Market Overview

Ladenburg Makes Strategic Investment in Track Technologies, Enabling Financial Advisors to Serve 'Gig Economy' Clients with Turnkey Tax Solutions


Early-Stage FinTech Company's Digital Tools Calculate, Withhold and
Submit Quarterly Payments on Self-Employment Taxes for Independent
Contractor Workers

Demonstrates Ladenburg's Commitment to Adapt New Technology-Driven
Solutions to Accelerate Growth Opportunities Tied to Broader
Socioeconomic Trends for Advisors

Ladenburg Thalmann Financial Services Inc. (NYSE American: LTS, LTSL,
LTS PrA, LTSF) ("Ladenburg"), a publicly-traded, diversified financial
services company, today announced its strategic investment in Track
Technologies, Inc. ("Track"), a San Francisco-based digital provider of
tax automation for independent contractors, freelancers, and other
workers who generate self-employed income. The investment, which is the
first major outgrowth of Ladenburg's recently launched Innovation Lab
and its inaugural Innovation Symposium in May, enables Ladenburg to
align new technology-enabled solutions to support the business growth of
financial advisors affiliated with its five independent advisory and
brokerage (IAB) subsidiary firms: Securities America, Triad Advisors,
KMS Financial Services, Investacorp and Securities Service Network (SSN).

Adam Malamed, Executive Vice President and Chief Operating Officer of
Ladenburg, said, "Ladenburg's investment in Track reflects our
commitment to lead the industry in anticipating and capturing
opportunities for our advisors that are driven by socioeconomic trends
that have the potential to transform the future of financial advice.
This investment is part of our innovation-focused process for
identifying macro themes, and then adapting technology-enabled tools
from the start-up community that our financial advisors can deploy to
get ahead of the curve. We expect the ‘gig economy', characterized by
self-employed individuals, or those with independent income sources,
will only continue to expand. By enabling our advisors to deliver
digital automated tax solutions that can potentially plug into financial
and retirement planning efforts for self-employed clients, we are
positioning our advisors to serve a large market."

Track Technologies calculates, withholds and submits quarterly estimated
payments on self-employment taxes for workers who use IRS 1099 Forms.
Users can connect the software to their bank or credit card accounts to
save time by allowing Track to synch, detect, and review transactions
such as deposits and expenses, in order to notify users about income
taxes owed as well as potential deductions. This groundbreaking model
also presents enormous opportunities for financial advisors in all of
the Ladenburg IABs to help clients leverage a turnkey solution for
payroll services, setting up qualified retirement plans, and reducing
their administrative burdens.

In January, Ladenburg announced the launch of its Enterprise Innovation
initiative and the Ladenburg Innovation Lab, as part of a comprehensive
strategy to generate new resources that empower the growth of
Ladenburg's IAB subsidiaries and the practices of the financial advisors
they serve. On May 22, Ladenburg's inaugural Innovation Symposium in San
Francisco united CEOs of venture-backed fintech start-ups, leaders of
technology-focused venture capital firms, and an elite group of
growth-oriented advisors for an invitation-only event to pursue
forward-looking tools, ideas and business practices.

Dan Sachar, Vice President for Enterprise Innovation at Ladenburg and
Head of the Ladenburg Innovation Lab, said, "Ladenburg picked a robust
assortment of ideas to test drive with the growth-oriented advisors who
were selected to attend our recent Innovation Symposium, in a two-way
process that takes our longstanding commitment to constant collaboration
with advisors to a new level. Following our Innovation Symposium, we
reviewed several of the most promising concepts to turn ideas into
action, and our investment in Track is the next logical step in that
process. We see great potential for adapting and leveraging this type of
service for advisors across each of our IAB subsidiaries."

Trent Bigelow, Co-founder and Chief Executive Officer of Track
Technologies, said, "We started Track to make life easier for people who
operate as sole proprietors and small business owners, because they
should spend more time on the real work that matters instead of
burdensome busywork like taxes. The labor trend is clearly shifting more
and more to the 1099 independent contractor space, yet millions of
self-employed Americans will have to handle their own tax withholding
every time they get paid. Ladenburg's investment will allow Track to
accelerate its development and reach new audiences. Financial advisors
serve many clients who are the ideal users of Track. I am excited to
move forward with Ladenburg in this next phase of our business."

Mr. Malamed concluded, "Our investment in Track is consistent with
Ladenburg's ongoing mission of leveraging our financial capital,
intellectual capital, technology and other resources to find new ways to
add significant value for our IAB firms, our advisors and their clients.
By making an early-stage start-up investment, Ladenburg gains an
exceptional level of insight into the technology product pipelines of
the future, while providing us a seat at the table in shaping these
technologies to the benefit of our advisors, as well as an opportunity
to generate value on the investment itself."

About Ladenburg

Ladenburg Thalmann Financial Services Inc. (NYSE American: LTS, LTSL,
LTS PrA, LTSF) is a publicly-traded diversified financial services
company based in Miami, Florida. Ladenburg's subsidiaries include
industry-leading independent advisory and brokerage (IAB) firms
Securities America, Triad Advisors, Securities Service Network,
Investacorp and KMS Financial Services, as well as Premier Trust,
Ladenburg Thalmann Asset Management, Highland Capital Brokerage, a
leading independent life insurance brokerage company, Ladenburg Thalmann
Annuity Insurance Services, a full-service annuity processing and
marketing company, and Ladenburg Thalmann & Co. Inc., an investment bank
which has been a member of the New York Stock Exchange for over 135
years. The company is committed to investing in the growth of its
subsidiaries while respecting and maintaining their individual business
identities, cultures, and leadership. For more information, please visit

About Track Technologies

Track Technologies, Inc., founded in 2015, is a San Francisco-based
company that handles self-employed taxes for users on a daily basis,
giving them a clear picture of what they have earned and what they owe
by automatically keeping track of their income and expenses, withholding
the proper amount when users get paid, and submitting their estimated
quarterly tax payments to the Internal Revenue Service. Track
Technologies allows users to connect their banking and credit card
accounts to the platform. Track Technologies is not a bank. Banking
services are provided by Evolve Bank, Member FDIC. For more information,
please visit

This press release includes certain forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995,
including statements regarding
future growth, growth of our
independent advisory and brokerage business, growth in the number of
independent contractors, future technology, future investments and
performance of investments. These statements are based on management's
current expectations or beliefs and are subject to uncertainty and
changes in circumstances. Actual results may vary materially from those
expressed or implied by the statements herein due to changes in
economic, business, competitive and/or regulatory factors, including the
United States Department of Labor's rule and exemptions pertaining to
the fiduciary status of investment advice providers to 401(k) plans,
plan sponsors, plan participants and the holders of individual
retirement or health savings accounts and the SEC's proposed rules and
interpretations concerning the standards of conduct for broker dealers
and investment advisers when dealing with retail investors, future cash
flows, a change in the Company's dividend policy by the Company's Board
of Directors (which has the ability in its sole discretion to increase,
decrease or eliminate entirely the Company's dividend at any time) and
other risks and uncertainties affecting the operation of the Company's
business. These risks, uncertainties and contingencies include those set
forth in the Company's annual report on Form 10-K for the fiscal year
ended December 31, 2017 and other factors detailed from time to time in
its other filings with the SEC. The information set forth herein should
be read in light of such risks. Further, investors should keep in mind
that the Company's quarterly revenue and profits can fluctuate
materially depending on many factors, including the number, size and
timing of completed offerings and other transactions. Accordingly, the
Company's revenue and profits in any particular quarter may not be
indicative of future results. The Company is under no obligation to, and
expressly disclaims any obligation to, update or alter its
forward-looking statements, whether as a result of new information,
future events, changes in assumptions or otherwise, except as required
by law.

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