GovernanceMetrics International

FOR IMMEDIATE RELEASE:

Contact:   Gavin Anderson   GovernanceMetrics International   Direct: 212-949-1313 Ext. 300   Other:  435-647-9105

Sotheby’s Governance Initiatives Lead to GMI Re-Rating

New York, September 20^th, 2005 - GovernanceMetrics International(GMI), the corporate governance research and ratings agency, today announced that it had re-rated Sotheby’s Holdings, Inc. (NYSE:BID) following the company’s adoption earlier this month of a series of governance measures, chief among which was the relinquishing of majority voting control by the Taubman family. The company’s overall GMI rating increased from 5.5 to 6.5, and its overall home market rating relative to other US companies increased from 4.0 to 6.5. An analysis of Sotheby’s rating changes before and after the recapitalization follows:

The Taubman family’s sale of its Class B shares resulted in significant improvements to Sotheby’s governance profile. Key changes are:

• Although the Taubman family is still a core shareholder, Sotheby’s no longer has a single entity with majority voting control.
• Sotheby’s now has one class of common stock with equal voting rights, as opposed to two classes where the subordinate class is widely held.
• The entire Sotheby’s board is now subject to election by all shareholders. Before, 75% of the board was elected by one constituency (i.e., Taubman family) holding Class B shares.
• Director Robert Taubman remains on the board of directors, but he removed himself from the Nominating and Corporate Governance Committee.

About GMI

GMI’s rating system incorporates hundreds of data points across six broad categories of analysis: board accountability, financial disclosure and internal controls, executive compensation, shareholder rights, ownership base and takeover provisions, plus corporate behavior and environmental, health and safety issues. Subscribers to GMI are able to view a company’s overall rating, section ratings, and several pages of written analysis. GMI clients include pension funds, investment managers, mutual funds, regulatory agencies, banks, insurance companies, professional service firms and corporate issuers throughout North America, Europe and the Asia-Pacific region.