NEW YORK.- Sotheby’s Holdings, Inc., the parent company of Sotheby’s worldwide live and online auction businesses, art-related financing and real estate brokerage activities, today announced results for the first quarter ended March 31, 2002.  Net loss for the first quarter of 2002 was ($23.1) million, or ($0.38) per diluted share, compared to a net loss of ($22.5) million, or ($0.38) per diluted share, for the first quarter of 2001.  Due to the seasonal nature of the art auction market, auction sales in the first quarter have historically represented approximately 9% - 13% of annual auction sales and the first quarter has historically been a loss period for the Company.  Consequently, first quarter results are not indicative of expected full year results. 

"Operating expenses totaled $76.6 million in the first quarter of 2002, compared to $87.0 million for the same period in 2001.  Excluding employee retention costs and net benefits to special charges and restructuring charges, first quarter 2002 operating expenses decreased 11% to $73.4 million from $82.5 million for the same period in 2001. We remain pleased with the progress we continue to make in controlling costs," said William F. Ruprecht, President and Chief Executive Officer of Sotheby’s Holdings, Inc.



"Auction sales (hammer price plus buyer’s premium) for the first quarter of 2002 totaled $190.1 million, a decrease of 12% compared to the first quarter of 2001," continued Mr. Ruprecht.  "This decrease principally reflects a smaller amount of property offered in our London Impressionist and Contemporary Art sales in February and decreased sales in North America.  Nevertheless, we had several successful sales in the first quarter, most notably our Americana Week sales that achieved a record $27.8 million and Important Photographs from the Jammes Collection in Paris, which totaled $10.4 million -- soundly exceeding its high estimate."



Mr. Ruprecht said: "Our first quarter was substantially better than our plan and we expect that 2002 will bring us back to profitability on the operating income line, especially as the economy recovers from last year’s downturn. Additionally, buyers are increasingly attracted to art and real estate, there is a more stable competitive environment and we expect our new pricing structure to favorably impact our financial results."