Penson Worldwide Says Market Activity Related to Non Accrual Receivables

Penson Worldwide, Inc. PNSN today said it believes that the recent declines in its stock price appear to be related to its recent Form 10-Q disclosure of a concentrated collateral position associated with Retama Development Corporation related receivables. The Company currently expects to resolve this situation without a loss, but even if a loss were realized, Penson said it would have no impact on the Company's solid regulatory capital or sound financial condition. As reported in the Company's Form 10-Q, as filed with the Securities and Exchange Commission on May 9, 2011, Penson has approximately $42.6 million in non accruing receivables collateralized by securities related to the Retama Development Authority, which have declined in liquidity. The $42.6 million of receivables represent only 0.49% of Penson's $8.7 billion in average daily customer balances during the first quarter of 2011. Penson regularly reviews the value of the collateral, including a recent third party appraisal of the real estate underlying the Retama facility. As of the end of March, Penson operating companies had more than $100 million in excess regulatory capital, which already reflects the deduction of these illiquid receivables. Penson companies also held more than $5.8 billion in cash or cash equivalents at the end of the March quarter.