NEW YORK CITY – On November 13, Sotheby’s Holdings, Inc. (NYSE: BID; LSE), the parent company of Sotheby’s worldwide live and online auction businesses, art-related financing and real estate activities, announced results for the nine months and third quarter ended September 30.

For the first nine months of 2001 the Company reported total revenues of $225.2 million, compared to $254.7 million for the corresponding period of 2000. Net loss for the first nine months of 2001 was ($41.3) million, or ($0.68) per diluted share, compared to a net loss of ($183.2) million, or ($3.11) per diluted share for the corresponding period of 2000.

During the first nine months of 2001, the Company recorded employee retention costs of $13.7 million, or ($0.14) per share, restructuring charges of $7.7 million, or ($0.08) per share, and special charges of $2.6 million, or ($0.03) per share, for legal and other professional fees related to the resolution of antitrust matters. Excluding these rdf_Descriptions, the Company recorded a diluted loss per share of ($0.43) for the first nine months of 2001. During the first nine months of 2000, the Company recorded special charges of $188.6 million, or ($2.72) per share primarily related to the resolution of antitrust related matters.

For the quarter ended September 30, 2001, the Company reported total revenues of $38.4 million, compared to $42.6 million in the corresponding period of 2000. The Company’s net loss for the third quarter of 2001 was ($33.1) million, or ($0.54) per diluted share, compared to a net loss for the third quarter of 2000 of ($184.2) million, or ($3.13) per diluted share. During the third quarter of 2001, the Company recorded restructuring charges of $8.4 million, or ($0.09) per share, employee retention costs of $5.0 million, or ($0.05) per share, and special charges of $0.8 million, or ($0.01) per share, for legal and other professional fees related to the resolution of antitrust matters. Excluding these rdf_Descriptions, the Company recorded a diluted loss per share of ($0.39) for the third quarter of 2001, which was in line with the Company’s expectations. During the third quarter of 2000, the Company recorded special charges of $184.8 million, or ($2.68) per share primarily related to the settlement of antitrust related matters. Excluding the special charges, the Company recorded a diluted loss per share of ($0.45) for the third quarter of 2000.

The third quarter is historically a period of minimal sales activity in the art auction market (typically less than 10% of total annual auction sales for Sotheby’s) and, therefore, the Company traditionally reports a loss in the period.

“The results of the first nine months of 2001 were primarily affected by decreased revenues from all of our operating segments. In addition, the charges associated with our 2001 restructuring plan and costs related to our employee retention programs negatively impacted our results,” said William Ruprecht, President and Chief Executive Officer of Sotheby’s Holdings, Inc.

“However,” continued Mr. Ruprecht, “we are pleased with the progress we have made in reducing costs. We estimate that the Company’s net annualized cost savings, from our two recent restructuring plans, will approximate $50 million as compared with our full year 2000 operating expenses (excluding special charges). The savings from our second restructuring plan are being initiated during the fourth quarter of 200l and should be realized fully in 2002. We will continue to reduce costs as necessary to ensure future profitability.

“During the first nine months of 2001 Sotheby’s experienced an increasingly challenging art market which was exacerbated by an unpredictable economic environment and the tragic events of September 11th,” continued Mr. Ruprecht. “As a result, total revenues of $225.2 million decreased 12% as compared to the first nine months of 2000. Excluding employee retention costs, restructuring and special charges, total operating expenses decreased by 11%, or $30.7 million to $251.2 million, largely due to savings achieved as a result of the implementation of the Company’s 2000 restructuring plan.”

Impressionist and Contemporary Sales

“Our Impressionist & Modern Art sales brought $47.9 million,” commented Mr. Ruprecht. “Some of the highlights of the evening sale were Camille Pissarro’s La Rue Saint-Lazare, which sold for $6.6 million, and Henri Matisse’s Anemones Au Miroir Noir that brought $4.2 million. In our sale, as in sales held elsewhere, there was very good news for the market. Works of high quality that were fresh to the market and reasonably estimated performed extremely well.”

Mr. Ruprecht continued, “As repeatedly reported in the press, a competitor took on material financial risk through the use of financial guarantees to buy market share in these sales. Sotheby’s supports the responsible use of guarantees, and will continue to offer them, when appropriate. However, we refuse to take significant speculative risks, which will likely have a material adverse impact on our shareholders. Given our position on financial guarantees, our sale was the most modest of the three auctions held last week. Under these circumstances, and especially in light of the events of September 11th and the current state of the economy, we were satisfied with the results.”

Internet

Internet-related expenses for the first nine months of 2001 were $18.7 million, as compared to $43.9 million for the same period a year ago. Internet-related operating loss for the first nine months of 2001 was ($0.15) per share, as compared to ($0.41) for the same period a year ago. Internet-related expenses were $4.5 million during the third quarter of 2001 compared to third quarter 2000 expenses of $10.7 million. Internet-related operating loss for the third quarter ended September 30, 2001 was ($0.04) per share, as compared to ($0.10) for the same period in 2000. Internet expenses declined 27% from the second quarter to the third quarter in 2001 showing further progress in reducing expenses in this area. Importantly, sales of property offered for sale by the dealer network for the first nine months were up more than 40% compared to the prior year.

Paris

Mr. Ruprecht continued, “On October 26, 2001, Sotheby’s received the agreement from the Regulatory Council of Public Auctions in France permitting us to hold auctions in France. Sotheby’s has played a role in opening up the estimated billion-dollar French market to the international auction houses and it is therefore fitting that we will be the first international auction house to hold sales in Paris.”