Friedman, Billings, Ramsey Announces Acquisition of First NLC

ARLINGTON, VA – Friedman, Billings, Ramsey Group, Inc. today announced that it has signed a Definitive Agreement to acquire 100% of the equity interests of First NLC Financial Services, LLC, an affiliate of Sun Capital Partners, and a leading non- conforming mortgage originator. FBR will purchase First NLC for $88 million in a combination of cash and stock, subject to closing adjustments, and expects to close the acquisition of First NLC during the First Quarter of 2005.

Headquartered in Deerfield Beach, Florida, First NLC is a rapidly growing non-conforming mortgage originator currently operating in 38 states. First NLC originates mortgages through both wholesale and retail channels, with a current origination run rate exceeding $4 billion annually. First NLC will become a part of FBR’s principal investment group but will be operated as a wholly owned subsidiary and will continue to be managed by its current executive team.