Davidson Companies Informs Clients of Network Intrusion Resulting in Illegal Access...

Davidson Companies Informs Clients of Network Intrusion Resulting in Illegal Access to Personal Data

GREAT FALLS, Mont.--(Business Wire)--Davidson Companies today announced that a database containing
certain personal information of its current and past clients may have
been unlawfully accessed by a third party through a sophisticated
network intrusion. Based on the company's review, there is no evidence
the unauthorized access enabled the third party to affect or alter
client accounts through company systems.

The company recently became aware of the intrusion and immediately
took its public Internet site offline. The company has contacted law
enforcement and its regulatory authorities, notified the three credit
reporting bureaus, and retained an information technology security and
forensic firm to review the incident and assist the company in its
response.

"Despite our efforts to safeguard client information, a computer
hacker using sophisticated techniques illegally accessed a database
and obtained access to confidential client information," said William
A. Johnstone, Davidson Companies president and chief executive
officer. "All of us at Davidson are acutely aware of the uncertainty,
stress and inconvenience associated with the potential compromise of
personal information. We are fully committed to helping our clients
deal with this unfortunate event as quickly as possible and are
adopting measures to further enhance our network security."

In a letter sent to clients, Johnstone wrote, "Because we are
concerned about the possible misuse of your personal information, we
are writing so that you may take steps to protect yourself from fraud
and identity theft." Johnstone said he encourages clients to read the
letter in full.

The letter includes a special number for Davidson's past and
present clients to call with questions related to the incident.
Current clients can call 1-800-909-6485, and former clients can call
1-800-736-6153, starting Wednesday morning. Additionally, the company
is offering those affected a one-year enrollment to Experian's Triple
Advantage three-bureau credit monitoring service at the Company's
expense to help them begin the process of regularly reviewing their
credit records for abnormalities. The letter recommends that clients:

-- Immediately report to their financial consultant any
unauthorized activity in their Davidson accounts.

-- Contact credit and bank card issuers to review recent card
charges and bank account transactions and should unauthorized
charges appear, contact card issuers immediately to request
that current accounts be closed and new cards be issued.

-- Consider placing fraud alerts on their credit files through
contacting one of the three principal credit reporting bureaus
(Equifax, Experian and TransUnion).

-- Review the identity theft materials posted for consumers on
the Federal Trade Commission's Web site,
www.consumer.gov/idtheft/ including the FTC's booklet, "Take
Charge: Fighting Back Against Identity Theft."

About Davidson Companies

Davidson Companies is an employee-owned financial services holding
company founded in 1935 and based in Montana. The company has more
than 930 employees who deliver financial products and services to
individual and institutional investors from offices in 16 states.
Within the Davidson Companies family are these firms: D.A. Davidson &
Co., a full-service investment firm; Davidson Investment Advisors, a
professional money management firm; Davidson Trust Co., a wealth
management and trust company; Davidson Fixed Income Management, a
registered investment adviser providing money management and other
fixed income services to mostly institutional clients; and Davidson
Travel, a full-service travel agency.

Davidson Companies \ D.A. Davidson & Co.
Jacquie Burchard, 406-791-7465
jburchard@dadco.com

Copyright Business Wire 2008