KJ Harrison & Partners Inc.

November 27, 2007 16:01 ET

K.J. Harrison & Partners Inc. Calls for Spin-off of Marsh & McLennan Subsidiaries

Re: Marsh & McLennan Companies, Inc.

NEY YORK, NEW YORK--(Marketwire - Nov. 27, 2007) - K.J. Harrison & Partners Inc. (KJH) of Toronto, a private client investment management firm in Toronto, Canada, has filed a shareholder resolution with Marsh & McLennan Companies, Inc. for inclusion in the proxy statement for the 2008 annual meeting of shareholders seeking the spin-off of its Kroll and Mercer subsidiaries. KJH sees the breakup of the company as necessary to protect the value of the underlying franchises and to maximize shareholder value.

Jim Harrison, CEO of K.J. Harrison & Partners, said, "In our view, holding companies are effective only when they demonstrate that they can add value through excellence in capital allocation and management selection and retention. Marsh & McLennan is currently doing neither. Consequently, the share price trades 40% below our estimate of the underlying enterprises, and these enterprises are each at a disadvantage to competitors."

Harrison continues, "To maximize value, the Board must continue the process begun with Putnam and move as quickly as possible to spin-off the remaining subsidiaries on a tax-effective basis. Marsh & McLennan trades at the same price as it traded in 2004 when market participants questioned its financial viability. It is now obvious that the Company failed to adopt appropriate strategies and recruit the right people to repair Marsh. Marsh, an insurance brokerage and once the gold standard in its industry, is now ranked third in profitability behind Willis Group Holdings Limited and Aon Corporation. While Mercer and Kroll remain industry leaders, they will inevitably suffer from the poor performance of the Company and the associated competitive disadvantage in the market for talent."

To view a copy of the supporting documents, please click on the following links:

http://www.ccnmatthews.com/docs/sps1127.pdf

http://www.ccnmatthews.com/docs/sl1127.pdf

http://www.ccnmatthews.com/docs/kjl1127.pdf

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