their mandatory conversion provisions by clicking on the ‘Link to IPO Prospectus’ provided below.

Stock Exchange	Cpn Rate Ann Amt	LiqPref CallPrice	Call Date Matur Date	Moodys/S&P Dated	Conversion Shares@Price	Distribution Dates	15% Tax Rate
NYSE Chart	6.25% $1.5625	$25.00 n.a.	10/15/2007 10/15/2007	A1 A+ 12/21/2005	0.4609@$54.25+ 0.5531@$45.20-	1/15, 4/15, 7/15 & 10/15 Click for MW ExDiv Date Click for Yahoo ExDiv Date	YES

Company's Online Information Links

HOME PAGE:     http://www.lehman.com/ (This parent company URL is for reference only and does not have specific information on the security.)

Company's Online SEC EDGAR Filings

Company's SEC EDGAR Filings

Go to SEC Filings

Company's Email Address Links

Inv Rel Email Address	sbutler@lehman.com
General Email Address	inquiry@lehman.com

Address and Phone Numbers

Address:   745 Seventh Avenue, 15th Floor, New York, NY 10019
Main Phone Number	212-526-7000
Fax Number	212-526-3738
Investor Relations   Shaun Butler	212-526-8381
Toll Free Phone Number	800-666-2388

CEO - Richard S. Fuld, Jr.

CFO - David Goldfarb