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EXHIBIT 99.1
August 15, 2000
FOR IMMEDIATE RELEASE CONTACT:
George F. Stroebel
Kinnard Investments
(612) 370-2829
(800) 444-7884
DISTRICT COURT UPHOLDS $16.5 MILLION AWARD
TO KINNARD INVESTMENTS
MINNEAPOLIS (August 15, 2000) - The Hennepin County District Court
today released a ruling that confirms the $16.5 million award of an arbitration
panel from the National Association of Securities Dealers (NASD). The award was
granted in favor of Kinnard Investments, Inc. in December, 1999 as a result of
Kinnard's claim against Dain Rauscher, Inc. for employee raiding.
Dain filed a motion to vacate the award in January of this year. In
its ruling, the Court confirmed a $16.5 million award, noting that Dain's claims
were "insubstantial and without merit." The Court did grant a motion to vacate a
$50,000 award relating to an ancillary issue. The NASD sets and enforces a wide
range of industry operating standards for its member broker-dealers, including
standards for employee recruitment and for the proper handling of client
accounts. Its members agree to resolve conflicts via an arbitration process that
uses an independent panel of industry representatives.
"We are very pleased that the award has now been affirmed by both an
industry regulatory body and a district court in our legal system. The court's
ruling further confirms the importance of complying with our industry's
self-imposed rules for recruiting," said William F. Farley, Kinnard's chairman
and chief executive officer.
Kinnard Investments, Inc. (NASDAQ: KINN) is a Minneapolis-based
financial services holding company which serves the needs of retail and
institutional clients by focusing on emerging growth companies in the Upper
Midwest for its investment banking, research and market making activities, and
by specializing in the origination and trading of corporate and municipal fixed
income products. Kinnard has been in business since 1944 and has approximately
275 employees across twelve offices in Minnesota, North Dakota and South Dakota.
Additional information regarding Kinnard is available on the Web at
www.jgkinnard.com.
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