Investors Capital Holdings Celebrates Eight Consecutive Quarters of Revenue Growth and Four Consecutive Quarters of Profitability

Business Wire,  August 16, 2004  

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LYNNFIELD, Mass. -- Diversified Financial Services Firm Gains Momentum Returning 345% Increase in Net Income for First Fiscal Quarter of 2005

Investors Capital Holdings, Ltd. (AMEX: ICH), today celebrated two important milestones announcing that the Company has increased revenues for eight consecutive quarters, while boosting profitability during each of the last four quarters. Such momentum was felt throughout the business which enjoyed a substantial increase in net income of approximately $204,000, a 345% increase and revenue of $14.3 million, a gain of more than 47% for the first fiscal quarter-ended June 30, 2004 (in comparison to the first fiscal quarter-ended June 30, 2003). Basic earnings per share were $0.04 and diluted earnings per share were $0.03, compared to a $0.01 basic and diluted per share loss from the first fiscal quarter-ended June 30, 2003.

"We are very pleased to report that Investors Capital Holdings posted positive results for the first fiscal quarter of 2005 and we are confident that we will continue to demonstrate strong growth as we head into the second half of the year," said Ted Charles, Investors Capital Holdings' Chairman and Chief Executive Officer. "Our continued success is the direct result of the diversity of our business, which saw strong performance from our brokerage, advisory and insurance divisions."

Tim Murphy, CFO of Investors Capital Holdings added, "In addition to our strong income and revenue results, the company also displayed significant growth in operating income as gross profit from operations rose by more than $1.1 million, a 67.9% increase from the first fiscal quarter of last year."

Some factors that positively affected Investors Capital Holdings' results include:

--  Effective management of administrative costs against the
        Company's profit margin
        --  By automating key business processes, and strengthening
            the company's back-end technology and Web-based reporting
            systems, Investors Capital Holdings provided their
            national network of financial representatives with
            superior tools to conduct more business and process more
            trades. As a result, Investors Capital Holdings benefited
            from "economies of scale" from fixed trading costs,
            enabling the Company to execute more transactions while
            stabilizing administrative expenses.

    --  Increased marketing presence resulting from recruiting,
        business development, advertising and public relations
        initiatives

        --  Investors Capital Holdings recognized heightened sales
            volumes due in large part to the Company's greater focus
            on marketing. Through intensive recruiting programs, the
            Company continued to augment its registered representative
            network with highly knowledgeable financial professionals.
            Investors Capital Holdings also enhanced its workshops,
            regional and national events, and seminar training
            programs to support financial advisors in driving more
            business and attracting new clients.

    --  New product offerings create new revenue opportunities

            --  With the introduction of EPASS (Eastern Point Advisors
                Select Strategies), from Eastern Point Advisors, a
                registered investment advisory subsidiary of Investors
                Capital Holdings, the company was able to provide new
                revenue opportunities for its financial professionals.
                EPASS was introduced to offer clients active portfolio
                management strategies constructed by some of the most
                respected institutional managers such as Bear Stearns
                and Neuberger Berman.

                In addition, Eastern Point Advisors' newest mutual
                fund, Eastern Point Advisors Rising Dividend Growth
                Fund, introduced in March 2004, was embraced by
                clients looking for a strong dividend bearing
                investment option that invests in common stocks of
                companies that have increased their dividends annually
                for at least the last ten years.

About Eastern Point Advisors

Incorporated in 1995, Eastern Point Advisors is a registered investment advisory subsidiary of Investors Capital Holdings (AMEX: ICH) providing professionally managed portfolios of mutual funds, variable annuities, and individual equity securities.

Eastern Point Advisors offers fee-based customizable money management programs, and is the advisor to Eastern Point Advisors Twenty Fund (ICTWX) and Eastern Point Advisors Rising Dividend Growth Fund (ICRDX). The Twenty Fund is comprised of 20-30 mid- to large-cap companies primarily of U.S. origin. The Rising Dividend Growth Fund only invests in publicly traded securities, with a focus on common stocks that have increased their dividends annually for a minimum of 10 percent per year for at least 10 years.