Alliance Capital Management L.P. reports 27 percent increase in second quarter earnings and increased distribution to unitholders for the fifth consecutive quarter.

NEW YORK--(BUSINESS WIRE)--Aug. 1, 1996--Alliance Capital Management L.P. (NYSE: "AC") today reported net income of $47.0 million or $0.55 per Unit for the quarter ended June 30, 1996, an increase of 27% from $37.1 million or $0.45 per Unit for the quarter ended June 30, 1995.

Revenues for the quarter ended June 30, 1996 increased 28% to $196.1 million versus $153.4 million for the second quarter of 1995. The Partnership's net income for the six months ended June 30, 1996 was $92.1 million, or $1.09 per Unit, an increase of $20.8 million (29%) from $71.3 million or $0.87 per Unit for the six months ended June 30, 1995. Revenues for the six months ended June 30, 1996 were $377.8 million versus $298.8 million for the prior year period. Assets under management as of June 30, 1996 grew to approximately $168.2 billion.

The Partnership also announced a distribution of $.53 per Unit for the second quarter of 1996, a 23% increase over the $0.43 distributed for the second quarter of 1995. The second quarter distribution is payable on August 22, 1996 to holders of Units at the close of business on August 15, 1996.

Chairman Dave H. Williams attributes Alliance's excellent results to "the broadly diversified products and services Alliance offers, favorable market conditions during the first half of the year, and strong inflows into our mutual funds and other products servicing the individual investor."

Significant Second Quarter Events

-- Moody's Investor Services assigned an A2 long-term counterparty rating to Alliance and reaffirmed Alliance's Prime-1 rating for commercial paper, citing Alliance's strong franchise on both institutional separate account and retail mutual funds management, as well as the company's balanced mix of fixed income and equity product offerings.

-- Standard & Poor's assigned its single-A long-term counterparty rating to Alliance and reaffirmed Alliance's A-1 short-term counterparty and commercial paper ratings.

-- Alliance completed the acquisition of National Mutual Funds Management (North America), adding approximately $1.2 billion in assets under management.

-- A real estate advisory relationship was formed - Alliance Capital/Koll Real Estate Securities - to develop real estate investment strategies involving REITS for institutional and mutual fund clients.

-- Alliance became the majority owner of a newly formed software development company named Acsys Software (India) Pvt. Ltd. Located in Madras, Acsys provides software services and support, including Agent Information Systems, Dealer Marketing Systems and Asset Management Systems, to Alliance's international subsidiaries and affiliates. The systems developed by Acsys are also being marketed to financial services companies around the world.

Alliance Capital Management L.P. is a leading international investment adviser, providing investment management services to institutions, primarily pension funds, endowments, insurance companies and banks, and to individual investors through a broad line of mutual funds and cash management products. The Partnership's general partner is a wholly-owned subsidiary of The Equitable Companies Incorporated (NYSE: "EQ") and approximately 58% of the Partnership's outstanding Units are beneficially owned by Equitable. -0-

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

                              Three Months Ended     Six Months Ended
                               6/30/96   6/30/95    6/30/96    6/30/95
Revenues:
 Investment advisory and
  services fees:
    Alliance mutual funds     $ 71,849   $ 55,503   $139,673   $107,149
    Separately managed accounts
    Affiliated clients          11,768     12,230     21,866     23,841
    Third party clients         58,081     41,454    109,202     82,417

 Distribution plan fees
  from Alliance mutual funds    40,582     30,636     79,065     59,648
 Shareholder servicing and
  administration fees           11,623     11,035     23,023     21,290
 Other revenues                  2,246      2,567      4,936      4,459
                               -------    -------    -------   --------
                               196,149    153,425    377,765    298,804
                               -------    -------    -------   --------
Expenses:
 Employee compensation and
  benefits                      54,100     41,704    103,476     81,527
 Promotion and servicing:
   Distribution payments to
    financial intermediaries:
      Affiliated                 7,701      5,444     14,692     10,839
      Unaffiliated              27,644     20,807     54,446     39,973
   Amortization of deferred
    sales commissions           12,848     12,660     25,366     25,527
   Other                        13,191     10,461     24,318     20,578
 General and administrative     25,515     20,465     48,956     39,513
 Interest                          472        231        714        639
 Amortization of intangible
  assets                         4,181      2,187      7,094      4,374
                               -------    -------    -------    -------
                               145,652    113,959    279,062    222,970
                               -------    -------    -------    -------

Income before income taxes      50,497     39,466     98,703     75,834
 Income taxes                    3,467      2,367      6,606      4,550
                                ------    -------    -------    -------
Net income                      47,030     37,099     92,097     71,284
                               =======    =======   ========    =======

Net income per Unit            $   .55    $   .45   $   1.09   $   0.87
                               =======    =======   ========   ========
Weighted average Units
 outstanding                    84,702     81,514     83,905     81,383
                               =======   ========   ========   ========

Distribution per Unit          $   .53   $    .43   $   1.05   $   0.84
                               =======   ========   ========   ========

                                  June 30,            December 31,
                               1996      1995            1995

Assets Under Management       $168,247  $133,310       $146,521
  (millions)                  ========  ========       ========

CONTACT: Alliance Capital Management L.P.

Investors - Robert Joseph, [phone]

Media - Linda Finnerty, [phone]