Cowen Group, Inc. Agrees to Acquire Algorithmic Trading Management

Transaction Will Expand Cowen’s Electronic Trading Platform By
Adding Algorithmic Execution Capabilities

NEW YORK–(BUSINESS WIRE)–Jan. 17, 2012–
Cowen Group, Inc. (“Cowen” or the “Company”) (NASDAQ: COWN) today
announced its entry into a definitive agreement to acquire Algorithmic
Trading Management, LLC
(“ATM”), a provider of global, multi-asset class
algorithmic execution trading models.

Following the closing of the transaction, ATM will continue to operate
as a separate financial technology business offering broker neutral
services to existing and future clients. Douglas Rivelli, Co-Head of
Quantitative Trading Solutions at Cowen, will serve as Chief Executive
Officer of ATM and will be responsible for overseeing the ATM business.

“The ATM team has developed first-rate execution technology that will
greatly enhance the algorithmic trading capability in our broker-dealer
business,” said Peter Cohen, Chairman and Chief Executive Officer of
Cowen. “ATM has been an innovator and leader in the electronic trading
space since the company’s founding in 2003 due to their rigorous
quantitative research and exceptional understanding of capital markets.”

“The addition of ATM’s platform to Cowen’s strong existing trading
business will give Cowen’s institutional clients access to the high
performance electronic execution products they demand, while providing
ATM clients with Cowen’s world class equity research product and
distribution network,” commented Jeff Solomon, Chief Executive Officer
of Cowen and Company, Cowen’s broker-dealer business. “This strategic
decision is strongly aligned with our efforts over the past year to
enhance our sales & trading footprint, invest in growth-oriented
products and build out capabilities that add value for our clients. We
are pleased to have Doug lead this effort for us at Cowen given his
previous success as co-CEO of Pragma Securities.”

The transaction, which is subject to certain regulatory approvals and
customary closing conditions, is expected to close by the end of the
first quarter or early second quarter of 2012. Financial terms of the
transaction were not disclosed.

About Algorithmic Trading Management, LLC

Founded in 2003, Algorithmic Trading Management (ATM) was one of the
industry’s first providers of solutions to reduce the transactional
costs of directional, high-frequency baskets. Since that time the
company has remained at the forefront of innovation—with a suite of
focused, flexible tools employed by a diverse range of global financial
firms. The company is a world-leading provider of customized trading
algorithms that enable both buy and sell side traders to achieve maximum
value at minimum cost. Unlike rigid “out-of the-box” products, ATM’s
sophisticated trading solutions can be shaped to accommodate a nearly
limitless number of objectives and strategies. This agility provides
clients with the highest-quality execution, unmatched reaction to
evolving market dynamics, and a truly differentiating competitive
advantage.

About Cowen Group, Inc.

Cowen Group, Inc. is a diversified financial services firm and, together
with its consolidated subsidiaries, provides alternative investment
management, investment banking, research, and sales and trading services
through its two business segments: Ramius and its affiliates make up the
Company’s alternative investment management segment, while Cowen and
Company
is its broker-dealer segment. Its alternative investment
management products, solutions and services include hedge funds,
replication products, managed futures funds, fund of funds, real estate,
health care royalty funds and cash management services. Cowen and
Company
offers industry focused investment banking for growth-oriented
companies, domain knowledge-driven research and a sales and trading
platform for institutional investors. Founded in 1918, the firm is
headquartered in New York and has offices located in major financial
centers around the world.

Source: Cowen Group, Inc.

Sard Verbinnen & Co.
Dan Gagnier or Carissa Ramirez,
212-687-8080

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