Access. Convenience. Simplicity.

Exchange Traded Notes from Lehman Brothers

Commodities: the what, why and how

500

400

300

200
What are commodities?
100
Commodities are goods that are typically used as inputs in the production of other goods and services. They are usually pro-
1/02 1/03 1/04 1/05 1/06 1/07
duced in large quantities by many independent producers. Commodity prices are determined,LBCI PureinBeta
large
Total part, by supply and
Return Index
demand interactions in the global marketplace. Supply and demand conditions may be influenced
World Real GDPby factors like the weather,
geo-political events, and supply-side shocks (e.g., wars, hurricanes).
Some examples of commonly traded commodities are energy products like oil and natural gas; metals like gold, copper and
nickel; and agricultural products like wheat, coffee, and lean hogs.
17.78% -14.41% -16.59%

Why may commodities be an attractive addition to a portfolio?

LBCI Pure Beta S&Pof500 LB US Aggregate
Benefits of investing in commodities Figure 1. Correlation
TR Index/CPI
Select Indices
TR Index/CPI TR Index/CPI
with LBCI Pure Beta Index
Diversification – Commodity returns have historically had low or negative correlations
with the returns of other major asset classes, and may be used to diversify a portfolio. All
else being equal, diversified portfolios with low aggregate correlation tend to have lower 500
volatility of returns. Therefore, diversification may improve risk-adjusted returns. 8.83% -4.60%
400

Commodities may react differently from stocks and bonds in various economic and geo- 300
political situations, enhancing risk-adjusted returns and reducing the overall volatility of a
S&P 500 TR Index/ LB US Aggregate TR Index/200
portfolio. Figure 1 at right shows the correlations of the LBCI Pure Beta Total Return with LBCI Pure Beta TR Index LBCI Pure Beta TR Index
100
common equity and bond market benchmarks (the S&P 500 TR Index and the Lehman Source Bloomberg, Lehman Analysis. Data from January 2001 to
January 2008.
Brothers US Aggregate Bond TR Index). The commodities index shows low positive cor- 1/02 1/03 1/04 1/05 1/06 1/07
relation and low negative correlation with the two indices, respectively. LBCI Pure Beta Total Return Index
World Real GDP
Figure 2. Correlation of Select Indices
with the Consumer Price Index (CPI)
Inflation protection – Changing macroeconomic factors (like inflation) tend to impact
commodities differently from other financial assets. Input prices rise in tandem with the
prices of goods and services, while stocks and bonds tend to decline as rising prices 17.78% -14.41% -16.59%
put pressure on the economy and lower the value of future cash flows. Figure 2 at right
shows the degree of correlation between the returns of commodity, equity and bond
market indices, and the changes in the US Consumer Price Index (CPI). Changes in the
LBCI Pure Beta S&P 500 LB US Aggregate
CPI reflect inflation levels. TR Index/CPI TR Index/CPI TR Index/CPI
Source Bloomberg, Lehman Analysis. Data from January 2001 to
January 2008.

8.83% -4.60%

S&P 500 TR Index/ LB US Aggregate TR Index/

LBCI
The historical correlations of commodities relative to other major asset classes shown above may not be indicative of Pure Betacorrelations.
future TR Index LBCIinformation
The Pure Beta TR Index
furnished herein is provided as a matter of information only, and you should not regard the information as necessarily indicative of the future performance of
commodities relative to other major asset classes. Future correlations may be greater or less than those experienced in the past.
As the LBCI Pure Beta was launched on October 10, 2007, the Index has little trading history, and limited actual historical information on the performance of
the level of the Index is available. Historical performance information for the LBCI Pure Beta is based on (a) hypothetical daily historical levels for the Index
from January 31, 2001, to October 10, 2007, calculated based on a level for the Index that was set to 100 on June 30, 2006 (to correspond to the initial levels
of the general LBCI, which was set to 100 as of that date), and using the same objective criteria as will be used by the Index going forward, as well as actual
observable data for the relevant Index Contracts, and (b) actual daily historical levels for the Index from October 10, 2007 to December 31, 2007.
Neither the hypothetical nor actual historical levels of the Index are indicative of the future performance of the Index, the Final Index Value, or what the value of
the notes may be. Fluctuations in the hypothetical or actual historical levels of the Index may be greater or less than fluctuations experienced by the holders of
the notes.
Page 1 February 2008
©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 Access. Convenience. Simplicity.
Exchange Traded Notes from Lehman Brothers

Historical relationship with global macroeconomic growth – Commodity returns have Figure 3. World GDP vs LBCI Pure Beta
historically shown positive correlation with global economic growth. Figure 3 at right Index
shows the relationship between commodity prices (represented by the LBCI Pure Beta 500

Total Return) and World Real Gross Domestic Product (GDP) growth from 2001 onwards. 400
Therefore, exposure to commodities through a diversified index may be an effective tool 300
to implement a global macroeconomic view.
200

100
Hedge against event risk – Geopolitical events like wars and supply disruptions due
1/02 1/03 1/04 1/05 1/06 1/07
to natural disaster like hurricanes, droughts, and floods may impact the supply of, and LBCI Pure Beta Total Return Index
increase the demand for, certain commodities. Including commodities in a portfolio may World Real GDP
Source World Bank, Bloomberg, Lehman Analysis. Data from Janu-
act as a potential hedge against certain types of event risk. ary 2001 to January 2008.

Risks and Considerations of Investing in Commodities 17.78% -14.41% -16.59%

Volatility – Commodities are consumption assets as well as Regulatory, economic and geopolitical risks – Commodity
investment assets. This makes them prone to higher volatility – prices are susceptible to a variety of factors, including the
for instance, supply shocks can be exacerbated by speculative weather, political climate, trade policy, and interest rates,
LBCI Pure Beta
investments in a commodity in anticipation of rising prices. and may show high levels of volatility. S&P 500 LB US Aggregate
TR Index/CPI TR Index/CPI TR Index/CPI

8.83% -4.60%

S&P 500 TR Index/ LB US Aggregate TR Index/

LBCI Pure Beta TR Index LBCI Pure Beta TR Index

Page 2 February 2008

©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 Access. Convenience. Simplicity.
Exchange Traded Notes from Lehman Brothers

How can investors gain exposure to commodities?

Principal ways to invest in commodities Challenges in gaining commodities exposure
Physical ownership – Commodities can be inventoried for later It may prove challenging to invest in commodities – Physical
use or price speculation. While large businesses that use a given ownership of the commodity itself is cumbersome, and there are
commodity as an input might prefer this method, there are associated storage, transportation and carrying costs, which re-
associated storage, transportation and carrying costs which duce the attractiveness of physical ownership for investors who
must be considered. want exposure just to price movements. Not all investors may be
qualified to invest directly in futures contracts. Also, the futures
buyer runs the risk of physical delivery of the underlying.
Investing in commodity-sensitive equities – This investment
method is based on the premise that commodity prices most
directly affect revenues and profits of these companies and Commodity - sensitive stocks may not track underlying com-
that an appreciation in commodity prices would get reflected in modity prices accurately and are at best an indirect way of
the stock performance. For instance, an investor can purchase investing in commodities. Also, investing in these stocks would
stocks of mining or energy companies to gain exposure to involve taking on management and execution risks, to which
energy prices. an investor may not want exposure.

Futures market – The investor can enter into agreements to buy Therefore, it may be difficult for investors to create a diversi-
or sell a commodity at a specified price, with delivery on a future fied commodities portfolio using traditional methods.
date. The futures market is highly volatile and can prove risky
for investors who lack experience in trading these instruments.
Commodity futures are traded on the NYMEX, CBOT and LME, Exchange Traded Notes linked to commodity indices
among others. Exchange Traded Notes (ETNs) are designed to track market
indices, and provide investors access to asset classes, like
commodities, that have historically been relatively difficult to
Commodity index-based products – Investors can take views access. They are debt securities of the issuer and are subject
on the commodity market through instruments linked to com- to issuer credit risk.
modity indices, like the LBCI (Lehman Brothers Commodity
Index), LBCI Pure Beta Index, GSCI (Goldman Sachs Com- ETNs are traded on securities exchanges, and can be bought
modity Index), or the Dow Jones AIG Index. Instruments linked and sold like other exchange-traded securities such as stocks.
to broad-based indices offer investors exposure to a variety of Additionally, investors may choose to sell the ETNs back to the
commodity underlyings via a single transaction, and may provide issuer for a cash payment equal to the applicable indicative
a diversification advantage. value (subject to minimum size requirements).
ETNs provide investors a relatively cost-effective alternative to
gain exposure to the commodities market through a diversi-
Structured products – Notes structured with payments linked to fied commodities index. To learn more about Exchange Traded
an underlying commodity or commodity index. Notes, please see the ‘Education’ section of the OptaETN.com
website.
Additionally, most of the above methods of investing in com-
modities may involve fees or other costs that may cause
returns to differ from changes in prices of the relevant com-
modities.

Page 3 February 2008

©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 Access. Convenience. Simplicity.
Exchange Traded Notes from Lehman Brothers

Important Disclosures
As the LBCI Pure Beta Index was launched on October 10, 2007, the Index has little trading history, and limited actual historical information on the perfor-
mance of the level of the Index is available. Historical performance information for the LBCI Pure Beta Index is based on (a) hypothetical daily historical levels
for the Index from January 31, 2001, to October 10, 2007, calculated based on a level for the Index that was set to 100 on June 30, 2006 (to correspond to the
initial levels of the general LBCI, which was set to 100 as of that date), and using the same objective criteria as will be used by the Index going forward, as well
as actual observable data for the relevant Index Contracts, and (b) actual daily historical levels for the Index from October 10, 2007 to December 31, 2007.
Neither the hypothetical nor actual historical levels of the Index are indicative of the future performance of the Index, the Final Index Value, or what the value of
the notes may be. Fluctuations in the hypothetical or actual historical levels of the Index may be greater or lesser than fluctuations experienced by the holders
of the notes.

An investment in Opta ETNs involves risks, including possible loss of principal. For a description of the main risks, see “Risk Factors” in the applicable prospectus.
Lehman Brothers Holdings Inc. has filed a registration statement (including a base prospectus) with the U.S. Securities and Exchange Commission, or SEC, for
this offering. Before you invest, you should read this free writing prospectus together with the relevant pricing supplement and the accompanying base prospec-
tus dated May 30, 2006, as supplemented by the MTN prospectus supplement dated May 30, 2006 relating to our Series I medium-term notes of which the
Opta ETNs are a part. Buyers should rely upon the accompanying base prospectus and MTN prospectus supplement, the pricing supplement, this free writing
prospectus and any other relevant terms supplement for complete details. The pricing supplement, together with the base prospectus and MTN prospectus
supplement, contain the terms of the Notes and supersede all prior or contemporaneous communications concerning the Opta ETNs. To the extent that there
are any inconsistencies among this free writing prospectus, the pricing supplement, the base prospectus and the MTN prospectus supplement, the pricing
supplement shall supersede this free writing prospectus, the base prospectus and the MTN prospectus supplement. We urge you to consult your investment,
legal, tax, accounting and other advisors before you invest in the Opta ETNs. You may get these documents and other documents Lehman Brothers Holdings
Inc. has filed for free by searching the SEC online database (EDGAR®) at www.sec.gov, with “Lehman Brothers Holdings Inc.” as a search term or through the
links below or by calling Lehman Brothers Inc. toll-free at 1-888-603-5847.
Opta ETNs (the “Notes”) are unsecured obligations of Lehman Brothers Holdings Inc. and are not secured debt. The Notes are riskier than ordinary unsecured
debt securities and have no principal protection. Risks of investing in the Securities include limited portfolio diversification, trade price fluctuations, uncertain
principal repayment and illiquidity. Investing in the Securities is not equivalent to direct investment in index or index components. The investor fee will reduce
the amount of your return at maturity or on redemption, and as a result you may receive less than the principal amount of your investment at maturity or upon
redemption of your Notes even if the value of the relevant index has increased. An investment in the Opta ETNs may not be suitable for all investors.
The Notes may be sold throughout the day on the exchange through any brokerage account. There are restrictions on the minimum number of Notes you may
redeem directly with the issuer as specified in the applicable prospectus. Commissions may apply and there are tax consequences in the event of sale, redemp-
tion or maturity of the Notes. Sales in the secondary market may result in significant losses.
Buying and selling Opta ETNs may result in brokerage commissions.
Investments such as Opta ETNs require investors to assess several characteristics and risk factors that may not be present in other types of transactions. In
reaching a determination as to the appropriateness of any proposed transaction, clients should undertake a thorough independent review of the legal, regula-
tory, credit, tax, accounting and economic consequences of such transaction in relation to their particular circumstances. This free writing prospectus contains
market data from various sources other than Lehman Brothers Holdings Inc. and its affiliates, and accordingly make no representation or warranty as to the
market data’s accuracy or completeness. All information is subject to change without notice. Lehman Brothers Inc. and/or its affiliated companies may make a
market or deal as principal in the securities mentioned in this document or in options, futures, or other derivatives based thereon. In addition, Lehman Brothers
Inc., its affiliated companies, shareholders, directors, officers and/or employees, may from time to time have long or short positions in such securities or in op-
tions, futures, or other derivative instruments based thereon. ©2008 Lehman Brothers Inc. All rights reserved. Member SIPC.
IRS Circular 230 Disclosure
Neither Lehman Brothers nor its employees provide tax advice. Any discussion of U.S. tax matters herein (including any attachments) is not intended or written
to be used and cannot be used for the purpose of (i) avoiding U.S. tax related penalties or (ii) promoting, marketing, or recommending to another party any
transaction or matter addressed herein.
Page 4 February 2008
©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 EOH:AMEX
Opta Lehman Brothers Commodity Index Pure Beta Agriculture Total Return ETN
FACT SHEET Created on February 18, 2008 | Page 1

DETAILS ABOUT EOH The Opta Lehman Brothers Commodity Index Pure Beta Agriculture Total Return
Ticker EOH
Intraday Indicative Value Ticker EOH.IV
ETN is a senior, unsecured debt security issued by Lehman Brothers Holdings Inc. The ETN
Bloomberg Index Ticker LPAGTR tracks the Lehman Brothers Commodity Index Pure Beta Agriculture Total Return which is
CUSIP Number 52522L749 the agricultural-only element of the Lehman Brothers Commodity Index Pure Beta Total
Inception Date February 20, 2008 Return. The index provides exposure to agricultural commodities, which represent one of the
Exchange AMEX four main segments of the raw materials market. ETN returns are based on the performance
Annualized Investor Fee 0.85% of the index, less investor fees. The ETN will be available to investors on the American Stock
Exchange (AMEX).
MARKET DATA AS OF N/A
Closing Price N/A INDEX 5 YEAR PERFORMANCE¹
Net Change N/A Lehman Brothers Commodity Index Pure Beta Agriculture Total Return S&P 500 Index Lehman Aggregate Bond Index Return (%)
Percent Change N/A 150
Average Volume N/A
Market Capitalization N/A 125

100
ISSUER REDEMPTION 75
Frequency Daily
Redemption Value Closing IIV* 50
Minimum Redemption Size 50,000 notes
*Closing IIV on Valuation Date 25

ISSUER DETAILS
Issuer Name Lehman Brothers Holdings Inc. Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan
S&P Rating A+ 2003 2004 2005 2006 2007
Moody's Rating A1
Fitch Rating AA-
ANNUALIZED RETURNS
Annualized Returns Standard Correlation
The Intraday Indicative Value at closing for any 1 Year 3 Year 5 Year Deviation³ to LPAGTR³
trading day (IIV) is meant to approximate the intrinsic
Lehman Brothers Commodity Index Pure Beta 59.46% 28.56% 19.78% 21.45% 100.00%
economic value of an Opta ETN, and is the price at
which the Issuer stands ready to repurchase the ETNs Agriculture Total Return (LPAGTR)
on a daily basis (subject to a minimum size Dow Jones-AIG Commodity Index Total Return 24.83% 15.37% 14.01% 14.18% 51.78%
requirement of 50,000 notes. Please see the relevant S&P 500 Index Total Return -5.56% 5.68% 12.12% 11.44% 4.13%
prospectus for details.) The ETN IIV is calculated as Lehman Brothers U.S. Aggregate Index Total Return 7.03% 4.53% 4.51% 3.53% 4.16%
follows: ¹Source: Reuters Datascope Equities and Lehman Brothers Inc.
Intraday Indicative Value = Principal Amount per ETN ²All indices reflect Total Return, including reinvested dividends when applicable, except where otherwise stated in the index name.
* (Current Index Level/ Initial Index Level) * Fee Factor ³Based on total monthly returns annualized over a 5 year period.
Where:
As the Lehman Brothers Commodity Index Pure Beta Agriculture Total Return was launched on October 10, 2007, the Index has little trading
Principal Amount per ETN = $50 history, and limited actual historical information on the performance of the level of the Index is available. Historical performance information for
Fee Factor = (1 – Annualized Fee) ^ (Number of Days the Lehman Brothers Commodity Index Pure Beta Agriculture Total Return is based on (a) hypothetical daily historical levels for the Index from
since Inception/365) January 31, 2001, to October 10, 2007, calculated based on a level for the Index that was set to 100 on June 30, 2006 (to correspond to the
The Opta ETNs are not rated, but rely on the credit initial levels of the general LBCI, which was set to 100 as of that date), and using the same objective criteria as will be used by the Index going
rating of their Issuer, Lehman Brothers Holdings Inc. forward, as well as actual observable data for the relevant Index Contracts, and (b) actual daily historical levels for the Index from October 10,
These credit ratings reflect the creditworthiness of 2007 to December 31, 2007. Neither the hypothetical nor actual historical levels of the Index are indicative of the future performance of the
Lehman Brothers Holdings Inc. and are not Index, the Final Index Value, or what the value of the notes may be. Fluctuations in the hypothetical or actual historical levels of the Index may
recommendations to buy, sell or hold securities, and be greater or less than fluctuations experienced by the holders of the notes.
may be subject to revision or withdrawal at any time An investment in an Opta ETN entails certain risks not associated with an investment in conventional debt securities. See “Risk Factors” in the
by the assigning rating organization. Each rating Series I MTN prospectus supplement and the applicable ETN prospectus. In addition, the notes are subject to the further specific risks discussed
should be evaluated independently of any other in the applicable ETN prospectus.
rating. The creditworthiness of the issuer does not Performance data quoted represents past performance, which is no guarantee of future results. The investment return and principal value of an
affect or enhance the likely performance of the investment will fluctuate so that the ETNs, when redeemed, or sold, or at maturity, may be worth more or less than their original cost. In addition
investment other than the ability of the Issuer to meet to the annual fees, current performance may be lower or higher than the performance data quoted.
its obligations. An investor should consider an ETN’s investment objectives, risks, fees and expenses carefully before investing. You may get this information
and other documents Lehman Brothers Holdings Inc. has filed for free by searching the SEC online database (EDGAR®) at www.sec.gov, with
“Lehman Brothers Holdings Inc.” as a search term or through the links below or by calling Lehman Brothers Inc. toll-free at 1-888-603-5847.
Please read it carefully before making an investment.

Please see important information on page 2. ©2008 Lehman Brothers Inc. All rights reserved. Member SIPC.
 EOH:AMEX
Opta Lehman Brothers Commodity Index Pure Beta Agriculture Total Return ETN
FACT SHEET Created on February 18, 2008 | Page 2

The Lehman Brothers Commodity Index Pure Beta Agriculture Total Return is a commodities index focused on agriculture. This second
generation index is designed to track agriculture "spot" returns, and may generate greater returns than first-generation indices. The returns of
the index reflect the returns of the underlying agricultural commodities futures contracts (plus the return on invested cash). The index is
currently composed of eight futures contracts broken down into grains (corn, soybean meal, soybean oil, soybeans, and wheat) and softs
(coffee, cotton, and sugar).

The Lehman Brothers Commodity Index Pure Beta Agriculture Total Return uses liquidity and open interest to select index constituents. This
is because the most actively-traded futures contracts may best convey recent production patterns and expectations of future production
levels, commodity consumption, and potential storage concerns. The index is passively managed; this means that index constituents are
selected and weighted based on pre-determined rules. Unlike the majority of first-generation commodity indices, the Lehman Brothers
Commodity Index Pure Beta Agriculture Total Return attempts to select futures contracts that best reflect underlying commodity returns.

INDEX TOP HOLDINGS INDEX ALLOCATION

Holding Allocation
Soybeans 40% Grains 74%
Sugar 18% Softs 26%
Soybean Meal 11%
Corn 10%
Soybean Oil 7%
Wheat 7%
Coffee 4%
Cotton 3%

Both Index Holdings and Sector Allocations are updated daily, and refer to the latest index rebalance.
Source: Lehman Brothers Inc.
Index holdings and sector allocations are subject to change in accordance with Lehman Brothers Commodity Index Pure Beta’s published index weighting rules, and are rounded to the
nearest whole number.

Important Information
Lehman Brothers Holdings Inc. has filed a registration statement (including a base prospectus) with the U.S. Securities and Exchange Commission, or SEC,
for this offering. Before you invest, you should read this free writing prospectus together with the pricing supplement dated February 14, 2008 and the
accompanying base prospectus dated May 30, 2006, as supplemented by the MTN prospectus supplement dated May 30, 2006 relating to our Series I
medium-term notes of which the Opta ETNs are a part. Buyers should rely upon the accompanying base prospectus and MTN prospectus supplement, the
pricing supplement, this free writing prospectus and any other relevant terms supplement for complete details. The pricing supplement, together with the
base prospectus and MTN prospectus supplement, contain the terms of the Notes and supersede all prior or contemporaneous communications concerning
the Opta ETNs. To the extent that there are any inconsistencies among this free writing prospectus, the pricing supplement, the base prospectus and the
MTN prospectus supplement, the pricing supplement shall supersede this free writing prospectus, the base prospectus and the MTN prospectus supplement.
We urge you to consult your investment, legal, tax, accounting and other advisors before you invest in the Opta ETNs. You may get these documents and
other documents Lehman Brothers Holdings Inc. has filed for free by searching the SEC online database (EDGAR®) at www.sec.gov, with “Lehman Brothers
Holdings Inc.” as a search term or through the links below or by calling Lehman Brothers Inc. toll-free at 1-888-603-5847.

Not FDIC Insured
No Bank Guarantee
May Lose Value

©2008 Lehman Brothers Inc. All rights reserved. Member SIPC.

 Access. Convenience. Simplicity.
Exchange Traded Notes from Lehman Brothers

What are Exchange Traded Notes?

Opta exchange traded notes (ETNs) are senior, unsecured debt securities issued by Lehman Brothers Holdings Inc. (the “Is-
suer”). They are designed to track the performance of market indices (net of investor fees) and allow investors to gain exposure
to such indices with relative ease.
ETNs are listed on major U.S. exchanges and can be traded like any other listed security.
There are important differences between exchange traded notes (ETNs), exchange traded funds (ETFs), and index mutual
funds (see “ETNs vs Comparable Instruments” on page 3).

ETN Returns Investment Mechanics

Opta ETN returns are tied to the performance of an index The “Offerings” section of this website provides investors with
(e.g., the Lehman Brothers Commodity Index Pure Beta Total an overview of the Opta ETN family, as well as current second-
Return or the S&P Listed Private Equity Index Net Return). ary market data and printer-friendly ETN fact sheets that are
updated to show daily performance (as of market close).

Exposure to underlying index

ETN investors receive exposure to the performance of the under- Investing in ETNs
lying index. Upon sale, redemption, or maturity of the ETN, the ETNs are securities listed and traded on major U.S. exchang-
investor receives a cash payment that reflects the performance es. They are quoted under their respective ticker symbols just
of the underlying index (net of investor fees). like any other exchange-traded security.
Since ETNs are exchange-traded instruments investors
may be able to trade them through a brokerage account, Liquidation
just like exchange-listed stocks. There is no guarantee though
that an active and liquid trading market will develop for all There are three ways in which investors can liquidate an ETN
ETNs. investment:
sell the ETNs on an exchange during trading hours. ETNs can
be traded through a brokerage account.
they may require the Issuer to redeem (buy back) the ETNs for
Distributions and investor fees a cash payment equal to the applicable Indicative Value (subject
Typically, there are no periodic coupon payments or cash distri- to minimum size requirements)
butions on ETNs prior to maturity or sale. hold the ETNs until maturity and realize a return (or loss) on
The Issuer charges investor fees that accrue over the term of the investment
ETN (see the relevant prospectus for details on how investor fees
are calculated).
In each case, the cash proceeds to be received by the investor
will be subject to the performance of the underlying index (net
of investor fees).

Short Selling
Investors are allowed to short an ETN on both an up-tick and
a down-tick. Securities must be borrowed before they can be
sold short.

Page 1 February 2008

©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 Access. Convenience. Simplicity.
Exchange Traded Notes from Lehman Brothers

Advantages of Opta ETNs Select Considerations Related to the Opta ETNs1

Access Issuer Credit Risk
Opta ETNs can offer investors exposure to market sectors Opta ETNs are senior, unsecured, debt securities issued by
and investment strategies that may be difficult to achieve with Lehman Brothers Holdings Inc. and are not rated separately
other investment alternatives. ETNs are not subject to some of from the Issuer. Any payment is subject to the Issuer’s capac-
the investment restrictions that may affect registered invest- ity to pay. An investment in the ETNs does not reflect an own-
ment companies (RICs), including mutual funds and most ership interest in any class of asset comprising the applicable
exchange-traded funds (ETFs). index to which the ETNs are linked.
For instance, because mutual funds and many ETFs face
restrictions when investing directly in commodity futures con- Market Risk
tracts, their ability to provide investors exposure to commodi- ETN investors are exposed to changes in the index to which
ties is limited. ETFs that access commodities indirectly may the ETN is linked. Opta ETNs are structured to reflect the
incur increased costs. ETNs do not face similar restrictions, appreciation or depreciation of linked indices in their trading
providing an efficient means to gain exposure to difficult-to- price. In the unlikely event the underlying index level ap-
access asset classes in a portfolio. proaches zero, the ETN trading price could theoretically go to
zero or trigger a forced redemption.
Price Transparency
ETNs are designed to provide returns linked to the perfor- Liquidity Risk
mance of an underlying index, net of investor fees. In most Even though they are listed on major U.S. exchanges, there
cases, the underlying index level and corresponding ETN In- is not guarantee that an active and liquid trading market will
dicative Value are published throughout the trading day. Inves- develop for all ETNs.
tors can access this information through market data services
such as Bloomberg and Reuters, and also on the “Opta ETNs
Market Data” section of the OptaETN.com website. Investor Fees
The Issuer charges investor fees that accrue through the
term of the ETN. As a result, the return of the ETN will be
Liquidity lower than the return of the underlying index (please refer to
Investors can sell their ETNs on an exchange at market price the relevant prospectus for details on how investor fees are
or require the Issuer to redeem (buy back) the ETNs for a calculated).
cash payment equal to the applicable Indicative Value (sub-
ject to minimum size requirements).
Interim Payments
Typically, Opta ETNs do not provide for any periodic payments
Tracking Error or cash distributions until sale, redemption, or maturity.
ETN Issuers are obligated to deliver the index performance
less fees (upon redemption or maturity), whereas tracking
error in ETFs and index mutual funds is borne by investors. Tax Treatment
There may be legislative or other regulatory changes
pending related to the tax treatment of an ETN investment.
Please see the “Legal, Regulatory and Tax Aspects” section
of the OptaETN.com website.

1
An investment in ETNs involves significant risks. Some of those risks are summarized here, but we urge you to read the more detailed explanation of risks
relating to the specific ETN in the relevant prospectus. We also urge you to consult your investment, legal, tax, accounting and other advisers before you
consider investing in ETNs.
Page 2 February 2008
©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 Access. Convenience. Simplicity.
Exchange Traded Notes from Lehman Brothers

Opta ETNs Versus Comparable Instruments

Shown below is a comparison of ETNs to other investment vehicles. We compare ETNs to ETFs and index mutual funds
because all three instruments provide exposure to an index.

EXCHANGE TRADED NOTES (ETNs) EXCHANGE TRADED FUNDS (ETFs) OPEN-ENDED INDEX MUTUAL FUND1
ISSUANCE TYPE SEC-registered debt security Registered Registered
Investment Company Investment Company
OWNERSHIP Senior unsecured debt Represents a stake Represents a stake
securities of the Issuer in the underlying assets in the underlying assets
CREDIT RISK Subject to the N/A N/A
Issuer’s capacity to pay
LIQUIDITY Via an exchange (intraday), or Via an exchange (intraday), or Only via sale at the
cash repurchase by in-kind redemption by the market-close
Issuer (daily)2 Issuer (daily)2 NAV (daily)
TRACKING ERROR ETN Issuers are obligated Fund manager obligated to Fund manager obligated
to deliver the index deliver NAV less fees to deliver NAV less fees
performance less fees in cash upon redemption upon sale
(upon redemption or maturity)
ANNUAL FEES3 0.40% - 1.25% 0.14% - 0.82% 0.01% - 1.59%
PRICING Intraday Intraday End-of-day NAV
MATURITY Typically 15 to 30 years N/A (perpetual) N/A (perpetual)
1
Open-ended mutual funds
2
Repurchases are subject to minimum size requirement
3
Source: Strategic Insight December 31, 2007. Fees represent 5th to 95th percentile range of entire ETF and Index Mutual Fund universe. ETN fee range
reflects the range of all currently-available ETNs

Page 3 February 2008

©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 Access. Convenience. Simplicity.
Exchange Traded Notes from Lehman Brothers

Legal, Regulatory and Tax Aspects

Opta ETNs are Registered Debt Securities
Opta ETNs are senior, unsecured debt securities issued by Lehman Brothers Holdings Inc. ETN investments do not represent
ownership interests in the underlying assets but instead are backed by the credit of the Issuer.

ETNs are Treated Differently From Registered Investment Companies

Registered investment companies (RICs) (including mutual funds and most ETFs) are limited in terms of the instruments, sec-
tors and strategies in which they can invest. For example, they are limited in their ability to take positions in commodity futures
contracts. Therefore, it may be relatively inefficient to gain exposure to asset classes like commodities through funds.
As registered securities, ETNs are not subject to similar restrictions and provide investors exposure to sectors that are otherwise
difficult to access.

US federal income tax treatment2

Although significant aspects of the federal income tax treatment of an investment in Opta ETNs are uncertain, the Issuer in-
tends to treat them as cash-settled financial contracts linked to the underlying index. Assuming this treatment is correct, inves-
tors should recognize capital gain or loss at maturity or at the time of sale or redemption of the ETNs. This is calculated as the
difference between the amount received upon liquidating an ETN position and the investor’s tax basis in the ETN.
There may be pending legislative or regulatory changes that could affect the tax treatment of an ETN investment. You should
consult your own tax advisor before investing in ETNs.
IRS Circular 230 Disclosure:
Neither Lehman Brothers nor its employees provide tax advice. Any discussion of U.S. tax matters herein (including any attach-
ments) is not intended or written to be used and cannot be used for the purpose of (i) avoiding U.S. tax related penalties or (ii)
promoting, marketing, or recommending to another party any transaction or matter addressed herein.

2
Lehman Brothers does not provide tax advice. Please consult your tax advisors.
Page 4 February 2008
©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 Access. Convenience. Simplicity.
Exchange Traded Notes from Lehman Brothers

An investment in Opta ETNs involves risks, including possible loss of principal. For a description of the main risks, see “Risk Factors” in the applicable prospectus.
Lehman Brothers Holdings Inc. has filed a registration statement (including a base prospectus) with the U.S. Securities and Exchange Commission, or SEC, for
this offering. Before you invest, you should read this free writing prospectus together with the relevant pricing supplement and the accompanying base prospec-
tus dated May 30, 2006, as supplemented by the MTN prospectus supplement dated May 30, 2006 relating to our Series I medium-term notes of which the
Opta ETNs are a part. Buyers should rely upon the accompanying base prospectus and MTN prospectus supplement, the pricing supplement, this free writing
prospectus and any other relevant terms supplement for complete details. The pricing supplement, together with the base prospectus and MTN prospectus
supplement, contain the terms of the Notes and supersede all prior or contemporaneous communications concerning the Opta ETNs. To the extent that there
are any inconsistencies among this free writing prospectus, the pricing supplement, the base prospectus and the MTN prospectus supplement, the pricing
supplement shall supersede this free writing prospectus, the base prospectus and the MTN prospectus supplement. We urge you to consult your investment,
legal, tax, accounting and other advisors before you invest in the Opta ETNs. You may get these documents and other documents Lehman Brothers Holdings
Inc. has filed for free by searching the SEC online database (EDGAR®) at www.sec.gov, with “Lehman Brothers Holdings Inc.” as a search term or through the
links below or by calling Lehman Brothers Inc. toll-free at 1-888-603-5847.
Opta ETNs (the “Notes”) are unsecured obligations of Lehman Brothers Holdings Inc. and are not secured debt. The Notes are riskier than ordinary unsecured
debt securities and have no principal protection. Risks of investing in the Securities include limited portfolio diversification, trade price fluctuations, uncertain
principal repayment and illiquidity. Investing in the Securities is not equivalent to direct investment in index or index components. The investor fee will reduce
the amount of your return at maturity or on redemption, and as a result you may receive less than the principal amount of your investment at maturity or upon
redemption of your Notes even if the value of the relevant index has increased. An investment in the Opta ETNs may not be suitable for all investors.
The Notes may be sold throughout the day on the exchange through any brokerage account. There are restrictions on the minimum number of Notes you may
redeem directly with the issuer as specified in the applicable prospectus. Commissions may apply and there are tax consequences in the event of sale, redemp-
tion or maturity of the Notes. Sales in the secondary market may result in significant losses.
Buying and selling Opta ETNs may result in brokerage commissions.
Investments such as Opta ETNs require investors to assess several characteristics and risk factors that may not be present in other types of transactions. In
reaching a determination as to the appropriateness of any proposed transaction, clients should undertake a thorough independent review of the legal, regula-
tory, credit, tax, accounting and economic consequences of such transaction in relation to their particular circumstances. This free writing prospectus contains
market data from various sources other than Lehman Brothers Holdings Inc. and its affiliates, and accordingly make no representation or warranty as to the
market data’s accuracy or completeness. All information is subject to change without notice. Lehman Brothers Inc. and/or its affiliated companies may make a
market or deal as principal in the securities mentioned in this document or in options, futures, or other derivatives based thereon. In addition, Lehman Brothers
Inc., its affiliated companies, shareholders, directors, officers and/or employees, may from time to time have long or short positions in such securities or in op-
tions, futures, or other derivative instruments based thereon. ©2008 Lehman Brothers Inc. All rights reserved. Member SIPC.
IRS Circular 230 Disclosure
Neither Lehman Brothers nor its employees provide tax advice. Any discussion of U.S. tax matters herein (including any attachments) is not intended or written
to be used and cannot be used for the purpose of (i) avoiding U.S. tax related penalties or (ii) promoting, marketing, or recommending to another party any
transaction or matter addressed herein.
Page 5 February 2008
©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 Access. Convenience. Simplicity.
Exchange Traded Notes from Lehman Brothers

Exchange Traded Notes Investing Pointers

Opta means access Opta ETNs give you the opportunity to diversify into asset classes and strategies that
traditionally may have been difficult to access.

Opta means convenience Opta ETNs will be traded on major U.S. exchanges and offer a convenient way to
gain exposure to various asset classes. Ease of investing provides flexibility as you
strive to achieve your financial goals.

Opta means simplicity Opta ETNs are designed to transparently track indices so you know exactly how your
investments are performing. Opta ETNs are simple yet powerful tools to help you
build a diversified portfolio.

Correlation and your portfolio Correlation measures the strength of the relationship between the respective
choices performances of two asset classes. Investing in an asset class that has a low
correlation to the other investments in your portfolio enhances diversification.

Protect your investment returns Inflation may negatively affect the real returns of your portfolio. Also, equity and
against inflation fixed income instruments tend to perform poorly during periods of high inflation.
Commodity prices, in contrast, tend to move in tandem with rising inflation. There-
fore, adding commodity exposure to a portfolio may hedge some of its inflation risk.

Benefits of investing in commodities Ease of Access: Allow investors to gain easier access to the commodity markets
through an index without having to enter into the futures market.

Diversification: Diversified indices represent a varied basket of commodities that

rebalance periodically to maintain broadly consistent exposure to specified
commodities or sectors over time.

Lower Index Tracking Error Tracking error arises when the return of an investment is different from the return
of the index it is intended to track. ETNs may have lower index tracking error than
ETFs and index mutual funds.

ETNs provide efficient access ETFs and index mutual funds may be subject to restrictions in their investments.
ETNs are not bound by the same restrictions and offer investors more efficient
access to market sectors and investment strategies that may be otherwise difficult
to reach.

ETNs are listed securities ETNs are bought and sold in the secondary market and can be traded through most
standard brokerage accounts.

The market trading price of an ETN is available throughout the trading day from
financial data providers. Trading prices of Opta ETNs will be available on our website
at www.OptaETN.com under “Offerings”.

Page 1 February 2008

©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 Access. Convenience. Simplicity.
Exchange Traded Notes from Lehman Brothers

An investment in Opta ETNs involves risks, including possible loss of principal. For a description of the main risks, see “Risk Factors” in the applicable prospectus.
Lehman Brothers Holdings Inc. has filed a registration statement (including a base prospectus) with the U.S. Securities and Exchange Commission, or SEC, for
this offering. Before you invest, you should read this free writing prospectus together with the relevant pricing supplement and the accompanying base prospec-
tus dated May 30, 2006, as supplemented by the MTN prospectus supplement dated May 30, 2006 relating to our Series I medium-term notes of which the
Opta ETNs are a part. Buyers should rely upon the accompanying base prospectus and MTN prospectus supplement, the pricing supplement, this free writing
prospectus and any other relevant terms supplement for complete details. The pricing supplement, together with the base prospectus and MTN prospectus
supplement, contain the terms of the Notes and supersede all prior or contemporaneous communications concerning the Opta ETNs. To the extent that there
are any inconsistencies among this free writing prospectus, the pricing supplement, the base prospectus and the MTN prospectus supplement, the pricing
supplement shall supersede this free writing prospectus, the base prospectus and the MTN prospectus supplement. We urge you to consult your investment,
legal, tax, accounting and other advisors before you invest in the Opta ETNs. You may get these documents and other documents Lehman Brothers Holdings
Inc. has filed for free by searching the SEC online database (EDGAR®) at www.sec.gov, with “Lehman Brothers Holdings Inc.” as a search term or through the
links below or by calling Lehman Brothers Inc. toll-free at 1-888-603-5847.
Opta ETNs (the “Notes”) are unsecured obligations of Lehman Brothers Holdings Inc. and are not secured debt. The Notes are riskier than ordinary unsecured
debt securities and have no principal protection. Risks of investing in the Securities include limited portfolio diversification, trade price fluctuations, uncertain
principal repayment and illiquidity. Investing in the Securities is not equivalent to direct investment in index or index components. The investor fee will reduce
the amount of your return at maturity or on redemption, and as a result you may receive less than the principal amount of your investment at maturity or upon
redemption of your Notes even if the value of the relevant index has increased. An investment in the Opta ETNs may not be suitable for all investors.
The Notes may be sold throughout the day on the exchange through any brokerage account. There are restrictions on the minimum number of Notes you may
redeem directly with the issuer as specified in the applicable prospectus. Commissions may apply and there are tax consequences in the event of sale, redemp-
tion or maturity of the Notes. Sales in the secondary market may result in significant losses.
Buying and selling Opta ETNs may result in brokerage commissions.
Investments such as Opta ETNs require investors to assess several characteristics and risk factors that may not be present in other types of transactions. In
reaching a determination as to the appropriateness of any proposed transaction, clients should undertake a thorough independent review of the legal, regula-
tory, credit, tax, accounting and economic consequences of such transaction in relation to their particular circumstances. This free writing prospectus contains
market data from various sources other than Lehman Brothers Holdings Inc. and its affiliates, and accordingly make no representation or warranty as to the
market data’s accuracy or completeness. All information is subject to change without notice. Lehman Brothers Inc. and/or its affiliated companies may make a
market or deal as principal in the securities mentioned in this document or in options, futures, or other derivatives based thereon. In addition, Lehman Brothers
Inc., its affiliated companies, shareholders, directors, officers and/or employees, may from time to time have long or short positions in such securities or in op-
tions, futures, or other derivative instruments based thereon. ©2008 Lehman Brothers Inc. All rights reserved. Member SIPC.
IRS Circular 230 Disclosure
Neither Lehman Brothers nor its employees provide tax advice. Any discussion of U.S. tax matters herein (including any attachments) is not intended or written
to be used and cannot be used for the purpose of (i) avoiding U.S. tax related penalties or (ii) promoting, marketing, or recommending to another party any
transaction or matter addressed herein.
Page 2 February 2008
©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 Access. Convenience. Simplicity.
Exchange Traded Notes from Lehman Brothers

The Opta Exchange Traded Notes Family

Access Convenience Simplicity

Opta ETNs give you the opportunity to Opta ETNs will be traded on major U.S. Opta ETNs are designed to transparently
diversify into asset classes and strategies exchanges and offer a convenient way to track indices so you know exactly how
that traditionally may have been difficult gain exposure to various asset classes. your investments are performing.
to access. Ease of investing provides flexibility as Opta ETNs are simple yet powerful
you strive to achieve your financial goals. tools to help you build a diversified
portfolio.

The Opta ETN Family

Opta exchange traded notes (ETNs) are a simple and convenient way of diversifying an investment portfolio. They are designed
to track the performance of various market indices and can be conveniently traded through a brokerage account.

Available Exchange Traded Notes

Opta LBCI Pure Beta Total The Opta LBCI Pure Beta Total Return ETN is designed to track the performance of
Return Index ETN the LBCI Pure Beta Total Return, a diversified commodities index. The ETN provides
exposure to energy, metals, agriculture and livestock — the four main segments of
RAW:AMEX the raw materials market.

Opta LBCI Agriculture Pure Beta The Opta LBCI Pure Beta Agriculture Total Return ETN is designed to track the
Total Return Index ETN performance of the LBCI Pure Beta Agriculture Total Return, a commodities index
focused on agriculture. The ETN provides exposure to grains (corn, soybean meal,
EOH:AMEX soybean oil, soybeans, and wheat) and softs (coffee, cotton, and sugar).

Opta S&P Listed Private Equity The Opta S&P Listed Private Equity Index Net Return ETN provides investors expo-
Index® Net Return ETN sure to listed private equity companies which are diversified across regions and in-
dustry sectors. It is linked to the S&P Listed Private Equity Index Net Return, which
PPE:NYSE is comprised of 30 leading listed private equity companies whose primary business
is private equity investing (excluding real estate income and property trusts).

Page 1 February 2008

©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 Access. Convenience. Simplicity.
Exchange Traded Notes from Lehman Brothers

An investment in Opta ETNs involves risks, including possible loss of principal. For a description of the main risks, see “Risk Factors” in the applicable prospectus.
Lehman Brothers Holdings Inc. has filed a registration statement (including a base prospectus) with the U.S. Securities and Exchange Commission, or SEC, for
this offering. Before you invest, you should read this free writing prospectus together with the relevant pricing supplement and the accompanying base prospec-
tus dated May 30, 2006, as supplemented by the MTN prospectus supplement dated May 30, 2006 relating to our Series I medium-term notes of which the
Opta ETNs are a part. Buyers should rely upon the accompanying base prospectus and MTN prospectus supplement, the pricing supplement, this free writing
prospectus and any other relevant terms supplement for complete details. The pricing supplement, together with the base prospectus and MTN prospectus
supplement, contain the terms of the Notes and supersede all prior or contemporaneous communications concerning the Opta ETNs. To the extent that there
are any inconsistencies among this free writing prospectus, the pricing supplement, the base prospectus and the MTN prospectus supplement, the pricing
supplement shall supersede this free writing prospectus, the base prospectus and the MTN prospectus supplement. We urge you to consult your investment,
legal, tax, accounting and other advisors before you invest in the Opta ETNs. You may get these documents and other documents Lehman Brothers Holdings
Inc. has filed for free by searching the SEC online database (EDGAR®) at www.sec.gov, with “Lehman Brothers Holdings Inc.” as a search term or through the
links below or by calling Lehman Brothers Inc. toll-free at 1-888-603-5847.
Opta ETNs (the “Notes”) are unsecured obligations of Lehman Brothers Holdings Inc. and are not secured debt. The Notes are riskier than ordinary unsecured
debt securities and have no principal protection. Risks of investing in the Securities include limited portfolio diversification, trade price fluctuations, uncertain
principal repayment and illiquidity. Investing in the Securities is not equivalent to direct investment in index or index components. The investor fee will reduce
the amount of your return at maturity or on redemption, and as a result you may receive less than the principal amount of your investment at maturity or upon
redemption of your Notes even if the value of the relevant index has increased. An investment in the Opta ETNs may not be suitable for all investors.
The Notes may be sold throughout the day on the exchange through any brokerage account. There are restrictions on the minimum number of Notes you may
redeem directly with the issuer as specified in the applicable prospectus. Commissions may apply and there are tax consequences in the event of sale, redemp-
tion or maturity of the Notes. Sales in the secondary market may result in significant losses.
Buying and selling Opta ETNs may result in brokerage commissions.
Investments such as Opta ETNs require investors to assess several characteristics and risk factors that may not be present in other types of transactions. In
reaching a determination as to the appropriateness of any proposed transaction, clients should undertake a thorough independent review of the legal, regula-
tory, credit, tax, accounting and economic consequences of such transaction in relation to their particular circumstances. This free writing prospectus contains
market data from various sources other than Lehman Brothers Holdings Inc. and its affiliates, and accordingly make no representation or warranty as to the
market data’s accuracy or completeness. All information is subject to change without notice. Lehman Brothers Inc. and/or its affiliated companies may make a
market or deal as principal in the securities mentioned in this document or in options, futures, or other derivatives based thereon. In addition, Lehman Brothers
Inc., its affiliated companies, shareholders, directors, officers and/or employees, may from time to time have long or short positions in such securities or in op-
tions, futures, or other derivative instruments based thereon. ©2008 Lehman Brothers Inc. All rights reserved. Member SIPC.
IRS Circular 230 Disclosure
Neither Lehman Brothers nor its employees provide tax advice. Any discussion of U.S. tax matters herein (including any attachments) is not intended or written
to be used and cannot be used for the purpose of (i) avoiding U.S. tax related penalties or (ii) promoting, marketing, or recommending to another party any
transaction or matter addressed herein.
Page 2 February 2008
©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 Access. Convenience. Simplicity.
Exchange Traded Notes from Lehman Brothers

Frequently Asked Questions

ETN Basics
What are ETNs? Exchange traded notes (ETNs) are senior, unsecured debt securities of an issuer.
They are designed to track indices (net of investor fees) and allow investors to gain
exposure to such indices with relative ease.

ETNs are listed on exchanges and can be traded through a brokerage account like
any other listed security.

What advantages do ETNs have over • Access – ETNs can offer investors access to market sectors and investment
ETFs and index mutual funds? strategies that may be difficult to reach through ETFs, index mutual funds or
other investment strategies.
• Efficiency – ETFs and index mutual funds may be subject to restrictions in their
investments. ETNs are not bound by the same restrictions and may, therefore, be
a more efficient method to get exposure to certain investments.
• Less tracking error – ETNs may have less tracking error compared to ETFs and
index mutual funds.

Why do ETNs have a lower tracking ETN issuers are obligated to deliver the index performance less fees (upon
error than ETFs? redemption or maturity), whereas tracking error in ETFs and index mutual funds is
borne by investors.

What asset classes do Opta ETNs Opta ETNs track a variety of indices in different asset classes, e.g., the LBCI Pure
cover? Beta Index (commodities) and the S&P Listed Private Equity Index. ETNs covering
other asset classes and strategies are currently in development. New product
announcements will be posted on the OptaETN.com website.

Trading ETNs
Where can I buy ETNs? As ETNs are exchange-traded securities, they can be bought and sold in the sec-
ondary market just like exchange-listed stocks. They can be traded through most
standard brokerage accounts.

Is there a minimum investment The smallest investment unit is a single ETN. In most cases, the original issue price
requirement for Opta ETNs? is $50, although any subsequent issues would be at the then-current Indicative
Value.

Page 1 February 2008

©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 Access. Convenience. Simplicity.
Exchange Traded Notes from Lehman Brothers

What is an ETN’s indicative value? In addition to being able to trade ETNs on an exchange, investors also have the
How is it calculated? option to require the Issuer to redeem (buy back) large blocks of ETNs on a daily
basis. The Indicative Value is meant to approximate the intrinsic economic value
of an Opta ETN, and is the price at which the Issuer stands ready to redeem (buy
back) the ETNs (subject to a minimum size requirement; please see the relevant
prospectus for details). The ETN Intraday Indicative Value (IIV) is calculated
as follows:

Intraday Indicative Value = Principal Amount per ETN* (Current Index Level/Index
Level at Inception) * Fee Factor

Where:
Principal Amount per ETN = $50
Fee Factor = (1- Annual Investor Fee) ^ (Number of days elapsed since
inception/365)

What determines the market trading The market trading price is the price quoted on an exchange for an ETN and is
price of an ETN? How is this ultimately dictated by supply and demand for the security. The trading price of an
different from the ETN's ETN may vary from its Indicative Value. The market trading price of Opta ETNs is
indicative value? generally expected to track the Indicative Value due in part to the ability of investors
to require the Issuer to redeem (buy back) ETNs for a cash payment equal to the
applicable Indicative Value on a daily basis (subject to minimum size requirements).
There is however no guarantee that this will be the case as the market trading price
may be affected by numerous factors, including the Issuer's credit rating.

Where can an investor find the In most cases the Intraday Indicative Value (IIV) is calculated and disseminated
Indicative Value and trading price of every 15 seconds during the trading day and is available from the relevant
Opta ETNs? exchanges, financial data services (e.g., Bloomberg and Reuters), and the “Opta
ETNs Market Data” section of the OptaETN.com website (displayed with a 20
minute minimum delay).

The market trading price varies during trading hours and is available from the
relevant exchanges and financial data services.

ETN Mechanics
What is the minimum size required Investors may exercise their option to require the Issuer to redeem (buy back) large
for an investor to require the Issuer blocks (typically a minimum of 50,000 Notes) of a particular Opta ETN. Please refer
to redeem (buy back) the ETNs? to the relevant prospectus for details regarding the procedure and any
applicable charges.

Does an ETN investment represent a ETNs do not represent a direct holding in the underlying securities of an index. They
holding in the tracked index? are senior, unsecured debt securities and are backed by the credit of the Issuer.
However, ETNs are designed to track indices (net of investor fees) and allow inves-
tors to conveniently gain exposure to various asset classes. ETN performance is
linked to the underlying Index performance because the Issuer stands ready to
redeem (buy back) the ETNs at Indicative Value for cash on a daily basis (subject to
certain minimum size requirements).

Page 2 February 2008

©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 Access. Convenience. Simplicity.
Exchange Traded Notes from Lehman Brothers

Do ETNs carry a credit rating? Is the Opta ETNs are not rated separately from the Issuer, but are backed by the credit of
Indicative Value affected by a change Lehman Brothers Holdings Inc. The intraday Indicative Value of the ETNs is deter
in the Issuer’s credit rating? mined solely by the level of the underlying index and the investor fees. However,
market trading prices may be impacted by a change in the Issuer’s credit rating.

Page 3 February 2008

©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 Access. Convenience. Simplicity.
Exchange Traded Notes from Lehman Brothers

An investment in Opta ETNs involves risks, including possible loss of principal. For a description of the main risks, see “Risk Factors” in the applicable prospectus.
Lehman Brothers Holdings Inc. has filed a registration statement (including a base prospectus) with the U.S. Securities and Exchange Commission, or SEC, for
this offering. Before you invest, you should read this free writing prospectus together with the relevant pricing supplement and the accompanying base prospec-
tus dated May 30, 2006, as supplemented by the MTN prospectus supplement dated May 30, 2006 relating to our Series I medium-term notes of which the
Opta ETNs are a part. Buyers should rely upon the accompanying base prospectus and MTN prospectus supplement, the pricing supplement, this free writing
prospectus and any other relevant terms supplement for complete details. The pricing supplement, together with the base prospectus and MTN prospectus
supplement, contain the terms of the Notes and supersede all prior or contemporaneous communications concerning the Opta ETNs. To the extent that there
are any inconsistencies among this free writing prospectus, the pricing supplement, the base prospectus and the MTN prospectus supplement, the pricing
supplement shall supersede this free writing prospectus, the base prospectus and the MTN prospectus supplement. We urge you to consult your investment,
legal, tax, accounting and other advisors before you invest in the Opta ETNs. You may get these documents and other documents Lehman Brothers Holdings
Inc. has filed for free by searching the SEC online database (EDGAR®) at www.sec.gov, with “Lehman Brothers Holdings Inc.” as a search term or through the
links below or by calling Lehman Brothers Inc. toll-free at 1-888-603-5847.
Opta ETNs (the “Notes”) are unsecured obligations of Lehman Brothers Holdings Inc. and are not secured debt. The Notes are riskier than ordinary unsecured
debt securities and have no principal protection. Risks of investing in the Securities include limited portfolio diversification, trade price fluctuations, uncertain
principal repayment and illiquidity. Investing in the Securities is not equivalent to direct investment in index or index components. The investor fee will reduce
the amount of your return at maturity or on redemption, and as a result you may receive less than the principal amount of your investment at maturity or upon
redemption of your Notes even if the value of the relevant index has increased. An investment in the Opta ETNs may not be suitable for all investors.
The Notes may be sold throughout the day on the exchange through any brokerage account. There are restrictions on the minimum number of Notes you may
redeem directly with the issuer as specified in the applicable prospectus. Commissions may apply and there are tax consequences in the event of sale, redemp-
tion or maturity of the Notes. Sales in the secondary market may result in significant losses.
Buying and selling Opta ETNs may result in brokerage commissions.
Investments such as Opta ETNs require investors to assess several characteristics and risk factors that may not be present in other types of transactions. In
reaching a determination as to the appropriateness of any proposed transaction, clients should undertake a thorough independent review of the legal, regula-
tory, credit, tax, accounting and economic consequences of such transaction in relation to their particular circumstances. This free writing prospectus contains
market data from various sources other than Lehman Brothers Holdings Inc. and its affiliates, and accordingly make no representation or warranty as to the
market data’s accuracy or completeness. All information is subject to change without notice. Lehman Brothers Inc. and/or its affiliated companies may make a
market or deal as principal in the securities mentioned in this document or in options, futures, or other derivatives based thereon. In addition, Lehman Brothers
Inc., its affiliated companies, shareholders, directors, officers and/or employees, may from time to time have long or short positions in such securities or in op-
tions, futures, or other derivative instruments based thereon. ©2008 Lehman Brothers Inc. All rights reserved. Member SIPC.
IRS Circular 230 Disclosure
Neither Lehman Brothers nor its employees provide tax advice. Any discussion of U.S. tax matters herein (including any attachments) is not intended or written
to be used and cannot be used for the purpose of (i) avoiding U.S. tax related penalties or (ii) promoting, marketing, or recommending to another party any
transaction or matter addressed herein.
Page 4 February 2008
©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 PPE:NYSE ARCA
Opta S&P Listed Private Equity Index Net Return ETN
FACT SHEET Created on February 18, 2008 | Page 1

DETAILS ABOUT PPE The Opta S&P Listed Private Equity Index Net Return ETN is a senior, unsecured debt
Ticker PPE security issued by Lehman Brothers Holdings Inc. The ETN tracks the S &P Listed Private
Intraday Indicative Value Ticker PPE.IV Equity Index Net Return, which is comprised of the stocks of 30 leading private equity
Bloomberg Index Ticker SPLPEQNT companies that meet size, liquidity, exposure and activity requirements. The ETN provides
CUSIP Number 52522L756
investors exposure to the listed equity of private equity companies, with holdings diversified
Inception Date February 20, 2008
Exchange NYSE Arca across regions and industry sectors. ETN returns are based on the performance of the index
Annualized Investor Fee 0.75% (which includes dividends paid on the components, less applicable withholding taxes) and
investor fees. The ETN will be available to investors on the NYSE Arca.

MARKET DATA AS OF N/A

Closing Price N/A
INDEX 5 YEAR PERFORMANCE¹
S&P Listed Private Equity Index Net Return S&P 500 Index Lehman Aggregate Bond Index Return (%)
Net Change N/A
125
Percent Change N/A
Average Volume N/A
Market Capitalization 100
N/A

75
ISSUER REDEMPTION
Frequency Daily 50
Redemption Value Closing IIV*
Minimum Redemption Size 50,000 notes 25
*Closing IIV on Valuation Date

ISSUER DETAILS
Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan
Issuer Name Lehman Brothers Holdings Inc. 2003 2004 2005 2006 2007
S&P Rating A+
Moody's Rating A1
Fitch Rating AA- ANNUALIZED RETURNS Annualized Returns Correlation
Standard to
The Intraday Indicative Value at closing for any 1 Year 3 Year 5 Year Deviation³ SPLPEQNT³
trading day (IIV) is meant to approximate the intrinsic S&P Listed Private Equity Index Net Return -23.56% 6.88% 6.88% 20.45% 100.00%
economic value of an Opta ETN, and is the price at (SPLPEQNT)
which the Issuer stands ready to repurchase the ETNs S&P 500 Index Total Return -5.56% 5.68% 12.12% 11.44% 76.40%
on a daily basis (subject to a minimum size
Lehman Brothers U.S. Aggregate Index Total Return 7.03% 4.53% 4.51% 3.53% -1.03%
requirement of 50,000 notes. Please see the relevant
prospectus for details.) The ETN IIV is calculated as ¹Source: Reuters Datascope Equities and Lehman Brothers Inc.
follows: ²All indices reflect Total Return, including reinvested dividends when applicable, except where otherwise stated in the index name.
³Based on total monthly returns annualized over a 5 year period.
Intraday Indicative Value = Principal Amount per ETN
* (Current Index Level/ Initial Index Level) * Fee Factor
Where:
Principal Amount per ETN = $50
Fee Factor = (1 – Annualized Fee) ^ (Number of Days
since Inception/365)
The Opta ETNs are not rated, but rely on the credit
rating of their Issuer, Lehman Brothers Holdings Inc.
These credit ratings reflect the creditworthiness of
Lehman Brothers Holdings Inc. and are not
recommendations to buy, sell or hold securities, and
may be subject to revision or withdrawal at any time An investment in an Opta ETN entails certain risks not associated with an investment in conventional debt securities. See “Risk Factors” in the
by the assigning rating organization. Each rating Series I MTN prospectus supplement and the applicable ETN prospectus. In addition, the notes are subject to the further specific risks discussed
should be evaluated independently of any other in the applicable ETN prospectus.
rating. The creditworthiness of the issuer does not Performance data quoted represents past performance, which is no guarantee of future results. The investment return and principal value of an
affect or enhance the likely performance of the investment will fluctuate so that the ETNs, when redeemed, or sold, or at maturity, may be worth more or less than their original cost. In addition
investment other than the ability of the Issuer to meet to the annual fees, current performance may be lower or higher than the performance data quoted.
its obligations. An investor should consider an ETN’s investment objectives, risks, fees and expenses carefully before investing. You may get this information
and other documents Lehman Brothers Holdings Inc. has filed for free by searching the SEC online database (EDGAR®) at www.sec.gov, with
“Lehman Brothers Holdings Inc.” as a search term or through the links below or by calling Lehman Brothers Inc. toll-free at 1-888-603-5847.
Please read it carefully before making an investment.

Please see important information on page 2. ©2008 Lehman Brothers Inc. All rights reserved. Member SIPC.
 PPE:NYSE ARCA
Opta S&P Listed Private Equity Index Net Return ETN
FACT SHEET Created on February 18, 2008 | Page 2

The S&P Listed Private Equity Index Net Return is a global private equity index. The return of the index reflects the returns of the underlying
company stock prices, plus dividends net of applicable withholding taxes. The index is passively managed; this means that index
constituents are selected and weighted based on pre-determined rules.

The index is designed to provide tradable exposure to the equity of leading publicly traded private equity companies. Index constituents are
selected using both qualitative and quantitative criteria (size, liquidity, exposure and activity requirements). The index is then constructed
using a liquidity-driven weighting scheme in an attempt to achieve liquidity in a section of the market that may have few highly liquid
securities. The index is rebalanced semi-annually.

INDEX TOP HOLDINGS INDEX ALLOCATION

Holding Allocation
American Capital Strategies Ltd 9% United States 46%
3I Group 7% United Kingdom 17%
Wendel Investissement 7% France 11%
The Blackstone Group 6% Japan 9%
SVB Financial Group 6% Canada 4%
Intermediate Capital Group 4% Germany 4%
Allied Capital Corp. 4% Switzerland 3%
Trans Cosmos Inc 4% Sweden 3%
ONEX CORPORATION SV 4% Belgium 1%
Eurazeo 4% Australia 1%
Italy 1%
Both Index Holdings and Sector Allocations are updated daily, and refer to the latest index rebalance.
Source: S&P Global Thematic / S&P Listed Private Equity Indices
Index holdings and sector allocations are subject to change in accordance with S&P Listed Private Equity Index’s published index weighting rules, and are rounded to the nearest whole
number.

Important Information
Lehman Brothers Holdings Inc. has filed a registration statement (including a base prospectus) with the U.S. Securities and Exchange Commission, or SEC,
for this offering. Before you invest, you should read this free writing prospectus together with the pricing supplement dated February 14, 2008 and the
accompanying base prospectus dated May 30, 2006, as supplemented by the MTN prospectus supplement dated May 30, 2006 relating to our Series I
medium-term notes of which the Opta ETNs are a part. Buyers should rely upon the accompanying base prospectus and MTN prospectus supplement, the
pricing supplement, this free writing prospectus and any other relevant terms supplement for complete details. The pricing supplement, together with the
base prospectus and MTN prospectus supplement, contain the terms of the Notes and supersede all prior or contemporaneous communications concerning
the Opta ETNs. To the extent that there are any inconsistencies among this free writing prospectus, the pricing supplement, the base prospectus and the
MTN prospectus supplement, the pricing supplement shall supersede this free writing prospectus, the base prospectus and the MTN prospectus supplement.
We urge you to consult your investment, legal, tax, accounting and other advisors before you invest in the Opta ETNs. You may get these documents and
other documents Lehman Brothers Holdings Inc. has filed for free by searching the SEC online database (EDGAR®) at www.sec.gov, with “Lehman Brothers
Holdings Inc.” as a search term or through the links below or by calling Lehman Brothers Inc. toll-free at 1-888-603-5847.

Not FDIC Insured
No Bank Guarantee
May Lose Value

©2008 Lehman Brothers Inc. All rights reserved. Member SIPC.

 Access. Convenience. Simplicity.
Exchange Traded Notes from Lehman Brothers

Private Equity: the what, why and how

What is Private Equity?
Private equity firms are in the business of investing in assets that are usually unlisted and illiquid. The “private” in private equity
refers to the fact that these firms commonly invest in unlisted companies, which typically cannot be accessed directly through
the public stock markets. Also, such unlisted companies are not subject to the reporting requirements of the Securities and
Exchange Commission (SEC). Private equity firms usually are unregistered funds or portfolios of funds, which may provide
medium-to-long-term funding to non-publicly-traded companies in return for an equity stake. These firms may generate profits
when they sell their stake in private companies at a higher price than they originally paid, sometimes by taking the company
public or selling to another investor.
Private equity managers often exercise control over the companies in which they invest (either through board membership and/
or management positions), and may implement transformational, active investment strategies in order to try to create more
value in the business. Private equity investments can usually be divided into two separate categories: venture capital investing
and buyout investing, each representing different spectrums of the life cycle of a company. Venture capital funds invest in com-
panies that are in the early stages of development while buyout funds focus more on mature businesses.
While private equity firms generally invest in non-public companies, the private equity firms themselves may be listed on an
exchange. These firms may raise capital in the public markets in one of two ways. The first technique involves offering investors
stock that represents an equity share in the management company – this entitles investors to a share of the profit of the firm,
including management fees and carried interest. The second approach is offering investors shares directly in a private equity
fund itself, which is then invested by the management company.

Why – Private Equity as an asset class

Benefits of Investing in Private Equity Figure 1. Index Performance
250
Long-term historical out-performance – Although past price performance is not neces- 250

sarily indicative of future performance, private equity returns have, in recent times,
200
generated higher average returns than traditional investments like stocks and bonds. Fig- 200

ure 1 at right compares performance of the S&P Listed Private Equity Index Net Return
150
(which reflects the returns of listed private equity company stock) with the performance 150

of the S&P 500 TR Index and the Lehman Brothers US Aggregate Bond TR Index.
1/04 1/05 1/06 1/07
1/04 1/05 1/06
S&P Listed Private Equity Index Net Return1/07
S&P Listed Private Equity Index Net Return
S&P 500 Index TR
Control of business – As most private equity managers take some form of control over S&P 500 Index TR
Lehman Brothers US Aggregate Bond Index TR
the companies they are buying, the ability of such managers to proactively influence Lehman Brothers US Aggregate Bond Index TR
Source Bloomberg; data from November 2003 to December 2007.
business strategy and operations in the absence of public market scrutiny may enhance
performance of the company. Figure 2. Correlation between S&P Listed
Private Equity Index and Selected Indices

Diversification – The inclusion of private equity investments may enhance the diversi-
fication of a portfolio. Figure 2 at right shows the correlation between the returns of the
S&P Listed Private Equity Index Net Return (which reflects the returns of listed private
equity company stock) and the returns of the S&P 500 TR Index and the Lehman Broth- 71.87%
71.87%
13.21%
13.21%
ers US Aggregate Bond TR Index. Since the private equity index represents the equity S&P 500 TR Index LB US Aggregate Bond TR Index
S&P 500 TR Index LB US Aggregate Bond TR Index
shares of listed private equity companies, it has historically shown a higher correlation Source Bloomberg, Lehman Analysis; data from November 2003 to
December 2007.
with the S&P 500 Index. It has a low positive correlation with the fixed income index. The historical correlations of private equity returns relative to other
major asset classes shown above may not be indicative of future
Therefore, adding private equity investments to a portfolio that consists primarily of fixed correlations. The information furnished herein is provided as a
matter of information only, and you should not regard the informa-
income investments may be particularly effective in enhancing diversification. tion as indicative of the future performance of private equity relative
to other major asset classes. Future correlations may be greater or
lesser than those experienced in the past.

Page 1 February 2008

©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 Access. Convenience. Simplicity.
Exchange Traded Notes from Lehman Brothers

Select Risks and Considerations

Duration of investments – The realization of returns on direct Tax treatment – There may be legislative action that would affect
private equity investments may require a long-term investment the taxability of private equity investments. Investors should
horizon, which can make it difficult for short-term investors to consult their tax advisor.
achieve satisfactory returns.
When investing directly in a specific fund (which typically has a Assessment of manager quality – As a result of the active in-
finite time-horizon), an investor makes a commitment to ride out vestment style and the confidentiality of much of the investment
the whole investment cycle for such fund – with capital outflows information involved, assessing the relative merits of different
concentrated in the beginning, and distributions toward the latter private equity fund managers is comparably more complex than
half. An investor in the stock of a listed private equity company, on benchmarking quoted fund managers.
the other hand, may gain exposure to a portfolio of funds, which
are invested in assets at different points of the investment cycle.

Illiquidity – The assets of private equity funds are typically less

liquid than traditional public equity investments, and therefore an
investor who invests directly into the fund has very limited or no
ability to withdraw the investment during the fund’s life. Investing
in the stock of listed private equity companies may provide a more
liquid means of getting exposure to the asset class.

How- investing in Private Equity

Direct Investment – Private equity funds are set up by managers, Listed Private Equity – An increasingly large number of private
or General Partners (GPs), and these funds collect capital to make equity firms have begun to tap into public markets as a source
private equity investments. Investors in these funds, or Limited of capital to invest in new opportunities. In doing so, private
Partners (LPs), receive a percentage of the return of the investment equity firms also acknowledge investor requirements for liquidity
while paying annual management and performance fees. and transparency. The stocks of listed private equity firms trade
Investors can invest directly into private equity funds and become on stock exchanges, like common stock, and are subject to local
Limited Partners of the fund. Typically, however, there is a high reporting requirements.
minimum investment requirement, and the number of investors
taken on board is very limited.

Page 2 February 2008

©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 Access. Convenience. Simplicity.
Exchange Traded Notes from Lehman Brothers

Following are some of the important differences between a listed private equity investment and a direct investment in a private
equity fund:

direct investment in private equity fund investment in listed private equity stock
NATURE OF INVESTMENT Any returns reflect investments in the cur- The price of listed private equity company
rent fund only. Direct private equity invest- stock reflects expectations of the value and
ments are long - term in nature. The investor performance of the management company,
chooses to commit capital to a particular including, to some extent, its current funds
fund of a private equity firm, and then holds and all future funds. Therefore, investments
the investment for a fairly long time before in the stock of listed private equity compa-
receiving any distributions. The profit on nies are influenced, in part, by the same fac-
investment is driven by the management tors as direct private equity investments. In
and finance strategies employed to add addition, they are subject to market forces to
value during the life of the investment, plus a greater degree than a direct private equity
economic conditions prevailing investment. This is because all listed equity
throughout the period. is affected to some extent by the general
direction and volatility of the stock markets.
LIQUIDITY Private Equity funds have specific invest- Listed shares can be traded intraday on
ment (ramp-up) and withdrawal (draw- public exchanges. Liquidity depends on the
down) periods. Investors are paid back secondary market.
through distributions made as funds realize
profits on investments. There is no estab-
lished secondary market for unlisted
private equity and it may be difficult to
liquidate positions prior to the draw-
down period.
ACCESS Unlisted private equity funds usually Listed private equity stock allows investors to
require large minimum investments, gain exposure to private equity companies
and only qualified or select investors with lower capital requirements and few
are eligible to invest. restrictions. Investing in private equity com-
pany shares reduces the minimum invest-
ment unit to the price of a single share, and
hence enhances accessibility.
PRICE TRANSPARENCY Unlisted private equity funds are typically Listed private equity stock is priced intraday
priced quarterly or semi-annually, and as the market assigns a best-estimate equity
frequently the price is based on the value to the company, which is reflected by
purchase price of the constituents of the its market capitalization.
fund, unless further transactions cause it
to be revalued.
INVESTOR INFLUENCE Direct private equity investors have the Shareholders of a listed private equity
status of Limited Partners (LPs) of the fund company may hold non-voting shares,
and may be able to exert greater influence and may have less influence on investment
over investment policy than investors in policy. In addition, even though a particular
listed private equity stock. For example, shareholder may exit by selling shares, from
LPs must re-evaluate the private equity the company’s perspective, the capital
firm at the close of each fund to consider commitment was complete upon the
re-investing in new funds, and dissatisfaction public offering.
among LPs may make it more difficult for
the GP to raise capital for new funds

Page 3 February 2008

©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 Access. Convenience. Simplicity.
Exchange Traded Notes from Lehman Brothers

An investment in Opta ETNs involves risks, including possible loss of principal. For a description of the main risks, see “Risk Factors” in the applicable prospectus.
Lehman Brothers Holdings Inc. has filed a registration statement (including a base prospectus) with the U.S. Securities and Exchange Commission, or SEC, for
this offering. Before you invest, you should read this free writing prospectus together with the relevant pricing supplement and the accompanying base prospec-
tus dated May 30, 2006, as supplemented by the MTN prospectus supplement dated May 30, 2006 relating to our Series I medium-term notes of which the
Opta ETNs are a part. Buyers should rely upon the accompanying base prospectus and MTN prospectus supplement, the pricing supplement, this free writing
prospectus and any other relevant terms supplement for complete details. The pricing supplement, together with the base prospectus and MTN prospectus
supplement, contain the terms of the Notes and supersede all prior or contemporaneous communications concerning the Opta ETNs. To the extent that there
are any inconsistencies among this free writing prospectus, the pricing supplement, the base prospectus and the MTN prospectus supplement, the pricing
supplement shall supersede this free writing prospectus, the base prospectus and the MTN prospectus supplement. We urge you to consult your investment,
legal, tax, accounting and other advisors before you invest in the Opta ETNs. You may get these documents and other documents Lehman Brothers Holdings
Inc. has filed for free by searching the SEC online database (EDGAR®) at www.sec.gov, with “Lehman Brothers Holdings Inc.” as a search term or through the
links below or by calling Lehman Brothers Inc. toll-free at 1-888-603-5847.
Opta ETNs (the “Notes”) are unsecured obligations of Lehman Brothers Holdings Inc. and are not secured debt. The Notes are riskier than ordinary unsecured
debt securities and have no principal protection. Risks of investing in the Securities include limited portfolio diversification, trade price fluctuations, uncertain
principal repayment and illiquidity. Investing in the Securities is not equivalent to direct investment in index or index components. The investor fee will reduce
the amount of your return at maturity or on redemption, and as a result you may receive less than the principal amount of your investment at maturity or upon
redemption of your Notes even if the value of the relevant index has increased. An investment in the Opta ETNs may not be suitable for all investors.
The Notes may be sold throughout the day on the exchange through any brokerage account. There are restrictions on the minimum number of Notes you may
redeem directly with the issuer as specified in the applicable prospectus. Commissions may apply and there are tax consequences in the event of sale, redemp-
tion or maturity of the Notes. Sales in the secondary market may result in significant losses.
Buying and selling Opta ETNs may result in brokerage commissions.
Investments such as Opta ETNs require investors to assess several characteristics and risk factors that may not be present in other types of transactions. In
reaching a determination as to the appropriateness of any proposed transaction, clients should undertake a thorough independent review of the legal, regula-
tory, credit, tax, accounting and economic consequences of such transaction in relation to their particular circumstances. This free writing prospectus contains
market data from various sources other than Lehman Brothers Holdings Inc. and its affiliates, and accordingly make no representation or warranty as to the
market data’s accuracy or completeness. All information is subject to change without notice. Lehman Brothers Inc. and/or its affiliated companies may make a
market or deal as principal in the securities mentioned in this document or in options, futures, or other derivatives based thereon. In addition, Lehman Brothers
Inc., its affiliated companies, shareholders, directors, officers and/or employees, may from time to time have long or short positions in such securities or in op-
tions, futures, or other derivative instruments based thereon. ©2008 Lehman Brothers Inc. All rights reserved. Member SIPC.
IRS Circular 230 Disclosure
Neither Lehman Brothers nor its employees provide tax advice. Any discussion of U.S. tax matters herein (including any attachments) is not intended or written
to be used and cannot be used for the purpose of (i) avoiding U.S. tax related penalties or (ii) promoting, marketing, or recommending to another party any
transaction or matter addressed herein.
Page 4 February 2008
©2008 Lehman Brothers, Inc. Member NYSE/FINRA/SIPC. All rights reserved.
 RAW:AMEX
Opta Lehman Brothers Commodity Index Pure Beta Total Return ETN
FACT SHEET Created on February 18, 2008 | Page 1

DETAILS ABOUT RAW The Opta Lehman Brothers Commodity Index Pure Beta Total Return ETN is a senior,
Ticker RAW unsecured debt security issued by Lehman Brothers Holdings Inc. The ETN tracks the
Intraday Indicative Value Ticker RAW.IV Lehman Brothers Commodity Index Pure Beta Total Return, which covers energy, metals,
Bloomberg Index Ticker LBPBTR agriculture, and livestock - the four main segments of the raw materials market. The index is
CUSIP Number 52522L731
designed to provide broad exposure to the commodities asset class, while potentially
Inception Date February 20, 2008
Exchange AMEX generating superior returns as compared to first-generation commodity indices. ETN returns
Annualized Investor Fee 0.85% are based on the performance of the index, less investor fees. The ETN will be available to
investors on the American Stock Exchange (AMEX).

MARKET DATA AS OF N/A

Closing Price N/A
INDEX 5 YEAR PERFORMANCE¹
Lehman Brothers Commodity Index Pure Beta Total Return S&P 500 Index Lehman Aggregate Bond Index Return (%)
Net Change N/A
250
Percent Change N/A
Average Volume N/A
Market Capitalization 200
N/A

150
ISSUER REDEMPTION
Frequency Daily 100
Redemption Value Closing IIV*
Minimum Redemption Size 50,000 notes 50
*Closing IIV on Valuation Date

ISSUER DETAILS
Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan Apr Jul Oct Jan
Issuer Name Lehman Brothers Holdings Inc. 2003 2004 2005 2006 2007
S&P Rating A+
Moody's Rating A1
Fitch Rating AA- ANNUALIZED RETURNS
Annualized Returns Standard Correlation
The Intraday Indicative Value at closing for any 1 Year 3 Year 5 Year Deviation³ to LBPBTR³
trading day (IIV) is meant to approximate the intrinsic Lehman Brothers Commodity Index Pure Beta 43.35% 23.58% 26.55% 18.39% 100.00%
economic value of an Opta ETN, and is the price at Total Return (LBPBTR)
which the Issuer stands ready to repurchase the ETNs Dow Jones-AIG Commodity Index Total Return 24.83% 15.37% 14.01% 14.18% 88.98%
on a daily basis (subject to a minimum size
S&P 500 Index Total Return -5.56% 5.68% 12.12% 11.44% -2.85%
requirement of 50,000 notes. Please see the relevant
prospectus for details.) The ETN IIV is calculated as
Lehman Brothers U.S. Aggregate Index Total Return 7.03% 4.53% 4.51% 3.53% -6.65%
follows: ¹Source: Reuters Datascope Equities and Lehman Brothers Inc.
²All indices reflect Total Return, including reinvested dividends when applicable, except where otherwise stated in the index name.
Intraday Indicative Value = Principal Amount per ETN ³Based on total monthly returns annualized over a 5 year period.
* (Current Index Level/ Initial Index Level) * Fee Factor
Where:
As the Lehman Brothers Commodity Index Pure Beta Total Return was launched on October 10, 2007, the Index has little trading history, and
Principal Amount per ETN = $50 limited actual historical information on the performance of the level of the Index is available. Historical performance information for the Lehman
Fee Factor = (1 – Annualized Fee) ^ (Number of Days Brothers Commodity Index Pure Beta Total Return is based on (a) hypothetical daily historical levels for the Index from January 31, 2001, to
since Inception/365) October 10, 2007, calculated based on a level for the Index that was set to 100 on June 30, 2006 (to correspond to the initial levels of the
The Opta ETNs are not rated, but rely on the credit general LBCI, which was set to 100 as of that date), and using the same objective criteria as will be used by the Index going forward, as well as
rating of their Issuer, Lehman Brothers Holdings Inc. actual observable data for the relevant Index Contracts, and (b) actual daily historical levels for the Index from October 10, 2007 to December
These credit ratings reflect the creditworthiness of 31, 2007. Neither the hypothetical nor actual historical levels of the Index are indicative of the future performance of the Index, the Final Index
Lehman Brothers Holdings Inc. and are not Value, or what the value of the notes may be. Fluctuations in the hypothetical or actual historical levels of the Index may be greater or less than
recommendations to buy, sell or hold securities, and fluctuations experienced by the holders of the notes.
may be subject to revision or withdrawal at any time An investment in an Opta ETN entails certain risks not associated with an investment in conventional debt securities. See “Risk Factors” in the
by the assigning rating organization. Each rating Series I MTN prospectus supplement and the applicable ETN prospectus. In addition, the notes are subject to the further specific risks discussed
should be evaluated independently of any other in the applicable ETN prospectus.
rating. The creditworthiness of the issuer does not Performance data quoted represents past performance, which is no guarantee of future results. The investment return and principal value of an
affect or enhance the likely performance of the investment will fluctuate so that the ETNs, when redeemed, or sold, or at maturity, may be worth more or less than their original cost. In addition
investment other than the ability of the Issuer to meet to the annual fees, current performance may be lower or higher than the performance data quoted.
its obligations. An investor should consider an ETN’s investment objectives, risks, fees and expenses carefully before investing. You may get this information
and other documents Lehman Brothers Holdings Inc. has filed for free by searching the SEC online database (EDGAR®) at www.sec.gov, with
“Lehman Brothers Holdings Inc.” as a search term or through the links below or by calling Lehman Brothers Inc. toll-free at 1-888-603-5847.
Please read it carefully before making an investment.

Please see important information on page 2. ©2008 Lehman Brothers Inc. All rights reserved. Member SIPC.
 RAW:AMEX
Opta Lehman Brothers Commodity Index Pure Beta Total Return ETN
FACT SHEET Created on February 18, 2008 | Page 2

The Lehman Brothers Commodity Index Pure Beta Total Return is a diversified commodities index designed to track commodity "spot"
returns. This second generation index may generate greater returns than first-generation commodity indices. The return of the index reflects
the returns of the underlying commodities futures contracts (plus the return on invested cash).

The Lehman Brothers Commodity Index Pure Beta Total Return uses liquidity and open interest to select index constituents. This is because
the most actively-traded futures contracts may best convey recent production patterns and expectations of future production levels,
commodity consumption, and potential storage concerns. The index is passively managed; this means that index constituents are selected
and weighted based on pre-determined rules. Unlike the majority of first-generation commodity indices, the Lehman Brothers Commodity
Index Pure Beta Total Return attempts to select futures contracts that best reflect underlying commodity returns.

INDEX TOP HOLDINGS INDEX ALLOCATION

Holding Allocation
Crude Oil 37% Energy 61%
Copper 11% Metals 27%
Natural Gas 10% Agriculture 8%
Heating Oil 7% Livestock 4%
Gasoline 7%
Aluminum 6%
Gold 5%
Soybeans 3%
Nickel 2%
Lean Hogs 2%
Both Index Holdings and Sector Allocations are updated daily, and refer to the latest index rebalance.
Source: Lehman Brothers Inc.
Index holdings and sector allocations are subject to change in accordance with Lehman Brothers Commodity Index Pure Beta’s published index weighting rules, and are rounded to the
nearest whole number.

Important Information
Lehman Brothers Holdings Inc. has filed a registration statement (including a base prospectus) with the U.S. Securities and Exchange Commission, or SEC,
for this offering. Before you invest, you should read this free writing prospectus together with the pricing supplement dated February 14, 2008 and the
accompanying base prospectus dated May 30, 2006, as supplemented by the MTN prospectus supplement dated May 30, 2006 relating to our Series I
medium-term notes of which the Opta ETNs are a part. Buyers should rely upon the accompanying base prospectus and MTN prospectus supplement, the
pricing supplement, this free writing prospectus and any other relevant terms supplement for complete details. The pricing supplement, together with the
base prospectus and MTN prospectus supplement, contain the terms of the Notes and supersede all prior or contemporaneous communications concerning
the Opta ETNs. To the extent that there are any inconsistencies among this free writing prospectus, the pricing supplement, the base prospectus and the
MTN prospectus supplement, the pricing supplement shall supersede this free writing prospectus, the base prospectus and the MTN prospectus supplement.
We urge you to consult your investment, legal, tax, accounting and other advisors before you invest in the Opta ETNs. You may get these documents and
other documents Lehman Brothers Holdings Inc. has filed for free by searching the SEC online database (EDGAR®) at www.sec.gov, with “Lehman Brothers
Holdings Inc.” as a search term or through the links below or by calling Lehman Brothers Inc. toll-free at 1-888-603-5847.

Not FDIC Insured
No Bank Guarantee
May Lose Value

©2008 Lehman Brothers Inc. All rights reserved. Member SIPC.