Baldwin Joins First Albany Capital as Managing Director in Sales Trading.

NEW YORK -- First Albany Capital, the broker-dealer subsidiary of First Albany Companies Inc. (NASDAQ: FACT), announced today the addition of Coleen Baldwin as Managing Director in the Sales Trading Department. Ms. Baldwin will be based out of New York and have the primary responsibility for the Mid-Atlantic Region, as well as several select New York accounts.

Peter Lukas, Head of Sales Trading, said, "We are very pleased to have someone of Coleen's caliber join our team. Coleen's knowledge and experience in the small and mid cap sectors, along with her customer driven focus, will further bolster First Albany Capital's leading execution capabilities."

Lee Fensterstock, a MatlinPatterson representative, said, "We are excited to have Coleen join First Albany, particularly in that she represents the beginning of a growth phase for our new firm." First Albany recently announced that it has entered into an Investment Agreement to recapitalize and receive a $50 million equity investment from an affiliate of MatlinPatterson Global Opportunities Partners II.

Coleen joins First Albany Capital after over eight years at Raymond James Associates. Prior experience includes several years at ABN Amro, The Chicago Corp, and Kidder Peabody.

About First Albany

First Albany Companies Inc. (NASDAQ:FACT) is an independent investment bank that serves the institutional market, state and local governments and the growing corporate middle market by providing clients with strategic, research-based investment opportunities, as well as advisory and financing services. First Albany offers a diverse range of products through its Equities and Municipal Capital Markets divisions, as well as through Descap Securities Inc., its MBS/ABS trading subsidiary, and FA Technology Ventures Inc., its venture capital division. First Albany maintains offices in major business and commercial markets.

This press release contains "forward-looking statements." These statements are not historical facts but instead represent the Company's belief regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company's control. The Company's forward-looking statements are subject to various risks and uncertainties, including the conditions of the securities markets, generally, and acceptance of the Company's services within those markets and other risks and factors identified from time to time in the Company's filings with the Securities and Exchange Commission. It is possible that the Company's actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in its forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements. The Company does not undertake to update any of its forward-looking statements.

Notice to Shareholders

In connection with the proposed Investment Agreement, the Company will prepare a proxy statement for the Company's shareholders to be filed with the Securities and Exchange Commission. The proxy statement will contain information about the Company, the proposed Investment Agreement and related matters. SHAREHOLDERS ARE URGED TO READ THE PROXY STATEMENT CAREFULLY WHEN IT IS AVAILABLE, AS IT WILL CONTAIN IMPORTANT INFORMATION THAT SHAREHOLDERS SHOULD CONSIDER BEFORE MAKING A DECISION ABOUT THE INVESTMENT AGREEMENT. In addition to receiving the proxy statement from the Company by mail, shareholders will be able to obtain the proxy statement, as well as other filings containing information about the Company, without charge, from the Securities and Exchange Commission's website (http://www.sec.gov) or, without charge, from the Company's website at www.fac.com or by directing such request to First Albany Companies Inc., 677 Broadway, Albany, New York 12207, Attention: Investor Relations.

The Company and its directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the Investment Agreement. Information concerning the Company and its directors and executive officers is set forth in the Company's proxy statement and Annual Report on Form 10-K previously filed with the SEC, and will be set forth in the proxy statement relating to the Investment Agreement when it becomes available.