Advanced Equities to Acquire First Allied Securities, Unit of Wells Fargo.

CHICAGO & SAN FRANCISCO -- Advanced Equities Financial Corp. ("Advanced Equities") and Wells Fargo & Company (NYSE:WFC) announced today they have signed a definitive agreement for Advanced Equities to acquire FAS Holdings, Inc. and First Allied Securities, Inc. which are currently subsidiaries of Wells Fargo.

First Allied is a leading provider of full-service brokerage and investment services to retail clients through independent-contractor financial consultants and broker/dealers. It has 92 team members and 465 contracted representatives operating in all 50 states. Advanced Equities said that First Allied would be operated as a separate broker-dealer within its Financial Services Group, which already includes Round Hill Securities, Inc. a California based independent broker-dealer.

The two parties did not disclose terms of the sale, expected to close in this quarter.

Advanced Equities said the acquisition will provide its Financial Services Group with a strong presence in the independent brokerage field, complementing the firm's other business units which include an investment bank focused on providing late stage private equity financing to emerging technology companies and a high-net-worth private client group.

"Our acquisition of First Allied is a key component of our growth strategy and evidences our commitment to the independent contractor brokerage model," said Adam Antoniades, President of Advanced Equities. "I personally know the First Allied team members, independent-contractor financial consultants and management staff to be some of the best and brightest in our industry and look forward to reuniting with them. The unique opportunities afforded to us as an 'Advanced Equities Company' will allow our independent-contractor financial consultants to differentiate themselves by offering select clientele access to institutional quality late stage private equity and additional investment banking capabilities."

"This transaction positions Advanced Equities as a leading participant in one of the financial services industry's fastest growing fields," said Dwight Badger, Advanced Equities' Chief Executive Officer. "The acquisition reflects our determination and capacity to become a leading participant in the independent brokerage industry."

"Unlike financial consultants employed in a traditional branch office environment, independent-contractor financial consultants are self-employed and bear the cost of operating their own independent business," said Keith Daubenspeck, Advanced Equities' Chairman. "For these independent-contractor financial consultants, affiliation with us will provide the benefit of Advanced Equities product and service capabilities as they continue to enjoy the autonomy and self-sufficiency they prefer."

"Investments are a core product, major growth business and key-strategic initiative for Wells Fargo, however, after extensive review, we've decided that First Allied did not offer the best opportunity to cross-sell other products and services," said Roger Ochs, head of Wells Fargo subsidiary H.D. Vest. "First Allied is an outstanding company and we wish its team members, contracted representatives and management staff the best."

Advanced Equities believes that with First Allied it will become one of the 20 largest independent brokerage firms in the U.S. with approximately 600 financial consultants providing retail brokerage services from over 200 domestic branch locations.

Advanced Equities' Financial Services Group is led by Adam Antoniades, Joel E. Marks and Gregg S. Glaser. Mr. Antoniades most recently served as President and Chief Executive Officer of First Allied through July 2004. Messrs. Marks and Glaser served as Vice Chairman/Chief Operating Officer and Chief Financial Officer, respectively, of JWGenesis Financial Corp. which was acquired by Wachovia Corp. in 2001. Mr. Glaser most recently served as Chief Financial Officer of Wachovia Securities, LLC's Independent Brokerage Group.

Advanced Equities Financial Corp. is engaged in retail and institutional securities brokerage, investment banking, private equities and asset management services through its subsidiaries, Advanced Equities, Inc. and Round Hill Securities, Inc. Advanced Equities' Capital Markets Group is a leading provider of late stage private equity financing to emerging technology companies and most recently, co-managed the successful initial public offering of Arbinet-thexchange, Inc. (NASDAQ NMS: ARBX).

Wells Fargo & Company is a diversified financial services company with $422 billion in assets, providing banking, insurance, investments, mortgage and consumer finance to more than 23 million customers from more than 6,000 stores and the internet (wellsfargo.com) across North America and elsewhere internationally. Wells Fargo Bank, N.A. is the only "Aaa"- rated bank in the United States.