Announces Second Quarter Results for Fiscal 2002

RED BANK, N.J., August 16, 2002--First Montauk Financial Corp. (OTC/BB:FMFK), a nationwide provider of investment services through independent financial professionals, today announced results for the second quarter ended June 30, 2002.

Revenues for the second quarter of 2002 decreased 12%, to $12,877,000, compared to $14,608,000 for the same period in 2001. The Company reported a net loss of $998,000, or ($.12) per basic and diluted share for the 2002 three month period, compared to a net loss of $808,000, or ($.09) per basic and diluted share for the 2001 three month period.

For the six months ended June 30, 2002, revenues decreased slightly to $25,625,000, compared to $26,321,000 during the same period in 2001. The Company reported a net loss for the 2002 period of $1,318,000, or ($.15) per basic and diluted share, compared to a net loss of $1,451,000, or ($.17) per basic and diluted share for the 2001 period.

Herb Kurinsky, President and CEO of Montauk Financial Group, commented, "The grim performance of the stock market in recent months negatively impacted our revenues for the quarter. The continued volatility in the markets, coupled with a lack of investor confidence, has made this a difficult time for our industry and our company. Also contributing to the net loss was approximately $600,000 reserved for legal settlements that might arise in the future as well as current legal costs."

"Management continues to streamline the infrastructure and closely monitor costs and efficiencies of operation to weather the storm. Montauk also continues to recruit established financial professionals who recognize the value of being independent," Mr. Kurinsky added.

Montauk Financial Group is a service mark of First Montauk Securities Corp., Member NASD/SIPC. First Montauk Financial Corp. is the parent company of First Montauk Securities Corp., a registered securities broker/dealer headquartered in Red Bank, NJ, with approximately 50,000 retail and institutional accounts. The Company's ability to offer quality support services, in-house and third party research advanced networked information systems and a competitive commission payout structure has attracted approximately 550 independent, professional registered representatives across the country.

Statements contained in this news release regarding expected financial results of the Company and First Montauk Securities Corp., and other planned events are forward-looking statements, subject to uncertainties and risks, many of which are beyond the Company's control, including, but not limited to, market conditions, interest rate and currency fluctuations, dependence on key personnel, each of which may be impacted, among other things, by economic, competitive or regulatory conditions. These and other applicable risks are summarized under the caption "Factors Affecting Forward Looking Statements" in the Company's Form 10-Q for the second quarter ended June 30, 2002 as filed with the Securities and Exchange Commission. Forward-looking statements by their nature involve substantial risks and uncertainties. As a result, actual results may differ materially depending on many factors, including those described above. The Company cautions that historical results are not necessarily indicative of the Company's future performance.

Announces First Quarter Results for Fiscal 2002

RED BANK, N.J., May 23, 2002--First Montauk Financial Corp. (OTC/BB:FMFK), a nationwide provider of investment services through independent financial professionals, today announced results for the first quarter ended March 31, 2002.

Revenues for the quarter rose 9% to $12,748,000 compared to $11,713,000 for the same period in 2001. The Company reported a net loss of $320,000, or ($.04) per basic and diluted share for the 2002 period compared to a net loss of $643,000, or ($.07) per basic and diluted share for the first quarter of fiscal 2001.

Herbert Kurinsky, President and CEO of Montauk Financial Group, commented, "We are pleased to report an increase in revenues over the comparative three month period in 2001 and a better than expected first quarter, despite the difficulties of the past year. Management is working diligently to maintain cost controls and improve our operating efficiencies. The addition of new affiliated financial professionals, coupled with an increase in revenues across all segments of our business has contributed to the more positive results for the quarter."

Montauk Financial Group is a service mark of First Montauk Securities Corp., Member NASD/SIPC. First Montauk Financial Corp. is the parent company of First Montauk Securities Corp., a registered securities broker/dealer headquartered in Red Bank, NJ, with approximately 50,000 retail and institutional accounts. The Company's ability to offer quality support services, in-house and third party research advanced networked information systems and a competitive commission payout structure has attracted approximately 500 independent, professional registered representatives across the country.

Statements contained in this news release regarding expected financial results of the Company and First Montauk Securities Corp., and other planned events are forward-looking statements, subject to uncertainties and risks, many of which are beyond the Company's control, including, but not limited to, market conditions, interest rate and currency fluctuations, dependence on key personnel, each of which may be impacted, among other things, by economic, competitive or regulatory conditions. These and other applicable risks are summarized under the caption "Factors Affecting Forward Looking Statements" in the Company's Form 10-Q for the first quarter ended March 31, 2002 as filed with the Securities and Exchange Commission. Forward-looking statements by their nature involve substantial risks and uncertainties. As a result, actual results may differ materially depending on many factors, including those described above. The Company cautions that historical results are not necessarily indicative of the Company's future performance.