Empire Financial Holding Company Reports Results for the Third Quarter And Nine Months Ended September 30, 2007

Share Name	Share Symbol	Market	Type
Empire Financial Holding	AMEX:EFH	AMEX	Ordinary Share

Empire (AMEX:EFH)
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Expect to return to profitability in Q4 LONGWOOD, Fla., Nov. 8 /PRNewswire-FirstCall/ -- Empire Financial Holding Company (AMEX:EFH), a full service brokerage and investment banking firm serving retail and institutional clients, today reported sharply increased revenues in the third quarter ended September 30, 2007. Revenues for the Third Quarter ended September 30, 2007 were $12,146,527, an increase of 88% for the same period in 2006. The net loss applicable to common shareholders for the third quarter was $1,996,510 compared to a loss of $533,917 for the same period in 2006 or $(0.18) per basic and diluted share in 2007, compared to $(0.08) per basic share and diluted share for the same period in 2006. Revenues for the nine months ended September 30, 2007 were $40,222,229, an increase of 76% for the same period in 2006. The net loss applicable to common shareholders was $5,300,932 compared to a loss of $115,680 for the same period in 2006 or $(0.49) per basic and diluted share in 2007, compared to $(0.02) per basic and diluted share for the same period in 2006. During the quarter the Company continued to consolidate certain trading activities, operations and eliminate redundancies, resulting in significant cost savings which will result in the Company returning to profitability in the fourth quarter. At our Annual Shareholders Meeting in September, our shareholders approved the name change to Jesup & Lamont Inc., which should be implemented by year's end. "Although disappointed with our third quarter loss, it is important to note that the third quarter is the historically slowest of the year, in addition to difficult market conditions," Donald A. Wojnowski noted. "We did however make significant strides towards profitability, and based on preliminary indications and our backlog, subject to market conditions, we fully expect to return to profitability in Q4 of 2007. We have been very pleased with the results of the Jesup acquisition and when coupled with our Empire business we believe it provides a model for future expansion and growth, positioning the firm as a regional full service brokerage and investment banking operation," said Wojnowski, Jr., Empire Financial Holding Company President and CEO. We are confident you will see greatly improved results in Q4 and all of 2008," Wojnowski concluded. The Company will host a conference call on Friday Nov 9 at 8:30 AM EDT. The dial-in number is 1-800-531-3250 -- PIN-3689703. About Empire Financial Holding Company Empire Financial Holding Company, through its wholly owned subsidiaries, Empire Financial Group, Inc. and Jesup & Lamont, provides full-service retail brokerage services through its network of independently owned and operated and Company owned and operated offices. Through its market-making and trading division, the Company offers securities order execution services for unaffiliated broker dealers and makes markets in domestic and international securities. Empire Financial also provides Investment Banking services for clients as well as turn-key fee based investment advisory and registered advisor custodial services through its wholly owned subsidiaries, Empire Investment Advisors, Inc. and Jesup & Lamont. Forward-Looking Statement Disclaimer This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risk, uncertainties or other factors which may cause actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, without limitation, fluctuations in the volume of transactional services provided by the Company, competition with respect to financial services commission rates, the effect of general economic and market conditions, factors affecting the securities brokerage industry as well as other risks and uncertainties detailed from time to time in the Company's Securities and Exchange Commission filings. The company undertakes no obligation to revise or update any forward-looking statement. EMPIRE FINANCIAL HOLDING COMPANY CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL CONDITION (UNAUDITED) September 30, 2007 Assets: Cash and cash equivalents $134,698 Marketable securities owned, at market value 3,523,467 Securities not readily marketable, at estimated fair value 2,754,035 Commissions and other receivables from clearing organizations 2,496,918 Deposits at clearing organizations 4,132,185 Furniture and equipment, net 666,394 Prepaid expenses and other assets 2,692,314 Deferred tax assets, net 2,117,000 Notes receivable 718,767 Intangible assets, net 17,605,424 ------------ Total assets $ 36,841,202 ============ Liabilities and stockholders' equity Liabilities: Accounts payable, accrued expenses and other liabilities $2,290,161 Due to clearing organizations 3,930,625 Securities sold, but not yet purchased, at market value 2,040,388 Line of credit payable 1,999,450 Notes payable 9,742,209 Deferred rent payable 33,512 ------------ Total liabilities 20,036,345 ------------ Commitments and Contingencies Stockholders' equity: Convertible preferred stock, series C and F, $.01 par value 1,000,000 shares authorized 827,049 issued and outstanding $8,270 Common stock, $.01 par value 100,000,000 shares authorized 11,159,492 shares issued and outstanding 111,595 Common stock subscribed, $.01 par value, 1,622,718 shares to be issued 2,000,000 Additional paid-in capital 25,946,021 Accumulated deficit (11,261,029) ------------ Total stockholders' equity 16,804,857 ------------ Total liabilities and stockholders' equity $ 36,841,202 ============ EMPIRE FINANCIAL HOLDING COMPANY AND SUBSIDIARIES (UNAUDITED) CONDENSED CONSOLIDATED STATEMENTS OF INCOME THREE MONTHS THREE MONTHS ENDED ENDED September 30, September 30, 2007 2006 ------------ ------------ Revenues: Commissions and fees $8,530,032 $3,423,710 Trading income 1,991,789 2,564,447 Investment banking income 1,624,706 464,548 ------------ ------------ 12,146,527 6,452,705 ------------ ------------ Expenses: Employee compensation and benefits 5,521,709 2,449,795 Commissions and clearing costs 6,193,056 3,574,761 General and administrative 1,858,912 1,030,122 Communications and data processing 258,693 103,565 ------------ ------------ 13,832,370 7,158,243 ------------ ------------ Loss from operations (1,685,843) (705,538) Other income (expenses): Interest and other income 42,409 105,010 Interest expense (306,342) (161,659) ------------ ------------ (263,933) (56,649) ------------ ------------ Loss before income taxes (1,949,776) (762,187) Less: Provision for income taxes - 297,909 ------------ ------------ Net Loss (1,949,776) (464,278) Preferred stock dividends (46,734) (69,639) ------------ ------------ Net loss applicable to common shareholders $(1,996,510) $(533,917) ============ ============ Basic and diluted loss per share applicable to common shareholders: Loss per share-basic and diluted $(0.18) $(0.08) ============ ============ Loss per share diluted $(0.18) $(0.08) ============ ============ Weighted average shares outstanding: Basic 11,082,381 7,009,037 ============ ============ Diluted 11,082,381 7,009,037 ============ ============ EMPIRE FINANCIAL HOLDING COMPANY AND SUBSIDIARIES (UNAUDITED) CONDENSED CONSOLIDATED STATEMENTS OF INCOME NINE MONTHS NINE MONTHS ENDED ENDED September 30, September 30, 2007 2006 ------------ ------------ Revenues: Commissions and fees $ 25,467,103 $ 13,113,457 Trading income 6,315,081 7,769,540 Investment banking income 8,440,045 1,929,390 ------------ ------------ 40,222,229 22,812,387 ------------ ------------ Expenses: Employee compensation and benefits 14,792,630 7,508,151 Commissions and clearing costs 22,748,034 12,223,771 General and administrative 6,389,256 2,832,756 Communications and data processing 670,082 254,647 ------------ ------------ 44,600,002 22,819,325 ------------ ------------ Loss from operations (4,377,773) (6,938) Other income (expenses): Interest and other income 449,858 296,182 Interest expense (1,245,516) (207,397) ------------ ------------ (795,658) 88,785 ------------ ------------ Income (loss) before income taxes (5,173,432) 81,847 Less: Provision for income taxes - (25,405) ------------ ------------ Net income (loss) (5,173,432) 56,442 Preferred stock dividends (127,500) (172,122) ------------ ------------ Net loss applicable to common shareholders $ (5,300,932) $(115,680) ============ ============ Basic and diluted loss per share applicable to common shareholders: Loss per share-basic and diluted $(0.49) $(0.02) ============ ============ Loss per share diluted $(0.49) $(0.02) ============ ============ Weighted average shares outstanding: Basic 10,847,537 6,991,413 ============ ============ Diluted 10,847,537 6,991,413 ============ ============ DATASOURCE: Empire Financial Holding Company CONTACT: Donald A. Wojnowski, Jr., President of Empire Financial Holding Company, +1-407-551-1841, ext. 1141, fax, +1-407-830-5078, Web site: http://www.empirenow.com/

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EFH Empire Financial Holding