J.P. Morgan & Co. Incorporated News Release J.P. Morgan comments on hedge fund exposure J.P. Morgan released information today on its exposure to hedge funds. Such funds owed Morgan approximately $1 billion under derivative and foreign exchange contracts on a mark-to-market basis as of September 28, 1998. Substantially all of this amount is secured by cash and U.S. Treasury and agency securities, under daily mark-to-market collateral agreements. In addition, the net amount owed Morgan under financing agreements and unsecured loans was approximately $70 million. J.P. Morgan confirmed that it had made an equity investment of $300 million in Long-Term Capital Management on September 29, 1998, as part of the consortium of firms recapitalizing that entity. # # #