SecondMarket Launches Marketplace for California Government IOUs

Platform Will Also Enable Trading of Other Government IOUs

SecondMarket, the largest marketplace for illiquid assets, announced today that it is opening a market for registered warrants -- known as IOUs -- issued by the State of California and other state governments. This new marketplace brings buyers and sellers of IOUs together, providing holders with a chance to convert the IOUs to cash and offering buyers a unique investment opportunity. SecondMarket has consulted with the California State Treasurer's Office so that its sales process complies with the procedure established by the State. The California State Treasurer's Office is providing assistance with IOU verification to broker-dealers, such as SecondMarket.

'With several major banks no longer redeeming California IOUs, and with some citizens, businesses and municipalities needing liquidity, we felt it was important to launch this market promptly,' said SecondMarket CEO Barry E. Silbert. 'Our extensive experience developing successful new markets and our status as a registered-broker dealer mean that sellers can feel comfortable knowing their IOUs will be sold in a regulated environment. Although SecondMarket is not a bank and cannot redeem the IOUs, we will provide sellers with a centralized marketplace and access to our network of more than 3,200 market participants.'

Access to SecondMarket's platform is free for buyers and sellers. Moreover, in an effort to provide sellers with easy access to a robust marketplace, SecondMarket will not charge sellers a transaction fee. The buyers of the registered warrants will pay a standard transaction fee.

'SecondMarket is committed to helping the recipients of California IOUs who are struggling to find liquidity. We want to ensure that cost is not a barrier to people seeking to convert their IOUs to cash during these difficult economic times. I'm excited that SecondMarket is taking the lead in offering innovative solutions to the challenging problems facing many people in California,' said Silbert.

SecondMarket, through its trading platform and deep network of contacts, has established itself as the trusted, independent marketplace for investors across a variety of illiquid asset classes, including auction-rate securities, private company securities, limited partnership interests, bankruptcy claims, collateralized debt obligations, residential and commercial mortgage-backed securities, warrants/restricted stock in small capitalization companies and whole loans. Its network of participants collectively manages over $1 trillion in assets available for investment.

For more information about the IOU sales process, please visit www.SecondMarket.com.

About SecondMarket

Founded in 2004, New York-based SecondMarket is the largest marketplace for illiquid assets, including private company securities, limited partnership interests, auction-rate securities, bankruptcy claims, collateralized debt obligations, residential and commercial mortgage-backed securities, warrants/restricted stock and whole loans. SecondMarket, which has conducted more than $1 billion in transactions since the launch of the company, has more than 3,000 participants, including global financial institutions, hedge funds, private equity firms, mutual funds, corporations and other institutional and accredited investors that collectively manage over $1 trillion in assets available for investment. For more information, visit www.SecondMarket.com. SecondMarket is a member of FINRA, MSRB and SIPC. Copyright 2009 SecondMarket, Inc.

Mark Murphy

SecondMarket, Inc.

212-825-1619

mmurphy@SecondMarket.com

Pinar Posluk

Weber Shandwick

212-445-8242

pposluk@webershandwick.com

phone; +1-212-825-1619,

Pinar Posluk, Weber Shandwick, +1-212-445-8242,

pposluk@webershandwick.com