eSpeed expects to generate operating revenues in excess of $163 million and expects its pre-tax operating margins to be in excess of 30 percent for the full year 2004. Operating earnings after tax for 2004 are expected to be in a range of $0.53 to $0.55 per diluted share. This guidance is based on the Company's expectations that average daily Federal Reserve US Treasury volume will be between $480 and $490 billion for the full year 2004.

Howard W. Lutnick, Chairman and CEO of eSpeed, commented, "For the remainder of 2004, eSpeed will focus on growing volume and revenue in our core business, adding clients in new products by aggressively investing in our sales efforts, and rolling out additional proprietary software enhancements. We remain confident and committed to our long term strategy and the growth of our Company in 2005."

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 second quarter 2004, the difference between GAAP net income and non-GAAP net operating income was less than $0.1 million.

About eSpeed, Inc.

eSpeed, Inc. (NASDAQ: ESPD), is the 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 :
Maureen Murphy
212.610.2430

Media:
Tom Ryan
212.610.2425

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

				June 30, 2004				December 31, 2003
				(Unaudited)
Assets
Cash and cash equivalents				$	34,115			$	55,318
Reverse repurchase agreements with related parties					205,483				173,182
Total cash and cash equivalents					239,598				228,500
Fixed assets, net					44,012				34,467
Investments					12,355				11,449
Intangible assets, net					18,821				18,927
Receivable from related parties					1,125				1,518
Other assets					2,687				2,707
Total assets				$	318,598			$	297,568
Liabilities and Stockholders' Equity
Liabilities:
Payable to related parties				$	3,557			$	6,323
Accounts payable and accrued liabilities					20,282				19,560
Total liabilities					23,839				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 June 30, 2004 and December 31, 2003, respectively					—				80
Class A common stock, par value $.01 per share; 200,000,000 shares authorized; 32,471,603 and 30,953,867 shares issued at June 30, 2004 and December 31, 2003, respectively					324				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 June 30, 2004 and December 31, 2003, respectively					239				251
Additional paid-in capital					290,420				287,593
Unamortized expense of business partner and non-employee securities					(606	)			(1,192	)
Treasury stock, at cost: 186,399 shares of Class A common June 30, 2004 and December 31, 2003, respectively					(2,094	)			(2,094	)
Retained earnings (accumulated deficit)					6,476				(13,263	)
Total stockholders' equity					294,759				271,685
Total liabilities and stockholders' equity				$	318,598			$	297,568

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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 June 30,								Six Months Ended June 30,
				2004				2003				2004				2003
Revenues:
Transaction revenues with related parties
Fully electronic transactions				$	29,154			$	27,538			$	59,681			$	50,048
Voice-assisted brokerage transactions					5,190				4,645				11,216				9,806
Screen-assisted open outcry transactions					158				243				389				292
Total transaction revenues with related parties					34,502				32,426				71,286				60,146
Software Solutions fees from related parties					4,475				3,881				8,587				7,530
Software Solutions and licensing fees from unrelated parties					3,107				2,209				6,105				4,341
Interest income					761				563				1,505				1,105
Total revenues					42,845				39,079				87,483				73,122
Expenses:
Compensation and employee benefits					9,768				9,239				19,083				18,083
Occupancy and equipment
Amortization of software development costs					2,396				1,832				4,651				3,510
Other occupancy and equipment					6,073				5,739				12,300				11,238
Professional and consulting fees					865				863				1,798				1,974
Communications and client networks					1,595				1,714				3,208				3,309
Marketing					379				408				765				742
Administrative fees to related parties					3,212				2,590				6,169				5,168
Amortization of business partner and non-employee securities					142				362				586				1,067
Other					3,569				2,830				6,516				5,149
Total expenses					27,999				25,577				55,076				50,240
Income before income tax provision					14,846				13,502				32,407				22,882
Income tax provision					5,805				5,400				12,671				5,305
Net income				$	9,041			$	8,102			$	19,736			$	17,577
Per share data:
Basic earnings per share				$	0.16			$	0.15			$	0.35			$	0.32
Diluted earnings per share				$	0.16			$	0.14			$	0.34			$	0.31
Basic weighted average shares of common stock outstanding					56,153				55,056				56,114				55,076
Diluted weighted average shares of common stock outstanding					57,958				56,447				58,161				56,819

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

				Three Months Ended June 30,								Six Months Ended June 30,
				2004				2003				2004				2003
Revenues:
Transaction revenues with related parties
Fully electronic transactions				$	29,154			$	27,538			$	59,681			$	50,048
Voice-assisted brokerage transactions					5,190				4,645				11,216				9,806
Screen-assisted open outcry transactions					158				243				389				292
Total transaction revenues with related parties					34,502				32,426				71,286				60,146
Software Solutions fees from related parties					4,475				3,881				8,587				7,530
Software Solutions and licensing fees from unrelated parties					3,107				2,209				6,105				4,341
Interest income					761				563				1,505				1,105
Total revenues					42,845				39,079				87,483				73,122
Expenses:
Compensation and employee benefits					9,768				9,239				19,083				18,083
Occupancy and equipment
Amortization of software development costs					2,396				1,832				4,651				3,510
Other occupancy and equipment					6,073				5,739				12,300				11,238
Professional and consulting fees					865				863				1,798				1,974
Communications and client networks					1,595				1,714				3,208				3,309
Marketing					379				408				765				742
Administrative fees to related parties					3,212				2,590				6,169				5,168
Other					3,569				2,830				6,516				5,149
Total operating expenses					27,857				25,215				54,490				49,173
Pre-tax operating income					14,988				13,864				32,993				23,949
Income tax provision					5,860				5,545				12,899				5,450
Net operating income					9,128				8,319				20,094				18,499
Non-operating loss:
Amortization of business partner and non-employee securities, net of tax					(87	)			(217	)			(358	)			(922	)
Total non-operating loss					(87	)			(217	)			(358	)			(922	)
GAAP net income				$	9,041			$	8,102			$	19,736			$	17,577
Per share data:
Basic pre-tax operating income per share				$	0.27			$	0.25			$	0.59			$	0.43
Basic tax provision per share				$	(0.10	)		$	(0.10	)		$	(0.23	)		$	(0.10	)
Basic net operating income per share				$	0.16			$	0.15			$	0.36			$	0.34
Basic non-operating loss per share				$	(0.00	)		$	(0.00	)		$	(0.01	)		$	(0.02	)
Basic GAAP earnings per share				$	0.16			$	0.15			$	0.35			$	0.32
Diluted pre-tax operating income per share				$	0.26			$	0.25			$	0.57			$	0.42
Diluted tax provision per share				$	(0.10	)		$	(0.10	)		$	(0.22	)		$	(0.10	)
Diluted net operating income per share				$	0.16			$	0.15			$	0.35			$	0.33
Diluted non-operating loss per share				$	(0.00	)		$	(0.00	)		$	(0.01	)		$	(0.02	)
Diluted GAAP earnings per share				$	0.16			$	0.14			$	0.34			$	0.31
Basic weighted average shares of common stock outstanding					56,153				55,056				56,114				55,076
Diluted weighted average shares of common stock outstanding					57,958				56,447				58,161				56,819
Additional data:
Pre-tax operating margin					35.0	%			35.5	%			37.7	%			32.8	%

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

				Three Months Ended June 30,								Six Months Ended June 30,
				2004				2003				2004				2003
Pre-tax operating income				$	14,988			$	13,864			$	32,993			$	23,949
Depreciation and amortization					5,755				4,477				11,131				8,440
Other non-cash items					69				36				70				169
Pre-tax operating income adjusted for depreciation, amortization and other					20,812				18,377				44,194				32,558
Income tax provision on operating income					(5,860	)			(5,545	)			(12,899	)			(5,450	)
Income tax benefit on non-operating loss					55				145				228				145
Deferred income tax expense					545				2,553				608				2,553
Tax benefit from stock option and warrant exercises					144				1,332				935				1,332
Income taxes paid					9,585				63				11,186				63
Decrease (increase) in current income tax payable					4,469				(1,452	)			58				(1,357	)
Changes in related party receivable and payable, net					1,124				9,686				(2,373	)			(11,254	)
Changes in other operating assets and liabilities, net					(11,868	)			3,148				(12,547	)			(189	)
Net cash provided by operating activities					14,537				29,759				29,332				19,758
Purchase of fixed assets					(2,104	)			(1,266	)			(9,330	)			(1,902	)
Sale of fixed assets					—				—				—				2,752
Capitalization of software development costs					(4,551	)			(3,209	)			(8,447	)			(6,413	)
Capitalization of patent defense and registration costs					(1,923	)			(2,367	)			(2,800	)			(2,653	)
Purchase of investment					—				—				(360	)			—
Free cash flows					5,959				22,917				8,395				11,542
Related party receivable and payable, net					(1,124	)			(9,686	)			2,373				11,254
Free cash flows, net of related party activity				$	4,835			$	13,231			$	10,768			$	22,796

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

				Three Months Ended June 30,								Six Months Ended June 30,
				2004				2003				2004				2003
Cash flows from operating activities:
Net income				$	9,041			$	8,102			$	19,736			$	17,577
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization					5,755				4,477				11,131				8,440
Amortization of business partner and non-employee securities					142				362				586				1,067
Equity in net loss of unconsolidated investments					39				6				10				39
Deferred income tax expense					545				2,553				608				2,553
Tax benefit from stock option and warrant exercises					144				1,332				935				1,332
Issuance of securities under employee benefit plan					30				30				60				130
Changes in operating assets and liabilities:
Receivable from related parties					(369	)			9,261				393				4,450
Other assets					(29	)			(542	)			(1,479	)			(1,721	)
Payable to related parties					1,493				425				(2,766	)			(15,704	)
Accounts payable and accrued expenses					(2,254	)			3,753				118				1,595
Net cash provided by operating activities					14,537				29,759				29,332				19,758
Cash flows from investing activities:
Purchase of fixed assets					(2,104	)			(1,266	)			(9,330	)			(1,902	)
Sale of premises and equipment									—								2,752
Capitalization of software development costs					(4,551	)			(3,209	)			(8,447	)			(6,413	)
Capitalization of patent defense and registration costs					(1,923	)			(2,367	)			(2,800	)			(2,653	)
Purchase of investment					—								(360	)
Net cash used in investing activities					(8,578	)			(6,842	)			(20,937	)			(8,216	)
Cash flows from financing activities:
Repurchase of Class A common stock									—								(1,872	)
Proceeds from exercises of stock options and warrants					258				616				1,753				979
Receivable from broker on stock option exercises					393				—				950				0
Net cash provided by (used in) financing activities					651				616				2,703				(893	)
Net increase in cash and cash equivalents					6,610				23,533				11,098				10,649
Cash and cash equivalents at beginning of period					232,988				175,115				228,500				187,999
Cash and cash equivalents at end of period				$	239,598			$	198,648			$	239,598			$	198,648

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

				Three Months Ended June 30,								Six Months Ended June 30,
				2004				2003				2004				2003
Revenues				$	42,845			$	39,079			$	87,483			$	73,122
GAAP revenues				$	42,845			$	39,079			$	87,483			$	73,122
Operating expenses				$	27,857			$	25,215			$	54,490			$	49,173
Amortization of business partner and non-employee securities [a]					142				362				586				1,067
GAAP expenses				$	27,999			$	25,577			$	55,076			$	50,240
Pre-tax operating income				$	14,988			$	13,864			$	32,993			$	23,949
Sum of reconciling items = - [a]					(142	)			(362	)			(586	)			(1,067	)
GAAP income before income tax provision				$	14,846			$	13,502			$	32,407			$	22,882
Income tax provision				$	5,860			$	5,545			$	12,899			$	5,450
Income tax benefit on non-operating loss [b]					(55	)			(145	)			(228	)			(145	)
GAAP income tax provision				$	5,805			$	5,400			$	12,671			$	5,305
Net operating income				$	9,128			$	8,319			$	20,094			$	18,499
Sum of reconciling items = [a] + [b]					(87	)			(217	)			(358	)			(922	)
GAAP net income				$	9,041			$	8,102			$	19,736			$	17,577

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eSpeed, Inc. and Subsidiaries
Quarterly Market Activity Report

																								% Change				% Change
				2Q03				3Q03				4Q03**				1Q04				2Q04				2Q04 vs 1Q04				2Q04 vs 2Q03
Volume (in billions)
Fully Electronic Volume - Excluding New Products					7,781				9,610				7,535				8,209				7,791				(5.1	%)			0.1	%
Fully Electronic Volume - New Products*					N/A				N/A				21				133				199				49.8	%			—
Voice-Assisted Volume					2,662				2,825				2,756				3,586				3,070				(14.4	%)			15.3	%
Total Electronic Volume					10,443				12,435				10,312				11,928				11,061				(7.3	%)			5.9	%
Electronic Transaction Count
Fully Electronic Transactions - Excluding New Products					1,194,625				1,465,263				1,208,331				1,264,612				1,252,654				(0.9	%)			4.9	%
Fully Electronic Transactions - New Products*					N/A				N/A				6,242				23,996				38,369				59.9	%			—
Voice-Assisted Transactions					148,223				157,901				149,181				175,036				165,906				(5.2	%)			11.9	%
Total Transactions					1,342,848				1,623,164				1,363,754				1,463,644				1,456,929				(0.5	%)			8.5	%
eSpeed Equities Direct Access (Number of Shares Traded In Millions)					N/A				N/A				56				85				102				19.6	%			—
Trading Days					63				64				62				62				62

*	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					71,290,686				83,851,953				72,558,944				85,432,539				97,809,197				14.5	%			37.2	%
CME - Euro $ Contracts					55,958,592				56,273,797				52,414,323				59,434,778				80,289,683				35.1	%			43.5	%
EUREX - Bund Contracts					63,455,364				63,377,019				51,717,399				62,145,662				57,280,434				(7.8	%)			(9.7	%)
Fed UST Volume (in billions) (2)
UST Volume					28,319				30,590				26,189				29,843				32,379				8.5	%			14.3	%
Average Daily UST Volume					450				478				422				481				522				8.5	%			16.2	%
NYSE - Volume (shares traded) - in millions (3)					92,981				87,303				85,529				95,386				90,818				(4.8	%)			(2.3	%)
Transaction Value - in millions					2,497,359				2,475,689				2,546,235				2,970,628				2,881,358				(3.0	%)			15.4	%
NASDAQ - Volume (shares traded) - in millions (4)					112,524				110,672				112,636				126,314				108,328				(14.2	%)			(3.7	%)
Transaction Value - in millions					1,739,506				1,896,887				2,030,335				2,312,291				2,120,171				(8.3	%)			21.9	%

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
Volume Data (in billions)
Fully Electronic					2,309				1,906				2,564				2,070				2,871				2,840
Voice					864				810				917				761				956				944
Total					3,173				2,716				3,481				2,831				3,827				3,784
Transaction Count
Fully Electronic					370,992				305,296				403,307				338,281				425,213				431,131
Voice					49,801				48,449				53,520				44,767				49,946				53,510
Total					420,793				353,745				456,827				383,048				475,159				484,641
Trading Days					21				19				21				21				21				21
Fiscal Year 2004					Jan'04				Feb'04				Mar'04				Apr'04				May'04				Jun'04
Volume Data (in billions)
Fully Electronic					2,982				2,464				2,897				2,912				2,550				2,528
Voice					1,144				1,146				1,296				1,058				1,019				994
Total					4,126				3,610				4,192				3,970				3,569				3,522
Transaction Count
Fully Electronic					449,197				379,084				460,327				460,211				417,503				413,309
Voice					57,178				54,485				63,373				56,948				55,533				53,425
Total					506,375				433,569				523,700				517,159				473,036				466,734
Trading Days				20				19				23				21				20				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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