National Securities Corporation, Subsidiary of National Holdings Corporation, Hires Chief Business Development Officer.

NEW YORK -- National Holdings Corporation (OTCBB:NHLD) announced today that Jerry Taylor has been hired to be the Chief Business Development Officer (CDO) for National Securities Corporation, its wholly owned subsidiary. During his 18 year career in the securities industry, Mr. Taylor has been Director of Business Development for The Concord Equity Group and Montauk Financial Group (OTCBB:FMFK), as well as Regional Coordinator of Business Development at Nathan and Lewis Securities. He also has extensive experience as a wholesaler for C.E.G.A. (a major SMA provider) and as a Financial Consultant for Morgan Stanley.

David McCoy, Chief Operating Officer of National Securities commented, "We at National are enthusiastic to have an individual of Jerry's character and experience become part of our senior management team. I have known Jerry personally for 15 years and had the opportunity to work directly with him for 10 of those 15 years. His expertise in business development, particularly with fee based and wire house advisors, will be instrumental in our continued expansion."

Mr. Taylor as CDO will be directly responsible for growing the core base of registered reps at National Securities, evaluating potential acquisitions, and developing a professional in-house sales staff to assist in the development of the recruiting process. Mr. Taylor holds licenses including the NASD Series 7, 24, 63 and 65.

"I am pleased to become associated with National Securities," said Mr. Taylor. "I look forward to working with a strong management team as we grow our business and develop new business strategies."

National Holdings Corporation is a holding company for National Securities Corporation and National Insurance Corporation. National Securities conducts a full service national brokerage and investment banking business. National Insurance will provide a full array of fixed insurance products to its clients.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. This press release may contain certain statements of a forward-looking nature relating to future events or future business performance. Any such statements that refer to the Company's estimated or anticipated future results or other non-historical facts are forward-looking and reflect the Company's current perspective of existing trends and information. These statements involve risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, risks and uncertainties detailed in the Company's Securities and Exchange Commission filings, including the Company's Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. The forward-looking statements speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise.