First Montauk Financial Corp. enters into Letter of Intent
                      To be Acquired by a Private Investor

March 13, 2006 -- Red Bank, NJ -- First Montauk Financial Corp. (OTCBB: FMFK)
announced today that it has entered into a letter of intent for the sale of
First Montauk to a private investor. The final terms of the sale are subject to
further negotiation but it is anticipated that the transaction will be all cash
at approximately $1.00 per common share.

The letter of intent is subject to numerous conditions, including: satisfactory
completion of due diligence, negotiation and finalization of the terms of the
sale and structure of the transaction; negotiation, preparation and execution of
definitive transaction documents, compliance with state and federal securities
laws and regulations, and corporate, shareholder and regulatory approvals. If a
final agreement is reached and the other conditions satisfied, the transaction
is expected to close during the third quarter. However, as a result of the
foregoing uncertainties, there can be no assurance that a definitive agreement
will be executed or that, if it is, the transaction will be completed.

First Montauk Financial Corp. is the parent company of First Montauk Securities
Corp., a registered securities broker/dealer headquartered in Red Bank, NJ.
First Montauk conducts securities brokerage, insurance, investment banking and
advisory business with approximately 290 registered representatives and 60,000
retail and institutional accounts.

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for
forward-looking statements. This press release may contain certain statements of
a forward-looking nature relating to future events or future business
performance, including a potential transaction resulting in a change of control
of the Company. Any such statements that refer to the Company's estimated or
anticipated future results or other non-historical facts are forward-looking and
reflect the Company's current perspective of existing trends and information.
These statements involve risks and uncertainties that cannot be predicted or
quantified and, consequently, actual results may differ materially from those
expressed or implied by such forward-looking statements. Such risks and
uncertainties include, among others, risks and uncertainties detailed in the
Company's Securities and Exchange Commission filings, including each Company's
Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q. The
forward-looking statements speak only as of the date of this release. The
Company undertakes no obligation to update publicly any forward-looking
statement, whether as a result of new information, future events or otherwise.

Contact:

First Montauk Financial Corp.
Victor K. Kurylak, CEO and Pres.
(800) 876-3672, ext. 4230 info@montaukfinancial.com