Paulson Capital Corp. Reports 2008 Year-End Results

PORTLAND, OR, Mar 30 (MARKET WIRE) --
Paulson Capital Corp. (NASDAQ: PLCC), parent company to Paulson
Investment Company, Inc., today announced a net loss of $17.1 million (or
($2.86) per share) for the year ended December 31, 2008, versus a net
profit of $4.8 million (or $0.78 per share) for the same period in 2007.
Revenues declined to a negative $8 million versus positive revenues of
$30 million in 2007.

Chester L.F. Paulson, Chairman, stated:

"2008 was indeed a difficult and challenging year. As of December 31,
2008, we had $5.3 million in cash and receivables from our clearing firm,
net of payable to our clearing firm, and approximately $21.1 million in
total shareholders' equity. In addition, we had $6.5 million in taxes
receivable at year end. We received $0.7 million of the taxes receivable
during the first quarter of 2009 and expect to receive approximately $5.6
million in the second quarter of 2009. Like many other companies, we have
taken the necessary steps to cut G&A. We are hopeful for a recovery in
the overall marketplace in the third or fourth quarter."

This release may contain "forward-looking statements" based on current
expectations but involving known and unknown risks and uncertainties.
Actual results of achievements may be materially different from those
expressed or implied. The Company's plan and objectives are based on
judgments with respect to future conditions in the securities markets as
well as general assumptions regarding the economy and competitive
environment in the securities industry, which can be volatile and out of
our control. In particular, we make assumptions about our ability to
complete corporate finance transactions and increase the volume and size
of our securities operations, which are difficult or impossible to predict
accurately and often beyond the control of the Company. Therefore, there
can be no assurance that any forward-looking statement will prove to be
accurate.

Contact:
Chester L.F. Paulson
Chairman
503-243-6000

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