Formation of Chaffe Securities, Inc.

Chaffe & Associates, Inc. (“Chaffe” or the “Company”) is pleased to announce the formation of Chaffe Securities, Inc. (“Chaffe Securities”). Chaffe Securities, a wholly owned subsidiary of Chaffe, functions as a limited broker dealer and is a member of FINRA, the largest independent regulator for all securities firms doing business in the United States, and SIPC, the Securities and Investor Protection Corporation.

Given the increased regulatory environment facing financial services firms, Chaffe elected to form Chaffe Securities to offer a complete suite of advisory and valuation services to its clients. Chaffe was founded in 1982 by D.B.H. Chaffe III to provide specialized investment banking services to financial institutions and corporations. Chaffe currently has three practice groups: Valuations led by Vanessa Brown Claiborne; Mergers and Acquisitions led by G.F. Gay LeBreton; and the Financial Institutions Group led by Jonathan W. Briggs. The Company’s clients include publicly held companies, family-owned businesses, banks and other financial institutions. Mr. Chaffe, Chairman and founder of the Company, commented, “The growth and expansion of our business has led us once again to form a securities firm to handle a welcome increase in transactions.”

Sherwood G. “Woody” Briggs, Vice Chairman of Chaffe, added, “Chaffe Securities allows us to be even more competitive in offering the growing variety of services required by today’s business environment.”

Chaffe elected to form Chaffe Securities after amendments in late 2009 to NASD Rules 1022 and 1032, which created a new Limited Representative – Investment Banking Qualification Examination (Series 79 Exam) and began requiring individuals involved in investment banking and principals who supervise such activities to pass the Series 79 Exam. Individuals already registered as a General Securities Representative (Series 7) were allowed to opt in to the new registration category for a limited period of time.

Ms. Claiborne, President of Chaffe, noted, “Chaffe remains committed to providing its clients with a full suite of services. In addition to our regulated activities such as mergers and acquisitions, fairness opinions and private placements, we continue to offer valuations for numerous other purposes, including estate planning, ESOP and fair value accounting. We look forward to continuing to offer our clients superior service”

Jonathan W. Briggs, President of Chaffe Securities, stated, “As a registered broker dealer, all of our professionals who are associated with Chaffe Securities have a Series 79 license. We believe Chaffe Securities offers us a competitive advantage and look forward to continuing to meet our clients’ needs through the offering of exceptional advisory and valuation services. As a limited broker-dealer, we also are able to assist our clients in raising equity and debt in the form of a private placement.”