FBR Capital Markets Launches Convertible Securities Unit

ARLINGTON, Va., June 30 /PRNewswire-FirstCall/ -- FBR Capital Markets Corporation NASDAQ: FBCM (FBR Capital Markets), a leading investment bank serving the middle market, announced today the hiring of two highly regarded industry leaders, previously with Bear Stearns, who will launch the firm's origination and trading of equity-linked securities, including both convertibles and equity derivatives.

Joining FBR Capital Markets will be Michael Lloyd, Senior Managing Director and Head of Convertible Securities in Sales and Trading and Paul S. Rosica, Senior Managing Director and Head of Equity-Linked Capital Markets in Investment Banking. During their tenure at Bear Stearns & Co., Messrs Lloyd and Rosica built a leading small and mid-cap convertible securities platform which was named "Best in Class" in a recent Sanford Bernstein survey. Under their leadership, FBR Capital Markets is scaling up to a 15 member convertible securities team which is expected to be originating and trading in the third quarter of 2008.

Mr. Lloyd served as Senior Managing Director, Global Head of Convertible Trading at Bear Stearns from 2002 to 2008 and had responsibility for all primary and secondary capital commitment. Mr. Lloyd has over twenty years of experience in equity and convertibles trading having held senior positions at Bear Stearns in New York and London after starting his career in convertibles at Morgan Grenfell in London.

Mr. Rosica, a twenty year Wall Street veteran, most recently served as Senior Managing Director, Global Head of Equity-Linked Capital Markets at Bear Stearns. His previous positions include Senior Vice President responsible for Convertible Origination at Lehman Brothers, Director and Head of Corporate Fixed Income Derivative Origination in Debt Capital Markets at Deutsche Bank and Principal responsible for Corporate Derivative Origination at Bankers Trust Securities/BT Alex. Brown.

"FBR Capital Markets is committed to leveraging our balance sheet strength and market leading position in equity capital markets to extend our corporate finance franchise through relevant capabilities focused on our core middle market clients," said Rick Hendrix, President and Chief Operating Officer of FBR Capital Markets. "We are confident that adding this talented team and building a creative, client-focused business will enhance customer relationships and provide an important new revenue source for our firm. Michael and Paul are consummate professionals and bring great leadership skills in addition to their distinguished capital markets track records."

Paul Rosica offered, "FBR Capital Markets is a dynamic organization with a strong position in equity capital markets. With the combination of their existing client base and our experience in originating and trading of convertible securities, Michael and I believe we have a unique opportunity to build a market leading equity-linked franchise."

FBR Capital Markets Corporation, a majority-owned subsidiary of Friedman, Billings, Ramsey Group, Inc., provides investment banking*, merger and acquisition advisory services*, institutional brokerage*, research*, and asset management and private wealth services. FBR Capital Markets focuses capital and financial expertise on eight industry sectors: consumer, diversified industrials, energy & natural resources, financial institutions, healthcare, insurance, real estate, and technology, media & telecom. FBR Capital Markets is headquartered in the Washington, D.C. metropolitan area with offices in Arlington, VA; Boston; Dallas; Houston; Irvine; London, England; New York; San Francisco; and Sydney, Australia. For more information, please visit http://www.fbrcapitalmarkets.com.

*Friedman, Billings, Ramsey & Co., Inc.