January 15, 2010

First Business Affiliated Mezzanine Fund Announces Equity

MADISON, WI - January 15, 2010 - First Business Bank, part of First Business Financial Services, Inc. (NASDAQ: FBIZ), announces the recent funding of another mezzanine equity investment through its affiliation with Aldine Capital Partners, Inc.

The new investment includes subordinated debt and equity capital with Lanair Products LLC of Janesville, WI. In addition, First Business also provided the senior debt financing for this transaction. The fund enabled Lanair Products to acquire Lenan Corp, a niche manufacturer of waste oil heaters and related equipment in Janesville, WI. This transaction allows for a transition of the business to a highly qualified operator while maintaining its presence in Janesville. The business will be operated as Lanair Products LLC, a wholly owned subsidiary of Lanair Holdings LLC.

First Business Bank offers mezzanine funding to Madison-area clients through an investment with Aldine Capital Fund, L.P. to provide funding between $2 million and $8 million in investment size. Mezzanine financing, also referred to as "mezzanine capital" or "junior capital," allows borrowers to obtain unsecured debt financing based on cash flow rather than traditional collateral. It is a tool that can fill the financing gap that often occurs between owners’ equity and traditional bank financing, where the maximum bank loan might be capped by collateral requirements or other limitations. Mezzanine financing is most often used for financing growth, re-capitalization, acquisitions or ownership changes.

About Aldine Capital Partners
Aldine Capital Partners is a Chicago-based private equity firm which provides subordinated debt and minority equity financing to lower middle market companies in Wisconsin and Illinois. Aldine typically invests $2-8 million per transaction to finance management and leveraged buyouts, recaps and growth. For additional information, visit www.aldinecapital.com or call 312-346-3950.

About First Business Bank - Madison
First Business Bank was established by area business owners and investors in 1990 to specialize in quality business banking for the local business community. First Business Bank offers a full line of financial services for businesses and business owners, including: commercial loans, treasury management products and remote deposit, Internet banking, mezzanine funding, retirement plans/investment management services/trustee services, asset based lending, and equipment leasing and finance. For additional information, visit www.firstbusiness.com/madison or call 608-238-8008.
About First Business Financial Services, Inc.

First Business Financial Services, Inc. (Nasdaq:FBIZ) is a Wisconsin-based bank holding company, focused on the unique needs of businesses, business executives, and high net worth individuals. First Business offers commercial banking, specialty finance, and private wealth management solutions, and because of its niche focus, is able to provide its clients with unmatched expertise, accessibility, and responsiveness. For additional information, visit www.firstbusiness.com or call (608) 238-8008.

The First Business Financial Services, Inc. logo is available at http://www.firstbusiness.com/logo

Forward-Looking Statements
This press release contains forward-looking statements that reflect the Corporation's plans, estimates and beliefs. When used in this press release, the words "anticipate," "believe," "estimate," "expect," "objective" and similar expressions and verbs in the future tense are intended to identify forward-looking statements. The statements contained in this press release involve or may involve certain assumptions, risks, and uncertainties, many of which are beyond the Corporation's control, which could cause actual results to differ materially from those discussed in the forward-looking statements. The forward-looking statements included in this press release are only made as of the date hereof, and the Corporation undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. In addition to the assumptions and other factors referenced specifically in connection with such statements, the factors described in "Item 1A. Risk Factors" in our Annual Report on Form 10-K and the following factors could impact the business and financial prospects of the Corporation: general economic conditions; legislative and regulatory initiatives; increased competition and other effects of deregulation and consolidation of the financial services industry; monetary and fiscal policies of the federal government; deposit flows; disintermediation; the cost and availability of funds; general market rates of interest; interest rates or investment returns on competing investments; demand for loan products; demand for financial services; changes in accounting policies or guidelines; general economic developments; acts of terrorism and developments in the war on terrorism; and changes in the quality or composition of loan and investment portfolios.

Jodie Johnson
AVP - Marketing
First Business Financial Services