Market Overview

BKF Capital Group, Inc. Reports Second Quarter 2018 Results

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BKF Capital Group, Inc. (OTC:BKFG), a closely-held holding company that
provides capital primarily in the form of share ownership, today
announced net income of $192,000 or $0.27 per share, for the three
months ended June 30, 2018. For the three months ended June 30, 2017,
the Company recorded a net loss of $10,000 or $0.00 per share. For the
six months ended June 30, 2018, BKF Capital reported a net loss of
$763,000 or $1.08 per share, compared to a net loss of $20,000 for the
six months ended June 30, 2017 or $0.00 per share.

The 2017 results do not include unrealized gains and losses in
marketable securities. Effective January 1, 2018, the Company adopted
Accounting Standards Update ("ASU") No. 2016-01, "Financial
Instruments—Overall (Subtopic 825-10): Recognition and Measurement of
Financial Assets and Financial Liabilities
", that amends existing
guidance around classification and measurement of certain financial
assets and liabilities. Under ASU 2016-1, unrealized gains or losses on
marketable securities are now recognized through earnings. Prior to
January 1, 2018, unrealized gains and losses were recognized in other
comprehensive income. For the three months ended June 30, 2017, the
Company recorded net unrealized losses in other comprehensive income of
$543,000 or $0.77 per share. For the six months ended June 30, 2017 the
Company recorded net unrealized gains in other comprehensive income of
$1,463,000 or $2.06 per share.

"BKF continues to be well funded and through our wholly owned
subsidiary, BKF Asset Holdings, Inc., we will continue to pursue
strategic investments in securities, often representing controlling
positions, to seek long-term growth," stated Steven N. Bronson, CEO of
BKF Capital Group, Inc. "While we are always looking to generate value
opportunities through investments, in the short-term we are focusing our
resources and attention to permanently resolving legacy environmental
remediation exposure." The Company is responding to a claim received
under the Comprehensive Environmental Response, Compensation, and
Liability Act. The claim is a remediation of certain pesticides and
other chemicals used on land owned by the Company from 1971 to 1999.

Mr. Bronson continued, "We believe that the Company has valid factual
and legal defenses to this claim and we are vigorously defending the
claim. The Company has no specific reserve for this action as the matter
contains a reasonable degree of uncertainty and the Company believes it
will prevail on the merits of the case."

Over a period of July 5 through July 18, 2018, subsequent to
quarter-end, the Company sold its remaining shares of Coda Octopus Group
for cash proceeds of $4.2 million. This represents a realized gain of
$1.9 million over adjusted carrying value, and a realized gross gain of
$3.4 million over original cost basis. The $1.9 million realized gain,
or $2.68 per share, will be recognized in the third quarter of 2018.

Mr. Bronson continued, "We are pleased with our investment performance,
particularly with Coda Octopus Group (NASDAQ:CODA). Over the twenty-six
month period, we were able to realize a 475% return on our investment.
We are actively seeking similar opportunities to reinvest in high-growth
companies."

About BKF Capital Group, Inc.

BKF Capital Group, Inc. is a holding company that invests in innovative
and high-growth technology companies. We make capital investments
through our wholly owned subsidiary, BKF Asset Holdings, Inc. Our most
prominent assets are Interlink Electronics, Inc. (NASDAQ:LINK), a global
leader in human-machine interface and sensor technologies, and Qualstar
Corporation (NASDAQ:QBAK), a leading manufacturer of data storage
solutions and high-efficiency power supplies.

Our principal executive office is located at 31248 Oak Crest Drive,
Suite 110, Westlake Village, CA 91361. The Company's securities were
registered under Section 12(g) of the Securities Exchange Act of 1934.
On May 20, 2015, we filed Form 15 to terminate the registration and
reporting obligations under Section 12(g). Since May 20, 2015, we make
available our annual financial statements, quarterly financial
statements, and other significant reports and amendments to such
reports, free of charge, on our website as soon as reasonably
practicable after such reports are prepared. Our website address is www.bkfcapital.com.

Forward Looking Statements

This release contains forward-looking statements made in reliance
upon the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include, but are not
limited to, the Company's views on future financial performance and are
generally identified by phrases such as "thinks," "anticipates,"
"believes," "estimates," "expects," "intends," "plans," and similar
words. Forward-looking statements are not guarantees of future
performance and are inherently subject to uncertainties and other
factors which could cause actual results to differ materially from the
forward-looking statement. These statements are based upon, among other
things, assumptions made by, and information currently available to,
management, including management's own knowledge and assessment of the
Company's industry, competition and capital requirements. Other factors
and uncertainties that could affect the Company's forward-looking
statements include, among other things, the following: our success in
predicting markets and success of the companies we invest in; efficient
management of our infrastructure; the pace of technological developments
and industry standards evolution and their effect on our market choices;
competition by alternative sophisticated as well as generic investors;
risks of international investments and operations including fluctuations
in exchange rates; and compliance with regulatory requirements
applicable to our operations. These and other risks are more fully
described in the Company's most recently filed quarterly financial
statements, which should be read in conjunction herewith for a further
discussion of important factors that could cause actual results to
differ materially from those in the forward-looking statements. The
Company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.

Appendix:

Consolidated financial information for period ended June 30, 2018 can be
found on our website www.bkfcapital.com:
Quarter
ended June 30, 2018

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