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FMFK News CORRECTING and REPLACING First Montauk Announces IPofA Affiliate Reconsiders Merger

RED BANK, N.J.--(BUSINESS WIRE)--The headline should read: First Montauk Announces IPofA Affiliate Reconsiders Merger (sted: First Montauk Announces IPofA Reconsiders Merger). Also, the first graph, first sentence should read: ...acquisition of the company by an affiliate of Investment Properties of America, LLC (IPofA) (sted: acquisition of the company by Investment Properties of America, LLC (IPofA)).

The corrected release reads:

FIRST MONTAUK ANNOUNCES IPofA AFFILIATE RECONSIDERS MERGER

First Montauk Financial Corp. (OTC/BB: FMFK), a nationwide provider of investment services through independent financial professionals, announced today a delay in the proposed acquisition of the company by an affiliate of Investment Properties of America, LLC (IPofA). The transaction was originally expected to close in the third quarter but the closing date was extended to December 31, 2006 to enable the parties to fulfill the conditions to the merger, including the completion of regulatory approval. IPofA subsequently sought, and was granted an extension to January 5, 2007, in which to provide additional information required to obtain regulatory approval. IPofA is also seeking additional time to perform further due diligence on First Montauk.

First Montauk has been informed by representatives of IPofA, that IPofA would not complete the proposed acquisition of First Montauk according to terms of the original agreement as approved by FMFC’s shareholders on August 17, 2006. The Board of Directors is considering its options with IPofA as well as all alternatives that may be in the best interests of the First Montauk’s shareholders, including remaining as an independent public company.

First Montauk Financial Corp. is the parent company of First Montauk Securities Corp., a registered securities broker/dealer headquartered in Red Bank, NJ. First Montauk conducts securities brokerage, insurance, investment banking and advisory business and has approximately 275 registered representatives and services over 50,000 retail and institutional accounts, which comprise over $3 billion in customer assets.

Investment Properties of America, LLC is a full-service, investment and management company grounded in its philosophy of creativity, diversity, consistency and integrity. IPofA acquires, owns and operates properties, primarily leased to major national and regional retail companies under net leases.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements. This press release may contain certain statements of a forward-looking nature relating to future events or future business performance. Any such statements that refer to the Company's estimated or anticipated future results or other non-historical facts are forward-looking and reflect the Company's current perspective of existing trends and information. These statements involve risks and uncertainties that cannot be predicted or quantified and, consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, risks and uncertainties detailed in each Company's Securities and Exchange Commission filings, including each Company’s Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. The forward-looking statements speak only as of the date of this release. Each of the Companies undertake no obligation to update publicly any forward-looking statement, whether as a result of new information, future events or otherwise.