8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

January 26, 2005 Date of report (Date of earliest event reported)

PIPER JAFFRAY COMPANIES

(Exact Name of Registrant as Specified in Its Charter)

Delaware	1-31720	30-0168701
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)
800 Nicollet Mall, Suite 800 Minneapolis, Minnesota		55402
(Address of Principal Executive Offices)		(Zip Code)

(612) 303-6000

(Registrant’s Telephone Number, Including Area Code)

     Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):

o  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

	Item 2.02. Results of Operations and Financial Condition.
	Item 9.01. Financial Statements and Exhibits.
SIGNATURES
EXHIBIT INDEX
Press Release

Item 2.02. Results of Operations and Financial Condition.

     On January 26, 2005, Piper Jaffray Companies (the “Company”) reported its financial results for its fourth fiscal quarter and its fiscal year ended December 31, 2004. See the Company’s press release dated January 26, 2005, which is furnished as Exhibit 99 hereto.

Item 9.01. Financial Statements and Exhibits.

(c)	Exhibit
		99	Press Release dated January 26, 2005

2

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	PIPER JAFFRAY COMPANIES
Date: January 26, 2005	By	/s/ Sandra G. Sponem
		Sandra G. Sponem
		Chief Financial Officer

3

EXHIBIT INDEX

No.	Description	Manner of Filing
99	Press Release dated January 26, 2005	Filed Electronically

EX-99

Exhibit 99

Piper Jaffray Companies, 800 Nicollet Mall, Minneapolis, MN 55402-7020

CONTACT
Jennifer A. Olson-Goude	Dana H. Wade
Investor Relations	Public Affairs and Media Relations
Tel: 612 303-6277	Tel: 415 277-1556

FOR IMMEDIATE RELEASE

Piper Jaffray Companies Announces

2004 Fourth Quarter and Year-end Results

Full year earnings per diluted share increase 93 percent to $2.60

Return on tangible shareholders’ equity¹ improves to 12.9 percent

Company announces a share repurchase program

MINNEAPOLIS — January 26, 2005 — Piper Jaffray Companies (NYSE: PJC) today announced net income of $11.8 million, or $0.61 per diluted share, for the quarter ended Dec. 31, 2004, up from a net loss of $3.3 million, or ($0.17) per diluted share, for the quarter ended Dec. 31, 2003. Net income also totaled $11.8 million, or $0.61 per diluted share in the third quarter of 2004. Net revenues for the fourth quarter were $194.6 million, down 3.6 percent from the fourth quarter of 2003 and up 4.5 percent over the third quarter of 2004.

For the full year, net income improved to $50.3 million, compared to $26.0 million in the prior year. Earnings per diluted share rose 92.6 percent to $2.60 compared to the prior year. Net revenues increased to $797.5 million for the full year, up $10.8 million or 1.4 percent over 2003. Return on tangible shareholders’ equity¹ improved to 12.9 percent compared to 8.0 percent for the prior year.

“We reported respectable performance for our first year as a new public company,” said chairman and chief executive officer Andrew S. Duff. “We stemmed the negative trend in private client revenues and substantially increased our equity underwriting and merger and acquisition revenues. We also made solid progress on margin improvement and significantly enhanced our return on tangible shareholders’ equity.”

The company also announced today that its board of directors has authorized the repurchase of up to 1.3 million shares of the company’s outstanding common stock for a maximum aggregate purchase price of $65.0 million. The principal purpose of the share repurchase program is to manage the company’s equity capital relative to the growth of its business and to offset the dilutive effect of employee equity-based compensation. The repurchase program will be conducted under a 10b5-1 plan and will commence early in 2005, ending Dec. 31, 2005. As of Dec. 31, 2004, Piper Jaffray Companies had 19.9 million common shares outstanding.

Results of Operations

Net Revenues
Fourth quarter net revenues declined $7.2 million, or 3.6 percent, from the prior year period, primarily due to lower equity institutional sales and trading activity. Compared to the third quarter of 2004, net revenues rose 4.5 percent driven by increased private client activity, improved fixed-income institutional sales and trading activity and stronger equity underwriting revenue. Offsetting these increases were softer public finance and merger and acquisition revenues.

For the year, net revenues were $797.5 million, an increase of $10.8 million, or 1.4 percent. Substantially stronger equity underwriting and mergers and acquisitions revenues more than offset weaker fixed income institutional sales and trading performance.

Non-Interest Expenses
For the quarter, non-interest expenses were $176.4 million, down 14.9 percent from the fourth quarter of 2003. Compensation expense was $116.8 million, essentially flat with the prior year. Non-compensation expenses were $59.6 million, a decrease of $30.6 million, or 33.9 percent. The decrease from the prior year in non-compensation expenses was due largely to three items:

•   a $24.0 million charge in the fourth quarter of last year for cash awards granted as part of the spin-off from U.S. Bancorp,

•   a $4.1 million charge in the fourth quarter of last year for disposal of software related to the implementation of a new fixed income trading system, and

•   reduced litigation-related expenses.

Compared to the third quarter of 2004, non-interest expenses increased 5.2 percent, primarily due to higher litigation-related expenses.

For the year, non-interest expenses were $717.9 million, down $28.0 million or 3.8 percent. Compensation expense was $488.4 million, up 1.2 percent compared to last year. Non-compensation expenses were $229.5 million, down 12.9 percent from the prior year. This decline was due to several factors:

•   reduced litigation-related expenses,

•   reduced clearing and transaction costs due to management of electronic communications network (ECN) fees and floor brokerage expenses,

•   the $8.8 million increase in the 2003 allowance for financial advisor loan losses, which was reduced by $2.1 million in 2004,

•   the $4.1 million charge in 2003 for disposal of software,

•   the $24.0 million charge in 2003 for cash awards related to the spin-off, compared to a charge of $4.7 million in 2004,

•   elimination of a $3.9 million royalty fee charged to Piper Jaffray by U.S. Bancorp for the use of trade names and trademarks.

These reductions in expenses were partially offset by an increase in costs related to being a stand-alone public company.

For the quarter, pre-tax operating margin was 9.3 percent, an improvement from a negative margin of (2.7) percent in the prior year. For the year, pre-tax operating margin was 10.0 percent, or nearly double the 5.2 percent margin achieved in 2003.

Business Segment Review

Capital Markets

Fourth Quarter
Capital Markets recorded $104.4 million in net revenues for the quarter, down $6.4 million, or 5.7 percent, from the prior year. Segment pre-tax operating income for the quarter was $17.4 million, down 2.7 percent compared to the fourth quarter of 2003. The decline in revenue was due to lower equity institutional sales and trading revenues driven by lower volumes and higher trading losses.

Compared to the third quarter of 2004, net revenues improved 3.1 percent. Fixed-income institutional sales and trading revenues improved 52.3 percent mainly due to increased trading volumes and trading profits, and equity underwriting revenues rose by 35.8 percent due to earning a higher proportion of deal fees. These improvements in revenue were offset in large part by lower mergers and acquisitions revenue, which declined $7.7 million, or 33.1 percent, due to lower transaction values. Public finance revenues also declined by 19.8 percent in comparison to a strong prior quarter.

Segment operating expenses for the quarter were $87.0 million, a decrease of $5.9 million, or 6.3 percent, from the same period a year ago, primarily driven by the $4.1 million charge in 2003 for disposal of software related to the implementation of a new fixed income trading system.

For the quarter, segment pre-tax operating margin was 16.7 percent, up from 16.2 percent recorded in the same quarter last year.

Full Year
For the year, Capital Markets recorded net revenue of $431.1 million, essentially unchanged compared to 2003. Weaker fixed income institutional sales and trading activity was offset by significantly stronger equity underwriting and mergers and acquisitions activity, which increased 24.6 percent and 23.4 percent, respectively. Segment pre-tax operating income was $74.4 million, down $2.4 million, or 3.1 percent from the prior year.

Segment operating expenses were $356.7 million, up slightly compared to 2003. Segment pre-tax operating margin was 17.3 percent, compared to 17.8 percent last year.

For the year, the firm maintained or improved its ranking in equity underwriting and public finance. Following is a recap of completed deals and industry rankings (based on the number of transactions completed) for the full year of 2004.

•   93 equity offerings, raising a total of $12.6 billion in capital, and placing the firm 13^th nationally. These results compare to a ranking of 14^th last year with the completion of 61 equity offerings for a total of $8.2 billion in capital raised. (Source: Dealogic)

•   49 M&A transactions with an enterprise value of $6.8 billion, ranking 10^th among all advisors. Last year the firm completed 38 transactions with an enterprise value of $5.1 billion. Among middle-market advisors (a group that excludes investment banks with average deal size greater than $500 million), the firm ranked first nationally. (Source: Thomson Financial)

•   502 tax-exempt issues with a total par value of $5.9 billion, ranking the firm fourth nationally. Last year the firm ranked fifth and completed 507 tax-exempt issues nationally, with a total par value of $5.7 billion. In the Upper Midwest, the firm completed 286 public finance issues for the year with a total par value of $2.4 billion, again ranking the firm the lead underwriter of Upper Midwest tax-exempt issues. (Source: Thomson Financial)

Private Client Services

Fourth Quarter
Private Client Services recorded net revenues of $87.8 million for the quarter, down $1.0 million, or 1.1 percent, compared to the fourth quarter of 2003. Net revenues rose 4.9 percent compared to the third quarter of 2004 as private client activity strengthened after the presidential election concluded. Segment pre-tax operating income was $11.8 million, up 41.5 percent from the fourth quarter of 2003.

Segment operating expenses were $76.0 million for the quarter, a 5.5 percent improvement from the prior year period, primarily due to lower litigation-related expenses. Segment pre-tax operating margin was 13.5 percent, up from the 9.4 percent margin in the fourth quarter of 2003.

Full Year
For the year, segment net revenues were $355.2 million, up 0.9 percent compared to the prior year. Segment pre-tax operating income was $48.0 million, an improvement of $19.9 million, or 70.5 percent, over 2003. Segment operating expenses were $307.1 million, an improvement of $16.8 million, or 5.2 percent, driven by lower litigation-related expenses and a reduction in financial advisor loan losses. Segment pre-tax operating margin was 13.5 percent, compared to 8.0 percent for 2003.

Corporate Support and Other
 
Corporate Support and Other pre-tax operating loss was $9.9 million for the fourth quarter, an increase of $3.1 million over the fourth quarter of 2003. For the full year, pre-tax operating loss was $38.1 million compared to a loss of $36.1 million last year. The increase in pre-tax operating loss for both periods was due primarily to new public company costs.

Additional Shareholder Information

	As of Dec. 31, 2004	As of Sept. 30, 2004	As of Dec. 31, 2003
Full time employees:	3,027	3,029	2,991
Financial advisors:	860	853	874
Client assets:	$51 billion	$49 billion	$50 billion
Shareholders’ equity:	$725.4 million	$715.0 million	$669.8 million
Return on average tangible shareholders’ equity:1	12.9 percent	9.4 percent	8.0 percent
Book value per share:	$37.52	$36.98	$34.64
Tangible book value per share:	$20.88	$21.17	$18.84

(1)   Tangible shareholders’ equity equals total shareholders’ equity less goodwill and identifiable intangible assets. Return on average tangible shareholders’ equity is calculated by dividing trailing 12-month net income, for each period presented, by the average quarterly tangible common equity for the trailing 12-month period. Management believes that return on tangible shareholders’ equity is a meaningful measure of performance as it reflects the tangible equity deployed in our businesses. This measure excludes the portion of our shareholders’ equity attributable to goodwill and identifiable intangible assets. The majority of our goodwill is a result of the 1998 acquisition of our predecessor company, Piper Jaffray Companies Inc., and its subsidiaries by U.S. Bancorp. The following table sets forth a reconciliation of shareholders’ equity to tangible shareholders’ equity. Shareholders’ equity is the most directly comparable GAAP financial measure to tangible shareholders’ equity.

(dollars in thousands)	Average for the
	Year Ended			12-Month Period Ended			Year Ended			As of
	December 31, 2004			September 30, 2004			December 31, 2003			December 31, 2004
Shareholders’ equity		699,163			680,958			629,466			725,428
Deduct: Goodwill and identifiable intangible assets		(308,875	)		(305,635	)		(305,635	)		(321,834	)
Tangible shareholders’ equity		390,288			375,323			323,831			403,594

Conference Call
Andrew S. Duff, chairman and chief executive officer, and Sandra G. Sponem, chief financial officer, will host a conference call to discuss fourth quarter and full year 2004 financial results on Wednesday, Jan. 26, 2005, at 11 a.m. ET (10 a.m. CT). The call can be accessed via live audio webcast available through the firm’s web site at www.piperjaffray.com or by dialing (866) 244-9933, or (706) 758-0864 international, and refer to conference ID 3118115 and the leader’s name, Andrew Duff. Callers should dial in at least 15 minutes early to receive instructions. A replay of the conference call will be available beginning at approximately 1 p.m. ET Jan. 26 at the same web address or by calling (800) 642-1687 or (706) 645-9291 international.

About Piper Jaffray Companies
Piper Jaffray Companies (NYSE: PJC) is a focused securities firm dedicated to delivering superior financial advice, investment products and transaction execution within selected sectors of the financial services marketplace. The company operates through two primary revenue-generating segments: Capital Markets and Private Client Services. Investment Research, an independent group reporting to the CEO, supports clients of both segments. Through its chief operating subsidiary, Piper Jaffray & Co., the firm has served corporations, government and non-profit entities, institutional investors and the financial advisory needs of private individuals since 1895. Headquartered in Minneapolis, Piper Jaffray has approximately 3,000 employees in 111 offices in 23 states across the country and in London. For more information about Piper Jaffray, visit us online at www.piperjaffray.com.

Since 1895. Member SIPC and NYSE.
© 2005 Piper Jaffray & Co., 800 Nicollet Mall, Suite 800, Minneapolis, Minnesota 55402-
7020

Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements. Statements that are not historical or current facts, including statements about beliefs and expectations, are forward-looking statements. These forward-looking statements cover, among other things, the future prospects of Piper Jaffray Companies. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from those anticipated, including the following: (1) we have agreed to certain restrictions to preserve the tax treatment of our spin-off from U.S. Bancorp, which reduce our strategic and operating flexibility, (2) we have agreed to indemnify U.S. Bancorp for taxes and related losses resulting from any actions we take that cause the spin-off to fail to qualify as a tax-free transaction, (3) the separation and distribution agreement entered into between U.S. Bancorp and us contains cross-indemnification obligations of U.S. Bancorp and us that either party may be unable to satisfy, (4) developments in market and economic conditions have in the past adversely affected, and may in the future adversely affect, our business and profitability, (5) we may not be able to compete successfully with other companies in the financial services industry, (6) our underwriting and market-making activities may place our capital at risk, (7) an inability to readily divest or transfer trading positions may result in financial losses to our business, (8) use of derivative instruments as part of our risk management techniques may place our capital at risk, while our risk management techniques themselves may not fully mitigate our market risk exposure, (9) an inability to access capital readily or on terms favorable to us could impair our ability to fund operations and could jeopardize our financial condition, (10) we may make strategic acquisitions of businesses or may divest or exit existing businesses, which could cause us to incur unforeseen expense and have disruptive effects on our business but may not yield the benefits we expect, (11) our technology systems are critical components of our operations and the failure of those systems may disrupt our business, cause financial loss and constrain our growth, (12) our business is subject to extensive regulation that limits our business activities, and a significant regulatory action against our company may have a material adverse financial effect or cause significant reputational harm, (13) regulatory capital requirements may adversely affect our ability to expand or maintain present levels of our business or impair our ability to meet our financial obligations, (14) our exposure to legal liability is significant, and could lead to substantial damages and restrictions on our business going forward, (15) we may suffer losses if our reputation is harmed, (16) provisions in our certificate of incorporation and bylaws and of Delaware law may prevent or delay an acquisition of our company, which could decrease the market value of our common stock, (17) other factors identified in the document entitled “Risk Factors” filed as Exhibit 99.1 to our Quarterly Report on Form 10-Q for the quarter ended September 30, 2004, and in our subsequent reports filed with the SEC. These reports are available at our Web site at www.piperjaffray.com and at the SEC’s Web site at www.sec.gov. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them in light of new information or future events.

###

Piper Jaffray Companies
Preliminary Unaudited Results of Operations

	For the Year Ended
	December 31,		December 31,		Percent
(Amounts in thousands, except per share data)	2004		2003		Inc/(Dec)
Revenues:
Commissions and fees	$	263,730	$	256,747		2.7	%
Principal transactions		188,526		215,191		(12.4	)
Investment banking		257,932		229,945		12.2
Interest		47,469		45,276		4.8
Other income		57,967		59,082		(1.9	)
Total revenues		815,624		806,241		1.2
Interest expense		18,126		19,511		(7.1	)
Net revenues		797,498		786,730		1.4
Non-interest expenses:
Compensation and benefits		488,394		482,397		1.2
Occupancy and equipment		57,066		58,025		(1.7	)
Communications		42,198		37,599		12.2
Floor brokerage and clearance		17,309		22,755		(23.9	)
Marketing and business development		42,468		39,030		8.8
Outside services		41,477		38,511		7.7
Cash award program		4,717		24,000		(80.3	)
Royalty fee		—		3,911		N/M
Other operating expenses		24,248		39,619		(38.8	)
Total non-interest expenses		717,877		745,847		(3.8	)
Income before income tax expense		79,621		40,883		94.8
Income tax expense		29,273		14,884		96.7
Net income	$	50,348	$	25,999		93.7	%
Earnings per common share
Basic	$	2.60	$	1.35		92.6	%
Diluted	$	2.60	$	1.35		92.6	%
Weighted average number of common shares
Basic		19,333		19,237		0.5	%
Diluted		19,399		19,237		0.8	%

N/M — Not Meaningful

Piper Jaffray Companies
Preliminary Unaudited Results of Operations

	For the Three Months Ended							Percent Inc/(Dec)
	Dec. 31,		Sept. 30,		Dec. 31,			4Q04 vs.			4Q04 vs.
(Amounts in thousands, except per share data)	2004		2004		2003			3Q04			4Q03
Revenues:
Commissions and fees	$	67,255	$	61,187	$	67,608			9.9	%		(0.5	)%
Principal transactions		46,394		39,813		53,065			16.5			(12.6	)
Investment banking		59,686		65,204		59,195			(8.5	)		0.8
Interest		13,251		10,667		11,611			24.2			14.1
Other income		13,589		13,571		14,851			0.1			(8.5	)
Total revenues		200,175		190,442		206,330			5.1			(3.0	)
Interest expense		5,605		4,217		4,532			32.9			23.7
Net revenues		194,570		186,225		201,798			4.5			(3.6	)
Non-interest expenses:
Compensation and benefits		116,800		114,197		116,966			2.3			(0.1	)
Occupancy and equipment		14,683		14,968		17,728			(1.9	)		(17.2	)
Communications		10,470		10,558		10,015			(0.8	)		4.5
Floor brokerage and clearance		3,882		4,068		5,228			(4.6	)		(25.7	)
Marketing and business development		10,952		9,723		11,746			12.6			(6.8	)
Outside services		11,182		11,215		11,156			(0.3	)		0.2
Cash award program		1,158		1,219		24,000			(5.0	)		(95.2	)
Royalty fee		—		—		804			N/M			N/M
Other operating expenses		7,259		1,702		9,529			326.5			(23.8	)
Total non-interest expenses		176,386		167,650		207,172			5.2			(14.9	)
Income (loss) before income tax expense (benefit)		18,184		18,575		(5,374	)		(2.1	)		N/M
Income tax expense (benefit)		6,375		6,806		(2,028	)		(6.3	)		N/M
Net income (loss)	$	11,809	$	11,769	$	(3,346	)		0.3	%		N/M
Earnings Per Common Share
Basic	$	0.61	$	0.61	$	(0.17	)		0.0	%		N/M
Diluted	$	0.61	$	0.61	$	(0.17	)		0.0	%		N/M
Weighted average number of common shares
Basic		19,333		19,333		19,273			0.0	%		0.3	%
Diluted		19,445		19,387		19,273			0.3	%		0.9	%

N/M — Not Meaningful

Piper Jaffray Companies
Preliminary Unaudited Segment Data

	For the Three Months Ended									Percent Inc/(Dec)
	December 31,			September 30,			December 31,			4Q04 vs.			4Q04 vs.
(Dollars in thousands)	2004			2004			2003			3Q04			4Q03
Capital Markets
Net revenues	$	104,375		$	101,282		$	110,739			3.1	%		(5.7	)%
Operating expenses		86,953			83,984			92,835			3.5			(6.3	)
Segment pre-tax operating income	$	17,422		$	17,298		$	17,904			0.7	%		(2.7	)%
Segment pre-tax operating margin		16.7	%		17.1	%		16.2	%
Private Client Services
Net revenues	$	87,836		$	83,727		$	88,821			4.9	%		(1.1	)%
Operating expenses		75,996			71,623			80,453			6.1			(5.5	)
Segment pre-tax operating income	$	11,840		$	12,104		$	8,368			(2.2	)%		41.5	%
Segment pre-tax operating margin		13.5	%		14.5	%		9.4	%
Corporate Support and Other
Net revenues	$	2,359		$	1,216		$	2,238			94.0	%		5.4	%
Operating expenses		12,279			10,824			9,080			13.4			35.2
Segment pre-tax operating loss	$	(9,920	)	$	(9,608	)	$	(6,842	)		3.2	%		45.0	%
Segment pre-tax operating margin		N/M			N/M			N/M
Reconciliation to total income (loss) before taxes:
Total segment pre-tax operating income	$	19,342		$	19,794		$	19,430			(2.3	)%		(0.5	)%
Royalty fee		—			—			804			N/M			N/M
Cash award program		1,158			1,219			24,000			(5.0	)		(95.2	)
Total income (loss) before tax expense (benefit)	$	18,184		$	18,575		$	(5,374	)		(2.1	)%		N/M	%
Pre-tax operating margin		9.3	%		10.0	%		(2.7	)%

N/M — Not Meaningful

Piper Jaffray Companies
Preliminary Unaudited Segment Data

	For the Year Ended
	December 31,			December 31,			Percent
(Dollars in thousands)	2004			2003			Inc/(Dec)
Capital Markets
Net revenues	$	431,135		$	430,355			0.2	%
Operating expenses		356,743			353,606			0.9
Segment pre-tax operating income	$	74,392		$	76,749			(3.1	)%
Segment pre-tax operating margin		17.3	%		17.8	%
Private Client Services
Net revenues	$	355,176		$	352,113			0.9	%
Operating expenses		307,142			323,933			(5.2	)
Segment pre-tax operating income	$	48,034		$	28,180			70.5	%
Segment pre-tax operating margin		13.5	%		8.0	%
Corporate Support and Other
Net revenues	$	11,187		$	4,262			162.5	%
Operating expenses		49,275			40,397			22.0
Segment pre-tax operating loss	$	(38,088	)	$	(36,135	)		5.4	%
Segment pre-tax operating margin		N/M			N/M
Reconciliation to total income before taxes:
Total segment pre-tax operating income	$	84,338		$	68,794			22.6	%
Royalty fee		—			3,911			N/M
Cash award program		4,717			24,000			(80.3	)
Total income before tax expense	$	79,621		$	40,883			94.8	%
Pre-tax operating margin		10.0	%		5.2	%

N/M — Not Meaningful

Piper Jaffray Companies
Preliminary Unaudited Supplemental Information

(Dollars in thousands)	For the Three Months Ended						Percent Inc/(Dec)
Capital Markets	December 31,		September 30,		December 31,		4Q04 vs.			4Q04 vs.
	2004		2004		2003		3Q04			4Q03
Institutional Sales
Fixed Income	$	23,066	$	15,150	$	22,801		52.3	%		1.2	%
Equities		26,229		26,318		33,421		(0.3	)		(21.5	)
Total Institutional Sales		49,295		41,468		56,222		18.9			(12.3	)
Investment Banking
Underwriting
Fixed Income		14,613		18,223		14,900		(19.8	)		(1.9	)
Equities		22,863		16,836		22,802		35.8			0.3
Mergers and Acquisitions		15,432		23,083		14,388		(33.1	)		7.3
Total Investment Banking		52,908		58,142		52,090		(9.0	)		1.6
Net Interest		1,619		1,200		943		34.9			71.7
Other Income		553		472		1,484		17.2			(62.7	)
Capital Markets Net Revenues	$	104,375	$	101,282	$	110,739		3.1	%		(5.7)	%

Piper Jaffray Companies
Preliminary Unaudited Supplemental Information

(Dollars in thousands)	For the Year Ended
Capital Markets	December 31,		December 31,		Percent
	2004		2003		Inc/(Dec)
Institutional Sales
Fixed Income	$	79,752	$	101,865		(21.7)	%
Equities		117,302		122,303		(4.1	)
Total Institutional Sales		197,054		224,168		(12.1	)
Investment Banking
Underwriting
Fixed Income		62,097		64,762		(4.1	)
Equities		87,505		70,202		24.6
Mergers and Acquisitions		78,066		63,258		23.4
Total Investment Banking		227,668		198,222		14.9
Net Interest		4,912		4,242		15.8
Other Income		1,501		3,723		(59.7	)
Capital Markets Net Revenues	$	431,135	$	430,355		0.2	%