AMVESCAP PLC Reports Results for Year Ended December 31, 2004

AMVESCAP PLC Reports Results for Year Ended December 31, 2004

    Business Editors/Banking Writers/Financial Editors

    LONDON--(BUSINESS WIRE)--Feb. 1, 2005--AMVESCAP (NYSE:AVZ) (LSE:AVZ) (TSX:AVZ) reported that profit before tax, goodwill amortization and exceptional items amounted to GBP 269.8 million ($518.0 million) compared to GBP 270.3 million ($481.1 million) in 2003. Diluted earnings per share before goodwill amortization and exceptional items was 21.7p for the 2004 year (2003: 23.2p). If the average U.S. Dollar exchange rate in 2004 had remained the same as 2003, then the diluted earnings per share for 2004 would have been 23.2p, unchanged from 2003. Revenues amounted to GBP 1,158.5 million ($2,224.3 million) compared to GBP 1,158.1 million ($2,061.4 million) in 2003.

Results for Year Ended 2004 2003 2004(b) 2003(b) ---------- ---------- ---------- ---------- Revenues GBP 1,158.5m GBP1,158.1m $2,224.3m $2,061.4m Profit before tax, goodwill amortization and exceptional items GBP 269.8m GBP 270.3m $518.0m $481.1m Earnings per share before goodwill amortization and exceptional items: --basic 21.9p 23.4p $0.84(a) $0.83(a) --diluted 21.7p 23.2p $0.83(a) $0.83(a) Dividends per share 7.5p 11.5p $0.29(a) $0.41(a) ----------------------------------------------------------------------

    (a) Per American Depositary Share equivalent to 2 ordinary shares.

    (b) For the convenience of the reader, pounds sterling for the year ended December 31, 2004 have been translated to U.S. dollars using $1.92 per GBP 1.00 (2003: $1.78 per GBP 1.00). References to "$" in this release are to U.S. dollars unless otherwise indicated.
    AMVESCAP reported that profit before tax, goodwill amortization and exceptional items for the three months ended December 31, 2004 amounted to GBP 65.1 million ($125.0 million) compared to GBP 65.2 million ($118.0 million) in the third quarter of 2004. Diluted earnings per share before goodwill amortization and exceptional items amounted to 5.3p for the fourth quarter of 2004, compared to 5.2p in the third quarter of 2004. Revenues for the fourth quarter of 2004 amounted to GBP 300.5 million ($577.0 million) compared to GBP 280.9 million ($508.4 million) in the third quarter. For the fourth quarter of 2003, profit before tax, goodwill amortization and exceptional items was GBP 82.2 million ($146.3 million), diluted earnings per share before goodwill amortization and exceptional items amounted to 7.0p per share, and revenues were GBP 301.2 million ($536.1 million).
    "While many of AMVESCAP's businesses around the world enjoyed great success during 2004, the market timing investigation held back our U.S. business for much of the year," said Mr. Charles W. Brady, Executive Chairman. "AMVESCAP ended the year with a renewed focus on serving our clients and regaining business momentum."
    "Our company has taken strong measures to ensure that we always uphold the trust and confidence of those who have entrusted us with their assets," added Mr. Brady. "As a leading investment manager in the world's major financial markets, our improved operating efficiency across the company and a continuing reputation for outstanding client service provide a solid foundation for growing the business."
    Funds under management increased 3% to $382.1 billion (GBP 199.0 billion) at December 31, 2004 compared to $370.6 billion at December 31, 2003. Institutional money market funds, included above, amounted to $41.7 billion at December 31, 2004 compared to $50.9 billion at the end of the prior year. Approximately 55% of the total funds under management was invested in equity securities and 45% was invested in fixed income and other securities at December 31, 2004. The equity securities were invested in the following investment styles at December 31, 2004: 34% in growth, 39% in core and 27% in value styles (September 30, 2004: 31% in growth, 41% in core and 28% in value styles).
    Average funds under management amounted to $371.3 billion for 2004 compared to $340.8 billion for the prior year. Average funds under management amounted to $374.0 billion for the fourth quarter compared to $364.0 billion for the preceding quarter, an increase of $10.0 billion. The average money market fund levels totaled $43.2 billion for the fourth quarter and $45.1 billion for the 2004 year ($51.5 billion for 2003).
    During December, AMVESCAP completed two significant debt-related transactions. Through a tender offer, AMVESCAP purchased $320.5 million of the $400 million of its 6.6% notes due in May of this year. In conjunction with that transaction, AMVESCAP issued a total of $500 million in new notes: $300 million of 5-year notes with a coupon of 4.5% and the remaining $200 million of 10 year notes with a coupon of 5.375%.
    Net debt at December 31, 2004 amounted to GBP 590.9 million (excluding client cash) compared to GBP 576.6 million at December 31, 2003. Earnings before interest, taxes, depreciation, amortization and exceptional items ("EBITDA") reached GBP 372.8 million ($715.8 million) for the full year 2004, compared to GBP 386.6 million ($688.1 million) for the full year 2003.
    The Board has recommended a final dividend of 5.0p, resulting in a total dividend of 7.5p for 2004 (2003: 11.5p). This dividend, if approved by the shareholders at the Annual General Meeting in April, will be paid on May 4, 2005 to shareholders on the register on April 1, 2005. The ex-dividend date for the dividend will be March 30, 2005.

    2004 BUSINESS HIGHLIGHTS

    Investment Performance

--	INVESCO Perpetual's investment teams ended the year with 94% of retail assets under management outperforming peer funds over one year.
--	AIM Trimark's asset-weighted investment performance has been impressive, with 82% of their funds in the first or second quartile over three years and 89% over five years.
--	In Japan, the INVESCO OTC Growth Stock Open fund was awarded "Fund of the Year" and was the No.1 performing fund out of 1,029 funds ranked by Nikkei as of December 2003.
--	The AIM Real Estate fund was named the top fund in its respective category at the Lipper Fund awards.
--	Eight of AIM's 12 international funds beat their respective indexes for the year. At year-end, ten funds rated in the top quartile of their Lipper categories with six of those funds ranking in the top decile. AIM Global Aggressive Growth fund and AIM International Small Company Growth fund were the top funds in their Lipper groups (as of November 30, 2004). AIM International Small Company Growth fund also received a 2004 Lipper Fund Award.
--	In China, three of our four domestic funds were top quartile performers in 2004. They are the INVESCO Great Wall Jing Series - Equity Fund, the INVESCO Great Wall Jing Series - Balanced Fund and the INVESCO Great Wall - Domestic Demand Fund.

    Industry Rankings and Awards

    -- AIM Trimark won six awards at the 2004 Canadian Investment
    Awards including the Advisors' Choice Fund Company of the Year
    for the second year in a row and for three of the last four
    years.

    -- INVESCO Australia was recognized as "Most Improved Fund
    Manager of the Year" by Insto magazine and the INVESCO
    Diversified Growth PST was ranked No. 1 out of 28 funds in the
    Intech December Growth Funds Survey.

    -- A national financial publication in China awarded INVESCO
    Great Wall, INVESCO's joint venture in China, with two first
    place awards for 2004: Best Fund Manager of the Year and the
    Best Performing Fund Manager of the Year for Open Ended Funds
    Category.

    -- AIM Cash Management's institutional money market funds
    retained their No.1 ranking in the Standard & Poor's rated
    prime, government and tax-free categories for the last 20
    years. In addition, AIM Cash Management was recognized by
    iMoneyNet, Inc. as the fifth largest rated global
    institutional money market fund complex in the industry.

    -- Financial Adviser selected INVESCO Perpetual for three
    Investment Provider awards including Group of the Year; Fund
    Manager of the Year, U.K. sectors; and Fund Manager of the
    Year, Individual.

    -- INVESCO Perpetual won Best Portfolio Bond Fund Manager award
    at the International Money Marketing Awards and won three
    Investment Week Fund Manager of the Year Awards.

    -- For the third consecutive year, Atlantic Trust was recognized
    in the Barron's ranking of top wealth managers in the U.S. for
    2004. The ranking was based on private banking assets under
    management for individual clients with accounts of $1 million
    or more.

    Client Service Achievements

    -- AIM Investment Services (AIS), received a National Quality
    Review (NQR) 5-Star rating for superior customer service for
    each quarter in 2004. AIS's telephone service also received
    NQR's "Best in Class" designation during the 2nd and 3rd
    quarters of 2004.

    -- The Profit Sharing Council of America awarded AMVESCAP
    Retirement (ARI) two awards for participant communication
    campaigns, including first place for an "Off the Shelf"
    standard campaign and second place for "Targeted
    Communications" to a manufacturing firm.

    -- INVESCO Continental Europe's partnership with a major client
    was recognized in December when the "Invest for Life" plan
    received the 2004 Investment & Pensions Europe award for Best
    Product.

    -- AIM Trimark's contact center was ranked No. 1 in the industry
    for the second time in three years by Environics Research
    Group's Call Audit Study.

    -- AIM Investments ranked among the three most popular fund
    families for brokers, according to a survey of 1,033 financial
    intermediaries conducted by kasina LLC, a consulting firm to
    the financial services industry.

    Business Developments

    -- In November, AIM launched a national advertising campaign in
    the U.S. featuring employees sharing their thoughts about how
    AIM can build solutions to meet investment needs. Television
    commercials aired on a number of national networks with print
    ads featured in The Wall Street Journal and Barron's.

    -- Atlantic Trust completed the acquisition of Stein Roe
    Investment Counsel LLC, expanding the footprint of our Private
    Wealth Management Division in the U.S. and bringing their
    assets under management to $15 billion.

    -- In June, our joint venture company in China successfully
    completed its second fund launch, raising over $300 million at
    the end of the initial one month offer period.

    -- INVESCO Fixed Income's Global CDO Group added $2.6 billion in
    new Collateralized Debt Obligation (CDO) funds, bringing the
    total amount managed to $7.0 billion and adding to its
    reputation as a leading worldwide CDO manager.

    -- AIM's Subadvised group recorded sales of $2.4 billion, an
    increase of 18% over 2003, and assets rose to $5.7 billion, an
    increase of 12% over 2003.

    -- INVESCO Real Estate launched an open-ended Core Real Estate
    Fund with five existing separate account clients as founding
    investors. The fund opened with $460 million of real estate
    properties and $90 million of available capital to call once
    new investments are identified.

    -- AIM Private Asset Management (APAM) reached $2.8 billion in
    assets under management. APAM's year-over-year growth was
    111%, earning the group a ranking by Cerulli Associates as one
    of the ten fastest growing separately managed account
    managers.

    2004 FINANCIAL SUMMARY

    AIM U.S.

    The AIM U.S. business reported revenues of GBP 443.1 million during 2004 compared to GBP 491.7 million for the prior year. Operating profits were GBP 165.9 million, compared to GBP 190.6 million in 2003. The group generated approximately $16.3 billion of gross sales, had net redemptions of $12.4 billion and market gains of $7.3 billion in 2004. Funds under management amounted to $137.6 billion at December 31, 2004, including $41.7 billion of institutional money market funds.

    AIM Canada

    The AIM Canada business reported revenues of GBP 174.4 million during 2004 compared to GBP 154.8 million for the prior year. Operating profits were GBP 96.6 million in 2004 compared to GBP 77.6 million in 2003. The group generated approximately $5.3 billion of gross sales in 2004. Market gains were $2.7 billion for the year. Funds under management amounted to $34.6 billion at December 31, 2004.

    INVESCO U.S.

    The INVESCO U.S. business reported revenues and operating profits of GBP 187.2 million and GBP 47.1 million in the 2004 period, compared to revenues of GBP 176.6 million and operating profits of GBP 41.2 million in 2003. This group generated approximately $19.6 billion in gross sales during 2004; market gains were $8.1 billion, and net redemptions were $6.1 billion. Funds under management amounted to $121.0 billion at December 31, 2004.

    INVESCO U.K.

    INVESCO U.K.'s revenues amounted to GBP 188.1 million for 2004 compared to GBP 174.2 million in 2003. Operating profits totaled GBP 23.8 million for the year ended December 31, 2004 versus GBP 29.4 million for the prior year. Funds under management were $49.6 billion at December 31, 2004. Gross sales for 2004 totaled approximately $11.3 billion; market gains totaled $5.6 billion and net sales were $1.5 billion for the year.

    INVESCO Europe/Asia

    INVESCO Europe/Asia's revenues amounted to GBP 77.8 million for 2004 compared to GBP 77.7 million in 2003. Operating profits totaled GBP 0.8 million for the year ended December 31, 2004 versus GBP 0.3 million for the prior year. Funds under management were $24.1 billion at December 31, 2004. Gross sales for 2004 totaled approximately $10.2 billion; market gains totaled $2.0 billion, and net redemptions were $3.0 billion for the year.

    Private Wealth/Retirement

    Revenues and operating profits for these businesses totaled GBP 87.8 million and GBP 2.5 million for 2004. Funds under management were $15.2 billion at December 31, 2004.
    AMVESCAP Retirement's assets under administration were $28.0 billion at December 31, 2004. Net redemptions for the group amounted to $1.4 billion for 2004. This group services 1,115 plans with 569,000 participants at December 31, 2004.
    AMVESCAP is a leading independent global investment manager dedicated to helping people worldwide build their financial security. Operating under the AIM, AIM Trimark, INVESCO, INVESCO Perpetual and Atlantic Trust brands, AMVESCAP strives to deliver outstanding products and services through a comprehensive array of retail and institutional products for clients around the world. The Company is listed on the London, New York and Toronto stock exchanges with the symbol "AVZ." Additional information is available at www.amvescap.com.
    Members of the investment community and general public are invited to listen to the conference call today, Tuesday, February 1, 2005, at 2:30 p.m. GMT (9:30 a.m. EST), by dialing one of the following numbers: 610-769-9391 or 1-888-201-4990 for U.S. callers. An audio replay of the conference call will be available until Tuesday, February 8, 2005, at 10:00 p.m. GMT by calling 203-369-1058 or 1-866-441-1051 for U.S. callers. The presentation slides that will be reviewed during the conference call will be available on AMVESCAP's Web site at www.amvescap.com.

    This release may include statements that constitute "forward-looking statements" under the United States securities laws. Forward-looking statements include information concerning possible or assumed future results of our operations, earnings, liquidity, cash flow and capital expenditures, industry or market conditions, assets under management, acquisition activities and the effect of completed acquisitions, debt levels and the ability to obtain additional financing or make payments on our debt, regulatory developments, demand for and pricing of our products and other aspects of our business or general economic conditions. In addition, when used in this report, words such as "believes," "expects," "anticipates," "intends," "plans," "estimates," "projects" and future or conditional verbs such as "will," "may," "could," "should," and "would" or any other statement that necessarily depends on future events, are intended to identify forward-looking statements.
    Forward-looking statements are not guarantees of performance. They involve risks, uncertainties and assumptions. Although we make such statements based on assumptions that we believe to be reasonable, there can be no assurance that actual results will not differ materially from our expectations. We caution investors not to rely unduly on any forward-looking statements. In connection with any forward-looking statements, you should carefully consider the areas of risk described in our most recent Annual Report on Form 20-F, as filed with the United States Securities and Exchange Commission (SEC). You may obtain these reports from the SEC's Web site at www.sec.gov.

    AMVESCAP PLC

    Group Profit and Loss Account

    (in thousands)

Year Ended December 31, ------------------------------------ 2004 2003 ---------------- --------------- Revenues GBP 1,158,451 GBP 1,158,070 Expenses: Operating (859,776) (847,220) Exceptional (249,710) (84,943) Goodwill amortization (157,820) (148,982) ---------------- --------------- Operating (loss)/profit (108,855) 76,925 Investment income 15,268 7,740 Interest expense (44,096) (48,270) ---------------- --------------- (Loss)/profit before taxation (137,683) 36,395 Taxation (35,315) (53,676) ---------------- --------------- Loss after taxation (172,998) (17,281) Dividends (61,887) (93,627) Minority interests (285) -- ---------------- --------------- Retained loss for the period GBP (235,170) GBP (110,908) ================ ===============

Earnings per share before goodwill amortization and exceptional items: --basic 21.9p 23.4p --diluted 21.7p 23.2p ---------------- --------------- Earnings per share: --basic and diluted (21.6)p (2.2)p ---------------- --------------- Average shares outstanding: --basic 802,160 802,885 --diluted 808,288 810,371 ---------------- ---------------

    AMVESCAP PLC

    Group Profit and Loss Account

    (in thousands)

Three Months Ended Dec 31, ----------------------------------- 2004 2003 ---------------- -------------- Revenues GBP 300,457 GBP 301,219 Expenses: Operating (225,490) (211,649) Exceptional -- (22,849) Goodwill amortization (43,511) (37,049) ---------------- -------------- Operating profit 31,456 29,672 Investment income 4,334 3,038 Interest expense (14,198) (10,417) ---------------- -------------- Profit before taxation 21,592 22,293 Taxation (22,786) (18,535) ---------------- -------------- (Loss)/profit after taxation GBP (1,194) GBP 3,758 ================ ==============

Earnings per share before goodwill amortization and exceptional item: --basic 5.3p 7.1p --diluted 5.3p 7.0p ---------------- -------------- Earnings per share: --basic and diluted (0.1)p 0.5p ---------------- -------------- Average shares outstanding: --basic 797,641 800,941 --diluted 803,148 810,311 ---------------- --------------

    AMVESCAP PLC

    Group Balance Sheet

    (in thousands)

Dec 31, 2004 Dec 31, 2003 ---------------- -------------- Fixed assets Goodwill GBP 2,303,403 GBP 2,411,803 Investments 70,070 89,639 Tangible assets 148,404 170,598 ---------------- -------------- 2,521,877 2,672,040 Currents assets Debtors 1,016,644 890,534 Investments 84,483 74,652 Cash 284,977 318,713 ---------------- -------------- 1,386,104 1,283,899 Current liabilities Current maturities of long-term debt (41,411) -- Creditors (1,242,388) (1,071,400) ---------------- -------------- (1,283,799) (1,071,400)

Net current assets 102,305 212,499 ---------------- --------------

Total assets less current liabilities 2,624,182 2,884,539

Long-term debt (683,215) (730,041) Provisions for liabilities and charges (106,234) (105,646) ---------------- -------------- Net assets GBP 1,834,733 GBP 2,048,852 ================ ==============

Capital and reserves Called up share capital GBP 202,664 GBP 200,264 Share premium account 700,888 675,755 Shares held by employee trusts (237,972) (185,809) Exchangeable shares 308,996 330,629 Profit and loss account 265,247 500,417 Other reserves 593,596 527,215 ---------------- -------------- Shareholders' funds Equity interests 1,833,419 2,048,471 Minority interests 1,314 381 ---------------- -------------- GBP 1,834,733 GBP 2,048,852 ================ ==============

    AMVESCAP PLC

    Group Cash Flow Statement

    (in thousands)

Year Ended ----------------------------- Dec 31, 2004 Dec 31, 2003 -------------- ------------

Operating (loss)/profit GBP (108,855) GBP 76,925 Goodwill amortization and depreciation 203,405 199,937 Change in debtors, creditors and other 109,075 61,805 -------------- ------------ Net cash inflow from operating activities 203,625 338,667 -------------- ------------ Interest paid, net of investment income (34,721) (42,143) Taxation (57,215) (120,760) Capital expenditures, net of sales (27,594) (36,585) Net (purchase)/disposal of fixed asset investments (1,385) 4,464 Acquisitions and disposals (28,744) (28,039) Dividends paid (73,823) (93,369) Purchase of shares, net (47,237) (20,428) Change in bank overdraft (224) (5,112) Foreign exchange on cash at bank and in hand (17,381) (11,177) Net issuance/(repayment) of debt 50,963 (21,916) -------------- ------------ Decrease in cash at bank and in hand GBP (33,736) GBP (36,398) ============== ============

    AMVESCAP PLC

    Segmental Information

    (in thousands)

Year Ended Dec 31, 2004 ------------------------------------------- Revenues Expenses Operating Profit(a) -------------- -------------- ------------ AIM U.S. GBP 443,085 GBP (277,196) GBP 165,889 Canada 174,417 (77,809) 96,608 -------------- -------------- ------------ 617,502 (355,005) 262,497 -------------- -------------- ------------ INVESCO U.S. 187,235 (140,099) 47,136 U.K. 188,108 (164,279) 23,829 Europe/Asia 77,773 (76,924) 849 -------------- -------------- ------------ 453,116 (381,302) 71,814 -------------- -------------- ------------

Private Wealth/Retirement 87,833 (85,300) 2,533 Corporate -- (38,169) (38,169) -------------- -------------- ------------ GBP 1,158,451 GBP (859,776) GBP 298,675 ============== ============== ============

Year Ended Dec 31, 2003 ---------------------------------------------- Revenues Expenses Operating Profit(a) -------------- --------------- ------------ AIM U.S. GBP 491,722 GBP (301,167) GBP 190,555 Canada 154,758 (77,177) 77,581 -------------- --------------- ------------ 646,480 (378,344) 268,136 -------------- --------------- ------------ INVESCO U.S. 176,595 (135,396) 41,199 U.K. 174,164 (144,741) 29,423 Europe/Asia 77,725 (77,385) 340 -------------- --------------- ------------ 428,484 (357,522) 70,962 -------------- --------------- ------------

Private Wealth/Retirement 83,106 (86,368) (3,262) Corporate -- (24,986) (24,986) -------------- --------------- ------------ GBP 1,158,070 GBP (847,220) GBP 310,850 ============== =============== ============

    (a) before goodwill amortization and exceptional items

    Note: The Denver-based investment management team has been reflected with AIM U.S. in this analysis. Previous presentations included these amounts with the INVESCO U.S. business.

    Notes

    1. The taxation charge is primarily due to overseas taxation. A significant proportion of the tax charge is expected to arise from U.S. operations. After adjusting for the amortization of goodwill and the exceptional items, the effective tax rate was 35.0% in 2004 (2003: 30.6%).
    2. Basic earnings per share is based on the weighted average number of ordinary and exchangeable shares outstanding during the respective periods. Diluted earnings per share takes into account the effect of dilutive potential ordinary and exchangeable shares outstanding during the period.

2004 -------------------------------------

Loss after Number of Per share taxation shares GBP '000 '000 amount ------------ ---------- --------- Basic and diluted earnings per share (172,998) 802,160 (21.6)p ============ ========== =========

2003 ------------------------------------

Loss after Number of Per share taxation shares GBP '000 '000 amount ------------ ----------- --------- Basic and diluted earnings per share (17,281) 802,885 (2.2)p ============ =========== =========

    Profit before goodwill amortization and exceptional items is a more appropriate basis for the calculation of earnings per share since this represents a more consistent measure of the year-by-year performance of the business; therefore, the calculation below is presented on that basis.

2004 ----------------------------------------

Profit before Number of Per share goodwill shares amortization and exceptional items GBP '000 '000 amount -------------- ------------ ---------- Basic earnings per share 175,401 802,160 21.9p ========== Dilutive effect of options -- 6,128 -------------- ------------ Diluted earnings per share 175,401 808,288 21.7p ============== ============ ==========

2003 ------------------------------------------

Profit before Number of Per share goodwill shares amortization and exceptional items GBP '000 '000 amount ---------------- ------------ ---------- Basic earnings per share 187,602 802,885 23.4p ========== Dilutive effect of options -- 7,486 ---------------- ------------ Diluted earnings per share 187,602 810,371 23.2p ================ ============ ==========

    3. The consolidated profit and loss account includes exceptional charges in 2004 as follows:

GBP '000 ------------------------ U.S. regulatory investigation: Settlement costs 208,918 Other related costs 20,249 Lease costs 20,224 Redundancy & reorganization 5,545 Other (5,226) ------------------------ Total exceptional items 249,710 ------------------------ Total exceptional items net of tax 190,579 ======================== Diluted per share impact 23.6p

    The U.S. regulatory investigation settlement costs comprise $376.7 million in penalties and restitution costs. The related costs are primarily additional legal costs associated with the investigation.
    Lease costs arise as a result of excess office space in the U.K. and U.S. The provision reflects an estimate of the lease payments in excess of the expected sublease proceeds over the remaining life of the lease. Redundancy and reorganization costs primarily represent the costs of completing the integration of the U.S. mutual fund businesses. 'Other' represents the release of previously estimated provisions to reflect actual costs incurred.

    4. Dividends for 2004 and 2003 were as follows:

GBP '000 2004 2003 ------------ ----------- Interim paid: 2.5p per share (2003: 5.0p) 20,909 40,835 Final proposed: 5.0p per share (2003: 6.5p) 40,978 52,792 ------------ ----------- 61,887 93,627 ============ ===========

    5. On March 1, 2004 we completed the acquisition of Stein Roe Investment Counsel LLC for consideration totaling GBP 87.6m million, which includes earn-out provisions of GBP 23.0 million. Goodwill and management contract intangible assets of GBP 84.5 million have been recorded on this acquisition, net cash paid was GBP 36.7 million, and shares were issued in satisfaction of GBP 25.3 million purchase consideration .
    On March 31, 2004 we completed the disposal of the U.K. and Jersey businesses of Atlantic Wealth Management. A gain of GBP 3.8 million has been recorded within investment income.
    6. Certain prior year amounts have been reclassified to conform to current year presentation. The Company adopted Urgent Issues Task Force Abstract 38, "Accounting for ESOP trusts" as of June 30, 2004, which requires that the Company's shares owned by employee share ownership trusts be recorded as deductions from equity rather than assets on the balance sheet.
    7. The financial information set out above does not constitute the Company's statutory accounts for the years ended December 31, 2004 or 2003. Statutory accounts for 2003 have been reported on by the Company's Auditors and delivered to the Registrar of Companies. The report of the Auditors was unqualified and did not contain a statement under Section 237 (2) or (3) of the Companies Act 1985.

    AMVESCAP PLC

    Funds Under Management

    (in billions)

AIM INVESCO -------------- -------------------------- Total U.S. Canada U.S. U.K. Europe/Asia PWM ------- ------- ------ ------- ------ ----------- ------ Dec 31, 2003 $370.6 $151.1 $28.7 $118.5 $39.0 $23.8 $9.5 Market gains 26.0 7.3 2.7 8.1 5.6 2.0 0.3 Net new (lost) business (19.5) (12.4) 0.7 (6.1) 1.5 (3.0) (0.2) Change in Money Market Funds (8.3) (8.1) -- -- -- (0.2) -- Transfers -- (0.3) -- 0.2 0.6 -- (0.5) Acquisitions 6.1 -- -- -- -- -- 6.1 Foreign currency 7.2 -- 2.5 0.3 2.9 1.5 -- ------- ------- ------ ------- ------ ----------- ------ Dec 31, 2004 $382.1 $137.6 $34.6 $121.0 $49.6 $24.1 $15.2 ------- ------- ------ ------- ------ ----------- ------ Dec 31, 2004 GBP GBP GBP GBP GBP GBP GBP (a) 199.0 71.7 18.0 63.0 25.8 12.6 7.9 ======= ======= ====== ======= ====== =========== ======

AIM INVESCO -------------- -------------------------- Total U.S. Canada U.S. U.K. Europe/Asia PWM ------- ------- ------ ------- ------ ----------- ------ Sept 30, 2004 $362.7 $132.1 $31.6 $118.0 $43.3 $23.3 $14.4 Market gains 20.8 8.0 2.0 5.4 3.8 1.0 0.6 Net new (lost) business (7.6) (3.0) -- (2.9) 0.1 (2.1) 0.3 Change in Money Market Funds 0.8 0.8 -- -- -- -- -- Transfers -- (0.3) -- 0.2 0.1 -- -- Foreign currency 5.4 -- 1.0 0.3 2.3 1.9 (0.1) ------- ------- ------ ------- ------ ----------- ------ Dec 31, 2004 $382.1 $137.6 $34.6 $121.0 $49.6 $24.1 $15.2 ------- ------- ------ ------- ------ ----------- ------ Dec 31, GBP GBP GBP GBP GBP GBP GBP 2004(a) 199.0 71.7 18.0 63.0 25.8 12.6 7.9 ======= ======= ====== ======= ====== =========== ======

    (a) Translated at $1.92 per GBP 1.00.

    Note 1: AMVESCAP Retirement had $28.0 billion in assets under administration at December 31, 2004 and September 30, 2004, compared to $27.7 billion at December 31, 2003.
    Note 2: Institutional money market funds amounted to $41.7 billion at December 31, 2004 and September 30, 2004, and $50.9 billion at December 31, 2003.

--30--ZW/lo*

CONTACT: AMVESCAP PLC James Robertson Phone: 404-724-4246 or Angus Maitland Phone: (44) 0207-379-5151

KEYWORD: UNITED KINGDOM FRANCE INTERNATIONAL CANADA EUROPE INDUSTRY KEYWORD: BANKING EARNINGS SOURCE: AMVESCAP PLC

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