Stone & Youngberg Continues Business Expansion.

SAN FRANCISCO -- Stone & Youngberg (S&Y), a fixed-income securities firm and one of the largest underwriters of tax-exempt local government debt in the West, today announced its results for 2004, which included maintaining its position as the preeminent regional municipal bond firm in California.

"Stone & Youngberg accomplished a great deal in 2004. We executed our business plan as intended, which included significant additions to our talent pool at all levels across the firm, opening a permanent office in New York, and diversifying our income stream with the addition of S&Y Asset Management to our family," said Ken Williams, S&Y President and CEO.

Overall, S&Y underwrote 194 bond issues in 2004 for a total dollar volume of $3.9 billion. S&Y also continued its strong hiring trend in 2004 by adding 30 new employees to its rolls, representing an increase of 14% over 2003.

In addition, Stone & Youngberg formed the Financial Services Group, that can serve as a principal providing derivative products to municipal clients, including interest rate swaps.

S&Y opened a permanent office in New York in 2004, underscoring the firm's continued transition from a regional municipal bond firm to a national investment bank that participates in all fixed-income markets. The office, located at 450 Lexington Avenue, focuses on high-grade corporate bonds, municipal bonds, mortgage-backed securities, federal agency paper, and high-yield bonds.

Finally, S&Y launched a new wealth management firm in 2004, S&Y Asset Management LLC (S&YAM). The firm, which is a wholly owned subsidiary of Stone & Youngberg, is led by Joe Piazza, an industry leader with 35 years of experience in asset management, capital markets, and equity research. Mr. Piazza serves as President of S&YAM and is a Managing Director with Stone & Youngberg.

"This new firm will provide all the financial services rendered in multi-family offices, further extending S&Y's platform, and will help us achieve our goal of adding an asset-based business and equity expertise to our historic fixed-income capabilities," said Williams.

"The wealth advisory and asset management market is growing, and wealthy individuals and families are shifting away from large financial conglomerates where they feel under-serviced," said Piazza. "Instead, they are moving toward advisory, boutique firms with strategically-focused expertise, and which can provide a total solution to wealth management in a client-centric environment."

Mr. Piazza formerly was a Managing Director of Robertson Stephens and Director of its Financial Services Division, where he and his colleagues managed and advised on over $40 billion in private family wealth. He also was a member of the Robertson Stephens Management Committee, Operating Committee, and Capital Markets Commitment Committee.

About Stone & Youngberg: Founded in 1931, Stone & Youngberg is a fixed-income securities firm headquartered in San Francisco, with regional offices in Los Angeles, New York, Phoenix, San Diego, Sherman Oaks, CA, and Richmond, VA. As one of the leading underwriters of tax-exempt local government debt in the West, Stone & Youngberg underwrote over 190 new municipal bond issues in California, Arizona, Nevada, and four other states in 2004. In addition to underwriting, the firm provides investment services to individuals and institutions and offers a variety of tax-exempt and taxable securities. Further information is available at www.syllc.com.