2005 Piper Jaffray Community Annual Report

It takes time. Every year, Piper Jaffray employees give thousandsof hours of their time to nonprofit organizations.As a member of the Minnesota Keystone Program,Piper Jaffray has committed to contributing 5 percent of its pretax earnings to charitythrough a combination of cash contributions, in-kindcontributions andvolunteer hours.Last year, 18 percent of thiscommitment wasfulfilled throughvolunteer time.

On Sept. 17, 2005, in Brooklyn, N.Y., morethan 75 local Piper Jaffray employees partneredwith members of a neighborhood church andKaBOOM! to transform a concrete lot into aplayground in just one day. KaBOOM! is anational, nonprofit organization whose vision isto create a great place to play within walking

distance of every child inAmerica. The new

playground in EastFlatbush is the onlyone of its kind in the surrounding area.

Lewisburg, PA USA 800-233-8404 www.playworldsystems.com

toHoly Cross Parish

& School

This playground was made

possible through the combined efforts

of Piper Jaffray Companies,

Holy Cross Parish & School,

this community and KaBOOM!

Strong, enduring partnerships—whether they arewith our clients, employees, business partners orthe communities where we live and work—are atthe heart of the success Piper Jaffray enjoys.

At Piper Jaffray, we have long been committed to helping strengthen the many communitiesacross our geographic footprint. In 2005, we gavemore than $2 million to more than 850 differentnonprofits in 37 states.

But building strong communities takes more than just money.

It takes creativity. Many of the issues that undermine ourcommunities the most are complexand firmly entrenched.It takes innovativesolutions to begin toaddress them.

2005 was the second year of the three-year Piper Jaffray initiative called A Place to CallHome. The partnership with Minnesota-basedNeighborhood Development Center Inc. supportseconomic development in low-incomeneighborhoods. The creative partnershipmaximizes all of the resources that Piper Jaffrayhas to offer. In 2005, resources included a cashgrant and assistance on real estate development,NDC’s loan committee, technology and publicrelations. Piper Jaffray even helped promote two

food vendors—businesses that areNDC clients—byinviting them to selltheir goods in thePiper Jaffraycorporate lobby onThursdays duringthe summer.

It takes commitment. Helping build strong communities is a long-termcommitment. Working to create and sustainchange is a marathon, not a sprint. That is whyPiper Jaffray focuses on repeat giving andforming multiyear, multifaceted partnerships withorganizations that can include board service, in-kind contributions, corporatesponsorships and more.

For six years, Piper Jaffray hasparticipated in Teach ChildrenTo Save Day, a national eventfocused on partnering with

local schools to teachchildren the

importance of saving andinvesting money, and overallmoney management. Lastyear, more than 80 employees,from Appleton, Wis., to

Bellevue, Wash., spoke to morethan 4,800 students in more than 80

elementary school classrooms. All children whoparticipate receive the popular Piper JaffrayMoneybox, a three-sided bank that helpschildren allocatetheir money betweenspending, savingand sharing.

GetStarted

with Nine Easy Steps

Idea Primer

Throughout many cultures there is a respect for money’s three distinctpurpose: spending, saving and sharing. The Moneybox carries on this wise

tradition by encouraging money exploration and individual creativity. The age-old essence of Moneybox encourages you and your child to develop your own personal goals, wishes and positive experiences.

Our own adventures have generated some suggestions and inspirations that may help you and your child begin to:

• Achieve goals by budgeting money for spending, saving and sharing• Understand how to use and think about money• Establish the foundations for long-term security

and independence

MoneyboxesHelping Children Learn About Money

Your Dream-Building Tool Kit Includes:• 3 Moneyboxes

• Moneybox Band• Passbook

• Guide

It takes a broad perspective. The responsibilities of Piper Jaffray as acorporate citizen extend beyond corporatephilanthropy.

In 2005, Piper Jaffray continued work to re-launch its minority supplier program. Theprimary goal of the minority supplier programwill be to support minority and woman-ownedbusinesses. These potential suppliers will have to be certified by an independent organization,such as the Small Business Administration. Piper Jaffray will work with businesses that meetour requirements, either as first-tier suppliersdirectly to Piper Jaffray or as second-tier suppliersto one of our first-tier suppliers.

OUR COMMUNITYINVOLVEMENT MISSION

piper jaffray will help build stronger andmore vibrant communities where we live andwork by using our talents and resources throughpartnership and collaboration with nonprofitorganizations.

We focus our resources in three distinct areas:

building strong communitiesA Better Place

Piper Jaffray will partner with community andeconomic development and affordable housingorganizations to improve the lives of those inour local communities.

building vibrant cultureA Colorful Canvas

Piper Jaffray will support arts and culturalorganizations whose programs advance accessto the arts, address cultural enrichment andissues related to diversity and impart theirvalue to our youth.

building strong youthA Leg Up

Piper Jaffray will partner with local schoolsand organizations to give children a leg up in life by tearing down barriers to education,for example, workplace tutoring.

For more details on our giving guidelines,including our funding priorities within the threefocus areas, visit www.piperjaffray.com.

Summary of ContributionsStrong Communities ................................. 14% Vibrant Culture............................................8%Strong Youth................................................8%Matching Gift ............................................13%General1 .....................................................47%Other 2........................................................10%

1 General includes United Way, branch giving, educationalawards and matched employee donations for disaster relief.2 Other includes administrative expenses for the foundationand corporate giving programs.

Volunteer Hours, 18%

Corporate Giving, 21%

Foundation Giving, 61%

piper jaffray companies2005 Total Giving: $3.2 million

EMPLOYEE INVOLVEMENT

Employees throughout the company help set the direction of our community giving via thefollowing leadership councils:

• The Corporate Community InvolvementCouncil leads our corporate philanthropicefforts in volunteerism and charitable giving.The council considers and approves all grants in the Twin Cities area.

• The Regional Community InvolvementCouncils direct local giving and volunteerefforts within eight regions. The councilsconsider and approve all grants within theirregions.

• The Corporate Volunteer Councildevelops, promotes and maintains a dynamicfirm-wide volunteer program that helps meetcritical community needs using our humanresources.

FOR MORE INFORMATION

Visit www.piperjaffray.com for more details onour community involvement programs, the latestinitiatives, giving guidelines and a current list ofnonprofit partners.

contactsKris KewitschDirector of Community Relations612 303-5515kristin.k.kewitsch@pjc.com

Becky SmithCommunity Relations Specialist612 303-5532rebecca.a.smith@pjc.com

Jenny MoeCommunity Relations Analyst612 303-1856jennifer.m.moe@pjc.com

ABOUT PIPER JAFFRAY

piper jaffray & co. is the chief operatingsubsidiary of Piper Jaffray Companies (NYSE:PJC), a focused securities firm dedicated todelivering superior financial advice, investmentproducts and transaction execution withinselected sectors of the financial servicesmarketplace. The company currently operatesthrough two primary revenue-generatingsegments: Capital Markets and Private ClientServices. The sale of the company’s PrivateClient Services branch network, announcedApril 11, 2006, is pending. The company’sCapital Markets business generates revenuethrough two groups: Corporate and InstitutionalServices and Public Finance Services. Through itschief operating subsidiary, Piper Jaffray & Co.,the firm has served corporations, governmentand nonprofit entities, institutional investors andthe financial advisory needs of privateindividuals since 1895. With headquarters inMinneapolis, Piper Jaffray has approximately2,800 employees in 107 offices in 23 states across the country and in London.For more information about Piper Jaffray, visitus online at www.piperjaffray.com.

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