Gabelli Reports Record Revenues and Earnings for the First Quarter of 2001

Fully Diluted Earnings Rose to $0.50 Per Share in

First Quarter 2001 Versus $0.47 Per Share in Prior Year



Apr 24, 2001, 01:00 ET from Gabelli Asset Management Inc.

    RYE, N.Y., April 24 /PRNewswire/ -- Gabelli Asset Management Inc.
 (NYSE:   GBL) today reported record results for the first quarter ended
 March 31, 2001.
     Total revenues rose to a record $58.3 million versus $57.8 million in the
 first quarter of 2000. Operating income increased 6% to $26.8 million from
 $25.4 million in the prior year as GBL's operating margins improved to 46% in
 the first quarter of 2001 versus 44% in the first quarter of 2000. Fully
 diluted earnings rose 6.4% to a record $0.50 per share for the first quarter
 of 2001 versus $0.47 per share in 2000.
 
     Growth Drivers
     Revenue and earnings growth were largely driven by the growth in assets
 under management. During the first quarter of 2001, assets under management
 averaged $24.2 billion versus $22.2 billion in the first quarter of 2000.
 Average assets in the company's open-end equity mutual funds were $9.0 billion
 for the first quarter of 2001 versus $8.8 billion in the comparable 2000
 quarter. At March 31, 2001, total assets under management were $23.7 billion.
     Mario J. Gabelli, Chairman and Chief Executive Officer, said: "Our well
 balanced, actively-managed and diversified equity product offerings continued
 to provide mutual fund, institutional and high net worth investors with
 superior relative performance during a quarter marked by sharp declines and
 excessive volatility among virtually all equity sectors. Our growth in managed
 assets during this uncertain period is a reminder of the benefits of
 actively-managed portfolios as more investors sought advisors with superior
 long-term risk-adjusted performance in value, growth and global products."
     GBL's improved operating margins are the result of company wide efforts to
 aggressively reduce costs and thereby lower the overall operating cost
 structure of the firm. These benefits from cost reductions are expected to
 help fund strategic infrastructure building and expand the company's
 Alternative Investments Group, an opportunity the company believes presents
 significant growth potential.
     While stock market volatility may continue to influence short-term
 results, the company believes the long-term prospects for the industry and the
 company remains solidly positive.
 
     Highlights for the Quarter
 
     -- Assets under management in the company's twenty-eight open-end and four
        closed-end mutual funds totaled $11.7 billion on March 31, 2001 versus
        $12.4 billion on March 31, 2000, and $12.1 billion at year-end 2000.
        Net fund inflows into Gabelli mutual funds during the first quarter
        2001 were $623 million, 19% higher than fund inflows in the first
        quarter 2000. The sharp decline in the equity market during the March
        2001 quarter resulted in a small decline in total mutual fund assets.
        Despite unfavorable stock market conditions, Gabelli mutual funds
        continue to be recognized for their relative performance.
 
     -- In the January 29 issue seven Gabelli mutual funds were included on
        Business Week's "A" list for delivering the best risk-adjusted total
        returns over the last five years.
 
     -- Six Gabelli funds, representing nearly 50% of total rated fund assets,
        received Morningstar Inc.'s coveted "Five Star" rating. Combined, more
        than 97% of assets in rated funds were either "Four" or "Five" star
        rated.
 
     -- The Gabelli Blue Chip Value Fund, managed by Barbara Marcin, CFA, was
        ranked the #1 fund in its category for the one-year period through
        March 15th by Lipper, Inc. She was profiled in an interview in the
        April 23rd issue of Barron's titled "Blue Light Specialist."
 
     -- Net cash inflows into our institutional and high net worth GAMCO
        (Gabelli Asset Management Company) accounts were a record $862 million
        in the first quarter 2001. Assets managed by GAMCO were $11.5 billion
        on March 31, 2001 versus $10.3 billion at March 31, 2000, and $11.0
        billion at year-end 2000.
 
     -- Our Alternative Investment Group is benefiting from strong marketing
        efforts, led by Marc Gabelli, in response to demand from the firm's
        traditional high net worth individual client base, and growing demand
        from both U.S. and international institutions.
 
     Operating Results
     Operating margins improved by consistently holding general cost increases
 below revenue growth. Other income was $1.1 million in the March 2001 quarter,
 $1.0 million lower than the first quarter of 2000, as investment income from
 the company's proprietary portfolios was crimped by the adverse equity market.
 The effective tax rate in 2001 declined to 38.6% from 39.6% in the prior year.
     The company continued its share repurchase program during the first
 quarter 2001 by acquiring 30,000 shares of GBL Class A common stock for
 approximately $0.9 million. This brings the total number of shares repurchased
 to 510,900. On March 2, 2001 the company announced that its Board of Directors
 had authorized the repurchase of an additional $3.0 million of GBL shares.
     Gabelli Asset Management continues to maintain a strong and liquid balance
 sheet. March 31, 2001 assets include cash and investments of $283 million
 compared to $260 million at December 31, 2000 and $223 million on March 31 a
 year ago. GBL's outstanding debt of $50 million, payable in January 2002, will
 be tax deductible when repaid at maturity reducing the overall cash outlay to
 $30.9 million. Recently, GBL obtained an investment grade credit rating from
 Standard & Poor's, which will provide us with flexibility in pursuing business
 opportunities.
 
                   Assets Under Management - Driver of Growth
 
            The Company reported Assets Under Management as follows:
     Table I:
                                            March 31,
                                                                         %
                                        2000            2001          Inc.
                                                                    (dec.)
     Mutual Funds                            (in millions)
 
       Open end                       $9,282          $8,321       (10.4%)
       Closed end                      1,955           1,746        (10.7)
       Fixed income                    1,188           1,614          35.9
       Total Mutual Funds             12,425          11,681         (6.0)
     Institutional & Separate Accounts
       Equities                        9,479          10,651          12.4
       Fixed income                      815             864           6.0
       Total Institutional &
         Separate Accounts            10,294          11,515          11.9
     Partnerships                        278             473          70.1
     Total Assets Under Management   $22,997         $23,669          2.9%
 
     At March 31, 2001, approximately 97% of rated open-end mutual funds'
 assets under management were in funds with Morningstar Inc.'s overall rankings
 of "Four stars" or better. The Gabelli Asset Fund, the Gabelli Global Growth
 Fund, the Gabelli Global Telecommunications Fund, the Gabelli Value Fund and
 the Gabelli Westwood Equity Fund all received the coveted "Five star" rating
 from Morningstar, Inc. In addition, the Gabelli Global Multimedia Trust, a
 closed end fund, also received a "Five star" rating from Morningstar, Inc.
 
                  Fund Flows -- 1st Quarter 2001 (in millions)
     Table II:
 
                                                        Market
                       December 31,           Net  Appreciation/   March 31,
                               2000    Cash Flows (Depreciation)        2001
 
     Mutual Funds:
       Equities             $10,680          $455     $(1,068)       $10,067
       Fixed Income           1,433           168           13         1,614
       Total Mutual Funds    12,113           623      (1,055)        11,681
     Institutional and
      Separate Accounts
       Equities              10,142           867        (358)        10,651
       Fixed Income             859           (5)           10           864
       Total Institutional and
         Separate Accounts   11,001           862        (348)        11,515
 
     Partnerships               437            35            1           473
     Total Assets Under
       Management           $23,551        $1,520     $(1,402)       $23,669
 
                     Assets Under Management (in millions)
     Table III:
 
                               3/00          6/00         9/00         12/00
     Mutual Funds
       Open end              $9,282        $9,517       $9,685        $8,971
       Closed end             1,955         1,863        1,860         1,709
       Fixed income           1,188         1,225        1,307         1,433
       Total Mutual Funds    12,425        12,605       12,852        12,113
     Institutional &
      Separate Accounts:
       Equities               9,479         9,630        9,788        10,142
       Fixed Income             815           688          752           859
     Total Institutional &
       Separate Accounts     10,294        10,318       10,540        11,001
     Partnerships               278           344          416           437
     Total Assets Under
       Management           $22,997       $23,267      $23,808       $23,551
 
                                                      % Increase/(decrease)
                                        3/01           12/00          3/00
 
     Mutual Funds
       Open end                       $8,321          (7.2%)       (10.4%)
       Closed end                      1,746             2.2        (10.7)
       Fixed Income                    1,614            12.6          35.9
     Total Mutual Funds               11,681           (3.6)         (6.0)
     Institutional & Separate Accounts
       Equities                       10,651             5.0          12.4
       Fixed Income                      864             0.6           6.0
     Total Institutional &
       Separate Accounts              11,515             4.7          11.9
     Partnerships                        473             8.2          70.1
     Total Assets Under
       Management                    $23,669            0.5%          2.9%
 
                         GABELLI ASSET MANAGEMENT INC.
                  UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
                     (in thousands, except per share data)
     Table IV:
 
                                     For the Three Months Ended
                                             March 31,
                                                                         %
                                        2000            2001   Inc. (dec.)
 
     Revenues                        $57,773         $58,344           1.0
     Expenses                         32,391          31,550         (2.6)
     Operating income                 25,382          26,794           5.6
     Other income, net                 2,111           1,136        (46.2)
     Income before management fee,
       income taxes and
       minority interest              27,493          27,930           1.6
         Management fee                2,749           2,793
     Income before income taxes
       and minority interest          24,744          25,137           1.6
         Income tax provision          9,799           9,703
         Minority interest               949             538
     Net income                      $13,996         $14,896           6.4
 
     Net income per share:
       Basic                            $.47            $.50
       Diluted                          $.47            $.50           6.4
 
     Weighted average shares outstanding:
       Basic                          29,643          29,507
 
       Diluted                        29,643          30,041
 
                         Gabelli Asset Management Inc.
        Unaudited Quarterly Consolidated Condensed Statements of Income
                   (in thousands, except    per  share data)
     Table V:
 
                                    2000                                2001
                          1st        2nd     3rd      4th     Total      1st
                       Quarter    Quarter  Quarter  Quarter          Quarter
     Income Statement Data:
 
     Revenues         $57,773    $57,120 $59,164  $59,861  $233,918  $58,344
 
     Expenses          32,391     32,195  34,709   34,413   133,708   31,550
 
     Operating income  25,382     24,925  24,455   25,448   100,210   26,794
 
     Other income, net  2,111      2,898   3,987    3,751    12,747    1,136
 
     Income before
       management fee,
       income taxes and
       minority
       interest        27,493     27,823  28,442   29,199   112,957   27,930
 
       Management fee   2,749      2,783   2,844    2,920    11,296    2,793
 
     Income before
       income taxes
     and minority
       interest        24,744     25,040  25,598   26,279   101,661   25,137
 
       Income taxes     9,799      9,916  10,137   10,405    40,257    9,703
       Minority interest  949        870     971      619     3,409      538
 
     Net income       $13,996    $14,254 $14,490  $15,255   $57,995  $14,896
 
     Net income per share:
       Basic            $0.47      $0.48   $0.49    $0.52     $1.96    $0.50
 
       Diluted          $0.47      $0.48   $0.48    $0.51     $1.94    $0.50
 
     Weighted average shares
       outstanding:
         Basic         29,643     29,589  29,547   29,522    29,575   29,507
 
         Diluted       29,643     29,877  29,969   30,043    29,914   30,041
 
                         GABELLI ASSET MANAGEMENT INC.
            CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                 (In thousands)
     Table VI:
 
                                             December 31,        March 31,
                                        2000            2000          2001
                                                            (unaudited)
 
     ASSETS
     Cash and cash equivalents      $146,475        $121,095      $105,698
     Investments                     113,159         101,635       177,739
     Receivables                      32,490          23,942        29,746
     Deferred income taxes, net       19,382          16,887        19,382
     Other assets                      6,298           6,032         6,127
 
       Total assets                $ 317,804       $ 269,591     $ 338,692
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Debt(a)                         $50,000         $50,000       $50,000
     Accrued expenses and
       other liabilities              47,756          44,032        54,102
 
         Total liabilities            97,756          94,032       104,102
 
     Minority interest                17,851          15,749        18,351
 
     Stockholders' equity            202,197         159,810       216,239
 
     Total liabilities and
       stockholders' equity        $ 317,804       $ 269,591     $ 338,692
 
     (a) This debt, arising from the Formation Transactions, is due
             January 2, 2002, and will result in a tax benefit of $19,830
             (included in deferred income taxes, net).
 
     Gabelli Asset Management Inc. through its subsidiaries manages
 $23.7 billion in assets in mutual funds, closed end funds, partnerships and
 private investment advisory accounts.
 
     Forward Looking Information
     This release may contain forward-looking statements about future
 operations, results and performance, which involve risks and uncertainties
 that may cause the actual operations, results or performance to differ
 materially from those expressed in or implied by the forward-looking
 statements. These risks and uncertainties include the performance of the
 securities markets and the Company's investment products, future economic
 conditions, changes in business strategy and other factors. Consequently, no
 assurance can be given as to future operations, results or performance, and
 neither the Company nor any other person assumes liability for the accuracy
 and completeness of the forward-looking statements in this press release.
 
                     MAKE YOUR OPINION COUNT -- Click Here
                http://tbutton.prnewswire.com/prn/11690X72143575
 
 

SOURCE Gabelli Asset Management Inc.
    RYE, N.Y., April 24 /PRNewswire/ -- Gabelli Asset Management Inc.
 (NYSE:   GBL) today reported record results for the first quarter ended
 March 31, 2001.
     Total revenues rose to a record $58.3 million versus $57.8 million in the
 first quarter of 2000. Operating income increased 6% to $26.8 million from
 $25.4 million in the prior year as GBL's operating margins improved to 46% in
 the first quarter of 2001 versus 44% in the first quarter of 2000. Fully
 diluted earnings rose 6.4% to a record $0.50 per share for the first quarter
 of 2001 versus $0.47 per share in 2000.
 
     Growth Drivers
     Revenue and earnings growth were largely driven by the growth in assets
 under management. During the first quarter of 2001, assets under management
 averaged $24.2 billion versus $22.2 billion in the first quarter of 2000.
 Average assets in the company's open-end equity mutual funds were $9.0 billion
 for the first quarter of 2001 versus $8.8 billion in the comparable 2000
 quarter. At March 31, 2001, total assets under management were $23.7 billion.
     Mario J. Gabelli, Chairman and Chief Executive Officer, said: "Our well
 balanced, actively-managed and diversified equity product offerings continued
 to provide mutual fund, institutional and high net worth investors with
 superior relative performance during a quarter marked by sharp declines and
 excessive volatility among virtually all equity sectors. Our growth in managed
 assets during this uncertain period is a reminder of the benefits of
 actively-managed portfolios as more investors sought advisors with superior
 long-term risk-adjusted performance in value, growth and global products."
     GBL's improved operating margins are the result of company wide efforts to
 aggressively reduce costs and thereby lower the overall operating cost
 structure of the firm. These benefits from cost reductions are expected to
 help fund strategic infrastructure building and expand the company's
 Alternative Investments Group, an opportunity the company believes presents
 significant growth potential.
     While stock market volatility may continue to influence short-term
 results, the company believes the long-term prospects for the industry and the
 company remains solidly positive.
 
     Highlights for the Quarter
 
     -- Assets under management in the company's twenty-eight open-end and four
        closed-end mutual funds totaled $11.7 billion on March 31, 2001 versus
        $12.4 billion on March 31, 2000, and $12.1 billion at year-end 2000.
        Net fund inflows into Gabelli mutual funds during the first quarter
        2001 were $623 million, 19% higher than fund inflows in the first
        quarter 2000. The sharp decline in the equity market during the March
        2001 quarter resulted in a small decline in total mutual fund assets.
        Despite unfavorable stock market conditions, Gabelli mutual funds
        continue to be recognized for their relative performance.
 
     -- In the January 29 issue seven Gabelli mutual funds were included on
        Business Week's "A" list for delivering the best risk-adjusted total
        returns over the last five years.
 
     -- Six Gabelli funds, representing nearly 50% of total rated fund assets,
        received Morningstar Inc.'s coveted "Five Star" rating. Combined, more
        than 97% of assets in rated funds were either "Four" or "Five" star
        rated.
 
     -- The Gabelli Blue Chip Value Fund, managed by Barbara Marcin, CFA, was
        ranked the #1 fund in its category for the one-year period through
        March 15th by Lipper, Inc. She was profiled in an interview in the
        April 23rd issue of Barron's titled "Blue Light Specialist."
 
     -- Net cash inflows into our institutional and high net worth GAMCO
        (Gabelli Asset Management Company) accounts were a record $862 million
        in the first quarter 2001. Assets managed by GAMCO were $11.5 billion
        on March 31, 2001 versus $10.3 billion at March 31, 2000, and $11.0
        billion at year-end 2000.
 
     -- Our Alternative Investment Group is benefiting from strong marketing
        efforts, led by Marc Gabelli, in response to demand from the firm's
        traditional high net worth individual client base, and growing demand
        from both U.S. and international institutions.
 
     Operating Results
     Operating margins improved by consistently holding general cost increases
 below revenue growth. Other income was $1.1 million in the March 2001 quarter,
 $1.0 million lower than the first quarter of 2000, as investment income from
 the company's proprietary portfolios was crimped by the adverse equity market.
 The effective tax rate in 2001 declined to 38.6% from 39.6% in the prior year.
     The company continued its share repurchase program during the first
 quarter 2001 by acquiring 30,000 shares of GBL Class A common stock for
 approximately $0.9 million. This brings the total number of shares repurchased
 to 510,900. On March 2, 2001 the company announced that its Board of Directors
 had authorized the repurchase of an additional $3.0 million of GBL shares.
     Gabelli Asset Management continues to maintain a strong and liquid balance
 sheet. March 31, 2001 assets include cash and investments of $283 million
 compared to $260 million at December 31, 2000 and $223 million on March 31 a
 year ago. GBL's outstanding debt of $50 million, payable in January 2002, will
 be tax deductible when repaid at maturity reducing the overall cash outlay to
 $30.9 million. Recently, GBL obtained an investment grade credit rating from
 Standard & Poor's, which will provide us with flexibility in pursuing business
 opportunities.
 
                   Assets Under Management - Driver of Growth
 
            The Company reported Assets Under Management as follows:
     Table I:
                                            March 31,
                                                                         %
                                        2000            2001          Inc.
                                                                    (dec.)
     Mutual Funds                            (in millions)
 
       Open end                       $9,282          $8,321       (10.4%)
       Closed end                      1,955           1,746        (10.7)
       Fixed income                    1,188           1,614          35.9
       Total Mutual Funds             12,425          11,681         (6.0)
     Institutional & Separate Accounts
       Equities                        9,479          10,651          12.4
       Fixed income                      815             864           6.0
       Total Institutional &
         Separate Accounts            10,294          11,515          11.9
     Partnerships                        278             473          70.1
     Total Assets Under Management   $22,997         $23,669          2.9%
 
     At March 31, 2001, approximately 97% of rated open-end mutual funds'
 assets under management were in funds with Morningstar Inc.'s overall rankings
 of "Four stars" or better. The Gabelli Asset Fund, the Gabelli Global Growth
 Fund, the Gabelli Global Telecommunications Fund, the Gabelli Value Fund and
 the Gabelli Westwood Equity Fund all received the coveted "Five star" rating
 from Morningstar, Inc. In addition, the Gabelli Global Multimedia Trust, a
 closed end fund, also received a "Five star" rating from Morningstar, Inc.
 
                  Fund Flows -- 1st Quarter 2001 (in millions)
     Table II:
 
                                                        Market
                       December 31,           Net  Appreciation/   March 31,
                               2000    Cash Flows (Depreciation)        2001
 
     Mutual Funds:
       Equities             $10,680          $455     $(1,068)       $10,067
       Fixed Income           1,433           168           13         1,614
       Total Mutual Funds    12,113           623      (1,055)        11,681
     Institutional and
      Separate Accounts
       Equities              10,142           867        (358)        10,651
       Fixed Income             859           (5)           10           864
       Total Institutional and
         Separate Accounts   11,001           862        (348)        11,515
 
     Partnerships               437            35            1           473
     Total Assets Under
       Management           $23,551        $1,520     $(1,402)       $23,669
 
                     Assets Under Management (in millions)
     Table III:
 
                               3/00          6/00         9/00         12/00
     Mutual Funds
       Open end              $9,282        $9,517       $9,685        $8,971
       Closed end             1,955         1,863        1,860         1,709
       Fixed income           1,188         1,225        1,307         1,433
       Total Mutual Funds    12,425        12,605       12,852        12,113
     Institutional &
      Separate Accounts:
       Equities               9,479         9,630        9,788        10,142
       Fixed Income             815           688          752           859
     Total Institutional &
       Separate Accounts     10,294        10,318       10,540        11,001
     Partnerships               278           344          416           437
     Total Assets Under
       Management           $22,997       $23,267      $23,808       $23,551
 
                                                      % Increase/(decrease)
                                        3/01           12/00          3/00
 
     Mutual Funds
       Open end                       $8,321          (7.2%)       (10.4%)
       Closed end                      1,746             2.2        (10.7)
       Fixed Income                    1,614            12.6          35.9
     Total Mutual Funds               11,681           (3.6)         (6.0)
     Institutional & Separate Accounts
       Equities                       10,651             5.0          12.4
       Fixed Income                      864             0.6           6.0
     Total Institutional &
       Separate Accounts              11,515             4.7          11.9
     Partnerships                        473             8.2          70.1
     Total Assets Under
       Management                    $23,669            0.5%          2.9%
 
                         GABELLI ASSET MANAGEMENT INC.
                  UNAUDITED CONSOLIDATED STATEMENTS OF INCOME
                     (in thousands, except per share data)
     Table IV:
 
                                     For the Three Months Ended
                                             March 31,
                                                                         %
                                        2000            2001   Inc. (dec.)
 
     Revenues                        $57,773         $58,344           1.0
     Expenses                         32,391          31,550         (2.6)
     Operating income                 25,382          26,794           5.6
     Other income, net                 2,111           1,136        (46.2)
     Income before management fee,
       income taxes and
       minority interest              27,493          27,930           1.6
         Management fee                2,749           2,793
     Income before income taxes
       and minority interest          24,744          25,137           1.6
         Income tax provision          9,799           9,703
         Minority interest               949             538
     Net income                      $13,996         $14,896           6.4
 
     Net income per share:
       Basic                            $.47            $.50
       Diluted                          $.47            $.50           6.4
 
     Weighted average shares outstanding:
       Basic                          29,643          29,507
 
       Diluted                        29,643          30,041
 
                         Gabelli Asset Management Inc.
        Unaudited Quarterly Consolidated Condensed Statements of Income
                   (in thousands, except    per  share data)
     Table V:
 
                                    2000                                2001
                          1st        2nd     3rd      4th     Total      1st
                       Quarter    Quarter  Quarter  Quarter          Quarter
     Income Statement Data:
 
     Revenues         $57,773    $57,120 $59,164  $59,861  $233,918  $58,344
 
     Expenses          32,391     32,195  34,709   34,413   133,708   31,550
 
     Operating income  25,382     24,925  24,455   25,448   100,210   26,794
 
     Other income, net  2,111      2,898   3,987    3,751    12,747    1,136
 
     Income before
       management fee,
       income taxes and
       minority
       interest        27,493     27,823  28,442   29,199   112,957   27,930
 
       Management fee   2,749      2,783   2,844    2,920    11,296    2,793
 
     Income before
       income taxes
     and minority
       interest        24,744     25,040  25,598   26,279   101,661   25,137
 
       Income taxes     9,799      9,916  10,137   10,405    40,257    9,703
       Minority interest  949        870     971      619     3,409      538
 
     Net income       $13,996    $14,254 $14,490  $15,255   $57,995  $14,896
 
     Net income per share:
       Basic            $0.47      $0.48   $0.49    $0.52     $1.96    $0.50
 
       Diluted          $0.47      $0.48   $0.48    $0.51     $1.94    $0.50
 
     Weighted average shares
       outstanding:
         Basic         29,643     29,589  29,547   29,522    29,575   29,507
 
         Diluted       29,643     29,877  29,969   30,043    29,914   30,041
 
                         GABELLI ASSET MANAGEMENT INC.
            CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
                                 (In thousands)
     Table VI:
 
                                             December 31,        March 31,
                                        2000            2000          2001
                                                            (unaudited)
 
     ASSETS
     Cash and cash equivalents      $146,475        $121,095      $105,698
     Investments                     113,159         101,635       177,739
     Receivables                      32,490          23,942        29,746
     Deferred income taxes, net       19,382          16,887        19,382
     Other assets                      6,298           6,032         6,127
 
       Total assets                $ 317,804       $ 269,591     $ 338,692
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
     Debt(a)                         $50,000         $50,000       $50,000
     Accrued expenses and
       other liabilities              47,756          44,032        54,102
 
         Total liabilities            97,756          94,032       104,102
 
     Minority interest                17,851          15,749        18,351
 
     Stockholders' equity            202,197         159,810       216,239
 
     Total liabilities and
       stockholders' equity        $ 317,804       $ 269,591     $ 338,692
 
     (a) This debt, arising from the Formation Transactions, is due
             January 2, 2002, and will result in a tax benefit of $19,830
             (included in deferred income taxes, net).
 
     Gabelli Asset Management Inc. through its subsidiaries manages
 $23.7 billion in assets in mutual funds, closed end funds, partnerships and
 private investment advisory accounts.
 
     Forward Looking Information
     This release may contain forward-looking statements about future
 operations, results and performance, which involve risks and uncertainties
 that may cause the actual operations, results or performance to differ
 materially from those expressed in or implied by the forward-looking
 statements. These risks and uncertainties include the performance of the
 securities markets and the Company's investment products, future economic
 conditions, changes in business strategy and other factors. Consequently, no
 assurance can be given as to future operations, results or performance, and
 neither the Company nor any other person assumes liability for the accuracy
 and completeness of the forward-looking statements in this press release.
 
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                http://tbutton.prnewswire.com/prn/11690X72143575
 
 SOURCE    Gabelli Asset Management Inc.