Stone & Youngberg Completes First Berkshire Hathaway Insured Negotiated Financing in State of California

Business Wire, August 20, 2008

SAN FRANCISCO -- Stone & Youngberg, a leading financial services firm and the nation's top underwriter of California and Arizona municipal bonds1, served as sole underwriter for the Series 2008A Certificate of Participation (COPs) negotiated financing for the Elsinore Valley Municipal Water District. The financing, which closed last week, was insured through Berkshire Hathaway Assurances Corporation (BHAC), one of the industry's leading AAA-rated bond insurers recently licensed to do business in the state of California. The deal is BHAC's first negotiated transaction in the California municipal bond market, the nation's largest single bond market with $66 billion issued in 2007.2 As a result of BHAC's trading advantage, Stone & Youngberg was able to achieve significant savings for the District through the use of insurance.

"As the nation's leading underwriter of California municipal bonds, we are pleased to have Berkshire Hathaway licensed to do business in the state," said Tom Innis, a managing director in Stone & Youngberg's Public Finance Group who recently joined the firm from UBS. "During a tumultuous period for bond insurers, BHAC offers a sterling reputation and a solid AAA rating."

Stone & Youngberg, founded in 1931, is one of the oldest private investment banks operating in the U.S. The firm offers underwriting, advisory, and investment services across the country to state and local governments, non-profit organizations, and institutional and private investor clients through its offices in San Francisco, Los Angeles, San Diego, and Big Bear Lake, CA, and in New York, Chicago, Phoenix, Richmond, VA, and Annapolis, MD.

For more information on the Stone & Youngberg, visit www.syllc.com.

About Stone & Youngberg: Stone & Youngberg Holdings LLC is a financial services company providing a range of products and services through three subsidiary businesses. Stone & Youngberg LLC, founded in 1931 and member FINRA/SIPC, specializes in the origination and sale of fixed-income securities. The firm led or co-managed the sale of 214 municipal bond issues totaling $4.7 billion in 2007.a In addition to bond underwriting and sales, Stone & Youngberg provides investment services to individuals, institutions, and government agencies and offers a wide variety of tax-exempt and taxable securities. S&Y Asset Management LLC is Stone & Youngberg's wealth management company and develops investment portfolios and products tailored to affluent individuals. S&Y Capital Group LLC is a private real estate investment, development, and consulting company.

Stone & Youngberg is headquartered in San Francisco with offices in Los Angeles, San Diego, New York, Chicago, Phoenix, Richmond, VA, Annapolis, MD, and Big Bear Lake, CA. Additional information is available at www.syllc.com or by calling 800-447-8663.

1 Source: Thomson Reuters 2008. Based on number of issues.

2 Source: Saskal, Rich, 2008. "BHAC Gets California License" Bond Buyer, March 31.

(http://www.bondbuyer.com/article.html?id=20080328EQRVBYIY)