(Pittsburgh, PA, October 31, 2002)  -- One of the largest domestic law firm mergers of 2002 has vaulted a 125-year old American legal institution into the ranks of the 20 largest law firms in the world.

According to terms given final approval today by the partners of Reed Smith LLP and the shareholders of California-based Crosby, Heafey, Roach & May, the two firms have agreed to combine their legal practices effective January 1, 2003.  The long-anticipated transaction gives Reed Smith LLP close to 1,000 attorneys in the U.S. and abroad and projected annual revenue of nearly $500 million.

"Based on the increasing needs of our clients, we have long viewed California as essential to the evolution of our strategic growth," said Gregory B. Jordan, Reed Smith's managing partner. “Until now, our strength has been heavily focused on the East Coast and the United Kingdom. With this  merger we are establishing a major presence on the West Coast, with 135 attorneys in the Bay area and 80 in Los Angeles. This provides a tremendous benefit to our firm and our clients, particularly those doing business in California whom we can serve even better from this greatly expanded geographic base.”

Founded in Pittsburgh in 1877, Reed Smith currently has 780 attorneys in 11 offices concentrated in Pennsylvania, New Jersey, New York and the Washington, DC/Virginia area, as well as two offices in the United Kingdom.  Crosby Heafey has  215 lawyers in six California offices, including Los Angeles, San Francisco and Oakland.

According to Crosby Heafey's Los Angeles-based managing partner, Kurt C. Peterson, the merger is not only well-aligned with the current geographic expansion goals of both firms, but it also matches strength-with-strength in terms of practice capabilities and satisfies a set of highly compatible growth objectives for each firm.

"Reed Smith and Crosby Heafey have dynamic and successful litigation practices that are highly complementary," Peterson said.  “Reed Smith already has a large client base in California and the merger positions the firm to take advantage of the significant and increasing demand for litigation services in the state."

Reed Smith also enhances its corporate capabilities, as well as its appellate litigation and intellectual property practices through the merger, and quickly and effectively improves its ability to meet the litigation needs of new and existing clients in the fast-growing life sciences sector.  The firm is already giving consideration to adding laterals in the West Coast markets as part of its strategic development plan.

As Jordan notes, Crosby Heafey's long-term involvement in high stakes life sciences litigation is a good match for Reed Smith's current capabilities and interests. "We currently represent a large number of life sciences companies worldwide in transactional, regulatory and litigation matters," Jordan said. "With this merger, we will substantially increase our ability to represent them in major national litigation. We intend to be one of the leading firms serving the life sciences industry.”

The deal puts in place several new key management assignments.  Jordan will continue to serve as firmwide managing partner of the merged firms, and Peterson will take one of the three new positions on the firm’s Executive Committee that will be filled by Crosby Heafey shareholders.   Michael B. Pollack, Reed Smith’s Director of Strategic Planning, and Jack R. Nelson, Crosby Heafey’s Chief Operating Officer, will lead the integration effort. 

Reed Smith’s track record of effecting smooth transitions, even at great distances, was demonstrated in its 2001 combination with U.K.- based Warner Cranston.  "I am confident this will be another smooth transition in all respects,"  Pollack said.  "Reed Smith and Crosby Heafey have very compatible cultures and people, and the effort we will make in the next several months to integrate our firms will further strengthen and align our practices to take maximum advantage of these common characteristics.” As part of the integration plan, initially, at least two Reed Smith partners are planning to relocate to the West Coast and two Crosby Heafey partners will relocate to Reed Smith’s East Coast offices.

The current merger is built on a solid foundation of successful recent expansion beginning in January 2001 when Reed Smith combined with the London firm of Warner Cranston to become one of the 10 largest transatlantic law firms in the world.  In 2002, the New York office doubled in size to 60 lawyers, following a combination with Parker Duryee Rosoff & Haft, and has since grown to more then 70 lawyers and relocated to new office space.  Most recently, the firm completed an alliance with Federated Investors, vaulting Reed Smith into the top tier of leading investment management practices in the country.

Throughout this period of tremendous growth for the firm, Reed Smith’s results in 2001 were the best in its long history, and among the most improved for all AmLaw 100 firms.

The new firm will retain the Reed Smith name, although in California the firm will operate as Reed Smith Crosby Heafey for the immediate future.

About Reed Smith

Reed Smith, a leading global law firm with more than 780 lawyers located in 11 U.S. and two U.K. cities, represents Fortune 100 as well as mid-market and emerging companies.  Clients include technology companies and entrepreneurs, financial services firms, health care providers and insurers, communications companies, manufacturers, universities, non-profit organizations, real estate developers, and municipalities throughout the United States and in 40 countries.  For more information, visit www.reedsmith.com.

About Crosby Heafey

Crosby Heafey has approximately 215 lawyers serving clients from six California offices in Century City, Los Angeles, Oakland, Palo Alto, San Francisco, and Westlake Village.  From Fortune 500 companies to start-up businesses, Crosby Heafey represents local, national, and international clientele in areas such as: appellate, business transactions, commercial litigation, employment and labor, energy, finance and banking, intellectual property and life sciences, international, product liability, real estate, and trusts and estates, to name a few.  More information is available at www.crosbyheafey.com.