Gabelli Reports First Quarter Earnings of $0.42 Per Diluted Share vs.

Gabelli Reports First Quarter Earnings of $0.42 Per Diluted Share vs. $0.52 Per Diluted Share in 2004; One-Time Charges and Other Income Charge Reduce Earnings by $0.05 Per Share

    Business Editors

    RYE, N.Y.--(BUSINESS WIRE)--April 28, 2005--Gabelli Asset Management Inc. (NYSE:GBL) reported revenues of $61.5 million for the first quarter ended March 31, 2005, down 3.2% from the first quarter record $63.5 million generated in the year ago quarter. Operating income declined $5.1 million to $20.2 million down 20.3% from the $25.3 million reported in last year's first quarter.
    Net income for the quarter was $12.7 million or $0.42 per fully diluted share versus $16.1 million or $0.52 per fully diluted share in the prior year's quarter.
    Assets Under Management (AUM) were $28.0 billion as of March 31, 2005, down 2.1% from record year-end 2004 assets of $28.7 billion, and just below the $28.2 billion in AUM on March 31, 2004.

    Financial Highlights

--	Assets Under Management (AUM) - Our equity open-end mutual funds and closed-end funds had a record $12.41 billion in AUM at quarter end, slightly ahead of the $12.37 billion on December 31, 2004 and 4.8% ahead of the $11.8 billion on March 31, 2004. Assets at the end of the quarter included $316 million in net proceeds from the initial public offering in March 2005 of our new closed-end fund, The Gabelli Global Gold, Natural Resources & Income Trust (AMEX: GGN). In the institutional and high net worth segment of our business, GAMCO had AUM of $13.4 billion in separately managed equity accounts on March 31, 2005, down 1.6% from the $13.6 billion on December 31, 2004 and virtually unchanged from AUM on March 31, 2004. Fixed income assets, primarily money market mutual funds, totaled $1.4 billion on March 31, 2005, down 24.7% from year-end 2004 assets of $1.9 billion and 31.9% lower than assets of $2.1 billion on March 31, 2004. Assets in our investment partnerships were $854 million, up 4.9% from year-end 2004 assets of $814 million but 5.2% below the $901 million on March 31, 2004.
--	Revenues - Investment advisory fees totaled $53.9 million during the first quarter 2005, unchanged from the first quarter of 2004. The higher revenues from our closed-end funds and investment partnerships were offset by lower revenues from our open-end mutual funds and separate accounts. For the first quarter 2005, our revenues of $20.1 million from open-end mutual funds were 5.4% lower than the $21.2 million recorded in the 2004 quarter. Closed-end fund revenues increased 7.6% to $8.4 million in the first quarter 2005 up from $7.8 million in the prior year's quarter.

    Revenues from our institutional and high net worth separate accounts business declined by approximately 1% to $22.1 million in the first quarter 2005, down from $22.4 million in 2004. Advisory fees from investment partnerships increased 30.5% in the first quarter 2005 versus the prior year's quarter due principally to an increase in performance fees.
    Lower trading volume contributed to a 42.5% decline in commission revenues from our institutional research affiliate, Gabelli & Company, Inc., where revenues were $2.5 million versus $4.3 million in the prior year's quarter. Mutual fund distribution fees of $5.1 million in the first quarter of 2005 were slightly lower than the $5.3 million recorded in the 2004 quarter.

    -- Operating Margin - Variable compensation costs were 31.0% of
    revenues for the first quarter 2005 compared to 29.9% in 2004.
    This increase is primarily due to higher compensation costs in
    our separate accounts business and investment partnerships.
    Higher performance fees drove the increase in compensation
    costs for our investment partnerships in the 2005 quarter as
    compared to the prior year's period.

    Expenses not directly tied to revenues increased to $13.5 million in the first quarter 2005, up 37.5% from $9.8 million in the prior year's quarter. This increase included a one-time charge of $1.1 million recorded for the impairment of goodwill related to our fixed income business, higher compensation costs and stock option expense in addition to an increase in costs to comply with Sarbanes-Oxley as well as other regulatory and corporate governance initiatives. In addition, this increase included one-time launch costs of $1.45 million for our new closed-end fund, The Gabelli Global Gold, Natural Resources & Income Trust. We note that in the second quarter of 2005, our results will benefit from the absence of costs related to the launch of our new closed-end fund and the impairment of goodwill.
    The effective tax rate for the first quarter 2005 was adjusted to 37.5% versus 36.4% in the comparable 2004 period to reflect our estimate of the current year-end tax liability.

    -- Other Income/Expense - For the first quarter 2005, we recorded
    a net gain of $0.1 million from our investments and net
    interest expense nearly equal to the net gain of $0.2 million
    in the 2004 quarter. The 2005 quarter included a $3.2 million
    loss recorded for the write down to fair value of certain
    securities held as available for sale offset by a $2.3 million
    unrealized gain from an investment within our proprietary
    portfolio which completed an initial public offering during
    the quarter.

    Interest expense fell 2.9% during the 2005 quarter to $3.9 million compared to $4.0 million in the prior year's quarter. In future quarters, interest expense will be further reduced by the April 1, 2005 repurchase of $50 million of the $100 million 5% convertible note.
    Management fee expense was $2.3 million for the quarter of 2005 versus $2.8 million for the comparable 2004 period.

    Investment and Business Highlights

    -- Shareholders, as part of an initiative to re-focus the Gabelli
    brand, will vote on a change in our name to GAMCO Investors,
    Inc. at our annual meeting of shareholders on May 10th. GAMCO
    has been the name of our asset management business since 1977
    and is a more encompassing parent company name that more
    appropriately represents the various investment strategies and
    asset management brands contributing to the solid growth of
    our company. The Gabelli brand will continue to represent the
    value portfolios managed in the company's absolute return,
    research-driven Private Market Value (PMV) with a Catalyst
    (TM) style. The company's common stock will continue to trade
    on the New York Stock Exchange under the GBL ticker symbol.

    -- The Gabelli Global Gold, Natural Resources & Income Trust
    (AMEX: GGN), our new closed-end fund investing primarily in
    equity securities of Gold and natural resources companies,
    completed its initial public offering in March issuing 16.6
    million shares at an initial price of $20 per share,
    generating net proceeds of $316 million, net of sales load and
    offering expenses (exclusive of the underwriters' over
    allotment). The Fund's shares commenced trading on the
    American Stock Exchange on March 29th.

    -- In February, we issued 1,517,483 shares of class A common
    stock and received proceeds of $70,567,500 in settlement of
    the purchase contracts issued pursuant to our mandatory
    convertible securities. These mandatory convertible securities
    consisting of purchase contracts and senior notes were
    originally issued in February 2002. The senior notes due
    February 17, 2007 were remarketed in November 2004 and the
    interest rate was reset from 6% to 5.22% at that time.

    -- In March, we announced an agreement with Cascade Investment,
    L.L.C. to amend the terms of the $100 million convertible note
    issued by Gabelli. The new terms extend the exercise date of
    Cascade's put option to September 15, 2006, reduce the
    principal of the convertible note to $50 million, effective
    April 1, 2005, and remove limitations on the issuance of
    additional debt. Cascade would own approximately 12% of
    Gabelli Asset Management's class A common stock if the note
    were converted.

    -- optionsXpress Holdings, Inc. (Nasdaq: OXPS) went public on
    January 27, 2005 at $16.50 per share. GSI, Inc., a 92% owned
    subsidiary, owns approximately 315,000 shares. The shares have
    an original cost basis of $0.23 per share and were written up
    to $3.11 per share in December 2003 concurrent with a second
    round of financing prior to the IPO. The carrying value of the
    shares is currently below the March 31, 2005 market price.

    -- In February, our Board of Directors authorized a plan to file
    a "shelf" registration statement on Form S-3. The shelf
    process will enable us to sell any combination of senior and
    subordinate debt securities, convertible debt securities and
    equity securities (including common and preferred securities)
    up to a total amount of $400 million. This authorization is in
    addition to the remaining $120 million available under our
    "shelf" registration filed in 2001.

    -- Gabelli & Company, Inc., our institutional research affiliate,
    hosted three investor symposiums during the first quarter:

    -- The 15th Annual Pump, Valve, & Motor Symposium was held in
    New York during February, at which portfolio managers and
    securities analysts met with senior management from public
    companies in the industrial pump, motor and water quality
    markets. The Keynote Speaker, Kristen Silverberg, Deputy
    Assistant to the President for Domestic Policy, addressed
    the firm's institutional clients about the ongoing debate
    in Washington surrounding tort reform, and in particular,
    asbestos litigation.

    -- Our 2nd Annual Smallcap Orthopedic Conference was held in
    Washington, D.C. An aging population creates increasingly
    attractive opportunities to profit from innovation in
    healthcare.

    -- The 1st Annual WiMAX Conference at the Harvard Club in New
    York in March. The conference, in conjunction with Widat
    Research Group, included a series of keynotes and panel
    discussions focused on the opportunities and challenges
    for WiMAX, a long distance broadband technology that many
    expect to complement WiFi, DSL and cable in providing
    Internet and cellular services.

    -- During the quarter we invested in our professional team:

    -- Lawrence J. Haverty, Jr., CFA, joined the firm as an
    associate portfolio manager of the Gabelli Global
    Multimedia Trust (NYSE:GGT), a closed-end, non-diversified
    investment company focusing on the media, publishing and
    entertainment industries companies. Larry has been named
    four times to Institutional Investor Magazine's "Best of
    the Buy Side" analysts.

    -- F. William Scholz, II was named President of Gabelli &
    Partners, LLC, the Investment Partnerships Group that
    manages long/short partnerships, offshore funds and
    separate accounts on a global basis. Mr. Scholz has been
    involved with our institutional separate accounts business
    since he joined the firm in 1985.

    -- Barry L. Lucas, Senior Vice President of Gabelli &
    Company, Inc., the institutional research and brokerage
    subsidiary of Gabelli Asset Management Inc., has been
    named the firm's director of institutional sell side
    research. Mr. Lucas joined Gabelli in 2003.

    Financial Strength and Flexibility

    We ended the quarter with roughly $720.6 million in cash, marketable securities and investments. This includes approximately $78.5 million, at market value, of investments in The Gabelli Dividend & Income Trust, The Gabelli Global Utility & Income Trust, Gabelli open-end mutual funds and other investments classified as available for sale securities. Our debt of $282.3 million consists of a $100 million 5% convertible note, $100 million of 5.5% senior notes, and $82.3 million of 5.22% senior notes issued in connection with our mandatory convertible securities. The amounts expressed above are prior to the reduction of $50 million principal on our 5% convertible note that occurred on April 1, 2005. Adjusted for this reduction of principal, we had cash, marketable securities and investments of $670.6 million and debt of $232.3 million.
    Stockholders' equity, on a GAAP basis, was $417.4 million or $13.77 per share on March 31, 2005 compared with $393.6 million or $13.09 per share on March 31, 2004 and $334.9 million or $11.61 per share on December 31, 2004.
    We paid a special dividend of $0.60 per share on January 18, 2005 to all shareholders of record on January 3, 2005. This special dividend, authorized by our Board of Directors in November 2004, follows the $1.00 per share special dividend paid in the fourth quarter 2004 and a $0.10 per share special dividend paid in the second quarter 2004. The Board also declared a quarterly dividend of $0.02 per share that was paid on March 28, 2005 to shareholders of record on March 14, 2005.
    During the first quarter of 2005, we completed our accelerated share repurchase (ASR) program. We originally repurchased 400,000 shares of our class A common stock in November 2004 for an initial investment of approximately $18.8 million.
    Shares outstanding on March 31, 2005 were 30,321,492, approximately 5% higher than year-end outstanding shares of 28,837,034 and approximately 1% above our shares outstanding of 30,060,053 on March 31, 2004 reflecting the issuance of 1,517,483 shares of class A common stock in settlement of the purchase contracts issued pursuant to our mandatory convertible securities on February 17, 2005. Fully diluted shares outstanding were 31,684,268 approximately 1.6% higher than fourth quarter 2004 fully diluted shares of 31,178,652 and approximately 1.6% lower than our fully diluted shares of 32,201,983 on March 31, 2004. The increase from the end of 2004 reflects the issuance of 1,517,483 shares of class A common stock in February on a weighted average basis partially offset by the full effect of shares repurchased in the fourth quarter 2004.
    Our stock buyback program was initiated in March 1999. Since that time, 2,820,126 class A common shares have been repurchased through March 31, 2005 at an average investment of $36.52 per share, including 46,500 shares in the first quarter 2005. At the end of March, the total shares currently available to be repurchased under the program were approximately 897,000 shares. Subsequent to the end of the first quarter, we have repurchased 170,700 shares through April 27, 2005.

    In Summary

    We believe we can continue to create significant shareholder value by intensely focusing on our PMV with a Catalyst investment research and stock selection process, leveraging our brand name and proven performance record, and by creating new products and entering new markets. We are adding to our investment and research teams in order to uncover more values in the global marketplace, and are expanding our marketing and client servicing capabilities to enhance our already strong position in many of the markets we serve. We look forward to the challenge of creating wealth for our clients and shareholders in today's complex financial markets. We look forward to meeting each and every one of you at our annual meeting on May 10th.

NOTES ON NON-GAAP FINANCIAL MEASURES A. Cash and investments as adjusted have been computed as follows: (in millions)

12/31/04 3/31/04 3/31/05 ---------- ---------- ---------- Cash and cash equivalents $257.1 $371.4 $328.4 Investments (marketable securities) 305.9 260.7 290.1 ---------- ---------- ---------- Total cash and investments (marketable securities) 563.0 632.1 618.5 Net amounts receivable/(payable) to brokers 5.2 9.3 23.6 ---------- ---------- ---------- Adjusted cash and investments (marketable securities) 568.2 641.4 642.1 Investments (available for sale) 75.8 67.3 78.5 ---------- ---------- ---------- Total adjusted cash and investments $644.0 $708.7 $720.6 ========== ========== ==========

We believe adjusted cash and investments is a more useful measure of the company's liquidity for analytical purposes.

Net amounts receivable/(payable) from/to brokers reflects cash and cash equivalents held with brokers and cash payable for securities purchased and recorded on a trade date basis for which settlement occurs subsequent to period end.

B. Operating income before management fee expense is used by management for purposes of evaluating its business operations. We believe this measure is useful in illustrating the operating results of the Company as management fee expense is based on pre-tax income and includes non-operating items including investment gains and losses from the company's proprietary investment portfolio and interest expense. The reconciliation of operating income before management fee to operating income is provided in Table IV.

    SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION

    Our disclosure and analysis in this press release contain some forward-looking statements. Forward-looking statements give our current expectations or forecasts of future events. You can identify these statements because they do not relate strictly to historical or current facts. They use words such as "anticipate," "estimate," "expect," "project," "intend," "plan," "believe," and other words and terms of similar meaning. They also appear in any discussion of future operating or financial performance. In particular, these include statements relating to future actions, future performance of our products, expenses, the outcome of any legal proceedings, and financial results. Although we believe that we are basing our expectations and beliefs on reasonable assumptions within the bounds of what we currently know about our business and operations, there can be no assurance that our actual results will not differ materially from what we expect or believe. Some of the factors that could cause our actual results to differ from our expectations or beliefs include, without limitation: the adverse effect from a decline in the securities markets; a decline in the performance of our products; a general downturn in the economy; changes in government policy or regulation; changes in our ability to attract or retain key employees; and unforeseen costs and other effects related to legal proceedings or investigations of governmental and self-regulatory organizations. We also direct your attention to any more specific discussions of risk contained in our Form 10-K and other public filings. We are providing these statements as permitted by the Private Litigation Reform Act of 1995. We do not undertake to update publicly any forward-looking statements if we subsequently learn that we are unlikely to achieve our expectations or if we receive any additional information relating to the subject matters of our forward-looking statements.

Assets Under Management

The company reported assets under management as follows:

Table I: Assets Under Management (in millions) --------------------------------------

March 31 ------------------------- % 2004 2005 Inc. (Dec.) ------------ ------------ ------------ Mutual Funds: Equities Open End $ 8,106 $ 7,808 (3.7%) Closed End 3,739 4,602 23.1 Fixed Income 1,717 1,154 (32.8) ------------ ------------ Total Mutual Funds 13,562 13,564 0.0 ------------ ------------ Institutional & High Net Worth Separate Accounts: Equities 13,383 13,364 (0.1) Fixed Income 369 266 (27.9) ------------ ------------ Total Institutional & High Net Worth Separate Accounts 13,752 13,630 (0.9) ------------ ------------ Alternative Investments 901 854 (5.2) ------------ ------------ Total Assets Under Management $ 28,215 $ 28,048 (0.6) ============ ============

Table II: Fund Flows - 1st Quarter 2005 (in millions)

Market December 31, Net Appreciation/ March 31, 2004 Cash Flows (Depreciation) 2005 ------------ ------------ -------------- ------------ Mutual Funds: Equities $ 12,371 $ 245 ($ 206) $ 12,410 Fixed Income 1,499 (350) 5 1,154 ------------ ------------ -------------- ------------ Total Mutual Funds 13,870 (105) (201) 13,564 ------------ ------------ -------------- ------------ Institutional & HNW Separate Accounts Equities 13,587 (18) (205) 13,364 Fixed Income 388 (123) 1 266 ------------ ------------ -------------- ------------ Total Institutional & HNW Separate Accounts 13,975 (141) (204) 13,630 ------------ ------------ -------------- ------------

Alternative Investments 814 38 2 854 ------------ ------------ -------------- ------------ Total Assets Under Management $ 28,659 ($ 208) ($ 403) $ 28,048 ============ ============ ============== ============

Assets Under Management (in millions) -------------------------------------------- Table III: 3/04 6/04 9/04 12/04 3/05 -------- -------- -------- -------- -------- Mutual Funds Open end $ 8,106 $ 7,852 $ 7,534 $ 8,029 $ 7,808 Closed end 3,739 3,764 3,727 4,342 4,602 Fixed income 1,717 1,563 1,524 1,499 1,154 -------- -------- -------- -------- -------- Total Mutual Funds 13,562 13,179 12,785 13,870 13,564 -------- -------- -------- -------- -------- Institutional & HNW Separate Accounts: Equities 13,383 13,628 13,185 13,587 13,364 Fixed Income 369 354 344 388 266 -------- -------- -------- -------- -------- Total Institutional & HNW Separate Accounts 13,752 13,982 13,529 13,975 13,630 -------- -------- -------- -------- -------- Alternative Investments 901 1,061 934 814 854 -------- -------- -------- -------- -------- Total Assets Under Management $28,215 $28,222 $27,248 $28,659 $28,048 ======== ======== ======== ======== ========

% Increase/(decrease) 12/04 3/04 ------------ ------------ Mutual Funds Open end (2.8%) (3.7%) Closed end 6.0 23.1 Fixed income (23.0) (32.8) Total Mutual Funds (2.2) 0.0 Institutional & HNW Separate Accounts: Equities (1.6) (0.1) Fixed Income (31.4) (27.9) Total Institutional & HNW Separate Accounts (2.5) (0.9) Alternative Investments 4.9 (5.2) Total Assets Under Management (2.1) (0.6)

Table IV

GABELLI ASSET MANAGEMENT INC. UNAUDITED CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Dollars in thousands, except per share data)

For the Three Months Ended March 31, -------------------------- % Inc. 2004 2005 (Dec.) -------- -------- --------

Revenues $63,539 $61,531 (3.2%) Expenses 35,426 39,122 10.4 -------- --------

Operating income before management fee 28,113 22,409 (20.3)

Investment income 4,290 4,067 (5.2) Interest expense (4,046) (3,929) (2.9) -------- -------- Other income (expense), net 244 138 (43.4) -------- --------

Income before management fee, income taxes and minority interest 28,357 22,547 (20.5) Management fee 2,836 2,255 -------- -------- Income before income taxes and minority interest 25,521 20,292 Income taxes 9,296 7,609 Minority interest 154 1 -------- -------- Net income $16,071 $12,682 (21.1) ======== ========

Net income per share: Basic $ 0.53 $ 0.43 (18.9) ======== ========

Diluted $ 0.52 $ 0.42 (19.2) ======== ========

Weighted average shares outstanding: Basic 30,064 29,560 (1.7) ======== ========

Diluted 32,202 31,684 (1.6) ======== ========

Reconciliation of Non-GAAP Financial Measures to GAAP: Operating income before management fee $28,113 $22,409 (20.3) Deduct: management fee 2,836 2,255 -------- -------- Operating income $25,277 $20,154 (20.3) -------- -------- Operating margin before management fee 44.2% 36.4 % -------- -------- Operating margin after management fee 39.8% 32.8 % -------- --------

Table V

GABELLI ASSET MANAGEMENT INC. UNAUDITED QUARTERLY CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Dollars in thousands, except per share data)

2004 --------------------------------------------- 1st 2nd 3rd 4th Quarter Quarter Quarter Quarter Total ------- ------- ------- ------- -------- Income Statement Data:

Revenues $63,539 $60,204 $57,237 $74,183 $255,163

Expenses 35,426 33,332 33,002 43,318 145,078 -------- -------- -------- -------- ---------

Operating income before management fee 28,113 26,872 24,235 30,865 110,085

Investment income 4,290 1,549 2,620 7,649 16,108 Interest expense (4,046) (4,035) (4,014) (3,932) (16,027) -------- -------- -------- -------- --------- Other income (expense), net 244 (2,486) (1,394) 3,717 81 -------- -------- -------- -------- ---------

Income before management fee, income taxes and minority interest 28,357 24,386 22,841 34,582 110,166

Management fee 2,836 2,438 2,284 3,459 11,017 -------- -------- -------- -------- ---------

Income before income taxes and minority interest 25,521 21,948 20,557 31,123 99,149

Income taxes 9,296 7,989 7,483 11,329 36,097 Minority interest 154 41 43 255 493 -------- -------- -------- -------- ---------

Net income $16,071 $13,918 $13,031 $19,539 $ 62,559 ======== ======== ======== ======== =========

Net income per share: Basic $ 0.53 $ 0.47 $ 0.44 $ 0.67 $ 2.11 ======== ======== ======== ======== =========

Diluted $ 0.52 $ 0.46 $ 0.43 $ 0.65 $ 2.06 ======== ======== ======== ======== =========

Weighted average shares outstanding: Basic 30,064 29,890 29,707 29,037 29,673 ======== ======== ======== ======== =========

Diluted 32,202 32,010 31,820 31,179 31,804 ======== ======== ======== ======== =========

Reconciliation of Non-GAAP Financial Measures to GAAP: Operating income before management fee $28,113 $26,872 $24,235 $30,865 $110,085 Deduct: management fee 2,836 2,438 2,284 3,459 11,017 -------- -------- -------- -------- --------- Operating income $25,277 $24,434 $21,951 $27,406 $ 99,068 -------- -------- -------- -------- --------- Operating margin before management fee 44.2% 44.6% 42.3% 41.6% 43.1% -------- -------- -------- -------- --------- Operating margin after Management fee 39.8% 40.6% 38.4% 36.9% 38.8% -------- -------- -------- -------- ---------

2005 ------------------- 1st Quarter Total --------- --------- Income Statement Data:

Revenues $ 61,531 $ 61,531

Expenses 39,122 39,122 --------- ---------

Operating income before management fee 22,409 22,409

Investment income 4,067 4,067 Interest expense (3,929) (3,929) --------- --------- Other income (expense), net 138 138 --------- ---------

Income before management fee, income taxes and minority interest 22,547 22,547

Management fee 2,255 2,255 --------- ---------

Income before income taxes and minority interest 20,292 20,292

Income taxes 7,609 7,609 Minority interest 1 1 --------- ---------

Net income $ 12,682 $ 12,682 ========= =========

Net income per share: Basic $ 0.43 $ 0.43 ========= =========

Diluted $ 0.42 $ 0.42 ========= =========

Weighted average shares outstanding: Basic 29,560 29,560 ========= =========

Diluted 31,684 31,684 ========= =========

Reconciliation of Non-GAAP Financial Measures to GAAP: Operating income before management fee $ 22,409 $ 22,409 Deduct: management fee 2,255 2,255 --------- --------- Operating income $ 20,154 $ 20,154 --------- --------- Operating margin before management fee 36.4% 36.4% --------- --------- Operating margin after Management fee 32.8% 32.8% --------- ---------

Table VI

GABELLI ASSET MANAGEMENT INC. CONSOLIDATED CONDENSED STATEMENTS OF FINANCIAL CONDITION (In thousands)

December 31, March 31, March 31, 2004 2004 2005 -------------- -------------- -------------- ASSETS (unaudited) (unaudited)

Cash and cash equivalents $ 257,096 $ 371,355 $ 328,428 Investments 381,689 328,063 368,548 Receivables 46,571 46,370 60,527 Other assets 13,616 16,022 13,494 -------------- -------------- --------------

Total assets $ 698,972 $ 761,810 $ 770,997 ============== ============== ==============

LIABILITIES AND STOCKHOLDERS' EQUITY

Compensation payable $ 27,645 $ 26,964 $ 33,813 Dividends payable 17,302 - - Income taxes payable 8,526 15,688 8,062 Accrued expenses and other liabilities 22,142 35,903 23,198 -------------- -------------- -------------- Total operating liabilities 75,615 78,555 65,073 5.5% Senior notes (due May 15, 2013) 100,000 100,000 100,000 5% Convertible note (conversion price, $52 per share; note due August 14, 2011) 100,000 100,000 100,000 5.22% Senior notes (due February 17, 2007) - - 82,308 Mandatory convertible securities (purchase contract settlement date, February 17, 2005; notes due February 17, 2007) 82,308 83,825 - -------------- -------------- -------------- Total liabilities 357,923 362,380 347,381

Minority interest 6,171 5,831 6,171

Stockholders' equity 334,878 393,599 417,445 -------------- -------------- --------------

Total liabilities and stockholders' equity $ 698,972 $ 761,810 $ 770,997 ============== ============== ==============

--30--NF/ny*

CONTACT: Gabelli Asset Management Inc. Chief Financial Officer Michael R. Anastasio, 914-921-5147 Fax: 914-921-5392 www.gabelli.com

KEYWORD: NEW YORK INDUSTRY KEYWORD: BANKING EARNINGS SOURCE: Gabelli Asset Management Inc.

Copyright Business Wire 2005