The firm reported a net loss of $14.4 million, or $0.44 per share, for the third quarter of 2009 compared with a net loss of $109.2 million, or $3.41 per share, for the third quarter of 2008. For the nine months ended September 30, 2009, the firm reported a net loss of $48.5 million, or $1.49 per share, compared with a net loss of $137.1 million, or $4.22 per share, for the nine months ended September 30, 2008. The results for the three and nine months of 2008 include a non-cash goodwill impairment charge of $92.6 million or $2.89 per share and $2.84 per share, respectively.

Total net revenues decreased 11% to $43.6 million for the third quarter of 2009 versus $49.0 million for the third quarter of 2008. For the nine months ended September 30, 2009, total net revenues were $134.9 million, a decline of 15% compared with $158.0 million for the nine months ended September 30, 2008.

Adjusting for the non-cash amortization of intangible assets acquired in the purchase of Westwind Partners, the firm reported a non-GAAP net loss of $12.8 million, or $0.39 per share, for the third quarter of 2009 and a non-GAAP net loss of $43.4 million, or $1.34 per share, for the nine months ended September 30, 2009. A reconciliation of GAAP results to these non-GAAP measures is discussed below under "Non-GAAP Financial Measures."

"We are encouraged by the sequential growth in investment banking revenues and by the continued level of activity across every growth vertical in which we operate. We believe that companies with strong fundamentals, particularly those in the technology and resource sectors, will lead us out of this cycle," said Thomas W. Weisel, Chairman and CEO of Thomas Weisel Partners. "A main focus of ours has been on reducing our operating cost structure while maintaining the scale, breadth and depth of our platform in order to be an impact player as the capital markets activity returns."

Business Overview

--  Investment Banking Revenues.  Investment banking revenues were $15.6
    million in the third quarter of 2009 compared with $17.5 million in the
    third quarter of 2008 and $14.3 million in the second quarter of 2009, a
    decrease of 11% and an increase of 9%, respectively.  Total transactions
    for the third quarter of 2009 were 23 compared with 13 in the year-ago
    quarter and 28 in the second quarter of 2009.  The increase in revenues
    from the second quarter of 2009 was primarily attributable to strength in
    equity capital raising activity, particularly in Canada.
    
--  Brokerage Revenues.  Brokerage revenues were $24.3 million in the
    third quarter of 2009 compared with $33.7 million in the third quarter of
    2008 and $27.7 million in the second quarter of 2009, a 28% and 13%
    decrease, respectively.  Results in the third quarter of 2009 decreased
    from the second quarter of 2009 mainly due to a decrease in U.S. equity
    commissions, which were impacted by lower market volumes, coupled with a
    decline in revenues from Electronic and Block Trading.
    
--  Asset Management Revenues.  Asset management revenues were $3.9
    million in the third quarter of 2009 compared with net losses of $2.3
    million in the third quarter of 2008 and revenues of $6.4 million in the
    second quarter of 2009.  Asset management revenues consisted of management
    fees of $3.8 million, net realized and unrealized gains in warrants and
    other securities of $0.2 million and net realized and unrealized private
    equity losses of $65 thousand.  Assets under management were $1.4 billion
    as of September 30, 2009.
    
--  Compensation and Benefits Expenses.  Compensation and benefits
    expenses were $27.3 million in the third quarter of 2009 compared with
    $36.9 million in the third quarter of 2008 and $30.1 million in the second
    quarter of 2009, a 26% and 9% decrease, respectively.
    
    The non-GAAP compensation ratio, which is defined in note (1) below,
    decreased to 63% in the third quarter of 2009 compared with the non-
    GAAP ratio of 68% in the year-ago period and increased slightly from
    the second quarter of 2009.  A reconciliation of GAAP results to these
    non-GAAP measures is discussed below under "Non-GAAP Financial
    Measures."
    
--  Non-compensation Expenses.  Non-compensation expenses were $30.3
    million in the third quarter of 2009, which included a non-cash facilities
    charge of $2.6 million or $0.08 per share as result of further downsizing
    the firm's real estate footprint in San Francisco.  This compares with non-
    compensation expenses of $39.1 million in the third quarter of 2008,
    excluding the goodwill impairment charge, and $29.1 million in the second
    quarter of 2009.  Excluding the facilities charge, non-compensation
    expenses would have totaled $27.7 million, a decrease of 29% from the year-
    ago quarter, excluding the goodwill impairment, and a decrease of 5% from
    the second quarter of 2009.
    
--  Provision for Taxes.  The firm recorded a tax expense of $0.3 million
    or a negative 2.4% effective tax rate in the third quarter of 2009.  As of
    December 31, 2008, the firm recorded a full valuation allowance on its U.S.
    and U.K. deferred tax assets and, therefore, did not recognize a tax
    benefit on its net loss in these tax jurisdictions.   The third quarter tax
    expense related entirely to taxable income attributable to the firm's
    Canadian operations.
    
--  Capital.  As of September 30, 2009, the firm's cash and cash
    equivalents were $66.3 million, shareholders' equity and book value per
    share were $140.3 million and $4.43, respectively, and tangible
    shareholders' equity and tangible book value per share were $122.9 million
    and $3.88, respectively.
    
    The firm is planning to file a universal shelf registration statement
    on Form S-3 with the Securities and Exchange Commission to register up
    to $100 million in securities.  The firm has no immediate plans to
    raise capital under the shelf registration statement.  The shelf
    registration statement will provide the firm with the flexibility to
    raise capital or to take advantage of growth opportunities as they
    occur.
    
    It is the firm's intention to file the shelf registration statement as
    soon as practicable, but there can be no assurance that the firm will
    actually make such a filing or that the SEC will declare the
    registration statement effective.  The firm's intention to file a shelf
    registration statement is a forward-looking statement as defined by the
    "safe harbor" provisions of the Private Securities Litigation Reform
    Act of 1995.  A number of factors may occur that would cause actual
    results to differ materially from the forward-looking statements
    contained herein.  The statements above shall not constitute an offer
    to sell or the solicitation of an offer to buy any securities.
    
--  New Board Member.  The firm was pleased to announce that Robert E.
    Grady joined the Board of Directors in September 2009.  Mr. Grady's venture
    capital experience developed at both Carlyle and as Chairman of the
    National Venture Capital Association, as well as his extensive capital
    markets and M&A expertise, will be important as the firm continues to
    refine its strategy for future growth.  With Mr. Grady's addition, the
    firm's Board of Directors increased to eight members, including seven
    independent directors.
    
    Additionally, the firm established the position of Lead Director to the
    Board, appointing Matthew R. Barger in this capacity.  Mr. Barger is
    currently a Senior Advisor to Hellman & Friedman, a private equity
    firm, where he spent more than 20 years holding positions including
    Chairman of the Investment Committee and Managing General Partner.  Mr.
    Barger is a Director of a number of investment advisory firms,
    including Hall Capital Partners.
    
--  Strategic New Hires.  Over the course of the third quarter, Matthew
    Allard joined the firm as a Managing Director in Investment Banking focused
    on financial sponsors, Hank Lammens joined the firm as a Managing Director
    in Trading and Kevin Travis joined the firm as a Director in Trading
    focused on the middle markets.
    
    The firm is also pleased to announce that Abi Subramanian will join the
    firm as a Managing Director in Capital Markets focused on private
    capital.  Mr. Subramanian brings detailed industry knowledge in all
    aspects of the emerging growth economy with respect to private
    placements for leading private and public companies.  Mr. Subramanian
    was previously a senior banker at Jefferies and Cowen and brings deep
    client relationships across venture capital, private equity and
    corporate clients developed over 15 years of investment banking
    experience.
    

THOMAS WEISEL PARTNERS GROUP, INC.