Net Revenues of $81.2 Million, Pre-Tax Profit of $14.1 Million, Net Income of $10.3 Million, and Diluted EPS of $0.08 for the Fourth Quarter of 2009

Broadpoint Gleacher Securities Group, Inc. (NASDAQ: BPSG) reported today financial results for the fourth quarter and for the full year ended December 31, 2009. Broadpoint.Gleacher will hold a conference call this morning, January 28, 2010, at 10:00 A.M. (EST) (see Conference Call Information below) to discuss these results.

Highlights of the full year and the fourth quarter include:

• Net revenues of $341.8 million for the year ended December 31, 2009 increased 155 percent compared to $134.3 million for 2008. Pre-tax profit of $61.5 million for the year ended December 31, 2009 compared to a pre-tax loss of $14.8 million for 2008. Pre-tax margin was 18.0 percent for 2009. Revenue per employee for 2009 was $1.159 million.
• Net revenues of $81.2 million for the fourth quarter of 2009 increased 61 percent compared to $50.6 million for the fourth quarter of 2008. Pre-tax profit of $14.1 million for the fourth quarter of 2009 increased 666 percent compared to $1.8 million in the fourth quarter of 2008. Pre-tax margin was 17.4 percent for the fourth quarter of 2009 compared to 3.6 percent in the fourth quarter of 2008.
• Net profit was $55.4 million for 2009, or $0.53 diluted earnings per share, and net profit for the quarter ended December 31, 2009 was $10.3 million, or $0.08 diluted earnings per share.

• For the year ended December 31, 2009, Investment Banking revenues of $46.2 million increased 176 percent compared to $16.7 million for 2008. Fourth quarter Investment Banking revenues were $15.5 million, an increase of 470 percent compared to $2.7 million in the prior year quarter.
• The Company received Financial Services Authority approval to acquire ISM Capital, a London-based capital markets advisory firm. The acquisition is expected to close in the first quarter of 2010.
• Staffing was strengthened with the Company increasing total head count 44 percent year over year, with client-facing employees representing 71 percent of the employee base. During the fourth quarter, head count increased by 16 people with key hires in Asset Based Investment Banking, CLO Sales and Trading, and Finance.

Lee Fensterstock, Chief Executive Officer, said, "We are very pleased with the progress across all of our businesses during 2009, building upon the platform we established in 2008. We have much work to do however to continue to build-out our firm and diversify our earnings stream. While the fourth quarter reflected a slowdown in fixed income, we fared somewhat better than many of our competitors, and we continued our progress in growing investment banking."

Eric Gleacher, Chairman, said, "Our progress in developing our investment banking business over the past seven months since Gleacher Partners became a part of Broadpoint has gone well. Our restructuring business continues producing strong results and our M&A and capital markets backlogs have grown meaningfully. Our goal is that our results in 2010 will reveal a balanced set of completed transactions in all three areas, demonstrating solid progress and growth in investment banking."

Highlights by business segment for the fourth quarter ended December 31, 2009 and December 31, 2008

(In thousands)

Overview of Financial Results for the Quarters Ended December 31, 2009 and December 31, 2008

Discussion of operating results for the fourth quarter of 2009 compared to the fourth quarter of 2008

Net revenues for the fourth quarter of 2009 were $81.2 million, an increase of $30.7 million, or 61 percent, from $50.6 million in the fourth quarter of 2008. Pre-tax profit from continuing operations in the fourth quarter was $14.1 million compared to $1.8 million in the prior year quarter.

Revenues from principal transactions and commissions were $50.9 million in the fourth quarter of 2009, an increase of $8.4 million, or 20 percent, compared to the fourth quarter of 2008, due to increased revenues in the Broadpoint Descap division of $12.9 million, which was partially offset by a decrease in the Debt Capital Markets division of $4.4 million. Investment Banking revenues increased $12.8 million over the fourth quarter of 2008 to $15.5 million, primarily due to an increase in advisory fees. Investment gains of $2.0 million increased $2.7 million over the fourth quarter of 2008 due to an increase in the value of the Company''s investment in the FATV fund. Net interest income increased by $7.2 million over the fourth quarter of 2008 to $11.2 million in the fourth quarter of 2009, primarily due to coupon interest generated on higher inventory levels at Broadpoint Descap. Fees and other revenues of $1.6 million decreased by $0.5 million compared to the fourth quarter of 2008, primarily due to a decrease in payments received for equity research.

Non-interest expenses for the fourth quarter of 2009 of $67.1 million increased $18.4 million, or 38 percent, compared to $48.7 million in the fourth quarter of 2008. In the fourth quarter of 2009, compensation and benefits expense was $53.7 million, an increase of 34 percent over the prior year quarter, primarily due to an increase in net revenues of 61 percent. Clearing, settlement and brokerage costs were $1.3 million, an increase of 45 percent compared to the prior year quarter due to increased activity in the Broadpoint Descap division. Communications and data processing expense of $2.8 million increased by $0.9 million compared to the fourth quarter of 2008 due to increased business activity in the Broadpoint Descap division. Occupancy and depreciation expense increased $0.9 million, or 67 percent, over the fourth quarter of 2008 to $2.3 million due to the leasing of additional office space. Selling expense increased $1.3 million, or 199 percent, over the fourth quarter of 2008 to $2.0 million due to an increase in sales activity. Other expenses increased $1.3 million, or 35 percent, over the fourth quarter of 2008 to $4.9 million in the fourth quarter of 2009, primarily due to amortization of intangibles related to the Gleacher acquisition and the implementation of a new SIPC assessment fee.

Discussion of operating results for the year ended December 31, 2009 compared to the year ended December 31, 2008

For the year ended December 31, 2009 net revenues from continuing operations were $341.8 million, an increase of $207.5 million, or 155 percent, from $134.3 million for the year ended December 31, 2008. The Company reported a pre-tax profit from continuing operations of $61.5 million for the year ended December 31, 2009 compared to a pre-tax loss of $14.8 million for the year ended December 31, 2008.

Revenues from principal transactions and commissions for the year ended December 31, 2009 increased $146.2 million, or 141 percent, to $249.8 million compared to the year ended December 31, 2008 due to increased revenues in the Broadpoint Descap division of $76.4 million, the Debt Capital Markets division, which commenced operations in March 2008, of $59.3 million, and the Equities division of $10.6 million. Investment Banking revenues increased $29.5 million over the prior year to $46.2 million due to an increase in advisory fees. Investment gains of $5.7 million increased $6.8 million over the prior year due to an increase in the value of the Company''s investment in the FATV fund. Net interest income increased by $22.6 million over the prior year to $33.9 million, primarily due to coupon interest generated on higher inventory levels at Broadpoint Descap. Fees and other revenues of $6.4 million increased by $2.4 million over the prior year, primarily due to an increase in payments received for equity research in our Equity division.

Non-interest expenses for the year ended December 31, 2009 of $280.3 million increased $131.2 million, or 88 percent, compared to $149.1 million for the year ended December 31, 2008. Compensation and benefits expense was $235.8 million, an increase of 111 percent over the prior year due to an increase in net revenues of 155 percent and an increase in headcount. Clearing, settlement and brokerage costs were $4.6 million, an increase of 66 percent, compared to the prior year due to the addition of the Debt Capital Markets division and increased volumes at the Broadpoint Descap division. Communications and data processing expense of $10.5 million increased by $1.3 million over the prior year due to the addition of the Debt Capital Markets division and an increase in activity and headcount in the Broadpoint Descap division. Occupancy and depreciation expense increased $2.1 million, or 34 percent, over the prior year to $8.4 million due to the leasing of additional office space. Selling expense increased $2.4 million, or 77 percent, over the prior year to $5.5 million, primarily due to an increase in sales activity. The Company''s restructuring was completed at the end of the third quarter of 2008 and as a result no restructuring charges were incurred during 2009, compared to the $4.3 million in restructuring charges incurred in 2008. Other expenses increased $3.8 million, or 32 percent, over the prior year to $15.5 million due to costs associated with the Gleacher acquisition, the amortization of intangibles related to the Amtech and Gleacher acquisitions and the implementation of a new SIPC assessment fee.

Income Tax Note

The effective tax rate for the three-months ended December 31, 2009 was 27.4 percent. The effective rate was impacted by a re-measurement of our deferred tax assets, partially offset by a change in estimate of our state tax rate and other items.

The effective tax rate for the year ended December 31, 2009 was 10.1 percent. This rate reflects a net tax benefit of $23.0 million primarily related to our release of the deferred tax valuation allowance during the year, partially offset by a re-measurement of certain deferred tax assets and provision to return adjustments. Excluding these items, the effective rate for the year would have been 47.5 percent. The effective rate for the year-ended December 31, 2009 was also impacted by a change in estimate of our state tax rate and other items.

Non-GAAP Financial Measures

Revenue per employee, stated previously in this press release, may be viewed as a non-GAAP financial measure. We calculate this number by dividing our net revenue for the year by the average number of employees during the period. Our net revenue per average number of employees during 2009 calculated using our net revenues of $341.8 million, and an average of 295 employees, was $1.159 million.

Conference Call Information

The Company will hold a conference call today, January, 28 at 10:00 A.M. (EST). This call will be webcast and can be accessed on the Investor Relations portion of the Company''s website at www.bpsg.com, as well as being distributed through Thomson StreetEvents Network. Individual investors can listen to the call at www.earnings.com, Thomson''s individual investor portal, powered by StreetEvents. Institutional investors can access the call via Thomson StreetEvents (www.streetevents.com), a password protected event management site. To participate on the call, please dial 888.680.0865 for domestic calls or 617.213.4853 for international calls, participant passcode 82645480 or request the Broadpoint.Gleacher earnings call. For those who cannot listen to the live broadcast, a recording of the call will be available for seven days following the call by dialing 888.286.8010 for domestic calls or 617.801.6888 for international calls, participant passcode 57339724.

About Broadpoint.Gleacher

Broadpoint Gleacher Securities Group, Inc. (NASDAQ: BPSG) is an independent investment bank that provides corporations and institutional investors with strategic, research-based investment opportunities, capital raising, and financial advisory services, including merger and acquisition, restructuring, recapitalization and strategic alternative analysis services. The Company offers a diverse range of products through the Debt Capital Markets, Investment Banking and Broadpoint DESCAP divisions of Broadpoint Capital, Inc., its Equity Capital Markets subsidiary, Broadpoint AmTech, and FA Technology Ventures Inc., its venture capital subsidiary. For more information, please visit www.bpsg.com.

Forward Looking Statements

This press release contains "forward-looking statements." These statements are not historical facts but instead represent the Company''s belief regarding future events, many of which, by their nature, are inherently uncertain and outside of the Company''s control. The Company''s forward-looking statements are subject to various risks and uncertainties, including the conditions of the securities markets, generally, and acceptance of the Company''s services within those markets and other risks and factors identified from time to time in the Company''s filings with the Securities and Exchange Commission. It is possible that the Company''s actual results and financial condition may differ, possibly materially, from the anticipated results and financial condition indicated in its forward-looking statements. You are cautioned not to place undue reliance on these forward-looking statements. The Company does not undertake to update any of its forward-looking statements.

Contacts:

Investors:
Broadpoint Gleacher Securities Group, Inc.
Robert Turner, 212-273-7109
Chief Financial Officer
or
Media:
Halldin Public Relations
Ray Young, 916-781-0659