News:
2008 ANNUAL LETTER

We celebrated our 20th anniversary in February.  The implosion of Wall Street and our financial system reinforces the reasons I started our Company in 1989 and why I was confident that management and owners would welcome an advisory firm whose primary mission would be providing objective and seasoned advice.  It was clear, at least to me, two decades ago that commercial banks and securities firms would become more interested in investing their own capital than working with clients.  Misguided strategies, ironic because they advise others on strategies, aligned with misguided compensation schemes, caused a disaster for them and the country. 

Our business, of course, has been affected.  Merger activity continues but is dwarfed by financings, recapitalizations, and restructurings. 

We have used the collapse of Wall Street and the major banks and securities firms to hire outstanding investment bankers and broaden the scope of our expertise and industries covered. 

We have strengthened our financing, recapitalization and restructuring services to keep our clients from bankruptcy by working with them to amend bank loans, insurance company covenants and negotiate with hedge funds.  Brad Dietz, Anders Maxwell and Joe Stein lead this practice.  While our goal is to help our clients avoid bankruptcy through ingenuity and expertise, we have the personal resources and knowledge to represent them in successfully navigating the bankruptcy process. 
 
Fred Frank and Mary Tanner, arguably the most effective team of healthcare investment bankers, joined us in March.  Together with Ken Berliner, Andy Cowherd, and Drew Quigley, we have a formidable group dedicated to helping these companies negotiate their strategic challenges.
 
Media and communications banking is a heritage of our firm.  We are fortunate to have had Rich Brail as a Managing Director and Fred Seegal as a Senior Advisor, join us.  De-leveraging and technological change will alter these industries.  Rich and Fred, supported by our organization, are a daunting combination.
 
Consumer companies continue to be a core competence. Again, technological change and a slowdown in consumer consumption are forcing retail and distribution companies and their executives to rethink methods of distribution, types of products and expansion plans.  With Marc Cooper, Jeff Hornstein, Mitch Hara and Cathy Leonhardt supported by Senior Advisors Irwin Cohen, Richard Marcus, Bob Phillips and Michael Sherman, we have experience and talent.
 
Turmoil in financial institutions offers our firm opportunities for advisory activity.  We are fortunate to have Bob Glauber as our Senior Advisor heading this area.
 
Conflicts of interest abound in the world of mergers and finance.  Over the years, Ken Baronoff has built a highly regarded practice representing special committees of boards and parties where independent and unbiased advice is sought.
 
As we have shown, we are hiring highly talented bankers.  This is an era of unprecedented opportunity for a firm whose focus remains on advising our clients without conflict, offering objective and seasoned advice.
 
Your support has enabled us to reach our 20th year.  We are indebted to our clients.  I am personally grateful to our President, Ken Berliner, Diane Coffey and my colleagues who have embraced the growth of the firm and enabled me to enjoy our work on behalf of our clients.

We thank you for your support and confidence in us. To learn more about us and how we can help you, please visit our web site, www.pjsolomon.com.

With best wishes,