NEW YORK.- Sotheby's Holdings, Inc. (NYSE: BID), the parent company of Sotheby's worldwide auction, private sales and art-related financing activities, today announced results for the first quarter ended March 31, 2006. For the quarter ended March 31, 2006, the Company reported revenues of $96.0 million, a $22.0 million, or 30%, increase over the prior first quarter, primarily due to higher auction commission revenues attributable to a 44% increase in Aggregate Auction Sales (aggregate hammer price of property sold at auction, including buyer's premium), as well as a 49% increase in private sale commissions. Also contributing to the improvement versus the prior year is a $2.2 million, or 184%, increase in Finance revenues primarily resulting from a higher level of client loans during the period.

The Company's loss from continuing operations for the first quarter was ($3.9) million, or ($0.07), per diluted share compared to ($9.7) million, or ($0.16), per diluted share for the prior period, a 60%, or $5.8 million improvement. This growth, which is largely due to the increase in revenues highlighted above, is partially offset by certain expense increases resulting from a variety of factors including: variable increases in performance based compensation and direct costs of sales, both directly related to the overall increase in revenues; the Company's strategic investments in certain growth areas of the business, especially, Asian, Russian and Contemporary Art; investment in a number of new client service initiatives; unusually high costs for litigation accruals, client goodwill gestures and authenticity claims; and inflationary increases for such things as limited salary increases, travel, and facility related costs.

Because of the seasonal nature of the art auction market, Auction Sales in the first quarter have historically only represented approximately 9% - 13% of annual Auction Sales, and the first quarter has historically been a loss period for the Company. As a result, historically, first quarter results have not been indicative of expected full year results.

"As seen in these excellent first quarter results, 2006 has begun very strongly," said Bill Ruprecht, President and Chief Executive Officer of Sotheby's Holdings, Inc. "Numerous collecting categories across the globe are experiencing growth, with the most important contributors to the first quarter being London's highest Impressionist and Modern Art and Contemporary Art sales in its history; historic highs for Old Master Paintings and very successful Asian sales in New York."

"A healthy and vibrant art market is clearly continuing into the second quarter across a broad range of categories," Mr. Ruprecht continued. "Most noteworthy thus far is the outstanding result for Picasso's Dora Maar au Chat, which brought $95.2 million, becoming the second highest price for a painting sold at auction. This masterpiece was sold in the Impressionist series of sales which brought $248.3 million, representing Sotheby's highest total since 1990 and leading this market in New York. Also, half the lots in the evening sale sold for $1 million or more."

Second Quarter Sales
In addition to last week's outstanding sales of Impressionist and Modern Art in New York, other auctions have performed extremely well, particularly in the emerging markets. Last month, Sotheby's Hong Kong held a successful series of sales, selling for the first time in the spacious Hong Kong Convention and Exhibition Center. The sales brought a total of $108.5 million, above the low estimate of $100.6* million. Numerous records were broken, including records for a Chinese oil painting, an Imperial Chinese work of art, a Qing textile and a pink diamond at auction. Also, the Chinese Contemporary Art sale realized $17.0 million, the highest total ever at Sotheby's for such a sale.