Detwiler, Mitchell & Co. Announces Results for the Second Quarter of 2004 BOSTON, Aug. 11 /PRNewswire-FirstCall/ -- Detwiler, Mitchell & Co. (OTC Pink Sheets: DMCD) reported net loss for the three months ended June 30, 2004 of $6,000 or $0.00 per share basic and diluted on 3,174,000 basic and 3,568,000 diluted weighted average shares outstanding. Had contingent deferred bonuses of $206,000 for the quarter ending June 30, 2004 been recorded, income before income taxes of $13,000 would have been reported as a loss before income taxes of $193,000. Net loss for the three-months ended June 30, 2003 was $126,000 or $0.04 per share basic and $0.03 per share diluted on 3,202,000 basic and 3,665,000 diluted weighted average shares outstanding. Total revenues of $3,213,000 for the three months ended June 30, 2004 increased $61,000 or 2% compared to total revenues of $3,151,000 for the same period in 2003. Net income for the six months ended June 30, 2004 was $214,000 or $0.07 per share basic and $0.06 per share diluted on 3,188,000 basic and 3,596,000 diluted weighted average shares outstanding. Had contingent deferred bonuses of $424,000 for the six month period ending June 30, 2004 been recorded, income before income taxes of $379,000 would have been reported as a loss before income taxes of $45,000. Net loss for the six-month period ended June 30, 2003 was $560,000 or $0.18 per share basic and $0.16 per share diluted on 3,187,000 basic and 3,602,000 diluted weighted average shares outstanding. Total revenues of $7,029,000 for the six months ended June 30, 2004 increased $1,524,000 or 28% compared to total revenues of $5,505,000 for the same period in 2003. The increase primarily results from greater institutional and private client commission revenues from more and larger customers. Stockholders' equity of $2,672,000 does not give effect to the unrecorded contingent deferred bonuses payable of $1,481,000 as of June 30, 2004. Detwiler, Mitchell & Co. ("DMC") is the holding company for its three principal operating subsidiaries: Detwiler, Mitchell, Fenton & Graves, Inc., a channel research, institutional sales and private client group broker/dealer headquartered in Boston, MA; James Mitchell & Co., a financial services company headquartered in San Diego, CA and Detwiler, Mitchell & Co. (UK) Limited, an institutional sales firm headquartered in London, England. For more information on DMC, please go to our website at http://www.dmcos.com/. Cautionary Statement Regarding Forward-Looking Statements: Certain statements in this news release may contain forward-looking statements within the meaning of the Federal securities laws. Such statements should be considered in light of the risks and uncertainties associated with Detwiler, Mitchell & Co. and its operating subsidiaries, including those economic and market risks contained in the Company's Annual and Quarterly Reports and other risks prevailing from time to time; all of which are subject to material changes and may cause actual results to vary materially from what had been anticipated. DETWILER, MITCHELL & CO. CONSOLIDATED STATEMENT OF FINANCIAL CONDITION June 30, December 31, 2004 2003 (unaudited) ASSETS Cash and cash equivalents $3,273,365 $2,084,114 Deposit with clearing organization 250,000 250,000 Security deposits 15,394 199,709 Commissions and other receivables 797,198 781,752 Non-marketable investments, at fair value 19,500 37,000 Fixed assets, net 336,085 356,487 Prepaid expenses and other 137,516 257,852 Goodwill 117,385 117,385 Total Assets $4,946,443 $4,084,299 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities: Salaries, bonuses and commissions payable $1,734,165 $1,208,654 Accounts payable and accrued liabilities 374,858 341,766 Income taxes payable 165,413 -- Total Liabilities 2,274,436 1,550,420 Contingencies - principally unrecorded contingent deferred bonuses and lease obligations Stockholders' Equity: Preferred stock, no par value; 5,000,000 shares authorized, none issued -- -- Common stock, $0.01 par value; 20,000,000 shares authorized, 3,141,836 shares and 3,202,356 shares outstanding at June 30, 2004 and December 31, 2003, respectively 31,418 32,023 Paid-in-capital 5,337,242 5,412,287 Retained deficit (2,696,653) (2,910,431) Total Stockholders' Equity 2,672,007 2,533,879 Total Liabilities and Stockholders' Equity $4,946,443 $4,084,299 DETWILER, MITCHELL & CO. CONSOLIDATED STATEMENT OF OPERATIONS For the Three Months For the Six Months Ended June 30, Ended June 30, 2004 2003 2004 2003 (unaudited) Revenues Commissions $3,140,193 $3,044,246 $6,844,024 $5,325,434 Interest and fees 72,472 82,247 158,069 154,471 Unrealized gain on non-marketable investments -- 25,000 27,247 25,000 Total revenues 3,212,665 3,151,493 7,029,340 5,504,905 Expenses Compensation and benefits - exclusive of contingent deferred bonuses 2,101,707 1,870,891 4,325,050 3,431,576 General and administrative 517,232 431,525 1,078,398 969,257 Occupancy, communications and systems 332,875 329,312 698,077 726,060 Execution costs 247,721 213,960 531,174 385,206 Impairment of non-marketable investments -- -- 17,500 -- Loss on transfer of lease and disposal of fixed assets -- 385,329 -- 385,329 Total expenses 3,199,535 3,231,017 6,650,199 5,897,428 Income (loss) before income taxes 13,130 (79,524) 379,141 (392,523) Income tax expense (18,959) (46,848) (165,363) (167,141) Net income (loss) $(5,829) $(126,372) $213,778 $(559,664) Income (Loss) Per Share: Basic $(0.00) $(0.04) $0.07 $(0.18) Diluted $(0.00) $(0.03) $0.06 $(0.16) Weighted Average Shares Outstanding: Basic 3,173,759 3,202,356 3,188,057 3,186,800 Diluted 3,567,865 3,665,108 3,595,642 3,602,478 DATASOURCE: Detwiler, Mitchell & Co. CONTACT: James Mitchell, Chairman and CEO, +1-617-747-0180, or Stephen Martino, CFO, +1-617-747-0154, both of Detwiler, Mitchell & Co. Web site: http://www.dmcos.com/

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