Exhibit 99.1

                               [GRAPHIC OMITTED]
                             FOR IMMEDIATE RELEASE

                 FIRST MONTAUK ENTERS INTO SEPARATION AGREEMENT
                           WITH CHAIRMAN OF THE BOARD


Red Bank, NJ - February 1, 2006 - First Montauk Financial Corp. (OTC/BB: FMFK),
a nationwide provider of investment services through independent financial
professionals, today announced that it has entered into a separation agreement
with Herbert Kurinsky, the Company's chairman.

Under the terms of the separation agreement, the parties agreed to terminate the
employment relationship and employment agreement between the Company and Mr.
Kurinsky, in exchange for a severance payment, issuance of a promissory note and
the continuation of certain benefits. Mr. Kurinsky will remain on the Company's
board of directors as non-executive chairman. The details of the separation
agreement are included in a Form 8-K filed with the Securities and Exchange
Commission on February 1, 2006.

"This separation agreement represents the continuation of the management changes
which began in 2004 with the appointment of Victor K. Kurylak, first as
president and then as C.E.O., and my desire to transition into eventual
retirement. With the Company's return to profitability, I am confident that
Montauk Financial is moving forward in a positive direction" said Mr. Kurinsky.

Victor K. Kurylak, President and C.E.O. commented, "We are very grateful to Herb
Kurinsky for his 20 years of dedicated service at the helm of the Company. He
helped sustain the firm through many difficult and challenging years in our
industry. We will continue our commitment to providing outstanding service to
our network of financial professionals and increasing shareholder value that was
the cornerstone of Herb's philosophy for all these years."


Montauk Financial Group is a service mark of First Montauk Securities Corp.,
Member NASD/SIPC. First Montauk Financial Corp. is the parent company of First
Montauk Securities Corp., a registered securities broker/dealer headquartered in
Red Bank, NJ, with approximately 50,000 retail and institutional accounts. The
Company's ability to offer quality support services, research, web-based
information systems and a competitive commission payout structure has attracted
approximately 290 independent, professional registered representatives across
the country. Additional information is available at the Company's website at
www.montaukfinancial.com. Statements contained in this news release regarding
expected financial results of the Company and First Montauk Securities Corp.,
are forward-looking statements, subject to uncertainties and risks, many of
which are beyond the Company's control, including, but not limited to, market
conditions, interest rate and currency fluctuations, dependence on key
personnel, each of which may be impacted, among other things, by economic,
competitive or regulatory conditions. These and other applicable risks are
summarized under the caption "Factors Affecting Forward Looking Statements" in
the Company's Forms10-Q for the quarters ended March 31, June 30 and September
30, 2005, and the Company's other filings on Form 8-K as filed with the
Securities and Exchange Commission. Forward-looking statements by their nature
involve substantial risks and uncertainties. As a result, actual results may
differ materially depending on many factors, including those described above.
The Company cautions that historical results are not necessarily indicative of
the Company's future performance.


         CONTACT:
         Montauk Financial Group
         Victor K. Kurylak, President and CEO
         732-842-4700, ext 4230
         vkurylak@montaukfinancial.com