First Albany Announces Sale of Asset Management Unit to Employee-Led Group

Business Wire, Feb 2, 2005

ALBANY, N.Y. -- First Albany Companies Inc. (Nasdaq: FACT) announced today that it has completed the sale of First Albany's core asset management division of FA Asset Management, to a newly-formed investment management company, Johnson Illington Advisors LLC.

Johnson Illington is a Registered Investment Advisor formed from a partnership of employees of the Albany, New York, division of FA Asset Management and Illington Fund Management LLC (IFM), a New York based fund of funds that specializes in the distribution of structured products and alternative investments.

Hugh Johnson, formerly Executive Managing Director, Chief Investment Officer and a Director of First Albany Capital, will become Chairman of Johnson Illington and will join the Board of Directors of Illington Fund Management. Johnson will also continue to work with First Albany in a consulting capacity. Johnson Illington's headquarters will remain in Albany, New York.

Alan Goldberg, President of First Albany Companies, said, "We are extremely pleased to have been able to complete the transaction in this fashion because it provides important continuity for the firm's clients, ownership opportunities for employees, and an ongoing relationship with our valued colleague and friend Hugh Johnson."

About First Albany

Founded in 1953, First Albany is a leading institutionally focused independent investment bank. Through its Equity Capital Markets, Municipal and Taxable Fixed Income Divisions, as well as its subsidiary Descap Securities, First Albany focuses on serving the institutional market, the growing corporate middle market and public institutions by providing clients with strategic, research-based, innovative investment opportunities. First Albany offers a diverse range of products and advisory services in the areas of corporate and public finance as well as fixed income and equity sales and trading. FA Technology Ventures is a leading early stage investor, providing venture capital, management and guidance for companies in the emerging growth sectors of information technology and energy technology. First Albany is traded on NASDAQ under the symbol FACT with offices in major business and commercial markets.