In a message delivered to all employees, Henry M. Paulson, Jr., Chairman and Chief Executive Officer of The Goldman Sachs Group, Inc. (NYSE: GS) announced that the firm is making a special one-time grant covering approximately two million shares to the firm’s junior professionals who were employees as of the end of Goldman Sachs’ fiscal year, November 26, 1999.

Mr. Paulson noted that the award is an extension of the action Goldman Sachs took last year, at the time of its initial public offering, when it distributed stock to approximately 13,000 employees worldwide. "Given the contributions being made today by our junior professionals, we believe it is important to extend their equity ownership. This will enable them to participate more fully in the benefits of stock ownership and the performance of the firm."

Mr. Paulson also noted the firm’s continuing focus on attracting, motivating and retaining talented professionals, and on identifying meaningful initiatives regarding career development, work environment and wealth creation, in keeping with the firm’s reputation as "the employer of choice."

Mr. Paulson framed these initiatives within the context of the industrial and financial transformation that is underway worldwide. In his comments, Mr. Paulson stressed that the impact of the technology revolution: "will create enormous opportunities for Goldman Sachs, and its people. The firm will continue to foster a culture rooted in teamwork and a commitment to excellence."

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Goldman Sachs is a leading global investment banking and securities firm, providing a full range of investing, advisory and financing services worldwide to a substantial and diversified client base, which includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. Goldman Sachs is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.

Goldman Sachs Group, Inc.

Goldman Sachs Group, Inc.

Goldman Sachs is a leading global investment banking, securities and investment management firm, which provides a wide range of services worldwide to a substantial and diversified client base that includes corporations, financial institutions, governments and high net worth individuals. Founded in 1869, it is one of the oldest and largest investment banking firms. The firm is headquartered in New York and maintains offices in London, Frankfurt, Tokyo, Hong Kong and other major financial centers around the world.

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