Alex. Brown reports year-end results.

BALTIMORE--(BUSINESS WIRE)--Jan. 20, 1997--Alex. Brown Inc. reported record revenues, net earnings and earnings per share for 1996.

These results for the year are the highest results in the company's 196 year history. Revenues for the year ended Dec. 31, 1996 totalled $1,059.4 million, a 31% increase from the prior year and net earnings were $154.1 million, a 61% increase from the prior year.

Primary earnings per share increased by 53% to $6.28 as compared to $4.11 in 1995. Book value per share was $26.79 at the end of 1996. Earnings per share, book value per share, shares outstanding and dividends per share amounts have been adjusted for the 3-for-2 stock split effective Jan. 15, 1997.

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

A.B. Krongard, chairman and chief executive officer, commented, "Aided by favorable market conditions, Alex. Brown reported a record year for 1996. We exceeded last year's record results by $250.0 million in revenues, $58.6 million in net earnings and $2.17 in earnings per share.

"These new record results were achieved principally due to the exceptional efforts of our employees. Their abilities, commitment and dedication enable us to face with confidence the future challenges which we are likely to encounter."

Contributing factors to the firm's 1996 results are listed below: -0-

  o Investment banking revenues increased 41% to $414.9 million,
    achieving a record year in 1996.  This increase was due primarily
    to a robust public offering underwriting market.  Fees from merger
    and advisory revenues increased 38% to $93.0 million.

  o Commission revenues increased 16% to $201.9 million during the
    year, primarily due to increases in private client and
    institutional listed business.

  o Principal transaction revenues increased 20% to $167.8 million,
    due to increases in equity trading, which were partially offset
    by decreases in fixed income trading.

  o Interest and dividend revenues increased 38% to $142.3 million,
    primarily due to substantial growth in margin loans generated
    by private client business.  At Dec. 31, 1996, margin loan
    balances outstanding exceeded $1.6 billion, representing a
    16% increase over the prior year.

  o Advisory and other revenues totalled $132.5 million, a 33% increase
    as compared to the prior year, primarily attributable to increases
    in advisory revenues and fees from Correspondent Services.
    Advisory revenues increased 41% to $77.6 million over the prior
    year.  Correspondent Services fees increased 28% to $28.3 million.
    Revenues from investments increased to $18.4 million as a result
    of net realized gains and increases in the carrying value of
    investments.  Assets under management totalled approximately
    $12.5 billion at the end of the year.

Stock Repurchase Program
------------------------
    Under the company's existing stock repurchase program, Alex.
Brown has authorization to repurchase approximately 1.5 million
shares.  Alex. Brown has repurchased 9.2 million shares of its
common stock since the inception of the repurchase program in 1989.

Quarterly Dividend
------------------
    Alex. Brown's board of directors approved a quarterly cash dividend
of 17 cents per share payable on Feb. 10, 1997 to stockholders of
record on Jan. 30, 1997.
    Alex. Brown is a holding company whose principal subsidiary is
Alex. Brown & Sons Inc., the oldest investment banking firm
in the United States.  The common stock of Alex. Brown is traded on
the New York Stock Exchange under the symbol "AB."  Senior notes
issued by the company during 1995 are traded on the New York Stock
Exchange under the symbol "AB05."
-0-
                        Summary Financial Information (a)
                  (in thousands, except per share amounts)

                  Three Months Ended           12 Months Ended
                      Dec. 31,      Pct          Dec. 31,       Pct
                  1996      1995   Change     1996      1995   Change
                --------  -------- ------   --------   ------- ------
                    (unaudited)
Total revenues  $264,372  $246,665   7%    $1,059,421  $809,394   31%
Net earnings    $ 37,301  $ 33,221  12%    $  154,145  $ 95,555   61%

Earnings per share:
  Primary       $   1.51  $   1.39   9%    $     6.28  $   4.11   53%
  Fully diluted $   1.34  $   1.23   9%    $     5.51  $   3.60   53%

(a) Per share information has been adjusted to reflect the 3-for-2
    stock split paid on Jan. 15, 1997.


                  ALEX. BROWN INCORPORATED AND SUBSIDIARIES
                     Consolidated Statements of Earnings (b)
                  (in thousands, except per share amounts)

                 Three Months Ended           12 Months Ended
                     Dec. 31,     Percent        Dec. 31,     Percent
                  1996     1995   Change      1996    1995    Change
                -------- -------- -------   -------- -------  -------
                   (unaudited)
Revenues:
 Commissions   $ 52,558  $ 44,609   18%     $201,896  $173,471   16%
 Investment
  banking       105,409   102,180    3%      414,891   293,375   41%
 Principal
  transactions   33,882    39,133  -13%      167,815   139,383   20%
 Interest and
  dividends      37,203    31,612   18%      142,307   103,190   38%
 Advisory and
  other          35,320    29,131   21%      132,512    99,975   33%
               --------  --------          ---------  --------
 Total revenues 264,372   246,665    7%    1,059,421   809,394   31%
               --------  --------          ---------  --------

Operating expenses:
 Compensation
  and benefits  135,509   123,149   10%      554,711   432,880   28%
 Communications  10,564     9,844    7%       38,388    33,934   13%
 Occupancy and
  equipment      11,022    10,332    7%       38,504    39,758   -3%
 Interest        12,074    11,674    3%       50,668    36,204   40%
 Floor brokerage,
  exchange and
  clearing fees   5,297     4,806   10%       20,755    18,646   11%
 Other operating
  expenses       26,143    32,575  -20%       97,013    89,797    8%
               --------  --------           --------  --------
 Total operating
  expenses      200,609   192,380    4%      800,039   651,219   23%
               --------  --------           --------  --------
Earnings before
 income taxes    63,763    54,285   17%      259,382   158,175   64%
Income taxes     26,462    21,064   26%      105,237    62,620   68%
               --------  --------           --------  --------
Net earnings   $ 37,301  $ 33,221   12%     $154,145  $ 95,555   61%
               ========  ========           ========  ========

Earnings per share:
 Primary       $   1.51  $   1.39    9%     $   6.28  $   4.11   53%
               ========  ========           ========  ========
 Fully diluted $   1.34  $   1.23    9%     $   5.51  $   3.60   53%
               ========  ========           ========  ========

Weighted average
 number of shares
 outstanding:
 Primary         24,641    23,921    3%       24,563    23,267    6%
               ========  ========           ========  ========
 Fully diluted   28,396    27,420    4%       28,470    27,192    5%
               ========  ========           ========  ========

Cash dividends
 declared per
 share         $   0.17  $  0.133   28%     $  0.637  $  0.517   23%
               ========  ========           ========  ========
-0-
    Certain amounts in the prior period have been reclassified to
    conform to current presentation.
(b) Per share information and shares outstanding have been adjusted
    to reflect the 3-for-2 stock split paid on Jan. 15, 1997.

CONTACT: Alex. Brown Inc.

Beverly L. Wright, CFO, 410/895-4260

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