FBR Settles With CompuDyne
PRNewswire - First Call
Arlington, Virginia

ARLINGTON, Va., Nov. 21 /PRNewswire-FirstCall/ -- Friedman, Billings, Ramsey Group, Inc. (NYSE: FBR) today announced that it has reached a settlement with CompuDyne Corporation (Nasdaq: CDCY) and William Blair Mezzanine Capital Fund II L.P. ("William Blair"), related to the offering of a private investment in public equity ("PIPE") on behalf of CompuDyne in October 2001.

Under the terms of the settlement, FBR, without admitting liability or wrongdoing, has agreed to pay $4.5 million to CompuDyne and William Blair. This settlement amount includes all amounts that will be directed to be paid to CompuDyne pursuant to any settlement between FBR's broker-dealer subsidiary, Friedman, Billings, Ramsey & Co., Inc. and the Securities and Exchange Commission. The entire amount to be paid under this settlement was fully expensed as a settlement reserve by FBR as of September 30, 2006. The settlement acknowledges that both parties have expressed a desire to engage in future business dealings and recognize that resolving the outstanding issues will foster the ability to do so.

FBR stated, "We are pleased to have settled with CompuDyne and look forward to resuming a mutually beneficial business relationship in the future."

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.

*Friedman, Billings, Ramsey & Co., Inc.

Statements concerning future performance, developments, events, market forecasts, revenues, expenses, earnings, run rates and any other guidance on present or future periods, constitute forward-looking statements that are subject to a number of factors, risks and uncertainties that might cause actual results to differ materially from stated expectations or current circumstances. These factors include, but are not limited to, the effect of demand for public offerings, activity in the secondary securities markets, interest rates, costs of borrowing, interest spreads, mortgage pre-payment speeds, risks associated with merchant banking investments, the realization of gains and losses on principal investments, available technologies, competition for business and personnel, and general economic, political and market conditions. These and other risks are described in the Company's Annual Report and Form 10-K and quarterly reports on Form 10-Q that are available from the company and from the SEC.

SOURCE  Friedman, Billings, Ramsey Group, Inc.
    -0-                             11/21/2006

For further information: Investors: Paul Beattie, +1-703-312-9673, pbeattie@fbr.com, or Media: Lauren Burk, +1-703-469-1004, lburk@fbr.com, both of Friedman, Billings, Ramsey Group, Inc./ /Web site: http://www.fbr.com / (FBR CDCY) CO: Friedman, Billings, Ramsey Group, Inc.; FBR; CompuDyne Corporation; William Blair Mezzanine Capital Fund II L.P. ST: Virginia IN: FIN SU: LAW PT-MC -- DCTU051 -- 8520 11/21/2006 19:00 EST http://www.prnewswire.com