Page 1 of 2

For Immediate Release:

ALLEGIANCE CAPITAL EXPANDS PRESENCE IN TWIN CITIES

New Minneapolis office provides M&A advisory and capital-raising services

to business owners in the Upper Midwest

Minneapolis and Dallas – November 16, 2010 – Allegiance Capital Corporation, an investment bank

serving primarily privately-held, middle-market companies, announced today that it has opened an office in

Minneapolis as part of an expansion to serve middle-market clients in the Midwest. The move follows the

opening of a Chicago office earlier this year, and builds on the firm’s existing presence in St. Paul.

Allegiance Capital provides merger and acquisition advisory and capital-raising services to companies with

$5 to $50 million in EBITDA. The new Minneapolis office is managed by Jim Derks and based in the IDS

Tower.

“Deal flow in the middle market is driving the M&A recovery, yet consolidation in the investment banking

industry has left middle-market companies underserved,” said Allegiance Capital President, David

Lonsdale. “We are well-positioned to fill the gap and are expanding to capture the opportunity as M&A

activity continues to heat up. We’re very pleased Jim Derks, who brings leadership and a strong track

record, will be helping us grow our footprint in the region.”

Mr. Derks, who joins Allegiance Capital as a Managing Director, has 24 years of experience providing

M&A advice to private companies in the lower middle market and private equity groups. Previously, Derks

established and managed LaSalle Bank's investment banking activities. He also has significant

experience in the middle-market M&A groups of JP Morgan and Lehman Brothers. He has provided

financial advice and transaction execution expertise for more than 60 completed M&A deals totaling over

$6 billion in aggregate transaction value.

"I look forward to building on the terrific track record my colleagues have already established," said Derks.

He added that business owners who delayed plans for a sale or recapitalization due to the economic

turbulence of the last two years should revisit their options. “The first half of 2010 marked the best six

months in M&A since 2008 according to recent industry reports," said Derks. “Business fundamentals

continue to slowly improve, banks are lending, and entrepreneurs who were on track to sell their

Allegiance Capital Announces Expansion November 16, 2010

Page 2 of 2

companies or preparing to raise growth capital are finding a much more receptive investor community

willing to offer good valuations."

Allegiance Capital's Minneapolis office is located at: 900 IDS Tower, 80 South Eighth Street, Minneapolis,

MN 55402. The telephone number is 612-455-4557.

About Allegiance Capital Allegiance Capital Corporation is a full-service investment banking firm specializing in the middle market

(companies with revenue from $20 million to $500 million). Allegiance Capital assists companies in every

aspect of selling and financing a business, including debt restructuring, mezzanine financing, executing

leveraged buyouts, strategic partnering, consulting and other related services. The firm has offices in

Chicago, Dallas, New York, Minneapolis, St. Paul, and Seattle. For more information, refer to the company

website, www.allcapcorp.com, and its Facebook page, http://www.facebook.com/AllegianceCapital.

Subscribe to the Capital Ideas blog by visiting: www.allcapcorp.com/blog .

# # #

Media Contact: Minneapolis Office Contact: Katherine Kirkpatrick Jim Derks Vice President Managing Director Allegiance Capital Corporation Allegiance Capital Corporation 214-217-7745 612.455.4557 kkirkpatrick@allcapcorp.com jderks@allcapcorp.com