Alliance Capital Management L.P. Announces September 22, 1999 Unitholder Meeting.

NEW YORK--(BUSINESS WIRE)--Aug. 5, 1999--

Alliance Capital Management L.P. (NYSE: AC) ("Alliance") announced that it will hold a special meeting of Unitholders on September 22, 1999 for purposes of voting on a proposed reorganization of Alliance's business. Alliance has set August 2, 1999 as the record date for determining Unitholders entitled to vote at the meeting. Alliance expects that it will mail the proxy statement/prospectus describing the proposed reorganization and Unitholder voting procedures to its limited partners and Unitholders shortly.

As previously announced, the proposed reorganization of Alliance's business will give investors in Alliance the choice between 1) continuing to hold liquid Units of Alliance listed on the New York Stock Exchange that are subject to a 3.5% federal tax on Alliance's gross business income and 2) holding a highly illiquid interest in a new private limited partnership that is not subject to that tax.

Alliance proposes to transfer its business to a newly formed private limited partnership which will conduct Alliance's business without change in management or employee responsibilities. Alliance's principal asset will be its interest in the new partnership, and it will function solely as a holding company through which public Unitholders will continue to own an indirect interest in Alliance's business. Immediately after the reorganization, Alliance will change its name to "Alliance Capital Management Holding L.P.", and the new partnership will assume the name "Alliance Capital Management L.P."

In connection with the proposed reorganization, Alliance will offer all holders of Alliance Units the opportunity to exchange their Units in Alliance for limited partnership interests or Units in the new partnership on a one-for-one basis. The exchange offer will take place pursuant to an exchange offer prospectus that Alliance will mail separately to Unitholders after the special meeting. All Unitholders will have the right to retain their existing publicly traded Units in Alliance.

The proposed reorganization requires the approval of a majority of Alliance's unaffiliated public Unitholders and certain other contractual and regulatory approvals. Alliance expects that the reorganization and exchange offer will be completed in the fourth quarter of 1999.

About Alliance Capital Management L.P.

Alliance is the nation's largest publicly traded asset manager, as measured by assets under management, with more than $321 billion in client assets under management at June 30, 1999. Alliance manages retirement assets for many of the largest public and private employee benefit plans (including 29 of the nation's Fortune 100 companies), for public employee retirement funds in 32 out of the 50 states, and for foundations, endowments, banks, and insurance companies worldwide. Alliance is one of America's largest mutual fund sponsors, with a diverse family of fund portfolios and approximately 4.5 million shareholder accounts.