FBR Small Cap Fund to Reopen to New Investors on January 2, 2007
PRNewswire - First Call
Arlington, Virginia

ARLINGTON, Va., Nov. 28 /PRNewswire-FirstCall/ -- FBR Funds President and Chief Investment Officer David Ellison announced today that the FBR Small Cap Fund (FBRVX) (the "Fund"), rated five-stars by Morningstar, will reopen to all investors effective 9:30 a.m. EST on January 2, 2007.

The Overall Morningstar Rating is based on risk adjusted returns, derived from a weighted average of the three-, five-, and ten-year (if applicable) Morningstar metrics

The Fund was closed to new investors in October 2004 in order to manage the large cash position resulting from the inflow of new assets and the absence of attractive investment opportunities. The reopening reflects portfolio manager Chuck Akre's assessment of investment opportunities currently available in the market.

Managed by Akre since its inception in 1997, the Fund, under normal market conditions, invests in the securities of companies with capitalizations less than $3 billion, at the time of purchase. As of September 30, 2006, the Fund had $888 million in total assets.

Please contact Bryan C. Leibrand at 888.200.4710 or bleibrand@fbr.com with any questions.

                             About The FBR Funds

The FBR Funds offer investors seven no-load equity funds in addition to the FBR Small Cap Fund: FBR Pegasus Fund(TM) (FBRPX), FBR Large Cap Financial Fund (FBRFX), FBR Small Cap Financial Fund (FBRSX), FBR Gas Utility Index Fund (GASFX), FBR Large Cap Technology Fund (FBRTX), and FBR Small Cap Technology Fund (FBRCX). The distributor of The FBR Funds is FBR Investment Services Inc. (Member NASD/SIPC), a subsidiary of Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR).

Investors should consider the investment objectives, risks, charges and expenses carefully before investing. This and other important information about the investment company can be found in the prospectus. To obtain a free prospectus, please call 888.888.0025 or visit The FBR Funds website at http://www.fbrfunds.com.

Investing in small cap companies involves greater risks than investing in larger, more established companies.

Morningstar proprietary ratings reflect risk-adjusted performance as of 09/30/06. For each fund with at least a 3-yr history, Morningstar calculates a Morningstar Rating(TM) based on a Morningstar risk-adjusted return measure that accounts for variation in a fund's monthly performance placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. Each share class is counted as a fraction of one fund within this scale and rated separately, which may cause slight variations in distribution percentage. The Fund received 5 stars for the 3 and 5-yrs ended 09/30/06 among 658 and 518 small growth funds respectively. Morningstar, Inc. All Rights Reserved.

                 About Friedman, Billings, Ramsey Group, Inc.

Friedman, Billings, Ramsey Group, Inc. provides investment banking*, institutional brokerage*, asset management, and private wealth services through its operating subsidiaries and invests in mortgage-related assets and merchant banking opportunities. FBR focuses capital and financial expertise on eight industry sectors: consumer, diversified industrials, energy and natural resources, financial institutions, healthcare, insurance, real estate, and technology, media and telecommunications. FBR is headquartered in the Washington, D.C. metropolitan area with offices in Arlington, Va., Boston, Dallas, Houston, Irvine, London, New York, Phoenix and San Francisco. Friedman, Billings, Ramsey Group, Inc. is the parent company of First NLC Financial Services, Inc., a non-conforming residential mortgage originator headquartered in Deerfield Beach, Florida. For more information, see http://www.fbr.com.

Media contact: Tucker Hewes, Hewes Communications, Inc., (212)207-9451, tucker@hewescomm.com

SOURCE  Friedman, Billings, Ramsey Group, Inc.
    -0-                             11/28/2006

For further information: Tucker Hewes, Hewes Communications, Inc., +1-212-207-9451, tucker@hewescomm.com / /Web site: http://www.fbr.com http://www.fbrfunds.com / (FBR) CO: Friedman, Billings, Ramsey Group, Inc. ST: Virginia IN: FIN SU: CM -- NYTU116 -- 7167 11/28/2006 08:45 EST http://www.prnewswire.com