FIRST MONTAUK FINANCIAL CORP.
                    AND OLYMPIC CASCADE FINANCIAL CORPORATION
                          AGREE TO REVISE MERGER TERMS

MAY 11, 2005 -- RED BANK, NJ AND NEW YORK, NY -- First Montauk  Financial  Corp.
(OTCBB: FMFK) and Olympic Cascade Financial  Corporation (OTCBB: OLYD) announced
today that they have agreed to amend the terms and  conditions  of their  Merger
Agreement  entered into as of February 10, 2005. Under the revised terms,  First
Montauk  will issue  shares of its common  stock for all  outstanding  shares of
common stock of Olympic Cascade. For each outstanding share of Olympic Cascade's
stock owned,  the shareholder will receive 1.75 shares of First Montauk's common
stock. In addition,  First Montauk will issue equivalent shares of newly created
preferred stock to the holders of Olympic  Cascade's  Series A Preferred  Stock,
giving effect to the 1.75 exchange  ratio.  Outstanding  options and warrants of
Olympic Cascade will be modified to reflect the new exchange ratio.

It is  anticipated  that the number and manner of  designation of the members of
the board of directors and the individuals  identified as executive  officers of
the surviving company after the merger will remain as previously agreed.

The  completion of the  transaction is subject to several  conditions  which are
usual  and  customary  for  transactions  of this  nature,  including  a  formal
amendment and restatement of the original agreement,  shareholder and regulatory
approval and  completion of the  anticipated  financing in an amount of at least
$4.0 million.  The parties expect to file a joint proxy  registration  statement
with the SEC and to close the transaction  during the third calendar  quarter of
2005.

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 61,000 retail and institutional accounts.

Olympic  Cascade  Financial  Corporation  is  a  holding  company  for  National
Securities  Corporation,  based  in  Seattle,  Washington.  National  Securities
conducts   securities   brokerage,   and   investment   banking   business  with
approximately 55,000 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.  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 each
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.  Each of
the Companies  undertake 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.                    Olympic Cascade Financial Corp.
Victor K. Kurylak, CEO and Pres.                 Mark Goldwasser, CEO and Pres.
(800) 876-3672, ext. 4230                        (212) 417-8210
info@montaukfinancial.com