Davidson 99 Regional Stock Index(R) Falls in First Quarter.

Sagging Banking, Retail Sectors Slow Overall Growth

GREAT FALLS, Mont. -- D.A. Davidson & Co., the largest full-service investment firm based in the Northwest, today announced that the Davidson 99 Regional Stock Index([R]) fell 10.7 percent during the first quarter of 2008, weighed down by poorly performing stocks in the financial services, retail, healthcare and aerospace sectors.

The Davidson 99 underperformed the Dow Jones Industrial Average and S&P 500 but outperformed the NASDAQ Composite's performance for the quarter. The Davidson 99's drop in value reflects some of the broader volatility the U.S. markets have experienced in the last several months. For the first quarter of 2008, the Dow Jones Industrial Average lost 7.6 percent. The S&P 500 and NASDAQ Composite declined 9.9 percent and 14.1 percent, respectively.

The performance of the Davidson 99's financial services stocks is similar to a national pattern for that sector, said Jim Bradshaw, Senior Research Analyst covering financial services companies for D.A. Davidson: "Bank stocks continued their 18-month slide as investors worry about credit quality and margin compression. A few banks have cut their dividends and many more have raised capital in recent weeks to stem investor concerns about safety and soundness."

Despite recent losses, the Davidson 99 index has gained 39.0 percent since its inception on Jan. 1, 2004.

"The Davidson 99 experienced many of the same fluctuations as the major market indices, reflecting the enormous volatility of energy prices, global geopolitical tensions, the effects of the sub-prime mortgage situation and the impact of the housing slowdown on the economy," said Fred Dickson, Director of Private Client Research and Chief Market Strategist for D.A. Davidson & Co.

The Davidson 99 was hurt by substantial declines in the stock price of several regional banks and retail companies, but these losses were partially offset by gains recorded by natural resource companies.

Dickson said the Davidson 99 participated in a quarter-end rally that followed significant Federal Reserve announcements in mid-March, thereby cutting losses from earlier in the quarter. The first quarter sell-off had the strongest impact on Davidson 99 index companies with headquarters in Washington (-14.3 percent), Colorado (-14.1 percent), and Oregon (-10.0 percent).

Only three Davidson 99 stocks gained more than 15 percent for the quarter. Leading those was Montana-based Stillwater Mining, up 60.1 percent; followed by Hecla Mining, up 19.4 percent; and Greenbrier Companies, up 19.0 percent. Thirteen Davidson 99 stocks dropped more than 25 percent. The Davidson 99 stocks with the worst performance were USANA Health Sciences, off 40.6 percent; Infospace Inc., off 38.5 percent; and F5 Networks Inc, down 36.3 percent.

D.A. Davidson made one change to the index during the quarter. Advance Energy Industries, a Colorado-based, diversified technologies company, replaced Amis Holdings, after it was acquired in March by On Semiconductor Corp.

The Davidson 99 was launched Jan. 1, 2004. It is comprised of 99 stocks from companies operating within seven Northwest and Rocky Mountain states, including Colorado, Idaho, Montana, Oregon, Utah, Washington and Wyoming. The securities were selected based on market capitalization, importance within their sectors and importance in the states they represent. All 10 major market sectors are represented, showing the diversification of the region's companies.

The Davidson 99 Regional Index is published daily at dadavidson.com, along with occasional commentary from D.A. Davidson's Private Client Strategy Team on the performance of the index and implications regarding the economic health of these regions. The index is price-weighted, or calculated in the same manner as the Dow Jones Industrial Average, the world's most widely followed stock index. The closing price of each component in the index is determined daily after the markets' close, and the values are summed and compared with the value set on Dec. 31, 2003, then adjusted for stock splits and mergers. The index was set to a base value of 100 on Dec. 31, 2003.

About D.A. Davidson & Co.

Founded in 1935, D.A. Davidson & Co. is an independently owned, full-service investment firm. D.A. Davidson & Co. is owned by Davidson Companies, a leading regional financial services holding company based in Montana, with offices in 16 states. Also part of Davidson Companies are Davidson Investment Advisors, a professional money management firm; Davidson Trust Co., a wealth management and trust firm; Davidson Fixed Income Management, a registered investment adviser providing money management and other fixed income services to mostly institutional clients; and Davidson Travel, a full-service travel agency.

Shares in the Davidson 99 Regional Stock Index cannot be bought or sold, and companies included in the index may or may not be covered by D.A. Davidson's Private Client Research team. Information regarding the national indices referred above or a complete list of companies covered by Davidson research can be obtained at www.dadavidson.com or by contacting a local D.A. Davidson office. D.A. Davidson makes a market in USANA Health Sciences and F5 Networks Inc.