Sotheby's To Launch Internet Auction Business For Art, Antiques, Jewelry And Collectibles

Susan L. Solomon Appointed Worldwide CEO of sothebys.com and Executive Vice President of Sotheby's Holdings

World's Oldest International Auction House Brings Art Expertise to Internet

Major Internet Auction This Summer To Feature Famed Baseball Memorabilia Collection

Source: Sotheby's

New York, January l9, l999 - Sotheby's, the world's oldest international auction house, will launch sothebys.com, a new Internet auction business for art, antiques, jewelry and collectibles, announced Diana D. Brooks, President and Chief Executive Officer of Sotheby's Holdings, Inc. (NYSE:BID), the parent company of Sotheby's worldwide auction, art-related financing and real estate activities.

Mrs. Brooks also announced that Susan L. Solomon, formerly President and CEO of Sony Worldwide Networks and Chairman and CEO of Lancit Media, has been appointed worldwide Chief Executive Officer of sothebys.com and Executive Vice President of Sotheby's Holdings.

"With the launch of sothebys.com, Sotheby's enters an exciting new era," said Mrs. Brooks. "It is clear that the Internet is superbly suited for holding auctions and it is equally clear that it offers great possibilities for Sotheby's. We are therefore particularly delighted that Susan Solomon has agreed to join Sotheby's as worldwide Chief Executive Officer of sothebys.com. With her background in the entertainment and new media worlds, Susan brings ideal experience to this new position and her appointment is a reflection of our commitment to the Internet."

"I am excited to be part of this extraordinary new opportunity for Sotheby's and I look forward to working closely with Dede Brooks and senior executives of Sotheby's to build a team and develop a successful strategy for this vibrant and fast-growing medium," said Ms. Solomon. "Under the leadership of David Redden, an Executive Vice President of Sotheby's North America, Sotheby's has been exploring a number of possibilities over the last eight months, including holding a successful internet auction of books and manuscripts last July. With the formation of sothebys.com there is now tremendous momentum and I am delighted to be joining the Company at this time to lead this effort."

"This is a time of great opportunity for Sotheby's and a time of great change," continued Mrs. Brooks. "We have just announced that we will be selling paintings from one of the greatest private collections in America, the Collection of John Hay and Betsey Cushing Whitney, which includes masterpieces by Cezanne and Seurat. Our York Avenue headquarters are currently undergoing an expansion which will soon create a state-of-the-art destination for collectors, New Yorkers and visitors from all over the world and we hope to be auctioning this year in Paris for the first time ever.

"Sotheby's will hold a major Internet auction this summer, when it auctions Baseball Memorabilia from the famed collection of Barry Halper. Portions of the collection will be sold in a live auction at Sotheby's premises in New York, while significant portions will be sold on-line.* sothebys.com expands our traditional live auction business beyond existing and familiar boundaries, making it accessible to millions of people. It changes the way collectors collect, what they collect and when they collect, thus offering for our clients around the world, and for Sotheby's, ever greater and ever more exciting possibilities.

"We are committed to delivering to our Internet auctions the same experience and expertise that have characterized our live auctions in our more than 250-year history and we are confident that our brand will translate well to the dynamic new marketplace of the Internet," said Mrs. Brooks.

Sotheby's said that it expects to invest in excess of $25 million in the initial development phase of the new venture, including personnel, marketing and capital costs. These expenditures are in addition to the significant people resources already involved from Sotheby's core auction business. Although these initial investments are likely to have some dilutive effect on Sotheby's results in the near term, Sotheby's believes these expenditures are appropriate in light of the significant potential of the Internet business to both increase revenue and reduce costs for the Company over the longer term.

Sotheby's said that its Internet business will be distinguished by the fact that it will not only source property for sothebys.com from its existing business but also from selected professionals, including art dealers and other members of the art community. This will make sothebys.com a site where only acknowledged experts will be offering property for sale. Sotheby's believes that as the image technology develops, and as e-commerce becomes an increasingly important part of people's lives, the volume and the value of art, antiques, jewelry and collectibles offered by sothebys.com will increase significantly.

About Susan L. Solomon

Most recently Ms. Solomon was Chairman of the Board and Chief Executive Officer of Lancit Media Entertainment, a leading creator and producer of high-quality children's and family programming. She focused Lancit's strategy on creating additional revenue streams for its range of properties and engineered the company's combination with RCN in 1998.

Previously, Ms. Solomon served as President and Chief Executive Officer of Sony Worldwide Networks - a national digital radio and on-line network pioneering the use of advanced broadcast and Internet technologies - until August 1996 when she was named Senior Vice President, Corporate Development for Sony Corporation of America. Ms. Solomon first joined the company in January 1994 when Sony USA's Chairman recruited her to oversee the company's radio investment and to assist in developing worldwide music video channels.

*A press preview of highlights of the Halper Collection will take place at Sotheby's New York Galleries on the week of January 25th. Please call (2l2) 606-7l76 for more information.

Sotheby's has 110 offices located in 46 countries, with principal salesrooms located in New York and London. The Company also regularly conducts auctions in l8 other salesrooms around the world, including Australia, Canada, Germany, Hong Kong, Israel, Italy, Monaco, the Netherlands, Spain, Switzerland and Taiwan. In addition, the Company engages in art-related financing and other art-related services as well as in the marketing and brokering of luxury real estate. Sotheby's Holdings, Inc. is listed on the New York Stock Exchange and the London Stock Exchange.

Forward-Looking Statements

This release contains certain "forward-looking statements" (as such term is defined in the Securities Exchange Act of l934, as amended) relating to future events and the financial performance of the Company. Such statements are only predictions and involve risks and uncertainties, resulting in the possibility that the actual events or performance will differ materially from such predictions. Major factors which the Company believes could cause the actual results to differ materially from the predicted results in the "forward-looking statements" include competition in the internet auction business and the Company's success in developing and implementing its internet auction strategy.