RYAN BECK & CO. AND STIFEL, NICOLAUS ANNOUNCE PROPOSED MERGER

We are excited to announce a new chapter in Ryan Beck’s history by our proposed combination with Stifel, Nicolaus & Company, a full-service financial services firm headquartered in St. Louis, MO.  This combination will unite two premier securities firms into a powerful organization with increased capabilities to serve our customers.  

The merger will broaden our geographic locations with 170 U.S. offices and 3 European locations.  Additional aspects of this powerful combination include:

• The Private Client Group will now have over 1,100 financial advisors managing over $50 billion in client assets.
• The 10th largest domestic Equity Research franchise, with approximately 700 stocks under coverage.*
• A very strong Equity & Fixed Income Capital Markets business with more than 1,600 institutional clients.
• A well-established track record of investment banking success.  Since 2000, on a combined basis, the firm has:
• Managed 752 public offerings as lead or co-manager, raising $167.6 billion.
• Managed 25 Mutual-to-Stock Conversion offerings, raising $7.1 billion.
• Advised in 402 M&A transactions, totaling $34.7 billion.
• Served as placement agent in 353 private placements, raising $13.3 billion.
• As a NYSE-listed company, it will create access to additional captial to support our clients.

This combination reflects a seamless blend of organizations with similar cultures and focus.  Our commitment is to continue to deliver our value–added, personalized approach to providing the best advice in the industry.  We believe this business model differentiates us in the marketplace.  It has proven invaluable to our clients in the past and we will continue to maintain our client centric model.

The significant expansion of our distribution, research and trading capabilities along with improved technology provides a greatly enhanced platform to continue delighting clients, creating value and delivering excellence.

*Source: Starmine Monitor

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Frequently Asked Questions

How does this affect my accounts at Ryan Beck?

This merger will not affect the way you are currently doing business with us. Your accounts will remain with Pershing for the time being and will continue to be held in custody by Pershing as your account(s) are protected by an unlimited amount.*  

Will the Ryan Beck name go away?

Ryan Beck will remain as a separate entity doing business as Ryan Beck for the remainder of 2007.  As we bring the two firms together later this year, we will make a decision about the Ryan Beck name at that time.

How does this affect my Financial Consultant?

In the short term, your Financial Consultant will be working with you as he/she has in the past.  Once the two firms are integrated later this year, he/she will be part of a larger organization with access to enhanced research and capital markets capabilities and will be on a state-of-the-art technology platform.  All of this will allow us to continue to service you even better than before.

Where can I learn more about Stifel Nicolaus?

Stifel’s website has information about their firm.  Simply click here (www.stifel.com) to go to their website.

How will I be notified of changes during this transition?  Who can I contact with questions?

We will communicate with all of our clients during this transition regarding any significant changes.  We will do this through the mail, messages on your account statements, updates to our website and through your Financial Consultant.  So, please feel free to call your Financial Consultant with any questions.


Expected closing date is on or about February 28, 2007.

*Securities held in custody by Pershing for your Ryan Beck account are protected to an unlimited amount. The Securities Investors Protection Corporation (SIPC) provides $500,000 of coverage, including $100,000 for claims for cash. Pershing provides the remaining coverage through a commercial insurer. The account protection applies when a SIPC member firm fails financially and is unable to meet obligations to securities customers, but it does not protect against losses from the rise and fall in the market value of investments.