Rodman Announces Private Placement Financing of Convertible Debt and Warrants

Rodman & Renshaw Capital Group, Inc. RODM today announced that it has entered into definitive agreements to sell $6.65 million of 10% Convertible Secured Debentures due 2013, provided an investment banking outlook for the fourth quarter of 2011 and the first quarter of 2012, disclosed certain cost reductions and released financial results for the nine months and third quarter ended September 30, 2011. Edward Rubin, Rodman & Renshaw's CEO said, “The third quarter was a very difficult period in our industry. With many geopolitical and economic uncertainties out there, it is difficult to time a market recovery or predict its sustainability. However, we are confident that the market for financings for growth public companies will recover because these companies need capital to grow and many investors are on the sidelines with significant capital to invest. We continue to have a robust pipeline of potential deals and when markets begin to normalize we should be well positioned to monetize the resulting deal flow, as we did in the second quarter of 2009 following that market downturn. Accordingly, our key objective is to assure that Rodman has the capability to take advantage of the market recovery in our business when it occurs. The financing that we announced this morning will help us to achieve this goal. We believe that this additional capital, together with the cost-cutting measures that we implemented during the last four months, will assist us through this period of market turbulence and enhance our ability to position the firm to monetize our pipeline of potential deals and improve our performance as we head into 2012.”