[LOGO OF FBR APPEARS HERE]


FOR IMMEDIATE RELEASE
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Investor Relations Contact:
David Allan, FBR (703)469-1080

Media Relations Contact:
Melanie Nelson, FBR (703)312-9623


                      FRIEDMAN BILLINGS RAMSEY GROUP, INC.
                  ISSUES STATEMENT ON THIRD QUARTER ESTIMATES

WASHINGTON, D.C., SEPTEMBER 23, 1998 -- Friedman Billings Ramsey Group, Inc. 
(NYSE:FBG) said today that the Company expects to report a net loss after tax of
between $0.70-$0.75 per share for the third quarter ending September 30, 1998. 
The Company attributed the net loss principally to trading losses sustained by 
its broker-dealer subsidiary Friedman Billings Ramsey & Co., Inc.(FBRC) related
to general market declines and, in particular, the steep and protracted decline
in the value of small-and-mid-cap stocks in the United States.

The Company said it expects to end the quarter with shareholders' equity of 
approximately $200 million and approximately $4.03 in book value per share. The 
Company noted that this shareholders' equity estimate includes both the 
aforementioned losses as well as unrealized depreciation in investments 
reflected in equity and the application of excess capital to purchase its own 
shares during the quarter.

The Company said it greatly reduced FBRC's trading exposure during the quarter, 
cutting trading inventory by more than half while simultaneously reducing its 
concentration in certain positions, notably REITs. As a result of these actions,
the Company said it expects to end the quarter with approximately $70 million of
cash and receivables from syndicate and asset management operations (including 
$55 million of cash) and total short-term and long-term debt of approximately $2
million.

Friedman Billings Ramsey Group has 49,543,000 shares outstanding, which reflects
the Company's purchase of 486,000 shares since it announced on July 22 a share 
repurchase program of up to 2.5 million shares of the Company's common stock.

Friedman Billings Ramsey said it expects to report third quarter results in the 
third week of October and does not plan further comment on its third quarter 
results at this time.

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Friedman Billings Ramsey Group, Inc. is a publicly traded, full-service
investment banking and asset management firm (NYSE:FBG). Asset management
operations include FBR Business Development Capital, FBR Asset Investment Corp.,
hedge funds, venture capital and private equity partnerships, and the FBR family
of mutual funds, FBR makes a market in more than 375 securities and provides
research coverage on more than 400 publicly traded companies.


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Statements concerning future performance, developments or events, expectations
for growth, filed backlog and market forecasts, and any other guidance on
present and future periods, constitute forward-looking statements which are
subject to a number of factors, risks and uncertainties, which might cause
actual results or developments to differ materially from stated expectations or
current circumstances. These factors include but are not limited to the effect
of demand for public and non-public offerings, the level of trading volume and
volatility in the secondary securities markets, the level of inflows and
outflows of managed assets, competition for business and personnel, interest
rates and general economic, political and market conditions.