PORTLAND, OR--(Marketwire - February 23, 2011) - Paulson Capital Corp. (NASDAQ: PLCC) and the wholly owned subsidiary, Paulson Investment Company, Inc., have named Murray G. Smith as Chief Financial Officer. Mr. Smith is located in Portland, Oregon and has been the interim CFO since September of 2010. 

"During the last five years Murray has been critical in our Sarbanes-Oxley, Accounting and Compliance Departments. I am pleased to have Murray fill this role on a permanent basis as he has more than demonstrated his abilities as a lead financial officer during his role as interim CFO," said Trent Davis, President/CEO.

Mr. Smith began his career more than 17 years ago as an auditor with Allegheny Teledyne Inc. and Arthur Andersen LLP. In 2001 he joined Intel Corporation where he became the Compensation & Benefits Accounting Controller and Sarbanes-Oxley Compliance Manager. He has served as Controller of Calypte Biomedical Corp., Sarbanes-Oxley Consultant for AVI BioPharma, Inc., and Chief Financial Officer for Jewett-Cameron Trading Company.

"I'm excited to be part of Paulson, a company that genuinely values entrepreneurship and invests in the career growth of its employees. In addition, Paulson's reputation in the Pacific Northwest and across the nation for both excellence in client services and sound business practices is what led me to Paulson in the first place and I'm proud that we continue in those traditions today," said Mr. Smith. 

Mr. Smith earned a Bachelor of Arts Degree in Business Administration from the University of Washington. He is a Certified Public Accountant (CPA), Certified Fraud Examiner (CFE) and has his FINRA Licenses: Series 7, 27 and 66.

About Paulson Capital Corporation
Paulson Capital Corporation is the parent company to Paulson Investment Company, Inc. Based in Portland, Ore., Paulson Investment Company, Inc. is one of the largest independent brokerage firms headquartered in the northwest and a national leader in public offerings of small and emerging growth companies with capital needs of $5 million to $45 million. Founded by Chester "Chet" Paulson in 1970, it has managed or underwritten 164 securities offerings and has generated more than $1.2 billion for client companies. 

With 39 branch offices throughout the country, Paulson Investment Company, Inc. (Member FINRA/SIPC) aims to earn and build trust with retail and select institutional investors through highly customized financial portfolio management, diversified financial products and service offerings and effective administration and execution of investment strategies that specifically address individual risk tolerance levels. In addition, Paulson Investment Company, Inc.'s brokerage clients look to the firm for compelling new investment ideas in the small and emerging growth markets. The company's website is available at www.paulsoninvestment.com.  

This release may contain "forward-looking statements" based on current expectations but involving known and unknown risks and uncertainties. Actual results of achievements may be materially different from those expressed or implied. The Company's plan and objectives are based on judgments with respect to future conditions in the securities markets as well as general assumptions regarding the economy and competitive environment in the securities industry, which can be volatile and out of our control. In particular, we make assumptions about our ability to complete corporate finance transactions and increase the volume and size of our securities trading operations, which are difficult or impossible to predict accurately and often beyond the control of the Company. Therefore, there can be no assurance that any forward-looking statement will prove to be accurate.