Cowen Group, Inc. Agrees to Acquire KDC Securities

NEW YORK–(BUSINESS WIRE)–Sep. 28, 2012–
Cowen Group, Inc. (“Cowen” or the “Company”) (NASDAQ: COWN) today
announced its entry into a definitive agreement to acquire KDC
Securities
(“KDC”), a securities lending business. KDC is the
broker-dealer subsidiary of Kellner Capital, LLC, an alternative
investment manager.

Following the closing of the transaction, KDC will operate as the “Cowen
Equity Finance Group” and will be based in New York. Rory Zirpolo, the
current head of KDC’s securities lending business, will serve as
Managing Director and Head of the Equity Finance Group and will report
to Cowen’s Co-Heads of Equities, Tom O’Mara and Dan Charney.

“Kellner and its securities lending team have built an impressive equity
finance platform since the business was launched seven years ago,” said Jeff Solomon, Chief Executive Officer of Cowen and Company, Cowen’s
broker-dealer business. “We believe the business is well positioned for
future growth and is a strong complement to our existing sales and
trading footprint.”

The transaction, which is subject to certain regulatory approvals and
customary closing conditions, is expected to close in the fourth quarter
of 2012. Financial terms of the transaction were not disclosed.

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/Carissa Ramirez
212-687-8080

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