2004, and on an anticipated increase in expenses associated with the Company's acquisition of ITSECCO Holdings Limited, as well as expenses associated with the increase in the size of the Company's sales force.

eSpeed expects to generate operating revenues in excess of $163 million and expects its pre-tax operating margins to be approximately 30 percent for the full year 2004. Operating earnings for 2004 are expected to be in a range of $0.51 to $0.52 per diluted share.

"As we prepare to close out this year and continue looking toward 2005, the business lines that make up our foundation provide a solid base on which our business can grow," commented Howard W. Lutnick, Chairman and CEO of eSpeed. "We are committed to maintaining our strong foundation, leveraging that foundation for future growth, and capturing the opportunities in our markets."

Non-GAAP Financial Measures

To supplement eSpeed's consolidated financial statements presented in accordance with GAAP and to better reflect the Company's quarter-over-quarter and comparative year-over-year operating performance, eSpeed uses non-GAAP financial measures of revenues, net income and earnings per share, which are adjusted to exclude certain non-operating expenses and gains. In addition, the Company provides a computation of free cash flows. These non-GAAP financial measurements do not replace the presentation of eSpeed's GAAP financial results but are provided to improve overall understanding of the Company's current financial performance and its prospects for the future. Specifically, eSpeed believes the non-GAAP financial results provide useful information to both management and investors regarding certain additional financial and business trends relating to the Company's financial condition and results from operations. In addition, eSpeed's management uses these measures for reviewing the Company's financial results and evaluating eSpeed's financial performance. In the third quarter of 2004, the difference between GAAP net income and non-GAAP net operating income was $0.3 million.

About eSpeed, Inc.

eSpeed, Inc. (NASDAQ: ESPD) is a leader in developing and deploying electronic marketplaces and related trading technology that offers traders access to the most liquid, efficient and neutral financial markets in the world. eSpeed operates multiple buyer, multiple seller real-time electronic marketplaces for the global capital markets, including the world's largest government bond markets and other fixed income and equities marketplaces. eSpeed's suite of marketplace tools provides end-to-end transaction solutions for the purchase and sale of financial and non-financial products over eSpeed's global private network or via the Internet. eSpeed's neutral platform, reliable network, straight-through processing and superior products make it the trusted source for electronic trading at the world's largest fixed income and foreign exchange trading firms and major exchanges. To learn more, please visit www.espeed.com.

Statements contained in this Press Release, which are not historical facts, are forward-looking statements, as the term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties which could cause actual results to differ materially from those currently anticipated due to a number of factors, which include, but are not limited to: the effects of the attacks on the World Trade Center, market volatility, the limited operating history of eSpeed, Inc., and its ability to enter into marketing and strategic alliances, to effectively manage its growth, to expand the use of its electronic systems and to induce clients to use its marketplaces and services, and other factors that are discussed in eSpeed's Annual Report on Form 10-K, filed with the Securities and Exchange Commission.

Contacts:
Investors:
Kim Henneforth
212-610-2433

Media:
Michael Geller
212-610-2430

2

eSpeed, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands, except share data)

				September 30, 2004				December 31, 2003
				(Unaudited)
Assets
Cash and cash equivalents				$	37,116			$	55,318
Reverse repurchase agreements with related parties					185,951				173,182
Total cash and cash equivalents					223,067				228,500
Fixed assets, net					46,568				34,467
Investments					12,394				11,449
Intangible assets, net					18,906				18,927
Receivable from related parties					1,218				1,518
Other assets					2,460				2,707
Total assets				$	304,613			$	297,568
Liabilities and Stockholders' Equity
Liabilities:
Payable to related parties				$	3,416			$	6,323
Accounts payable and accrued liabilities					30,209				19,560
Total liabilities					33,625				25,883
Stockholders' Equity:
Preferred stock, par value $0.01 per share; 50,000,000 shares authorized, 600 and 8,000,600 shares issued and outstanding at September 30, 2004 and December 31, 2003, respectively					—				80
Class A common stock, par value $.01 per share; 200,000,000 shares authorized; 32,484,734 and 30,953,867 shares issued at September 30, 2004 and December 31, 2003, respectively					325				310
Class B common stock, par value $.01 per share; 100,000,000 shares authorized; 23,889,270 and 25,139,270 shares issued and outstanding at September 30, 2004 and December 31, 2003, respectively					239				251
Additional paid-in capital					290,530				287,593
Unamortized expense of business partner and non-employee securities					(471	)			(1,192	)
Treasury stock, at cost: 2,852,715 and 186,399 shares of Class A common stock at September 30, 2004 and December 31, 2003, respectively					(31,846	)			(2,094	)
Retained earnings (accumulated deficit)					12,211				(13,263	)
Total stockholders' equity					270,988				271,685
Total liabilities and stockholders' equity				$	304,613			$	297,568

3

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eSpeed, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME IN ACCORDANCE WITH GAAP (unaudited)
(in thousands, except per share data)

				Three Months Ended September 30,								Nine Months Ended September 30,
				2004				2003				2004				2003
Revenues:
Transaction revenues with related parties
Fully electronic transactions				$	25,489			$	32,300			$	85,170			$	82,348
Voice-assisted brokerage transactions					5,233				5,153				16,449				14,959
Screen-assisted open outcry transactions					225				128				614				420
Total transaction revenues with related parties					30,947				37,581				102,233				97,727
Software Solutions fees from related parties					4,681				3,821				13,268				11,351
Software Solutions and licensing fees from unrelated parties					3,278				2,321				9,383				6,662
Interest income					865				547				2,370				1,652
Total revenues					39,771				44,270				127,254				117,392
Expenses:
Compensation and employee benefits					10,499				9,790				29,582				27,873
Occupancy and equipment
Amortization of software development costs					2,553				1,981				7,204				5,491
Other occupancy and equipment					6,322				6,210				18,622				17,448
Professional and consulting fees					1,663				953				3,461				2,927
Communications and client networks					1,684				1,715				4,892				5,024
Marketing					319				373				1,084				1,115
Administrative fees to related parties					3,435				2,579				9,604				7,747
Amortization of business partner and non-employee securities					136				648				722				1,715
Other					3,742				3,706				10,258				8,855
Total expenses					30,353				27,955				85,429				78,195
Income before income tax provision					9,418				16,315				41,825				39,197
Income tax provision					3,683				6,353				16,354				11,658
Net income				$	5,735			$	9,962			$	25,471			$	27,539
Per share data:
Basic earnings per share				$	0.11			$	0.18			$	0.46			$	0.50
Diluted earnings per share				$	0.10			$	0.17			$	0.45			$	0.48
Basic weighted average shares of common stock outstanding					54,398				55,291				55,538				55,205
Diluted weighted average shares of common stock outstanding					55,289				57,730				57,065				57,171

4

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eSpeed, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF INCOME (unaudited)
(in thousands, except per share data)

				Three Months Ended September 30,								Nine Months Ended September 30,
				2004				2003				2004				2003
Revenues:
Transaction revenues with related parties
Fully electronic transactions				$	25,489			$	32,300			$	85,170			$	82,348
Voice-assisted brokerage transactions					5,233				5,153				16,449				14,959
Screen-assisted open outcry transactions					225				128				614				420
Total transaction revenues with related parties					30,947				37,581				102,233				97,727
Software Solutions fees from related parties					4,681				3,821				13,268				11,351
Software Solutions and licensing fees from unrelated parties					3,278				2,321				9,383				6,662
Interest income					865				547				2,370				1,652
Total revenues					39,771				44,270				127,254				117,392
Expenses:
Compensation and employee benefits					10,499				9,790				29,582				27,873
Occupancy and equipment
Amortization of software development costs					2,553				1,981				7,204				5,491
Other occupancy and equipment					6,322				6,210				18,622				17,448
Professional and consulting fees					1,663				953				3,461				2,927
Communications and client networks					1,684				1,715				4,892				5,024
Marketing					319				373				1,084				1,115
Administrative fees to related parties					3,435				2,579				9,604				7,747
Other					3,402				3,019				9,918				8,168
Total operating expenses					29,877				26,620				84,367				75,793
Pre-tax operating income					9,894				17,650				42,887				41,599
Income tax provision					3,869				6,873				16,768				12,323
Net operating income					6,025				10,777				26,119				29,276
Non-operating loss:
Charitable contribution Re: 9/11, net of tax					(207	)			(420	)			(207	)			(420	)
Amortization of business partner and non-employee securities, net of tax					(83	)			(395	)			(441	)			(1,317	)
Total non-operating loss					(290	)			(815	)			(648	)			(1,737	)
GAAP net income				$	5,735			$	9,962			$	25,471			$	27,539
Per share data:
Basic pre-tax operating income per share				$	0.18			$	0.32			$	0.77			$	0.75
Basic tax provision per share				$	(0.07	)		$	(0.12	)		$	(0.30	)		$	(0.22	)
Basic net operating income per share				$	0.11			$	0.19			$	0.47			$	0.53
Basic non-operating loss per share				$	(0.01	)		$	(0.01	)		$	(0.01	)		$	(0.03	)
Basic GAAP earnings per share				$	0.11			$	0.18			$	0.46			$	0.50
Diluted pre-tax operating income per share				$	0.18			$	0.31			$	0.75			$	0.73
Diluted tax provision per share				$	(0.07	)		$	(0.12	)		$	(0.29	)		$	(0.22	)
Diluted net operating income per share				$	0.11			$	0.19			$	0.46			$	0.51
Diluted non-operating loss per share				$	(0.01	)		$	(0.01	)		$	(0.01	)		$	(0.03	)
Diluted GAAP earnings per share				$	0.10			$	0.17			$	0.45			$	0.48
Basic weighted average shares of common stock outstanding					54,398				55,291				55,538				55,205
Diluted weighted average shares of common stock outstanding					55,289				57,730				57,065				57,171
Additional data:
Pre-tax operating margin					24.9	%			39.9	%			33.7	%			35.4	%

5

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eSpeed, Inc. and Subsidiaries
CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
(in thousands)

				Three Months Ended September 30,								Nine Months Ended September 30,
				2004				2003				2004				2003
Cash flows from operating activities:
Net income				$	5,735			$	9,962			$	25,471			$	27,539
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization					6,140				4,604				17,271				13,044
Amortization of business partner and non-employee securities					136				648				722				1,715
Equity in net loss of unconsolidated investments					32				41				42				80
Deferred income tax expense					414				928				1,022				3,481
Tax benefit from stock option and warrant exercises					23				1,778				958				3,110
Issuance of securities under employee benefit plan					30				30				90				160
Changes in operating assets and liabilities:
Receivable from related parties					(93	)			(1,650	)			300				2,800
Other assets					32				991				(1,447	)			(730	)
Payable to related parties					(141	)			393				(2,907	)			(15,311	)
Accounts payable and accrued expenses					9,514				6,289				9,632				7,884
Net cash provided by operating activities					21,822				24,014				51,154				43,772
Cash flows from investing activities:
Purchase of fixed assets					(1,941	)			(2,569	)			(11,271	)			(4,471	)
Sale of premises and equipment					—				—				—				2,752
Capitalization of software development costs					(5,200	)			(3,183	)			(13,647	)			(9,596	)
Capitalization of patent defense and registration costs					(1,641	)			(1,018	)			(4,441	)			(3,671	)
Purchase of investment					—				—				(360	)			0
Net cash used in investing activities					(8,782	)			(6,770	)			(29,719	)			(14,986	)
Cash flows from financing activities:
Repurchase of Class A common stock					(29,752	)			—				(29,752	)			(1,872	)
Proceeds from exercises of stock options and warrants					58				5,158				1,811				6,137
Receivable from broker on stock option exercises					123				(4,065	)			1,073				(4,065	)
Net cash (used in) provided by financing activities					(29,571	)			1,093				(26,868	)			200
Net increase in cash and cash equivalents					(16,531	)			18,337				(5,433	)			28,986
Cash and cash equivalents at beginning of period					239,598				198,648				228,500				187,999
Cash and cash equivalents at end of period				$	223,067			$	216,985			$	223,067			$	216,985

6

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eSpeed, Inc. and Subsidiaries
COMPUTATION OF CONSOLIDATED FREE CASH FLOWS (unaudited)
(in thousands)

				Three Months Ended September 30,								Nine Months Ended September 30,
				2004				2003				2004				2003
Pre-tax operating income				$	9,894			$	17,650			$	42,887			$	41,599
Depreciation and amortization					6,140				4,604				17,271				13,044
Other non-cash items					62				71				132				240
Pre-tax operating income adjusted for depreciation, amortization and other					16,096				22,325				60,290				54,883
Income tax provision on operating income					(3,869	)			(6,873	)			(16,768	)			(12,323	)
Income tax benefit on non-operating loss					186				520				414				665
Deferred income tax expense					414				928				1,022				3,481
Tax benefit from stock option and warrant exercises					23				1,778				958				3,110
Income taxes paid					1,665				3,360				12,851				3,360
Decrease (increase) in current income tax payable					(1,581	)			(287	)			(1,523	)			(1,707	)
Changes in related party receivable and payable, net					(234	)			(1,257	)			(2,607	)			(12,511	)
Changes in other operating assets and liabilities, net					7,881				3,920				(4,666	)			3,794
Charitable contribution Re: 9/11					(340	)			(687	)			(340	)			(687	)
Net cash provided by operating activities					21,822				24,014				51,154				43,772
Purchase of fixed assets					(1,941	)			(2,569	)			(11,271	)			(4,471	)
Capitalization of software development costs					(5,200	)			(3,183	)			(13,647	)			(9,596	)
Capitalization of patent defense and registration costs					(1,641	)			(1,018	)			(4,441	)			(3,671	)
Purchase of investment					—				—				(360	)			—
Free cash flows					13,040				17,244				21,435				26,034
Related party receivable and payable, net					234				1,257				2,607				12,511
Free cash flows, net of related party activity				$	13,274			$	18,501			$	24,042			$	38,545

7

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eSpeed, Inc. and Subsidiaries
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES TO GAAP (unaudited)
(in thousands)

				Three Months Ended September 30,								Nine Months Ended September 30,
				2004				2003				2004				2003
Revenues				$	39,771			$	44,270			$	127,254			$	117,392
GAAP revenues				$	39,771			$	44,270			$	127,254			$	117,392
Operating expenses				$	29,877			$	26,620			$	84,367			$	75,793
Amortization of business partner and non-employee securities [a]					136				648				722				1,715
Charitable contribution Re: 9/11 [b]					340				687				340				687
GAAP expenses				$	30,353			$	27,955			$	85,429			$	78,195
Pre-tax operating income				$	9,894			$	17,650			$	42,887			$	41,599
Sum of reconciling items = - [a] - [b]					(476	)			(1,335	)			(1,062	)			(2,402	)
GAAP income before income tax provision				$	9,418			$	16,315			$	41,825			$	39,197
Income tax provision				$	3,869			$	6,873			$	16,768			$	12,323
Income tax benefit on non-operating loss [c]					(186	)			(520	)			(414	)			(665	)
GAAP income tax provision				$	3,683			$	6,353			$	16,354			$	11,658
Net operating income				$	6,025			$	10,777			$	26,119			$	29,276
Sum of reconciling items = -[a] - [b] - [c]					(290	)			(815	)			(648	)			(1,737	)
GAAP net income				$	5,735			$	9,962			$	25,471			$	27,539

8

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eSpeed, Inc. and Subsidiaries
Quarterly Market Activity Report

																								% Change 3Q04 vs 2Q04				% Change 3Q04 vs 3Q03
				3Q03				4Q03**				1Q04				2Q04				3Q04
Volume (in billions)
Fully Electronic Volume - Excluding New Products					9,610				7,535				8,209				7,791				6,520				(16.3	%)			(32.1	%)
Fully Electronic Volume - New Products*					N/A				21				133				199				376				88.9	%			—
Voice-Assisted Volume					2,825				2,756				3,586				3,070				3,491				13.7	%			23.6	%
Total Electronic Volume					12,435				10,312				11,928				11,061				10,388				(6.1	%)			(16.5	%)
Electronic Transaction Count
Fully Electronic Transactions - Excluding New Products					1,465,263				1,208,331				1,264,612				1,252,654				1,127,444				(10.0	%)			(23.1	%)
Fully Electronic Transactions - New Products*					N/A				6,242				23,996				38,369				73,457				91.4	%			—
Voice-Assisted Transactions					157,901				149,181				175,036				165,906				157,134				(5.3	%)			(0.5	%)
Total Transactions					1,623,164				1,363,754				1,463,644				1,456,929				1,358,035				(6.8	%)			(16.3	%)
eSpeed Equities Direct Access (Number of Shares Traded In Millions)					N/A				56				85				102				105				2.8	%			—
Trading Days					64				62				62				62				64

*	New Products defined as Mortgage-Backed Securities, Foreign Exchange, Interest Rate Swaps, Repos and Futures. CBOT Futures volume calculated based on per contract notional value of $200,000 for the two year contract and $100,000 for all others.

**	Modification in our calculation based on recognition of new product volume.

Global Interest Rate Futures Volume (1)
CBOT - US Treasury Contracts					83,851,953				72,558,944				85,432,539				97,809,197				97,875,096				0.1	%			16.7	%
CME - Euro $ Contracts					56,273,797				52,414,323				59,434,778				80,289,683				82,256,775				2.4	%			46.2	%
EUREX - Bund Contracts					63,377,019				51,717,399				62,145,662				57,280,434				55,998,582				(2.2	%)			(11.6	%)
Fed UST Volume (in billions) (2)
UST Volume					30,590				26,189				29,843				32,379				31,080				(4.0	%)			1.6	%
Average Daily UST Volume					478				422				481				522				486				(7.0	%)			1.6	%
NYSE - Volume (shares traded) - in millions (3)					87,303				85,529				95,386				90,818				84,905				(6.5	%)			(2.7	%)
Transaction Value - in millions					2,475,689				2,546,235				2,970,628				2,881,358				2,632,744				(8.6	%)			6.3	%
NASDAQ - Volume (shares traded) - in millions (4)					110,672				112,636				126,314				108,328				99,636				(8.0	%)			(10.0	%)
Transaction Value - in millions					1,896,887				2,030,335				2,312,291				2,120,171				1,896,115				(10.6	%)			(0.0	%)

Sources:	(1)   Futures Industry Association - Monthly Volume Report - (www.cbot.com, www.cme.com, www.eurexchange.com)

	(2)   www.ny.frb.org/pihome/statistics/dealer - Federal Reserve Bank

	(3)   NYSE - www.nyse.com

	(4)   NASDAQ - www.marketdata.nasdaq.com

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Fiscal Year 2003					Jan'03				Feb'03				Mar'03				Apr'03				May'03				Jun'03				Jul'03				Aug'03				Sep'03
Volume Data (in billions)
Fully Electronic					2,309				1,906				2,564				2,070				2,871				2,840				3,428				2,952				3,230
Voice					864				810				917				761				956				944				992				733				1,100
Total					3,173				2,716				3,481				2,831				3,827				3,784				4,419				3,686				4,330
Transaction Count
Fully Electronic					370,992				305,296				403,307				338,281				425,213				431,131				512,447				453,324				499,492
Voice					49,801				48,449				53,520				44,767				49,946				53,510				55,258				44,804				57,839
Total					420,793				353,745				456,827				383,048				475,159				484,641				567,705				498,128				557,331
Trading Days					21				19				21				21				21				21				22				21				21
Fiscal Year 2004					Jan'04				Feb'04				Mar'04				Apr'04				May'04				Jun'04				Jul'04				Aug'04				Sep'04
Volume Data (in billions)
Fully Electronic					2,982				2,464				2,897				2,912				2,550				2,528				2,151				2,134				2,612
Voice					1,144				1,146				1,296				1,058				1,019				994				1,180				1,023				1,288
Total					4,126				3,610				4,192				3,970				3,569				3,522				3,331				3,157				3,900
Transaction Count
Fully Electronic					449,197				379,084				460,327				460,211				417,503				413,309				361,945				376,279				462,677
Voice					57,178				54,485				63,373				56,948				55,533				53,425				51,941				46,242				58,951
Total					506,375				433,569				523,700				517,159				473,036				466,734				413,886				422,521				521,628
Trading Days					20				19				23				21				20				21				21				22				21

Trading Days
2004
Q1				Q2				Q3				Q4
	62				62				64				62
2003
	Q1			Q2				Q3				Q4
	61				63				64				62

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