Penson Worldwide

PNSN, C+, 7

securities-processing products & services

Post-IPO shrs:24mm

Dallas, TX

2003

2004

2005

Mar 3 mos

IPO Mkt

Revenue ($mm)

$91

$116

$175

$69

Cap (mm)

Operating income %

9%

7%

3%

10%

$384

Net income ($mm)

$8.7

$7.8

$2.9

$4.5

@$16

Net income %

10%

7%

2%

7%

VALUATION RATIOS

IPO Mrkt

Price /

Price /

Price /

Price /

% offered

Cap (mm)

Sales

Earnings

BookValue

TangibleBV

in IPO

Penson Worldwide PNSN

$384

1.4

21

2.3

2.4

31%

SCORECARD

Mgt

Market

Market Do-

Proprie-

Total

1-5, 5 is high

Growth

mination

tary

rating

20 is perfect

2

2

2

1

7

Business

. For the global securities and investment industry, provides a range of critical securities-

processing infrastructure products and services

To the global securities and investment industry.

. Products and services includes securities and futures clearing, margin lending, facilities

management, technology and other related offerings. Supports trading in multiple

markets, investment products and currencies.

. Revenues consist primarily of transaction processing fees earned from clearing

operations and interest income earned from margin lending activities and from investing

customers' cash.

Segments

For the year ended December 31, 2005, revenues from clearing operations, including

related interest revenues, accounted for 85% of total revenues.

. Direct market access broker-dealers accounted for approximately 27% of these

revenues and represented 12% of total correspondents,

. Traditional retail broker-dealers accounted for approximately 22% of these revenues

and represented 42% of total correspondents

. Online broker-dealers accounted for 19% of these revenues and represented 17% of

total correspondents.

. The remainder of these revenues were provided primarily by broker-dealers trading on a

proprietary basis, broker-dealers specializing in option trading, institutional clients, hedge

funds, algorithmic traders and financial technology firms.

Over the past three years, Interest revenues (included above), both in the aggregate and

as a percentage of overall revenues, increased significantly, from $25.2 million in 2003 to

$92.0 million in 2005, representing 28% and 53% of total revenues, respectively.

Management discussion

. Significant reduction in the levels of activity from a peak in 2000 until a market low in

2002. This affected our clearing revenues during that time.

. More recently, increasing interest rates in the U.S. since mid 2004 and growth in the

underlying assets that earn interest has improved PNSN's interest income

. The acquisition of Nexa Technologies in mid 2004 has allowed PNSN to rapidly expand

its technology services business, leading to quarterly increases in technology revenues,

but the associated necessary investment in the business, particularly in 2005, resulted in

reduced profitability.

. While revenues grew substantially in 2005, principally from interest income, increased

expenses during most of the year due to increased head count, restructuring expenses in

the U.K. and investments in and expenses of the Nexa Technologies business, resulted

in significantly reduced net income in 2005 relative to 2004.

. PNSN believes its greater capital base will allow PNSN to continue to take advantage of

additional client opportunities.

. PNSN also believes that its restructuring process in the U.K. was largely completed in

the third quarter of 2005.

Discontinued operations

Prior to or concurrently with this public offering, PNSN will either sell certain non-core

business operations of Penson (the SAMCO Division) or reorganize the SAMCO Division

into a newly formed holding company (known as SAMCO Holdings).

. While the SAMCO Division is currently available for sale, there is no specific sale

transaction currently under negotiation. As a result, PNSN is planning to split off SAMCO

Holdings prior to or concurrently with this offering.

. The business operations that are being discontinued are focused on fixed income

underwriting, sales and trading, investment banking, public finance, research, and

institutional and high net worth sales, as well as retail brokerage and registered

investment advisory businesses and the offering of private equity funds.

Acquisition of CCS

In May 2005, entered into an agreement to acquire Computer Clearing Services, Inc.

(CCS). CCS is a provider of clearing services principally to the direct access and online

market segments, and has historically been a competitor

. In January 2006 we acquired substantially all of the assets and limited liabilities of CCS

and closed this transaction.

Competition

Direct competition from firms that offer services to direct access and online brokers.

Some of these competitors include Goldman Sachs Execution & Clearing, L.P. (formerly

known as Spear, Leeds & Kellogg); Pershing LLC, a member of BNY Securities Group;

National Financial Services LLC, a Fidelity Investments Company; Merrill Lynch, Pierce,

Fenner & Smith Incorporated and Bear, Stearns & Co. Inc.

. Also encounters competition from other clearing firms that provide clearing and

execution services to the securities industry. Most of our competitors are affiliated with

large financial institutions.

Use of $90.2mm from sale 6.25mm shares

(shareholders intent to offer 1.25mm shares)

. Repay debt

. To increase borrowing availability to support expansion of PNSN's correspondent base,

in part dependent on the amount of regulatory capital.

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