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Letter from the Chairman

Dear valued stockholders, business partners and friends:

At Paulson Capital Corp., we firmly believe that strong and transparent corporate governance is essential to building and maintaining public trust. Our employees are guided by our values to maintain the highest integrity, treat everyone with dignity and respect, focus on our customers and demonstrate excellence in all we do.

Our corporate policies and business practices are designed to ensure that these values are continuously upheld at all levels of our Company. In this regard, we have made a point of adopting industry best practices in our public company corporate governance and board oversight, and will remain diligent in identifying ways to enhance and strengthen our corporate stewardship as Paulson Capital Corp. continues to evolve and prosper.

We thank you for your interest and will continue to work very hard to build an enduring company worthy of your support.