First Security Group, Inc. Announces NASDAQ Global Select Extension

  First Security Group, Inc. Announces NASDAQ Global Select Extension

Business Wire

CHATTANOOGA, Tenn. -- December 03, 2012

First Security Group, Inc. (NASDAQ: FSGI) (the “Company”), the bank holding
company for its wholly-owned subsidiary FSGBank, N.A. (“FSGBank”), announced
that it received a ruling from the Hearing Panel of the NASDAQ Stock Market
LLC (“NASDAQ”) indicating the approval of the Company’s requested extension of
the period to regain compliance with the listing standards for the Global
Select market. The Company requested a six month extension, or through March
25, 2013, to regain compliance with the listing standards.

“We appreciate the opportunity that the Hearing Panel provided for us to
present our overall recapitalization plan for FSG and its direct impact on
regaining compliance with the listing standards of the Global Select exchange.
We continue to make progress and believe that we will be back in compliance by
March 25^th,” said Michael Kramer, President and CEO of First Security. “The
Global Select market has the highest listing standards of the three NASDAQ
exchanges and the results of our recapitalization plan would far excess the
Global Select’s minimum listing standards.”

On November 27, 2012, the Company received a notice extending the compliance
period to March 25, 2013. The extension includes certain conditions, including
that the Company receive approval from the U.S. Treasury, holder of the
Company’s Series A Preferred Stock issued under the Capital Purchase Program
of the Troubled Asset Relief Program, to restructure the Preferred Stock as
part of a larger recapitalization plan.

“At this time, we believe that a restructuring plan mutually agreeable to
First Security and the U.S. Treasury should be achieved by year-end,” said
John Haddock, Executive Vice President and CFO of First Security.

As discussed on a Current Report on Form 8-K filed on September 28, 2012,
NASDAQ previously informed the Company that it would be subject to delisting
based on the Company’s non-compliance with the minimum $5 million market value
of publicly held share requirement set forth in the NASDAQ listing standards
for the Global Select market. At the time, the Company stated that it planned
to appeal to the Hearing Panel with a request to extend the compliance period.

In the event that the Company does not achieve compliance with the conditions
of the ruling, NASDAQ may transfer trading of the Company’s common stock to
the NASDAQ Capital Market exchange.

About First Security Group, Inc.

Founded in 1999, First Security's community bank subsidiary, FSGBank, has 30
full-service banking offices along the interstate corridors of eastern and
middle Tennessee and northern Georgia. In Dalton, Georgia, FSGBank operates
under the name of Dalton Whitfield Bank; along the Interstate 40 corridor in
Tennessee, FSGBank operates under the name of Jackson Bank & Trust. FSGBank
provides retail and commercial banking services, trust and investment
management, mortgage banking, financial planning and Internet banking services
(www.FSGBank.com).

Note Regarding Forward Looking Statements

Some of our statements contained in this release are “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act
of 1995. Forward-looking statements relate to future events or our future
financial performance and include statements about the Company’s plans for
negotiating with Treasury and the execution of its business plans. When we use
words like “may,” “plan,” “contemplate,” “anticipate,” “believe,” “intend,”
“continue,” “expect,” “project,” “predict,” “estimate,” “could,” “should,”
“would,” “will,” and similar expressions, you should consider them as
identifying forward-looking statements, although we may use other phrasing.
These forward-looking statements involve risks and uncertainties and are based
on our beliefs and assumptions, and on the information available to us at the
time that these disclosures were prepared.

These forward-looking statements involve risks and uncertainties and may not
be realized due to a variety of factors. There can be no assurance that the
Company will be able to reach agreement with the Treasury, or that other
actual results, performance or achievements of the Company will not differ
materially from those expressed or implied by forward-looking statements. For
details on these and other factors that could affect expectations, see the
cautionary language included under the headings “Risk Factors” and
“Management’s Discussion and Analysis of Financial Condition and Results of
Operations” in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2011 and the Company’s Quarterly Report on Form 10-Q for the
quarter ended September 30, 2012, and other filings with the SEC.

Many of these risks are beyond our ability to control or predict, and you are
cautioned not to put undue reliance on such forward-looking statements. First
Security does not intend to update or reissue any forward-looking statements
contained in this release as a result of new information or other
circumstances that may become known to First Security, and undertakes no
obligation to provide any such updates.

All written or oral forward-looking statements attributable to us are
expressly qualified in their entirety by this Note. Our actual results and
condition may differ significantly from those we discuss in these
forward-looking statements.

Contact:

First Security Group, Inc.
John R. Haddock, CFO, 423-308-2075
jhaddock@FSGBank.com