EXHIBIT 99.1

  STATEMENT BY ROBERT S. SMITH, CHIEF OPERATING OFFICER OF FRIEDMAN, BILLINGS,
             RAMSEY GROUP, INC. ("FBR") TO DOW JONES & CO., OCTOBER 7, 2002


Mr.  Smith  gave an  interview  to Dow Jones & Co.  in which he said that  FBR's
investment  banking  revenue  for the third  quarter  2002  would  likely be the
highest for any quarter  since the company had recorded just over $51 million in
the first  quarter of 1998.  Mr. Smith stated that while the company has not yet
finalized its financial  results for the third  quarter,  FBR currently  expects
that pre-tax  earnings for the third quarter should exceed the second quarter of
2002  pre-tax  earnings.  Mr. Smith noted that,  like the rest of the  brokerage
industry,  revenue  from  secondary  trading was soft in the third  quarter.  In
addition,  although base and incentive asset  management  fees remained  strong,
there will likely be some reduction in overall asset  management  revenue due to
the effect of the market's decline on the company's equity investment portfolio.
Mr. Smith said that the fee revenue from FBR Asset Investment Corporation should
be  higher  than the  second  quarter,  but  that  investment  returns  from the
company's  investment in FBR Asset  Investment  Corporation  would be lower than
second quarter,  due to the fact that second quarter revenue included the effect
of share issuances.