Stifel Financial Corp. Announces Agreement to Acquire Stone & Youngberg

ST. LOUIS, MO, Jul 25 (MARKET WIRE) --
Stifel Financial Corp. (NYSE: SF) today announced it has entered into a
definitive agreement to acquire Stone & Youngberg LLC ("Stone &
Youngberg"), a leading financial services firm specializing in municipal
finance and fixed income securities. Stone & Youngberg's comprehensive
institutional group expands Stifel's public finance, institutional sales
and trading and bond underwriting, particularly in the Arizona and
California markets, and adds more than 30 financial advisors in four
offices to the firm's Private Client Group.

On a combined basis, Stifel and Stone & Youngberg will have approximately
100 public finance professionals serving issuers from 16 locations across
the country. In 2010, the combined firms senior managed more than 500
negotiated municipal bond issues raising more than $8.5 billion and
co-managed an additional 301 transactions. Stifel with Stone & Youngberg
will be one of the few investment banks in the country providing issuers
the full scope of sales and underwriting resources, including a large
national institutional fixed income sales force and a national private
client business. In 2010, Stone & Youngberg's total revenues were
approximately $100 million. Based on achieving identified synergies, this
transaction is expected to be accretive to Stifel's earnings.

"We are pleased to announce the strategic acquisition of a premier public
finance and fixed income investment bank. Stone & Youngberg fits very
well with our overall strategy of creating the premier middle-market
investment bank with the services and scale to meet our clients' growing
needs," said Ronald J. Kruszewski, Chairman, President, and Chief
Executive Officer of Stifel Financial. "We are excited to partner with
the talented professionals at Stone & Youngberg and look forward to
working together to grow our businesses."

Kenneth E. Williams, President and Chief Executive Officer of Stone &
Youngberg added, "We are very excited about the tremendous opportunities
we see to enhance our core businesses through our combined efforts. Our
public finance clients will enjoy the benefits of greater sales
distribution due to the size and strength of the Stifel private client
group, along with a substantial balance sheet, while our investor clients
will benefit from a stronger and more robust platform of investment
opportunities to help them meet their financial goals. On a personal
note, my partners and I are excited to join the Stifel team."

The Board of Directors of both Stifel Financial and Stone & Youngberg
have approved the acquisition, the terms of which are undisclosed. Stifel
intends to utilize the Stone & Youngberg brand in the markets they
currently serve. The transaction is targeted to close on October 1, 2011,
subject to customary regulatory approvals.

About Stifel Financial Corp.
Stifel Financial Corp. (NYSE: SF) is a
financial services holding company headquartered in St. Louis, Missouri
that conducts its banking, securities, and financial services business
through several wholly owned subsidiaries. Stifel clients are primarily
served in the U.S. through 312 offices in 44 states and the District of
Columbia through Stifel, Nicolaus & Company, Incorporated and Thomas
Weisel Partners LLC, and in Canada through Stifel Nicolaus Canada Inc.
Clients in the United Kingdom and Europe are served through offices of
Stifel Nicolaus Limited and Stifel Nicolaus Europe Limited (formerly
Thomas Weisel Partners International Limited). Each of the broker-dealer
affiliates provides securities brokerage, investment banking, trading,
investment advisory, and related financial services to individual
investors, professional money managers, businesses, and municipalities.
Stifel Bank & Trust offers a full range of consumer and commercial
lending solutions. To learn more about Stifel, please visit the company's
web site at www.stifel.com.

About Stone & Youngberg LLC
Stone & Youngberg LLC, founded in 1931 and
member FINRA/SIPC, specializes in the origination and sale of
fixed-income securities. The firm led or co-managed the sale of 927
municipal bond issues totaling $21 billion over the past five years. In
addition to bond underwriting and sales, Stone & Youngberg provides
investment services to individuals, institutions, and government agencies
and offers a wide variety of tax-exempt and taxable securities. For more
information, please see the firm's web site at www.syllc.com.

Financial and Legal Advisors
Stifel, Nicolaus & Company, Incorporated
served as financial advisor to Stifel Financial Corp., and Bryan Cave LP
served as legal advisor to the company. Berkshire Capital provided
strategic advice to Stone & Youngberg, and Farella Braun + Martel LLP
provided legal advice.

Cautionary Note Regarding Forward-Looking Statements
This press release
contains certain statements that may be deemed to be "forward-looking
statements" within the meaning of Section 27A of the Securities Act of
1933 and Section 21E of the Securities Exchange Act of 1934. All
statements in this report not dealing with historical results are
forward-looking and are based on various assumptions. The forward-looking
statements in this report are subject to risks and uncertainties that
could cause actual results to differ materially from those expressed in
or implied by the statements. The material factors and assumptions that
could cause actual results to differ materially from current expectations
include, without limitation, the following: the inability to complete the
transaction due to the failure to obtain requisite approvals of the
transaction, including required regulatory approvals; the failure of the
transaction to close for any other reason, or to close in a timely
manner; the effect of the announcement of the strategic acquisition on
the Company's or Stone & Youngberg's respective business relationships
and business generally; or the possibility that the anticipated benefits
of the strategic acquisition will not be realized, or will not be
realized within the expected time period. The Company does not undertake
to update forward-looking statements to reflect circumstances or events
that occur after the date the forward-looking statements are made. The
Company disclaims any intent or obligation to update these
forward-looking statements.

Stifel Investor Relations Contact
Sarah Anderson
(415) 364-2500
investorrelations@stifel.com

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