Siebert to Buy California Discount Broker Retail Accounts

Business Wire, Nov 2, 1998

NEW YORK--(BUSINESS WIRE)--Nov. 2, 1998--Siebert Financial Corp. (NASDAQ: SIEB) today announced that its national discount brokerage subsidiary, Muriel Siebert & Co., Inc., has signed a letter of intent to purchase the retail customer accounts of Donald K. Cowles and of Cowles, Sabol & Co., Inc. of Encino, CA. The acquisition is expected to be completed before the end of 1998.

Cowles, Sabol & Co., Inc. will retain its name and continue in non-discount brokerage business as a NASD member firm. Mr. Cowles, who has been a discount broker since 1981, will become a vice president of Muriel Siebert & Co.

"This agreement carries forward the retail growth initiative we announced in November 1996, when Muriel Siebert & Co. became associated with a public entity," said Muriel Siebert, President and Chairwoman. "One of the reasons we joined with a public company was to offer well established discount brokers like Donald Cowles a much wider range of products for their increasingly sophisticated customers," she stated. "We believed there would be a consolidation in the discount brokerage business and that there were many firms who have been in operation for years with a solid base of loyal customers. We believe our electronic technology and services will enhance those relationships."

Siebert disclosed that the company is continuing preliminary negotiations to acquire additional accounts.

Siebert Financial Corp. is a holding company which conducts all its operations through its wholly-owned subsidiary, Muriel Siebert & Co., Inc. ("Siebert"). A member of the New York Stock Exchange, Siebert was one of the first stock brokerage firms in the U.S. to adopt a discounted commission schedule on May 1, 1975 when discounting was first permitted.

Siebert conducts its municipal investment banking activities through a separate affiliate, Siebert, Brandford, Shank & Co., LLC, which specializes in municipal and other fixed income underwriting and financial advisory services.

Siebert is based in New York City, with branches in Beverly Hills, CA and Boca Raton, Surfside, Palm Beach and Naples, FL. In addition, Siebert, Brandford, Shank & Co. has offices in San Francisco, Los Angeles, Seattle, Houston, Chicago, Detroit and Dallas.