INVESTOR ALERT: A Securities Class Action Has Been Filed on Behalf of Purchasers of Penson Worldwide, Inc. Common Stock During the Period February 10, 2011 through August 4, 2011

NEW YORK, Aug. 24, 2011 /PRNewswire/ -- A class action suit was filed against Penson Worldwide, Inc. ("Penson" or the "Company") (Nasdaq: PNSN) on August 23, 2011 that alleges violations of the Securities Exchange Act of 1934 on behalf of purchasers of Penson common stock during the period February 10, 2011 through August 4, 2011, inclusive (the "Class").

The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements to investors by misrepresenting and failing to disclose that by at least the end of 2010 1) the Company had approximately $96-97 million in receivables ("Nonaccrual Receivables") of which approximately $43 million were collateralized by illiquid securities and therefore unlikely to be collected; 2) the Company's assets (Nonaccrual Receivables) were materially overstated and should have been written down at least by the end of 2010; 3) as a result, the Company's reported income and EBITDA (earnings before interest, taxes, depreciation, amortization and stock-based compensation, and excluding certain nonoperating expenses) were materially overstated; and 4) the Company's financial statements were not prepared in accordance with generally accepted accounting principles ("GAAP").

It is further alleged that starting on May 9, 2011, Penson began to reveal the truth about its financial condition. On May 9, 2011, Penson disclosed it held Nonaccrual Receivables of approximately $97 million of which approximately $43 million were collateralized by illiquid securities issued by a troubled horse track and real estate project in Texas. Between May 9 and May 11, 2011, Penson shares declined from a close on May 9, 2011 of $5.45 per share to close at $3.93 per share on May 11, 2011, a decline of approximately 28%, on heavy volume.

Then, on May 12, 2011, the Complaint alleges that Penson disclosed the resignation of Company director Thomas R. Johnson, stating "[b]ased on Mr. Johnson's position as chief executive officer of Call Now, Inc, a holder of a portion of the Retama related collateral, both Mr. Johnson and the Company felt it appropriate for him to resign his position at this time." On May 12, 2011, Penson shares declined $0.81 per share further, or approximately 21%, to close at $3.12 per share, on heavy volume.

Finally, on August 4, 2011, it is alleged that after the close of trading, Penson disclosed that "the Company recorded a non-cash write down of $43.0 million, equal to $26.7 million or ($0.94) per share net of tax, against $96.6 million of nonaccrual receivables. The write down was recorded in conjunction with Penson's initiation of foreclosure proceedings on the majority of the collateral underlying these receivables, including, but not solely related to, certain assets associated with the Retama Development Corporation, and shares of Penson Worldwide stock." On August 5, 2011, Penson shares declined $0.49 per share or approximately 19% to close at $2.12 per share.

If you are a member of the proposed Class, you may move the court no later than 60 days from today to serve as a lead plaintiff for the Class. You need not seek to become a lead plaintiff in order to share in any possible recovery.

The case is pending in the United States District Court for the Northern District of Texas. Plaintiff seeks to recover damages on behalf of the Class and is represented by Kaplan Fox & Kilsheimer LLP and Schneider Wallace Cottrell Brayton Koneky LLP. For more information about the Complaint, or if you would like to obtain a copy of the Complaint, you may contact Kaplan Fox (www.kaplanfox.com) or Schneider Wallace (www.schneiderwallace.com).

If you have any questions about this Notice, the action, your rights, or your interests, please contact:

Jeffrey P. Campisi
KAPLAN FOX & KILSHEIMER LLP
850 Third Avenue, 14th Floor
New York, New York10022
[phone]
[phone]
Fax: [phone]
E-mail address: [e-mail]

Laurence D. King
KAPLAN FOX & KILSHEIMER LLP
350 Sansome Street, Suite 400
San Francisco, California 94104
[phone]
Fax: [phone]
E-mail address: [e-mail]

Peter Schneider
SCHNEIDER WALLACE COTTRELL BRAYTON KONECKY LLP
3700 Buffalo Speedway #1100
Houston, Texas 77098
Telephone: [phone]
Facsimile: [phone]
[e-mail]

SOURCEKaplan Fox & Kilsheimer LLP