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Robert Foney, Director of Public Relations

781.477.4814

www.investorscapital.com

Investors Capital Holdings Revenue Dips in Q3

Firm decreases expenses, increases service levels; net capital remains strong

Lynnfield, Mass. (February 23, 2009) – Investors Capital Holdings, Ltd. (AMEX: ICH), a financial services holding company, posted revenues of $18.4 million for the quarter ended December 31, 2008, down $4.9 million, or 21.1% compared to the year ago quarter (“prior period”). The firm experienced a $4.6 million, or 23.3%, decrease in commissions, primarily in direct and mutual fund business, coupled with a modest 2.6% decrease in investment advisory revenues.

“We’re doing all the right things to survive this global downturn,” said Timothy B. Murphy, President and Chief Executive Officer of Investors Capital Holdings. “Our net capital ratio is in great shape; our service satisfaction scores are up; our total operating expenses are down; and we’re providing our advisors with weekly practice management conference calls, marketing and branding assistance, and mentoring relationships to help them survive and, in some cases, thrive in this market. Our revenues may be down, but everyone’s revenues in our industry are down. We’re in a global recession. However, we anticipate that these same conditions will be presenting us with historic opportunities to attract productive reps from other segments of the industry.”

Average representative production remained consistent at approximately $133,000 for the current and prior period, based on 646 and 674 registered representatives, respectively.

This is reflective of management’s continuing efforts in recruiting established, high-quality representatives; assisting our existing advisors with growing their practices; and removing lower quality representatives.

The firm garnered a high Net Promoter® score during the quarter. A measure of customer satisfaction, the score was obtained by applying a formula to ratings of our representatives’ answers to the question "How likely is it that you would recommend our company to a friend or colleague?"

Total operating expenses decreased 3.1% to $4.8 million from $4.9 million for the prior period. The Company posted a net loss for the quarter of $0.61 million or ($0.10) per share versus net income of $0.05 million or $0.01 per share for the prior period. Our net capital position remained strong.

About Investors Capital Holdings, Ltd.:

Investors Capital Holdings, Ltd. (AMEX:ICH) of Lynnfield, Massachusetts is a diversified financial services holding company that operates primarily through its independent broker/dealer and investment advisor subsidiary, Investors Capital Corporation. Our mission is to provide premier, concierge-level service and support to our valued registered representatives, including advisory programs, strategic practice management services and technology to help them grow their businesses and exceed their clients’ expectations. Business units include Investors Capital Corporation, Investors Capital Advisory Services, ICC Insurance Agency, Inc., and Investors Capital Holdings Securities Corporation. For more information, please call (800) 949-1422 x4814 or visit www.investorscapital.com.

Investors Capital Holdings LTD.
Condensed Consolidated Balance Sheets
	December	March
	12/31/08	03/31/08
Assets
Current Assets
Cash and cash equivalents	$ 6,320,124	$ 4,340,082
Deposit with clearing organization, restricted	175,000	175,000
Accounts receivable	4,159,068	4,662,146
Note receivable	756,432	756,291
Loans receivable from registered representatives (current), net of allowance	839,669	815,035
Prepaid income taxes	553,941	1,294,876
Marketable securities, at market value	71,569	181,335
Investment (short term)	-	1,247,861
Prepaid expenses	427,616	651,948
Property and equipment, net	1,115,471	1,277,636
Equity Investments, at cost	40,000	40,000
Investments	137,165	175,824
NQ Deferred Compensation Investment	492,237	333,880
Cash surrender value life insurance policies	392,475	359,469
Other assets	42,390	58,430
Deferred tax asset, net	1,019,453	696,760

TOTAL ASSETS	$ 16,542,610	$ 17,066,573

Liabilities and Stockholders' Equity
Accounts payable	$ 787,777	$ 833,697
Accrued expenses	1,425,659	1,312,186
Notes payable	-	853,412
Unearned revenues	1,600,177	102,562
Commissions payable	2,354,236	2,997,499
Securities sold, not yet purchased, at market value	12,031	141,359
Non-qualified deferred compensation plan	493,631	331,202
	6,673,511	6,571,917

Stockholders' Equity:
Common stock, $.01 par value, 10,000,000 shares authorized;
6,572,631 issued and 6,568,746 outstanding at December 31,2008
6,535,871 issued and 6,531,986 outstanding at March 31, 2008	65,726	65,359
Additional paid-in capital	11,683,623	10,886,381
Accumulated deficit	(1,836,807)	(455,623)
Less: Treasury stock, 3,885 shares at cost	(30,135)	(30,135)
Accumulated other comprehensive income	(13,308)	28,674
Total stockholders' equity	9,869,099	10,494,656

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 16,542,610	$ 17,066,573

INVESTORS CAPITAL HOLDINGS, LTD. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED DECEMBER 31, 2008 AND 2007 (UNAUDITED)