D.A. Davidson & Co. Investment Banking Group on Track for Record-Breaking Year at Fiscal Third Quarter Mark; Company Realizing Returns on Investment in Infrastructure, New Talent.

LAKE OSWEGO, Ore. -- D.A. Davidson & Co., the largest full-service investment banking and brokerage firm headquartered in the Pacific Northwest, today announced record-breaking revenue in its Investment Banking Group for the first three quarters of fiscal year 2006 and an optimistic outlook for the remainder of the operating year.

Clients represented by Davidson in fiscal year 2006 were from a variety of industries, including financial services, apparel and footwear, technology, and engineering and construction. Activity included mergers and acquisitions, private placements, and public offerings.

In its fiscal third quarter ending June 30, 2006, the Investment Banking Group experienced 35 percent growth in revenues over the same period in 2005. Transaction highlights for this period include:

--Advisor to Flow Solutions, Inc., a value-added distributor of high-precision filters and components, in its sale to Morgenthaler Partners.

--Advisor to Lynnwood Financial Group, a community bank, in its sale to Sterling Financial Corp. (NASDAQ: STSA).

--Advisor to Coastwide Laboratories, Inc., a company specializing in supplying cleaning products, in its sale to Corporate Express, Inc.

--Sole-lead underwriter for Sterling Construction Co. Inc. (NASDAQ: STRL), an engineering and construction company, in its follow-on offering of common stock.

--Co-managing underwriter for FEI Company (NASDAQ: FEIC), a nanotechnology company, in its offering of convertible senior notes.

Davidson also recently represented O'Neil Product Development in its sale to Dover Corporation (NYSE: DOV), one of the largest diversified industrial products and equipment manufacturers in the world. O'Neil Product Development is a leading manufacturer of rugged, portable printers and related media consumables. According to Tim O'Neil, founder, "The D.A. Davidson team did a remarkable job throughout the entire sale process. From start to finish, they guided us toward a solution that was in alignment with our goals. They were driven to not just get the job done -- but to get it done well."

Over the past year, Davidson has made significant investments in its infrastructure, adding experienced new talent, expanding into new markets and further developing its industry focus groups. "Davidson's Investment Banking Group has achieved record revenue levels in 2006, driven by strength in our core businesses, the addition of experienced professionals and continued market share penetration," said Brad Gevurtz, Managing Director and Head of Investment Banking at D.A. Davidson.

D.A. Davidson & Co.'s Investment Banking group provides full-service underwriting and advisory services for emerging growth and middle-market companies, including public offerings, mergers & acquisitions, private capital raises and balance sheet restructurings.

About D.A. Davidson & Co.

D.A. Davidson & Co. is one of the nation's largest full-service regional investment firms, providing customized financial services to investors. The firm is recognized for its award-winning research, as well as the Davidson 99 Regional Stock Index(SM), a benchmark of the Northwest's economic landscape. Founded in 1935, D.A. Davidson & Co. has offices in 16 states and is an employee owned company headquartered in Great Falls, Montana.