Hoefer & Arnett Upgrades PNC to NEUTRAL from REDUCE SAN FRANCISCO, Feb. 7 /PRNewswire/ -- Hoefer & Arnett financial services analyst Chris Siedman raised his recommendation on PNC Financial (PNC) today to Neutral from Reduce. Upon announcement that PNC has decided to terminate its merger with Riggs National, Hoefer & Arnett has increased its 2005 EPS estimate for PNC from $4.39 to $4.47 and bumped up its 2006 estimate by two cents to $4.75. However, the broker warned that PNC may be facing legal action on the part of Riggs and/or its shareholders and is still hamstrung by the slow economic growth of its footprint. Even still, the broker believes that PNC shares could reach $57 over the coming 12 months. As of mid-morning today, PNC shares had fallen by 5.8% since the beginning of the year versus a decline of only 1.6% for the S&P Bank Stock Index. http://www.hoeferarnett.com/ Trading (800) 774-8723 All expressions of opinion reflect the judgment of the Research Department of Hoefer & Arnett, Inc. at this date and are subject to change. We have obtained information from sources considered reliable, but we do not guarantee that the foregoing report is accurate or complete. Other departments of Hoefer & Arnett, Inc may have information, which is not available to the Research Department about companies mentioned in this report. Hoefer & Arnett, Inc., or its affiliates may execute transactions in the securities mentioned in this report, which may not be consistent with the report's conclusions. Hoefer & Arnett, Inc. may perform investment banking or other services for, or solicit investment-banking business from any company mentioned in this report. Partners, officers, employees and accounts controlled by Hoefer & Arnett, Inc. may own shares of any company mentioned herein. Hoefer & Arnett Incorporated is a member of the National Association of Securities Dealers, CRD number 10883. DATASOURCE: Hoefer & Arnett Incorporated CONTACT: Chris Siedman, Analyst, +1-203-938-2695 or , or Miki Morgan, Research Coordinator, +1-415-362-7111 or , both of Hoefer & Arnett Incorporated Web site: http://www.hoeferarnett.com/

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