Alex. Brown reports results for first quarter 1995.

BALTIMORE--(BUSINESS WIRE)--April 21, 1995--Alex. Brown Inc. Friday reported financial results for the first quarter of 1995.

Revenues for the quarter ended March 31, 1995 totaled $151.3 million, a decrease of 7% from the prior year, and net earnings were $16.4 million which represented a 29% decrease from the prior year. Primary earnings per share were $1.10, a decrease of 25% from $1.46 in the prior year. Book value per share was $27.02 at quarter-end.

Results of Operations ---------------------

A.B. Krongard, chairman and chief executive officer, commented, "Unsettled market conditions continued to produce a challenging operating environment and in light thereof, we look upon our performance as a reasonable base upon which to build for the balance of the year.

"As always, we shall continue to pursue our long-term strategy of balance and focus in our businesses, coupled with careful attention to costs and risk management." Krongard emphasized the following points relative to performance:

o Commission revenue increased to $39.6 million during the first

quarter, up 4% from the prior year, primarily as a result of

growth in institutional listed commission business.

o Interest and dividend revenues increased by 38% to $21.1

million in the first quarter due to higher interest rates and

an increase in margin loans generated by private client and

correspondent business. Margin loans totalled $843.9 million

at quarter-end and average margin balances increased 12% over

the first quarter of the prior year.

o Investment banking revenues decreased 21% to $40.3 million,

as compared to the first quarter of the prior year, as a

result of lower corporate and municipal underwriting revenues.

Partially offsetting this decline was a $2.9 million increase

in fee revenues from merger and advisory work as compared to

the first quarter of the prior year. For the first quarter,

Alex. Brown & Sons was ranked #2 in the number of common

stock offerings managed and #8 among all advisors for the

number of worldwide merger and advisory transactions completed.

o Principal transaction revenues declined 19% to $28.5 million

due to the unsettled market conditions experienced during the

quarter. Partially offsetting this decline were increases in

OTC and Municipal trading revenues.

o Advisory and other revenues totalled $21.8 million in the

first quarter, a 3% decrease as compared to $22.5 million in

the prior year. This decrease is primarily attributable to

declines in Merchant Banking gains which totalled $2.5 million

in the first quarter of 1995 as compared to $4.7 million in

the prior year. Other investment gains totalled $2.8 million

in the quarter, up from $1.9 million in the prior year.

Assets under management totalled approximately $8.9 billion at

the end of the first quarter.

Stock Repurchases Program Continues -----------------------------------

Alex. Brown has repurchased more than 5.7 million shares of its common stock since the inception of the repurchase program in 1989. Under the company's existing stock repurchase program, Alex. Brown has authorization to repurchase approximately 1.4 million additional shares.

Quarterly Dividend of $.175 Per Share Authorized ------------------------------------------------

Alex. Brown's board of directors approved a cash dividend on its Common Stock of $.175 per share, payable on May 10, 1995 to stockholders of record on May 1, 1995.

Annual Meeting for Stockholders -------------------------------

Alex. Brown will be holding its Annual Meeting for Stockholders on April 25, 1995 at 120 E. Baltimore Street in Baltimore, Md.

Balance Sheet Strength and Growth in Book Value -----------------------------------------------

Krongard further noted, "We continue to emphasize balance sheet strength. With total stockholders' equity of $401.5 million at March 31, 1995, Alex. Brown is extremely well capitalized. Book value per share was $27.02 at quarter-end, based on 14.9 million shares outstanding. Book value per share has increased 14% over the first quarter of the prior year."

Krongard concluded his remarks by saying, "As stated in our 1994 Annual Report Letter to Stockholders, we wish to reiterate our continuing dedication to serving the interests of our fellow stockholders. We remain confident about our future because we believe that we have a viable strategy, employees who are professionally superior and personally dedicated, a strong culture and a shared vision. Most importantly, the interests of our stockholders and employees are tightly bound by virtue of the significant management and employee ownership positions in our Company. Together we look forward to promoting the long-term growth of our Firm."

Alex. Brown is a holding company whose principal subsidiary is Alex. Brown & Sons Incorporated, the oldest investment banking firm in the United States. Alex. Brown is traded on the New York Stock Exchange under the symbol "AB." -0-

                   Summary Financial Information
              (in thousands, except per share amounts)

                                Three months ended
                             March 31,        March 25,      %
                               1995             1994       change
                                    (unaudited)
Total revenues              $151,336        $162,412        -7%
Net earnings                  16,402          23,022       -29%

Earnings per share:
 Primary                    $   1.10        $   1.46       -25%
 Fully diluted                  0.96            1.28       -25%

                ALEX. BROWN INCORPORATED AND SUBSIDIARIES

                     Consolidated Statements of Earnings
                  (in thousands, except per share amounts)

                                Three months ended
                             March 31,        March 25,      %
                               1995             1994       change
                                    (unaudited)

Revenues:
 Commissions                $ 39,619        $ 38,044         4%
 Investment
  banking                     40,267          51,263       -21%
 Principal
  transactions                28,504          35,372       -19%
 Interest and
  dividends                   21,146          15,279        38%
 Advisory and
  other                       21,800          22,454        -3%
                             --------        --------       ---
   Total                     151,336         162,412        -7%

Operating expenses:
 Compensation
  and benefits                82,245          87,482        -6%
 Communications                7,251           6,426        13%
 Occupancy and
  equipment                    8,573           6,625        29%
 Interest                      6,779           5,561        22%
 Floor brokerage,
  exchange and
  clearing fees                4,197           3,808        10%
 Other operating
  expenses                    14,954          13,817         8%
                              --------       --------       ---
   Total                     123,999         123,719         -

Earnings before
 income taxes                 27,337          38,693       -29%
Income taxes                  10,935          15,671       -30%
                            --------        --------        ---
Net earnings                $ 16,402        $ 23,022       -29%

Earnings per share:
 Primary                   $   1.10         $   1.46       -25%
 Fully diluted                 0.96             1.28       -25%

Weighted average
 number of shares
 outstanding:
 Primary                     14,940          15,754        -5%
 Fully diluted               17,583          18,322        -4%

Cash dividends
 declared per
 share                     $  0.175        $  0.150        17%

Certain expense items in the prior period have been reclassified to conform to current presentation.

CONTACT: Alex. Brown Inc., Baltimore

Beverly L. Wright, 410/727-1700

INTERNET: [e-mail]