D.A. Davidson & Co. Investment Banking Achieves Record Quarter

Business Wire, Feb 13, 2008

Strong Growth Continues Amid Difficult Market Conditions

LAKE OSWEGO, Ore. -- D.A. Davidson & Co., the largest full-service investment banking and brokerage firm headquartered in the Pacific Northwest, today announced record-breaking revenue and profitability in its Investment Banking Group for the first quarter of fiscal year 2008 and an optimistic outlook for the full year.

In its first fiscal quarter ended December 31, 2007, the Investment Banking Group experienced its best quarter ever, serving as managing underwriter or strategic advisor on 13 transactions with a total value in excess of $1.8 billion. The group experienced growth across all of its major product offerings, including public offerings, mergers and acquisitions, and private placements.

"We are off to a strong start in 2008 even though the capital markets have not been in our favor," said Brad Gevurtz, managing director and head of the Investment Banking Group. "Our success in an otherwise difficult market environment further validates our client-driven model and our ability to provide high value added services."

Clients represented by Davidson in the first quarter of fiscal year 2008 were from a broad spectrum of industries, including engineering and construction, healthcare, technology, specialty retail and financial services. Selected transaction highlights for this period include:

* Lead underwriter for The Ensign Group, Inc. (NASDAQ: ENSG), an operator of skilled nursing homes, in its initial public offering of common stock.

* Advisor to EnvironMax, Inc., an environmental management software provider, in its sale to IHS Inc. (NYSE: IHS).

* Advisor to The North West Company, Inc (TSX: NWF.UN), a retail store operator, in its acquisition of Cost-U-Less, Inc. (NASDAQ: CULS).

* Advisor to Criterion Custom Floors, Inc., a commercial carpet installer, and Wedbush Capital Partners, in the recapitalization of Criterion Custom Floors.

* Co-managing underwriter for Layne Christensen Company (NASDAQ: LAYN), a water infrastructure contractor, in its follow-on offering of common stock.

* Co-managing underwriter for Willbros Group, Inc. (NYSE: WG), a hydrocarbon pipeline contractor, in its follow-on offering of common stock.

* Co-managing underwriter for Prospect Capital Corporation (NASDAQ: PSEC), a middle-market senior and mezzanine debt provider, in its follow-on offering of common stock.

* Advisor to Via Training LLC, an e-learning provider, in its sale to GP Strategies Corporation (NYSE: GPX).

* Co-managing underwriter for Investors Real Estate Trust (NASDAQ: IRETS), a real estate investment trust (REIT), in its follow-on offering of common stock.

* Co-managing underwriter for EnergySolutions, Inc. (NYSE: ES), a specialized nuclear services provider, in its initial public offering of common stock.

Davidson also recently represented Sterling Construction Co. Inc. (NASDAQ: STRL), a civil construction company, in its acquisition of Road & Highway Builders LLC. Sterling Construction is primarily engaged in the building, reconstruction and repair of transportation and water infrastructure in Texas. Road & Highway Builders provides civil contracting services in Nevada, primarily focused on Nevada Department of Transportation projects. In addition, D.A. Davidson sole-managed Sterling Construction's recent follow-on offering to provide additional balance sheet flexibility. According to Patrick Manning, Chief Executive Officer of Sterling Construction, "D.A. Davidson has been a long term advocate of Sterling Construction and their market insights over the past few years have been invaluable. From supporting our growth initiatives through acquisition advisory services to addressing capital needs in the public markets, Davidson has added substantial value to Sterling and our shareholders."

D.A. Davidson & Co.'s Investment Banking group provides full-service underwriting and advisory services for emerging growth and middle-market companies, including public offerings, mergers & acquisitions, private capital raises and balance sheet restructurings.

About D.A. Davidson & Co.

D.A. Davidson & Co. is a full service investment firm with operations throughout the U.S. Founded in 1935, the firm has over $24 billion in client assets under management, approximately 950 professionals, and 54 offices in 16 states. As a full-service investment firm, D.A. Davidson provides research, investment banking services, bond sales and trading, stock sales and trading and private brokerage services. D.A. Davidson's Investment Banking Group underwrites public offerings, serves as a placement agent for private placements, and advises companies on mergers and acquisitions.