$50 million investment in



MatlinPatterson Global Opportunities Partners II, L.P.

MatlinPatterson Global Opportunities Partners II, L.P.

Financial advisor to First Albany Companies

September 2007

Freeman & Co. Acted as Financial Advisor to First Albany Companies
September 2007
Broker-Dealer, Private Equity
Capital Raise
Deal Value

First Albany companies, to be renamed Broadpoint, announces shareholder approval and closing of $50 million equity investment from MatlinPatterson

September 24, 2007 (New York, NY)  - First Albany Companies Inc. (NASDAQ: FACT), to be renamed Broadpoint Securities Group, Inc., today announced the approval by shareholders and closing of a $50 million equity investment from an affiliate of MatlinPatterson Global Opportunities Partners II. This investment provides the Company with additional resources to grow its business, focus on its core investment products and services strengths, provide incentives to its employees, and better meet the needs of its clients.

Concurrent with the closing of the investment, Lee Fensterstock, a 20-year securities industry veteran, has been appointed Chairman and Chief Executive Officer of the Company, and Peter McNierney has been appointed President and Chief Operating Officer. In addition to Mr. Fensterstock, three MatlinPatterson partners — Mark Patterson, Chris Pechock and Frank Plimpton — have also joined the Company’s Board of Directors, which now consists of nine members.

As part of the Company’s commitment to fostering an ownership culture among its employees, 24 executives of the Company’s wholly owned principal operating subsidiaries, Broadpoint Securities, Inc. and Broadpoint Capital, Inc. (formerly Descap Securities Inc. and First Albany Capital Inc., respectively) have been named key employee partners. Accordingly, on a fully diluted basis, approximately 19% of the Company is owned by employees with 61% owned by an affiliate of MatlinPatterson.

“We are pleased that our shareholders have approved this capital infusion from MatlinPatterson, which will support our efforts to better serve our clients and grow our business,” said Mr. Fensterstock. “With this transaction complete, we look forward to capitalizing on the talent and experience of our strong team of employee partners to build a premier investment bank for mid-sized and emerging growth companies and their investors.”

The Company also today announced the launch of its new corporate brand — Broadpoint. The Company’s mission is to “build a premier investment bank by providing value-added solutions to mid-sized and emerging growth companies and their investors, helping them to achieve their goals.” The new Broadpoint name reinforces the Company’s broad experience in strategic advisory services, debt and equity capital raising, and secondary debt and equity sales and trading to meet the full range of its clients’ needs. The name also reflects the execution orientation of the firm, which is facilitated by its industry expertise, structure and focus.