Penson Worldwide, Inc. Reports Results for Second Quarter Ended June 30, 2010

Penson Worldwide, Inc. (PNSN) today announced net revenues of $71.1 million and a net loss of $7.4 million, or ($0.29) per share, for the second quarter ended June 30, 2010. Results included $7.6 million in certain pre-tax expenses, which on a per share basis net of tax equaled ($0.26), consisting of: $2.8 million from investment banking, legal and other fees related to the June 25, 2010 acquisition of 95 correspondent clearing contracts from Ridge Clearing & Outsourcing Solutions, Inc., which made Penson the number two clearing firm based on correspondent count. $3.3 million in severance costs related to the recently signed eleven year outsourcing agreement with Broadridge Financial Solutions, Inc. (BR), and from severance as part of a more aggressive program to reduce Penson's overhead in line with the current low interest rate environment and market activity. The outsourcing-related severance (approximately $2.0 million) is expected to push annual savings from the new agreement to the high end of the previously announced $7-10 million range. The additional severance (approximately $1.3 million) is expected to result in annual savings of approximately $2 million, starting in the second half of 2010. $1.5 million in legal expenses to conclude certain outstanding litigation. Excluding the above expenses, operating results were affected by lower than expected trading volumes industry wide in June, approximately $1.3 million in lower net interest income from reduced spreads in the in-house and conduit securities lending businesses as compared to the first quarter 2010; and higher than anticipated client "on boarding" expenses in Australia. Results also were affected by approximately $1.0 million for two months of interest expense, without the benefit of offsetting revenues, on long-term debt that was raised as a capital contribution in anticipation of the acquisition of the Ridge contracts.