Exhibit 99.1



     First Montauk Financial Corp. Announces Expansion of Board of Directors
                    and Establishment of New Board Committee


RED BANK, N.J -- February 24, 2006 -- First Montauk Financial Corp. (FMFK.OB), a
nationwide  provider  of  investment  services  through  independent   financial
professionals,  today announced that it has appointed Mr. David I. Portman as an
independent member of its board of directors. Mr. Portman was appointed to serve
as a Class III director to fill a vacancy in that class. Mr. Portman  previously
served as a member of the board of  directors  of First  Montauk  from June 1993
through  December 2002. In addition to serving on its board,  First Montauk also
announced  that Mr. Portman will serve on its Audit  Committee and  Compensation
Committee.

Mr. Portman,  age 64, currently serves as the president of TRIAD Development,  a
real estate company that has numerous  commercial  and rental  properties in New
Jersey,  a position  that he has held  since  1978.  In  addition,  Mr.  Portman
currently serves as a director of Pacifichealth Laboratories,  Inc. (PHLI.OB), a
publicly held nutrition  technology company, a position he has held since August
1995.

Victor K. Kurylak, President and C.E.O. of First Montauk commented, "We are very
pleased that David Portman will be returning to our board of directors.  David's
past experience with First Montauk,  combined with his  demonstrated  leadership
and  strategic  planning  skills,  will be a tremendous  asset for the Company."
David Portman stated,  "I am looking forward to returning to First Montauk.  The
Company's recent financial performance has been impressive,  and I am excited by
the Company's direction under the leadership of its current management team."

In  addition,  First  Montauk also  announced  today that is has  established  a
Special  Committee  of  its  Board  of  Directors  and  appointed  each  of  its
independent  directors  to serve as members of this new  committee.  The initial
members of this committee are Messrs.  Barry D. Shapiro,  Ward R. Jones, Jr. and
David I. Portman,  with Mr. Portman as its chairman.  The board  established the
special  committee  for  the  purpose  of  reviewing  all  potential   strategic
transactions or alternatives which may be presented to the Company. In addition,
the  special  committee  will review  alternatives  to any  potential  strategic
transaction in order to protect shareholder value.

About First Montauk Financial Corp.

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 Form 10-K for
the year ended  December 31, 2004,  Forms 10-Q for the quarters  ended March 31,
June 30 and September 30, 2005, and the Company's  reports 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, 732-842-4700, ext. 4230
vkurylak@montaukfinancial.com

Source: First Montauk Financial Corp.

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