Merriman Curhan Ford Announces Financial Results for Second Quarter Ended June 30, 2008

SAN FRANCISCO--(BUSINESS WIRE)--Merriman Curhan Ford Group, Inc. (NASDAQ:MERR) today released earnings for the second quarter 2008.

Second Quarter Financial Highlights

• Total revenue was $15.8 million, a 22% decrease from second quarter 2007 and a 34% increase from the first quarter of 2008

								--	Commissions revenue was $7.9 million, a 2% increase over second quarter 2007
								--	Investment banking revenue was $4.4 million, a 21% decrease from second quarter 2007
								--	Combined recurring revenue from Institutional Cash Distributors (ICD) and Panel Intelligence, LLC was $3.8 million, a 45% increase year-over-year
								--	Principal transaction revenues were $1.4 million, a 75% decrease compared with second quarter 2007

• Total recurring revenue(a) was 26% of total revenue, compared to 14% in the second quarter 2007
• Net loss for the quarter was $5.1 million, or $0.41 per diluted share, compared with a net income of $2.3 million for the second quarter 2007, or $0.18 per diluted share
• 20% of net loss in the second quarter 2008 was non-cash
• Financial condition:

								--	Total assets were $41.9 million, compared with $44.7 million as of second quarter 2007
								--	Cash and marketable securities were $26.2 million at the end of second quarter 2008

(a) Total recurring revenue includes revenues from Panel Intelligence, LLC; MCF Asset Management, LLC; Institutional Cash Distributors (ICD); OTCQX Advisory Group; and Capital Access Group.

Other Second Quarter Highlights

Peter Coleman was hired as chief financial officer effective June 2, 2008, replacing John Hiestand, who left the firm to become chief financial officer at Merlin Securities. Coleman received an option grant of 50,000 shares of Merriman Curhan Ford stock (MERR) under the 2004 Non-Qualified Plan. Coleman was most recently with ThinkPanmure (formerly ThinkEquity Partners), where he served as COO, CFO and was a member of the board of directors.

“We faced two major challenges this quarter: harsh market conditions, combined with an SEC investigation and civil lawsuits that began with the actions of a former retail broker,” said Peter Coleman, chief financial officer of Merriman Curhan Ford. “Despite this, our balance sheet remains strong. We’ve made difficult but necessary headcount reductions to respond to the current markets, and I have instituted a number of strict cost containment measures to better manage our variable expenses. As the firm continues through these difficult markets, we will constantly examine our cost structure and make modifications as necessary to maintain our financial flexibility as we grow our differentiated services.”

Jon Merriman, chief executive officer of Merriman Curhan Ford added: “The first half of 2008 was one of the most difficult market environments I’ve seen in the past 20 years. We can’t control the market, but we can focus our team, resources and operations on areas that will allow us to benefit from the ongoing volatility. For example, we are further integrating our thought-leading research into various recurring revenue business lines. We are also broadening our geographic focus beyond the United States through our OTCQX Advisory Group. Despite the tough markets, we’re making progress in positioning ourselves for a return to consistent profitability.”

Conference Call for the Second Quarter 2008 Results

In conjunction with this announcement, Merriman Curhan Ford will host a discussion of the Company’s second quarter 2008 results with investors and financial analysts on Tuesday, August 12, 2008 at 8:00 AM (PT) / 11:00 AM (ET). Interested listeners and participants may access the live conference call by dialing (800) 218-0713 or may access the live Web broadcast at the company’s Website, www.mcfco.com. An archived version of the discussion will be available on the company’s Website following the conclusion of the live conference call.

About Merriman Curhan Ford

Merriman Curhan Ford (NASDAQ:MERR) is a financial services firm focused on fast-growing companies and the institutions who invest in them. The company offers high-quality investment banking, equity research, institutional services, primary market research, asset management and corporate & venture services, and specializes in four growth industry sectors: CleanTech, Consumer/Internet/Media, Health Care and Tech/Telecom. For more information, please go to www.mcfco.com.

Note to Investors

This press release contains certain forward-looking statements based on our current expectations, forecasts and assumptions that involve risks and uncertainties. Forward-looking statements in this release are based on information available to us as of the date hereof. Our actual results may differ materially from those stated or implied in such forward-looking statements, due to risks and uncertainties associated with our business, which include the risk factors disclosed in our Form 10-Q filed on August 11, 2008. Forward-looking statements include statements regarding our expectations, beliefs, intentions or strategies regarding the future and can be identified by forward-looking words such as "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "should," "will," and "would" or similar words. We assume no obligation to update the information included in this press release, whether as a result of new information, future events or otherwise. The Form 10-Q filed on August 11, 2008, together with this press release and the financial information contained herein, is available on our website by going to www.mcfco.com and clicking on "Investor Relations."

MERRIMAN CURHAN FORD GROUP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
		Three Months Ended								Six Months Ended
		June 30, 2008				June 30, 2007				June 30, 2008				June 30, 2007
Revenue:
Commissions		$	7,892,372			$	7,717,573			$	16,361,082			$	14,883,280
Principal transactions			1,418,829				5,712,652				103,753				8,325,776
Investment banking			4,446,995				5,631,556				7,823,406				9,864,027
Primary research			1,498,144				951,062				3,039,938				951,062
Advisory and other fees			543,134				359,506				239,600				671,348
Total revenue			15,799,474				20,372,349				27,567,779				34,695,493
Operating expenses:
Compensation and benefits			12,102,568				12,767,087				25,273,210				23,577,374
Brokerage and clearing fees			709,183				662,056				1,484,484				1,294,697
Cost of primary research services			609,129				395,218				1,194,293				395,218
Professional services			2,475,016				703,640				3,302,501				1,085,118
Occupancy and equipment			689,428				453,061				1,226,610				895,589
Communications and technology			1,010,869				884,010				1,950,847				1,696,946
Depreciation and amortization			162,946				182,027				306,170				363,048
Amortization of intangible assets			116,536				220,643				233,071				220,643
Travel and entertainment			1,012,210				685,416				1,971,804				1,154,618
Other			1,278,377				1,124,415				2,117,247				1,716,359
Impairment of goodwill and intangible assets			2,601,516				─				2,601,516				─
Total operating expenses			22,767,778				18,077,573				41,661,753				32,399,610
Operating (loss) income			(6,968,304	)			2,294,776				(14,093,974	)			2,295,883
Interest income			34,016				107,461				130,420				229,954
Interest expense			(18,301	)			(26,864	)			(39,008	)			(81,208	)
(Loss)/income before taxes			(6,952,589	)			2,375,373				(14,002,562	)			2,444,629
Income tax (expense) benefit			1,838,744				(55,000	)			1,838,744				(55,000	)
Net (loss) income		$	(5,113,845	)		$	2,320,373			$	(12,163,818	)		$	2,389,629
Basic net (loss) income per share:
Net (loss) income		$	(0.41	)		$	0.20			$	(0.98	)		$	0.22
Diluted net (loss) income per share:
Net (loss) income		$	(0.41	)		$	0.18			$	(0.98	)		$	0.20
Weighted average common shares outstanding:
Basic			12,562,120				11,657,775				12,425,851				11,000,702
Diluted			12,562,120				12,856,306				12,425,851				12,208,965

MERRIMAN CURHAN FORD GROUP, INC. CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (unaudited)
	June 30, 2008				December 31, 2007
ASSETS
Cash and cash equivalents	$	10,420,371			$	31,962,201
Securities owned:
Marketable, at fair value		15,791,255				14,115,022
Not readily marketable, at estimated fair value		2,047,169				2,250,668
Other		1,711,270				2,254,120
Restricted cash		1,130,563				689,157
Due from clearing broker		1,234,423				1,251,446
Accounts receivable, net		3,166,425				4,008,729
Prepaid expenses and other assets		2,021,182				1,716,814
Equipment and fixtures, net		1,937,724				1,245,692
Intangible assets		1,323,963				1,949,815
Goodwill		1,129,281				3,129,667
Total assets	$	41,913,626			$	64,573,331
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable	$	1,873,241			$	957,969
Commissions and bonus payable		6,646,912				17,517,032
Accrued expenses		5,630,368				6,351,598
Due to clearing and other brokers		15,731				6,865
Securities sold, not yet purchased		1,512,896				3,804,558
Capital lease obligation		1,411,989				890,272
Convertible notes payable, net		─				197,416
Notes payable		─				41,573
Total liabilities		17,091,137				29,767,283
Commitments and contingencies
Stockholders' equity:
Preferred stock, Series A--$0.0001 par value; 2,000,000 shares authorized; 0 shares issued and outstanding as of June 30, 2008 and December 31, 2007, respectively; aggregate liquidation preference of $0		─				─
Preferred stock, Series B--$0.0001 par value; 12,500,000 shares authorized; 1,250,000 shares issued and 0 shares outstanding as of June 30, 2008 and December 31, 2007; aggregate liquidation preference of $0		─				─
Preferred stock, Series C--$0.0001 par value; 14,200,000 shares authorized; 1,685,714 shares issued and 0 shares outstanding as of June 30, 2008 and December 31, 2007; aggregate liquidation preference of $0		─				─
Common stock, $0.0001 par value; 300,000,000 shares authorized; 12,772,563 and 12,310,886 shares issued and 12,746,125 and 12,284,448 shares outstanding as of June 30, 2008 and December 31, 2007, respectively		1,278				1,232
Additional paid-in capital		126,190,496				124,010,283
Treasury stock		(125,613	)			(125,613	)
Accumulated deficit		(101,243,672	)			(89,079,854	)
Total stockholders' equity		24,822,489				34,806,048
Total liabilities and stockholders' equity	$	41,913,626			$	64,573,331