Alliance Capital Management L.P. Reports Record Quarterly Revenues and Assets Under Management.

NEW YORK--(BUSINESS WIRE)--April 30, 1998--Alliance Capital Management L.P. (NYSE:AC) today reported net income of $69.0 million or $0.39 diluted net income per Unit for the quarter ended March 31, 1998, an increase of 29% from $53.3 million or $0.31 diluted net income per Unit for the quarter ended March 31, 1997. Revenues for the quarter ended March 31, 1998 increased 44% to $316.0 million versus $219.3 million for the first quarter of 1997. Assets under management as of March 31, 1998 grew to $248.0 billion.

The Partnership also announced a distribution of $0.38 per Unit for the first quarter of 1998, a 27% increase over the $0.30 per Unit distributed in the first quarter of 1997, and a 7% decrease from the 1997 fourth quarter distribution of $0.41. The first quarter distribution is payable on May 18, 1998 to holders of Units at the close of business on May 11, 1998.

Strong U.S. equity markets and solid investment performance, particularly those related to accounts that earn performance fees, led to higher total revenues for the first quarter. However, the higher revenues were partially mitigated in Alliance's final results by increased spending for product distribution and technology initiatives, including the Year 2000 initiative and the new 3.5% Federal tax on partnership gross income. As previously announced, beginning January 1, 1998, Alliance Capital Management L.P. is subject to a 3.5% tax on partnership gross income, a result of The Taxpayer Relief Act of 1997, which applies to certain publicly traded partnerships that elect to maintain partnership tax status. In the first quarter of 1998, the 3.5% tax reduced the Partnership's diluted net income by $0.04 per Unit and, correspondingly, reduced the Partnership's distribution per Unit by $0.04.

Chairman Dave H. Williams remarked, "Rising equity markets, solid investment performance and yet another quarter of strong mutual fund sales for Alliance has helped us to reach record quarterly revenue and assets under management. Excluding the effect of the new 3.5% tax on partnership gross income, Alliance would have achieved record quarterly net income as well."

"Momentum in our mutual fund sales continues to build, particularly, in our offshore distribution channels where we are seeing increased demand by international investors for our U.S. dollar denominated and other offshore investment products. The effort we have put forth over the years in establishing global initiatives is beginning to have a greater impact on our business, and such results strengthen our commitment to building a global business and capitalizing on changes in investor behavior occurring worldwide. We are pleased to further endorse this commitment through our recently announced distribution and investment management arrangement with Italy's Eptaconsors Group."

Recent Business Highlights:

-- Mutual fund sales continue to be strong, translating into record

quarterly sales. Total mutual fund sales are up 92% from a year

ago. Domestic and offshore sales have increased 74% and 182% this

quarter, respectively, from the quarter ended March 31, 1997. In

particular, our offshore sales in Japan have been a strong

contributor to these results. Since entering the Investment Trust

Management business and offering the shares of certain of our

mutual funds to investors in Japan, the combined assets under

management of these mutual funds have increased to $5.1 billion

as of March 31, 1998 from $252 million a year ago.

-- Alliance Capital and Italy's Eptaconsors Group announced on April

21, 1998 the signing of an agreement for a comprehensive fund

distribution and investment management arrangement in Italy.

Eptaconsors will distribute Alliance Capital's offshore mutual

funds through its mutual fund and pension fund management

subsidiary, Eptafund, and Eptafund's shareholding banks. Alliance

and Eptafund will also develop new investment products for sale

to retail and institutional clients in Italy and the global

market via Alliance's worldwide retail and institutional

distribution network. Alliance Capital will manage all of

Eptafund's non-Italian assets.

-- Alliance introduced two new mutual fund products, the Alliance

International Premier Growth Fund, to be sold to U.S. investors,

and the ACM Investment Funds - Global Growth Trends Portfolio, to

be sold in Singapore. The Alliance International Premier Growth

Fund will invest in non-U.S. large-cap growth stocks which have

strong brand names and dominant market share positions primarily

in North America, Europe and Asia. The ACM Investment Funds -

Global Growth Trends Portfolio product is the first Alliance

global-fund product to be registered in Singapore, and is aimed

to attract Singapore retail investors who want greater access to

high-growth companies.

-- Alliance Capital launched its new advertising campaign, "Extreme

Measures," during the 1998 Academy Awards. The new campaign is a

bold effort to jolt people into the realization that they must

approach financial planning with a greater sense of urgency. The

television campaign includes four 30-second commercials relying

on exaggerated situations and unexpected humor to raise financial

awareness and combat the extraordinary level of complacency most

Americans have about retirement planning. The TV commercials are

expected to be accompanied by coordinated print advertising,

beginning in June.

-- On February 19, 1998, Alliance Capital Management L.P. declared a

two-for-one Unit split payable to Unitholders of record on March

11, 1998. The Unit split did not affect Unitholders' proportional

interest in the Partnership.

Alliance Capital is the nation's largest publicly traded asset manager, as measured by assets under management, with more than $248 billion in client assets under management. The firm manages retirement assets for many of the largest public and private employee benefit plans including 33 of the nation's Fortune 100 companies, public employee retirement funds in 34 states, as well as managing assets for foundations, endowments, banks and insurance companies. Alliance Capital is also one of America's largest mutual fund sponsors with a diverse family of fund portfolios and over 3.4 million shareholder accounts. As of March 31, 1998, the Partnership's general partner, a wholly-owned subsidiary of The Equitable Companies Incorporated ("EQ"), owned a 1% general partnership interest in Alliance and approximately 57% of the Partnership's outstanding Units are beneficially owned by EQ. -0-

ALLIANCE CAPITAL MANAGEMENT L.P.
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands except per Unit amounts)

                                                   Three Months Ended
                                                  3/31/98      3/31/97
                                                  -------      -------
Revenues:
Investment advisory and services fees:
Alliance mutual funds                              $142,531   $ 85,994
Separately managed accounts:
Affiliated clients                                   13,406     12,554
Third party clients                                  79,524     58,462
Distribution plan fees from Alliance mutual funds    65,290     47,247
Shareholder servicing and administration fees        13,144     12,765
Other revenues                                        2,122      2,229
                                                   --------    -------
                                                    316,017    219,251
                                                   --------    -------
Expenses:
Employee compensation and benefits                   87,827     60,502
Promotion and servicing:
Distribution plan payments to financial
intermediaries:
Affiliated                                           17,454      9,085
Third party                                          39,464     32,714
Amortization of deferred sales commissions           22,847     15,738
Other                                                21,314     14,805
General and administrative                           42,139     25,746
Interest                                              1,967        673
Amortization of intangible assets                       881      2,622
                                                    -------    -------
                                                    233,893    161,885
                                                    -------    -------

Income before income taxes                           82,124     57,366
Income taxes                                         13,140      4,017
                                                   --------   --------
Net income                                         $ 68,984   $ 53,349
                                                   ========   ========

Basic net income per Unit(a)                       $   0.40   $   0.31
                                                   ========   ========

Diluted net income per Unit(a)                     $   0.39   $   0.31
                                                   ========   ========

Weighted average Units outstanding - Basic(a)       169,301    167,937
                                                   ========   ========

Weighted average Units outstanding - Diluted(a)     174,511    171,010
                                                   ========   ========

Distributions per Unit(a)                          $   0.38   $   0.30
                                                   ========   ========
-0-
                                            March 31,     December 31,
                                        1998       1997       1997
                                        ----       ----       ----

Assets Under Management (millions)   $248,023     $182,029  $218,654
                                     ========     ========  ========

(a) Amounts for the three months ended March 31, 1997 and 1998 are
adjusted to reflect the two-for-one Unit split announced on February
19, 1998, payable to Unitholders of record on March 11, 1998.

CONTACT: Media:

Duff Ferguson

[phone]

Investors:

Anne Drennan

[phone]