Alliance Capital announces agreement in principle to acquire Cursitor-Eaton Asset Management Company and Cursitor Holdings Limited; Alliance also announces record earnings and revenues for third quarter.

Management L.P. (NYSE Symbol: AC) announced that it has reached an agreement in principle to acquire the business of Cursitor-Eaton Asset Management Company and Cursitor Holdings Limited, for $141.5 million in cash and Alliance Capital's Limited Partnership Units, part of which will be payable over the next four years, and substantial additional consideration which will be determined at a later date. The acquisition is expected to be completed during the fourth quarter of 1995.

Cursitor, an international investment management firm with offices in London, Paris and Boston, manages approximately $10 billion in assets for both U.S. and non-U.S. institutions, mainly pension plans. Cursitor's investment style is global asset allocation: investing client funds in stocks or bonds of the world's principal capital markets. The acquisition of Cursitor will result in the formation of a new subsidiary of Alliance Capital called Cursitor Alliance. It will combine Cursitor's global asset allocation services with Alliance Capital's international and global equity management, which is characterized by a stock selection philosophy, and with Alliance's Dimensional Asset Management subsidiary, a manager of global small-capitalization index funds. The Cursitor senior management will retain a minority interest in Cursitor Alliance.

"This union will result in an organization that will be a significant force in the rapidly growing business of managing portfolios that invest anywhere in the world, in any type of security," said Dave H. Williams, Chairman and CEO of Alliance Capital.

Hugh M. Eaton, III, Chief Executive Officer of Cursitor, will become Chairman of the new Cursitor Alliance. Richard I. Morris, Jr., Chief Financial Officer of Cursitor, will become President and Chief Executive Officer of Cursitor Alliance. Mr. Eaton emphasized the advantages of the new organization for clients. "Only the most broadly diversified investment managers can adequately meet the needs of clients in today's increasingly complex investment environment. The combined expertise of the new Cursitor Alliance will provide our clients with a diversity of global investment strategies and services that will meet those needs well into the next millennium," he declared. Mr. Eaton also stated that Cursitor-Eaton's association with Trust Company of the West, which provides clients with global asset allocation and investment services, will remain in effect in all respects following the transaction.

Cursitor is the outgrowth of an economic and investment strategy consulting firm, Cecogest. Over the past decade, Cecogest gradually converted its business from providing advice to the actual management of discretionary accounts. Mr. Williams remarked, "Alliance Capital had been a Cecogest client for over 15 years. Therefore, we know the Cursitor principals well, we understand what they do, and we have great respect for their capabilities."

Mr. Williams added that, "This is another milestone in a great year for Alliance. We've experienced excellent investment performance, won new institutional clients, and are enjoying strong cash flows into our mutual funds. Alliance's ability to grow its business globally will secure its stature as one of the world's premier investment managers. With industry trends favoring firms with diversified investment expertise and asset allocation services, our partnership with Cursitor will combine the strengths and capabilities of both organizations, bringing added benefits to our clients and increased value to our investors." The acquisition is expected to be additive to Alliance's per unit earnings and, particularly, to cash flow per Unit.

The transaction is subject to execution of definitive agreements, approvals by boards of directors, consents and regulatory approvals, and certain other closing conditions, including client approval of the transfer of Cursitor accounts.

BEST QUARTER IN ALLIANCE HISTORY

DISTRIBUTION TO UNITHOLDERS HITS NEW HIGH

Alliance Capital also announced net income of $41.0 million or $0.50 per Unit for the quarter ended September 30, 1995, an increase of 18% from $34.7 million or $0.43 per Unit for the quarter ended September 30, 1994. Revenues for the quarter were $164.7 million versus $152.0 million for the third quarter of 1994. The Partnership's net income was $112.3 million or $1.37 per Unit for the nine months ended September 30, 1995, an increase of 14% from $98.4 million or $1.27 per Unit for the nine months ended September 30, 1994. Revenues for the nine months were $463.5 million versus $449.4 million for the nine months ended September 30, 1994. Assets under management as of September 30, 1995 grew to approximately $143.9 billion, an increase of $8.1 billion or 6% from $135.8 billion as of June 30, 1995.

The Partnership will distribute $0.48 per Unit for the third quarter of 1995, a 17% increase from the $0.41 distributed in the third quarter of 1994, and a 12% increase from 1995's second quarter. The third quarter distribution is payable on November 13, 1995 to holders of Units at the close of business on November 6, 1995 -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    Nine Months Ended
                               9/30/95   9/30/94    9/30/95    9/30/94
Revenues:
 Investment advisory and
  services fees:
    Alliance mutual funds     $ 61,417   $ 54,429   $168,566   $158,046
    Other affiliated clients     9,610     10,131     33,451     30,629
    Institutional clients       46,600     41,226    129,017    120,865
 Distribution plan fees
  from Alliance mutual funds    33,388     34,159     93,036    102,944
 Shareholder servicing and
  administration fees           10,825     10,226     32,115     30,251
 Other revenues                  2,826      1,799      7,285      6,673
                               -------    -------    -------   --------
                               164,666    151,970    463,470    449,408
                               -------    -------    -------   --------
Expenses:
 Employee compensation and
  benefits                      43,950     43,120    125,477    129,074
 Promotion and servicing:
   Distribution payments to
    financial intermediaries:
      Affiliated                 6,222      5,222     17,061     15,185
      Unaffiliated              22,707     20,910     62,680     64,212
   Amortization of deferred
    sales commissions           12,645     13,273     38,172     38,136
   Other                         9,244     10,197     29,822     33,076
 General and administrative     23,211     18,274     62,724     51,226
 Interest                          238      2,469        877      7,193
 Amortization of intangible
  assets                         2,186      2,186      6,560      6,263
                               -------    -------    -------    -------
                               120,403    115,651    343,373    344,365
                               -------    -------    -------    -------

Income before income taxes      44,263     36,319    120,097    105,043
 Income taxes                    3,256      1,634      7,806      6,663
                                ------    -------    -------    -------
Net income                      41,007     34,685    112,291     98,380
                               =======    =======   ========    =======

Net income per Unit            $   .50    $   .43   $   1.37   $   1.27
                               =======    =======   ========   ========
Weighted average Units
 outstanding                    81,596     80,393     81,456     76,703
                               =======   ========   ========   ========

Distribution per Unit          $   .48   $    .41   $   1.32   $   1.23
                               =======   ========   ========   ========

                                September 30,         December 31,
                               1995      1994            1994

Assets Under Management       $143,927  $123,069       $121,289
  (millions)                  ========  ========       ========

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 ( ECI ) and approximately 59% of the Partnership's outstanding Units are beneficially owned by ECI.

CONTACT: Alliance Capital Management L.P.

Robert H. Joseph, Jr., 212/969-2384 (Investors)

Linda Finnerty, 212/969-1316 (Media)