BASE PROSPECTUS SUPPLEMENT NO.

LEHMAN BROTHERS HOLDINGS INC.

(incorporated in the State of Delaware)

LEHMAN BROTHERS TREASURY CO. B.V.

(incorporated with limited liability in The Netherlands and
having its statutory domicile in Amsterdam)

LEHMAN BROTHERS BANKHAUS AG

(incorporated in The Federal Republic of Germany)

U.S.$60,000,000,000
Euro Medium-Term Note Program
Unconditionally and irrevocably guaranteed as to the Notes to be issued by each of
Lehman Brothers Treasury Co. B.V. and Lehman Brothers Bankhaus AG by
LEHMAN BROTHERS HOLDINGS INC.

Range Accrual Notes

This Base Prospectus Supplement (this "Supplement") constitutes a supplement to and must be read in
conjunction with the Base Prospectus dated August 9, 2006, the Supplemental Prospectus No.1 dated 29
August 2006, the Supplemental Prospectus No.2 dated 6 September 2006, the Supplemental Prospectus
No.3 dated 26 September 2006, the Supplemental Prospectus No.4 dated 16 October 2006 and the
supplemental Prospectus No.5 dated 19 December 2006 which together constitute a base prospectus (the
"Base Prospectus"), prepared by Lehman Brothers Holdings Inc. ("LBHI"), Lehman Brothers Treasury
Co. B.V. ("LBTBV") and Lehman Brothers Bankhaus AG ("LBB") with respect to the
U.S.$60,000,000,000 Euro Medium-Term Note Program (the "Program"). Terms defined in the Base
Prospectus have the same meaning when used in this Supplement. To the extent of any inconsistency
between the terms defined in the Base Prospectus and this Supplement, the terms of this Supplement will
prevail.

Application has been made to the Irish Financial Services Regulatory Authority (the "IFSRA"), which is
the competent authority for the purpose of Directive 2003/71/EC (the "Prospectus Directive") for approval
of this Supplement as a prospectus supplement issued in compliance with the Prospectus Directive as
implemented in Ireland by the Prospectus (Directive 2003/71/EC) Regulations 2005 (the "Prospectus
Regulations"). Application has also been made to the IFSRA to provide the competent authorities in each
of Austria, Belgium, France, Germany, Italy, Luxembourg, The Netherlands, Portugal, Spain, Slovakia, the
Czech Republic, Poland, Sweden, and the United Kingdom with a certificate of approval under Article 18
of the Prospectus Directive as implemented in Ireland. Application will also be made to the IFSRA to
provide the competent authorities in each of Greece, Hungary, Denmark, Norway and Finland with a
certificate of approval under Article 18 of the Prospectus Directive as implemented in Ireland.

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Notes issued pursuant to the Base Prospectus may include Notes in respect of which, any interest payable
for one or more Interest Periods and/or any amount payable on redemption of the Notes (as specified in the
applicable Final Terms) is determined by reference to the number of days during a specified period (an
“Observation Period”) that a predetermined event or events (a "Fixing Event") occurs or does not occur
(as specified in the applicable Final Terms) as a proportion of the total number of days (each an
"Observation Day") within such Observation Period (such portion, the “Index Ratio”).

The purpose of this Supplement is to provide additional provisions in respect of Range Accrual Notes.
Save as disclosed in this Supplement, no other significant new factor, material mistake or inaccuracy
relating to information included in the Base Prospectus has arisen or been noted since the publication of the
Base Prospectus.

Copies of this Supplement in physical and/or electronic form may be inspected during normal business
hours on any weekday (excluding Saturdays) at the principal place of business and registered office of
LBHI (in its capacity as Issuer and as Guarantor), at the registered office of LBTCBV, at the registered
office of LBB, at the offices of the Fiscal Agent in London, at the office of the Irish Paying Agent in
Dublin and at the office of the listing agent in Singapore referred to in the Base Prospectus.

Each of LBHI, LBTBV and LBB accepts responsibility for the information contained in this Supplement
and declares that, having taken all reasonable care to ensure that such is the case, the information contained
in this Supplement is, to the best of its knowledge, in accordance with the facts and contains no omission
likely to affect its import.

LEHMAN BROTHERS
6 February 2007

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 CONTENTS
PAGE
ADDITION TO SUMMARY IN RELATION TO RANGE ACCRUAL NOTES............................................. 4
ADDITIONAL RISK FACTORS IN RELATION TO RANGE ACCRUAL NOTES ....................................... 6
ADDITIONAL DESCRIPTION OF RANGE ACCURAL NOTES ............................................................. 7

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 Addition to Summary in relation to Range Accrual Notes

In relation to Range Accrual Notes, the Summary contained in the Base Prospectus is supplemented as
follows.

Range Accrual Notes: Notes issued pursuant to the Base Prospectus may
include Notes in respect of which, any interest
payable for one or more Interest Periods and/or any
amount payable on redemption of the Notes (as
specified in the applicable Final Terms) is determined
by reference to the number of days during a specified
period (an “Observation Period”) that a
predetermined event or events (each a "Fixing
Event") occurs or does not occur (as specified in the
applicable Final Terms) as a proportion of the total
number of days (each an "Observation Day") within
such Observation Period (such portion, the “Index
Ratio”).

The Fixing Event may be, but is not limited to, the
value or other function of, one or more indices,
formulae, currency exchange rates, rates,
commodities, debt securities, equities or other
variable or a combination thereof (the “Observable
Rate”), exceeding and/or equalling and/or being
lower than and/or equalling one or more
predetermined criteria (the “Strike” or “Strikes”), as
specified in the applicable Final Terms. The Strike
may also be defined with reference to the value or
other function of, one or more indices, formulae,
currency exchange rates, rates, commodities, debt
securities, equities or other variable or a combination
thereof.

The Fixing Event may be observed on each

Observation Date at a specified time or may be
continually observed during the Observation Period
or may be observed on such other date or time as
specified in the applicable Final Terms.

The total number of days during the Observation

Period in which the Fixing Event is observed may
vary.
Risk Factors: Range Accrual Notes may have an interest amount
and/or redemption amount determined by reference to
an Index Ratio. Furthermore, such amounts may be

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determined by multiplying the Index Ratio by one or
more indices, formulae, currency exchange rates,
rates, commodities, debt securities, equities or other
variable, option or combination thereof (each an
“Underlying Coupon”). Consequently, the Index
Ratio for Range Accrual Note may be determined by
reference to factors different to those used to
determine the Underlying Coupon for such Notes and
may therefore fluctuate independently of such rate.
This may result in the market value of the Notes
falling even when the Underlying Coupon is rising.
If, during the relevant Observation Period, the
outcome of the Fixing Event or Events which occur is
such that the Index Ratio is very low or, as the case
may be, zero, the rate of interest payable on the Notes
or the redemption amount may be very low, or, as the
case may be, zero (save for any minimum amount
specified in the applicable Final Terms). This will
have a detrimental effect on the market value of the
Notes.

Where the Observation Days for the Fixing Event fall

in a different chronological period from the Interest
Period or any other specified period of days during
the term of the Notes, the indices, formulae, currency
exchange rates, rates, commodities, debt securities,
equities or other variable or combination thereof
which were used to determine the Index Ratio may be
different from those which prevail at the time at
which the relevant amount is being paid. This may
have a detrimental effect on the market value of the
Notes.

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 Additional Risk Factors in relation to Range Accrual Notes

In relation to Range Accrual Notes, the section Risks Relating to the Notes in the Risk Factors set out in the
Base Prospectus is supplemented by the following:

Range Accrual Notes

Range Accrual Notes may have an interest amount and/or redemption amount determined by reference to
an Index Ratio. Furthermore, such amounts may be determined by multiplying the Index Ratio by one or
more indices, formulae, currency exchange rates, rates, commodities, debt securities, equities or other
variable, option or combination thereof (each an “Underlying Coupon”). Consequently, the Index Ratio
for Range Accrual Note may be determined by reference to factors different to those used to determine the
Underlying Coupon for such Notes and may therefore fluctuate independently of such rate. This may result
in the market value of the Notes falling even when the Underlying Coupon is rising. If, during the relevant
Observation Period, the outcome of the Fixing Event or Events which occur is such that the Index Ratio is
very low or, as the case may be, zero, the rate of interest payable on the Notes or the redemption amount
may be very low, or, as the case may be, zero (save for any minimum amount specified in the applicable
Final Terms). This will have a detrimental effect on the market value of the Notes.

Where the Observation Days for the Fixing Event fall in a different chronological period from the Interest
Period or any other specified period of days during the term of the Notes, the indices, formulae, currency
exchange rates, rates, commodities, debt securities, equities or other variable or combination thereof which
were used to determine the Index Ratio may be different from those which prevail at the time at which the
relevant amount is being paid. This may have a detrimental effect on the market value of the Notes.

For example, the rate of interest for each Interest Period for a Range Accrual Note may be calculated by
multiplying the Underlying Coupon by the Index Ratio for an Observation Period which is determined by
reference to the first Interest Period only under the Notes. If the Index Ratio determined by the Calculation
Agent is contingent upon the number of days in the Observation Period on which USD LIBOR with a
designated maturity of 6 months ("6m USD LIBOR") falls within a range of values set out in the relevant
Final Terms and during that Observation Period the number of days in which 6m USD LIBOR is within
such range is low (for example, 5 days in an Observation Period of 180 days, giving an Index Ratio equal
to 5/180), then the rate of interest payable for that Interest Period and each subsequent Interest Period in
relation to such Note would be calculated by reference to this Index Ratio and any change in 6m USD
LIBOR subsequent to the end of the first Interest Period will not affect the Index Ratio in subsequent
Interest Periods. In such circumstances, the rate of interest payable in respect of all Interest Periods and the
market value of the Notes will be detrimentally affected in a material and significant way.

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 Additional Description of Range Accrual Notes

Notes issued pursuant to the Base Prospectus may include Notes in respect of which, any interest payable
for one or more Interest Periods and/or any amount payable on redemption of the Notes (as specified in the
applicable Final Terms) is determined by reference to the number of days during a specified period (an
“Observation Period”) that a predetermined event or events (each a "Fixing Event") occurs or does not
occur (as specified in the applicable Final Terms) as a proportion of the total number of days (each an
"Observation Day") within such Observation Period (such portion, the “Index Ratio”). Amounts payable
under Range Accrual Notes may also be determined by multiplying the Index Ratio by one or more indices,
formulae, currency exchange rates, rates, commodities, debt securities, equities or other variable, option or
combination thereof (each an “Underlying Coupon”).

The calculation of the numerator component of the Index Ratio may be determined by reference to:

1. the number of days during an Observation Period that a Fixing Event occurs;

2. the number of days during an Observation Period before a Fixing Event occurs;

3. the number of days during an Observation Period before a Fixing Event does not occur;

4. the number of days during an Observation Period that no Fixing Event occurs;

5. the number of days during an Observation Period before a Fixing Event occurs for a specified
number of times; or

6. a multiple of the number of days during an Observation Period that a Fixing Event occurs minus a
multiple of the number of days that the Fixing Event does not occur in that Observation Period.

The above sets out just some of the methodologies that may be used to determine the numerator component
of the Index Ratio. It is not intended to be an exhaustive list and other calculation methodologies may be
used to determine such ratio as set out in the applicable Final Terms.

The Fixing Event may be, but is not limited to, the value or other function of, one or more indices,
formulae, currency exchange rates, rates, commodities, debt securities, equities or other variable or a
combination thereof (the “Observable Rate”), exceeding and/or equalling and/or being lower than and/or
equalling one or more predetermined criteria (the “Strike” or “Strikes”), as specified in the applicable
Final Terms. The Strike may also be defined with reference to the value or other function of, one or more
indices, formulae, currency exchange rates, rates, commodities, debt securities, equities or other variable or
a combination thereof.

The Fixing Event may be observed on each Observation Date at a specified time or may be continually
observed during the Observation Period or may be observed on such other date or time as specified in the
applicable Final Terms.

The total number of days during the Observation Period in which the Fixing Event is observed may vary.
For example, if a Fixing Event:

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(a) occurs on an Observation Date during the Observation Period, observation of the Fixing Event
may continue to be observed on each subsequent Observation Date during the Observation Period;
or

(b) does not occur on an Observation Date, the observation of the Fixing Event (and the number of
days on which a Fixing Event is determined to have occurred) may cease on such date,
notwithstanding the total number of Observation Days left in such Observation Period. Such Notes
are referred to as “Knock-Out Range Accrual Notes”; or

(c) does not occur on an Observation Date for a specified number of times, the observation of the
Fixing Event (and the number of days on which a Fixing Event is determined not to have
occurred) may cease on such date, notwithstanding the total number of Observation Days left in
such Observation Period. Such Notes are referred to (also know as Knock-Out Range Accrual
Notes).

By way of example:

1. The interest rate for an Interest Period or amount payable on redemption of a Range Accrual Note
may be calculated by reference to the number of Observation Days during an Observation Period
in which USD LIBOR with a designated maturity of 6 months (the “Observed Rate”) is equal to
or exceeds 2% but is less than 4% (together, the “Strike”); divided by the total number of days in
that Observation Period. For the purpose of this example, the total number of Observation Days
during the Observation Period is equal to 10. If on the second Observation Day during that
Observation Period, the Observed Rate is outside the Strike, but is within the Strike on each other
Observation Date during such period (including the first day of such period) then the Index Ratio
will be calculated by dividing 9, being the number of days on which the Observed Rate was
within the Strike, by 10, being the total number of Observation Days within the Observation
Period, giving 0.9.

2. For Knock-Out Range Accrual Notes referred to in (b) above, if the Index Ratio is determined by
reference to the number of Observation Days during an Observation Period in which Observed
Rate is within the Strike until the first Observation Day on which it is outside the Strike; divided
by the total number of days in that Observation Period, if the Observed Rate was within the
Strike on the first Observation Day but outside the Strike on the second Observation Date, then
the Index Ratio will be calculated by dividing 1, being the number of days on which the Observed
Rate was within the Strike, by 10, being the total number of Observation Days within the
Observation Period, giving 0.1

The above are just two examples of how the Index Ratio may be determined and are not intended to be an
exhaustive description of the operation of the structure for Range Accrual Notes.

The Observation Period and the period in which the interest payable and/or any amount payable on
redemption of the Notes are determined maybe the same or they may relate to different chronological
periods and may be of different lengths. For the avoidance of doubt, the days upon which the Fixing Event
is observed could be any subset of days within such period or any other period or periods, including, but
not limited to, a period of one day only.