Industry News – Sotheby’s on the Auction Block

Sotheby’s has entered into an agreement to sell its worldwide headquarters in
New York for $175 million to RFR Holding LLC. 

The company will lease back the York Avenue building, widely regarded as the
best auction house facility in the world, from RFR Holding for a period of up to
40 years, which includes renewals.

The money from the sale will be used to pay off anti-trust fines and $100
million in short-term debt, said Bill Ruprecht, Sotheby’s president and CEO.
Sotheby’s expects to report a gain of $25 million on the sale of the building.

In October, European Union competition authorities fined Sotheby’s 20.4 million euros ($20.1 million) for a price fixing scandal.

Sotheby’s operates in 34 countries, with principal salesrooms located in New
York and London. The Company also regularly conducts auctions in 13 other
salesrooms around the world, including Australia, Hong Kong, France, Italy, the
Netherlands, Switzerland, and Singapore.

12/19/02