Milberg Weiss Announces the Filing of a Class Action Suit against Refco Inc. and Certain of Its Officers and Directors on Behalf

The law firm of Milberg Weiss Bershad & Schulman LLP
announces that a class action lawsuit was filed today on behalf of
purchasers of the securities of Refco Inc. ("Refco" or the "Company")
(NYSE: RFX) between August 11, 2005 and October 7, 2005, inclusive
(the "Class Period"), including purchasers of the Company's shares
pursuant or traceable to the Company's initial public offering (the
"Offering") on August 11, 2005. The action seeks to pursue remedies
under the Securities Act of 1933 ("Securities Act") and the Securities
Exchange Act of 1934 (the "Exchange Act").
   Refco is a leading independent provider of execution and clearing
services for exchange-traded derivatives and a major provider of prime
brokerage services in the fixed income and foreign exchange markets.
The complaint alleges that Refco and Refco insiders completed an
initial public offering of Refco common stock on August 11, 2005,
selling 26.5 million shares at $22 per share for proceeds of $583
million.
   The complaint further alleges that, three months later, on October
10, 2005, before trading opened, defendants revealed that the Company
had been carrying an undisclosed receivable from its Chief Executive
Officer, Defendant Phillip R. Bennett, in the amount of $430 million,
that Bennett was taking a leave of absence, and that Company financial
statements issued since 2002 could no longer be relied upon. The
announcement stunned the market, driving down the price of Refco
shares by 44.4%, from a closing price of $28.06 on October 7, 2005
(Friday) to a low of $15.60 on October 10, 2005 (Monday). Trading in
Refco shares was halted on the morning of October 11, 2005 pending
additional news, and, after resumption of trading, closed at $13.06,
down 11.2% for the day.
   On October 12, 2005, The Wall Street Journal reported that an
investment firm controlled by Bennett, had paid Liberty Corner, a New
Jersey hedge fund, to help him hide that he owed Refco hundreds of
millions of dollars, and that the SEC had launched an investigation of
the Company. Later that day, Bloomberg News reported that Bennett had
been arrested by federal authorities on charges of securities fraud
stemming from his failure to disclose in public filings with the SEC
the existence of hundreds of millions of dollars in transactions
between Refco and a company he controlled.
   If you bought the securities of Refco between August 11, 2005 and
October 7, 2005 and sustained damages, you may, no later than December
12, 2005, request that the Court appoint you as lead plaintiff. A lead
plaintiff is a representative party that acts on behalf of other class
members in directing the litigation. In order to be appointed lead
plaintiff, the Court must determine that the class member's claim is
typical of the claims of other class members, and that the class
member will adequately represent the class. Under certain
circumstances, one or more class members may together serve as "lead
plaintiff." Your ability to share in any recovery is not, however,
affected by the decision whether or not to serve as a lead plaintiff.
You may retain Milberg Weiss Bershad & Schulman LLP, or other counsel
of your choice, to serve as your counsel in this action.
   The action is pending in the United States District Court for the
Southern District of New York against defendants Refco, Phillip R.
Bennett (former CEO), Gerald Sherer (CFO) and each member of Refco's
Board of Directors. A copy of the complaint filed in this action is
available from the Court or can be viewed on Milberg Weiss's website
at: http://www.milbergweiss.com.
   Milberg Weiss Bershad & Schulman LLP (http://www.milbergweiss.com)
is a firm with over 100 lawyers with offices in New York City, Los
Angeles, Boca Raton, Delaware and Washington, D.C. and is active in
major litigations pending in federal and state courts throughout the
United States. Milberg Weiss has taken a leading role in many
important actions on behalf of defrauded investors, consumers, and
others for nearly 40 years. Please contact the Milberg Weiss website
for more information about the firm. If you wish to discuss this
action with us, or have any questions concerning this notice or your
rights and interests with regard to the case, please contact the
following attorneys:

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Steven G. Schulman
Peter E. Seidman
Andrei V. Rado
One Pennsylvania Plaza, 49th fl.
New York, NY, 10119-0165
Phone number: [phone]
Email: [e-mail]
Website: http://www.milbergweiss.com

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