You are cordially invited to join us for our 2006 annual ... - Piper Jaffray

What is a proxy statement?It is a document that we are required to give you, in accordance with regulations promulgated bythe Securities and Exchange Commission, when we ask you to designate proxies to vote your shares ofPiper Jaffray Companies common stock at a meeting of our shareholders. The proxy statementincludes information regarding the matters to be acted upon at the meeting and certain otherinformation required by regulations promulgated by the Securities and Exchange Commission and rulesof the New York Stock Exchange.What is the difference between a shareholder of record and a ‘‘street name’’ holder?If your shares are registered directly in your name, you are considered the shareholder of recordwith respect to those shares. If your shares are held in a stock brokerage account or by a bank, trustor other nominee, then the broker, bank, trust or other nominee is considered to be the shareholder ofrecord with respect to those shares, while you are considered the beneficial owner of those shares. Inthat case, your shares are said to be held in ‘‘street name.’’ Street name holders generally cannot votetheir shares directly and must instead instruct the broker, bank, trust or other nominee how to votetheir shares using the method described below under ‘‘How do I submit my proxy?’’How do I submit my proxy?If you are a shareholder of record, you can submit a proxy to be voted at the meeting in any ofthe following ways:) electronically, using the Internet;) over the telephone by calling a toll-free number; or) by completing, signing and mailing the enclosed proxy card.The Internet and telephone voting procedures have been set up for your convenience. The procedureshave been designed to authenticate your identity, allow you to give voting instructions, and confirmthat those instructions have been recorded properly. When you vote by Internet or telephone, youreduce our mailing and handling expenses. If you are a shareholder of record and would like to submityour proxy by Internet or telephone, please refer to the specific instructions provided on the enclosedproxy card. If you wish to vote using a paper format, please return your signed proxy card promptlyto ensure we receive it before the annual meeting.If you hold your shares in street name, you must vote your shares in the manner prescribed byyour broker, bank, trust or other nominee. Your broker, bank, trust or other nominee has enclosed orotherwise provided a voting instruction card for you to use in directing the broker, bank, trust orother nominee how to vote your shares. In many cases, you may be permitted to submit your votinginstructions by Internet or telephone.How do I vote if I hold shares in the Piper Jaffray Companies Retirement Plan or U.S. Bancorp 401(k)Savings Plan?If you hold shares of Piper Jaffray common stock in the Piper Jaffray Companies Retirement Planor U.S. Bancorp 401(k) Savings Plan, your completed proxy card or the submission of your proxy byInternet or telephone will serve as voting instructions to the respective plan’s trustee. Your votinginstructions must be received at least five days prior to the annual meeting in order to count. Inaccordance with the terms of the Piper Jaffray Companies Retirement Plan and U.S. Bancorp 401(k)Savings Plan, the trustee of each plan will vote all of the shares held in the plan in the sameproportion as the actual proxy votes submitted by plan participants at least five days prior to theannual meeting.2