Lazard Ltd Reports First-Half and Second-Quarter 2008 Results

Wed Jul 30, 2008 7:00am EDT

* Reuters is not responsible for the content in this press release.

- Net Income Per Share (diluted), on a fully exchanged basis, of
       $0.71 for first-half and $0.54 for second-quarter 2008 -

                              Highlights

   --  Core operating business revenue(a) increased 9% to a
        first-half record of $848.7 million and increased 15% to a
        second-quarter record of $467.8 million

   --  Financial Advisory operating revenue increased 7% to a
        first-half record of $501.4 million and increased 18% to a
        second-quarter record of $289.0 million

   --  M&A operating revenue increased 9% to $391.1 million in the
        first half of 2008 and increased 37% to a second-quarter
        record of $225.1 million

   --  Asset Management operating revenue increased 13% to a
        first-half record of $347.3 million and increased 11% to a
        second-quarter record of $178.8 million; assets under
        management (AUM) of $134.1 billion at the end of the second
        quarter of 2008 included net inflows of $2.6 billion during
        the quarter

   --  Corporate revenue was $26.2 million in the second quarter of
        2008

   --  Operating revenue(b) increased 1% to a first-half record of
        $835.2 million and increased 12% to a second-quarter record of
        $494.0 million

   --  Net income on a fully-exchanged basis(c) decreased 31% to
        $80.5 million, or $0.71 per share (diluted), for the first
        half of the year and increased 5% to $64.6 million, or $0.54
        per share (diluted), for the second quarter of 2008
NEW YORK--(Business Wire)--
Lazard Ltd (NYSE: LAZ) today announced financial results for the
first half and quarter ended June 30, 2008. Net income on a fully
exchanged basis was $80.5 million, or $0.71 per share (diluted), for
the first half of 2008, compared to $116.5 million, or $1.00 per share
(diluted), for the first half of 2007. Net income on a fully exchanged
basis was $64.6 million, or $0.54 per share (diluted) for the second
quarter of 2008, compared to $61.5 million, or $0.53 per share
(diluted) for the second quarter of 2007.

   Core operating business revenue increased 9% to a first-half
record of $848.7 million, compared to $776.2 million for the first
half of 2007, reflecting continued solid performance in Lazard's core
operating businesses of Financial Advisory and Asset Management.
Financial Advisory operating revenue, which includes M&A and Strategic
Advisory, Restructuring and Corporate Finance, increased 7% to a
first-half record of $501.4 million, compared to $467.6 million for
the first half of 2007. Asset Management operating revenue increased
13% to a first half record of $347.3 million, compared to $308.6
million in the first half of 2007.

   Operating revenue was a first-half record of $835.2 million,
compared to $827.7 million for the first half of 2007. Operating
income(d) was $105.8 million for the first half of 2008, compared to
$167.4 million for the first half of 2007, with the decrease primarily
attributable to higher interest expense, facilities costs, business
development expenses and continued investment in our businesses,
offset by a modest increase in operating revenue.

   Core operating business revenue increased 15% to a second-quarter
record of $467.8 million, compared to $406.7 million in the second
quarter of 2007, reflecting continued solid performance in Lazard's
core operating businesses of Financial Advisory and Asset Management.
Financial Advisory operating revenue increased 18% to a second-quarter
record of $289.0 million, compared to $245.0 million for the second
quarter of 2007. Asset Management operating revenue increased 11% to a
second-quarter record of $178.8 million, compared to $161.6 million in
the second quarter of 2007.

   Operating revenue increased 12% to a second-quarter record of
$494.0 million for the second quarter of 2008, compared to $439.5
million for the second quarter of 2007. Operating revenue for the
second quarter of 2008 includes Corporate revenue of $26.2 million,
compared to $32.9 million for the second quarter of 2007. Operating
income(d) was $87.7 million for the second quarter of 2008, compared
to $89.2 million for the second quarter of 2007, with the decrease
primarily attributable to higher interest expense, facilities costs,
business development expenses and continued investment in our
businesses, offset by the increase in operating revenue.

   Lazard believes that results assuming full exchange of outstanding
exchangeable interests provide the most meaningful basis for
comparison among present, historical and future periods.

   "We are pleased with the performance of our business in these
turbulent times. Our core operating business of Financial Advisory and
Asset Management achieved strong results, despite the ongoing
softening of the markets," said Bruce Wasserstein, Chairman and Chief
Executive Officer of Lazard.

   "Although the outlook for market activity for the remainder of the
year remains unclear, we are confident of the vitality of our firm and
that our intellectual capital business model should continue to
succeed," said Mr. Wasserstein. "We also are focused on the long term.
We continue to invest in our business, while providing our clients
with strong, experienced teams of top talent, who are sought after by
both strategic buyers and sellers, as well as asset management clients
in this uncertain environment."

   "The volatile environment heightens the need for our experience,
diversity and global breadth to meet and overcome the challenges for
our clients," said Steven J. Golub, Vice Chairman of Lazard. "We
continue to serve as independent, strategic advisors on many
precedent-setting, cross-border and exceedingly complex transactions,
including serving as lead advisor to InBev in its $52 billion
acquisition of Anheuser-Busch, the largest cash M&A transaction in
history; Gaz de France's EUR 44.6 billion merger with Suez, forming a
world energy leader in gas and electricity; the Haas Family Trusts in
the $18.8 billion sale of Rohm and Haas to Dow Chemical, one of the
largest chemical transactions; the independent directors of KKR
Private Equity Investors in its combination with KKR; The Royal Bank
of Scotland Group's $7.0 billion sale of Angel Trains to a consortium
of global infrastructure investment funds led by Babcock & Brown; and
APP Pharmaceuticals' $5.6 billion sale to Fresenius, strengthening the
combined German-American entity's leadership in injectable hospital
based markets; as well as restructuring assignments around the world
from Tropicana Entertainment in Las Vegas to Centro Properties in
Australia."

   "Our Asset Management business has continued to do well and is
providing a wider range of investment solutions for our clients," said
Mr. Golub. "We also are continuing to expand our Asset Management
business both by geography and by product."

   "Although this year's record first-half and second-quarter
revenues are stronger than the same periods in 2007, the second half
of the year remains uncertain because the markets remain
unpredictable," said Michael J. Castellano, Chief Financial Officer of
Lazard. "We expect that Financial Advisory revenue and income will
continue to fluctuate from quarter to quarter and that quarterly
patterns may differ from year to year. This is why it is always best
to measure our results on an annual basis, particularly in this
uncertain market."

   The Company's quarterly revenue and profits can fluctuate
materially depending on the number, size and timing of completed
transactions on which it advised, as well as seasonality and other
factors. Accordingly, the revenue and profits in any particular
quarter may not be indicative of future results. As such, Lazard
management believes that annual results are the most meaningful.

   Operating Revenue

   Core Operating Business

   Lazard's core operating business includes our Financial Advisory
and Asset Management businesses. Operating revenue for our core
operating business increased 9% to a first-half record of $848.7
million for the first half of 2008 and grew 15% to a second-quarter
record of $467.8 million for the second quarter of 2008. This included
increases of 7% and 18% in first-half and second-quarter 2008
Financial Advisory revenue, and increases of 13% and 11% in Asset
Management revenue for the respective 2008 periods.

   Financial Advisory

   Lazard's Financial Advisory business encompasses general strategic
and transaction-specific advice to public and private companies,
governments and other parties, and includes Financial Restructuring as
well as various corporate finance services. Some of our assignments
and, therefore, related revenue are not reflected in publicly
available statistical information. Restructuring assignments normally
are executed over a six- to eighteen-month period.

   Financial Advisory operating revenue increased 7% to a first-half
record of $501.4 million for the first half of 2008 and increased 18%
to a second-quarter record of $289.0 million for the second quarter of
2008, compared to $467.6 million and $245.0 million for the respective
2007 periods.

   M&A and Strategic Advisory

   M&A and Strategic Advisory operating revenue increased 9% to
$391.1 million for the first half of 2008, compared to $360.4 million
for the first half of 2007, and increased 37% to a second-quarter
record of $225.1 million for the second quarter of 2008, compared to
$164.3 million for the second quarter of 2007.

   Among the completed transactions in the second quarter of 2008 on
which Lazard advised, were the following:

   --  Trane's $10.1 billion sale to Ingersoll-Rand

   --  Resolution plc's GBP 5.0 billion sale to Pearl Group

   --  Zinifex's A$6.2 billion merger with Oxiana

   --  Louis Dreyfus' EUR 2.1 billion sale of its 29% stake in Neuf
        Cegetel to SFR

   --  Quanex' $1.7 billion merger with Gerdau and spin-off of its
        building products business to shareholders

   --  Bear Stearns' $1.4 billion sale to JPMorgan Chase

   --  Cookson's GBP 626 million acquisition of Foseco

   --  H&R Block's $1.1 billion sale of Option One mortgage loan
        servicing business to WL Ross

   --  Sodexo's $845 million public tender offer to repurchase shares
        representing 7.8% of its capital

   --  Alfa Corp.'s Special Committee in its $840 million
        privatization

   --  IBM's SEK 5.2 billion acquisition of Telelogic

   --  Trico Marine Service's $810 million acquisition of DeepOcean

   --  Eiffage S.A. in its defense against an approach by Sacyr

   Among the pending, announced M&A transactions on which Lazard
advised in the second quarter or continued to advise since June 30,
2008, are:

   --  BHP Billiton's $147.4 billion offer for Rio Tinto

   --  Gaz de France's EUR 44.6 billion merger with Suez

   --  InBev's $52.0 billion acquisition of Anheuser-Busch

   --  Haas Family Trusts in Rohm and Haas' $18.8 billion sale to Dow
        Chemical

   --  Independent directors of KKR Private Equity Investors, L.P. in
        its combination with KKR

   --  The Royal Bank of Scotland Group's $7.0 billion sale of Angel
        Trains to a consortium led by Babcock & Brown

   --  International Paper's $6.0 billion acquisition of
        Weyerhaeuser's packaging business

   --  APP Pharmaceuticals' $5.6 billion sale to Fresenius

   --  Corn Products' $4.8 billion sale to Bunge

   --  ENI's EUR 2.7 billion acquisition of Suez's 57.243% stake in
        Distrigas

   --  Banque Populaire's EUR 2.1 billion acquisition of seven French
        regional banks from HSBC France

   --  Geodis' $2.5 billion sale to SNCF Participations

   --  Criteria Caixa's EUR 1.5 billion acquisition of a 20% stake in
        GFInbursa

   --  Meinl Bank's EUR 1.3 billion sale of right to manage Meinl
        European Land and new investment in Meinl European Land by
        Gazit Globe and Citi Property Investors

   --  TM International's INR72.9 billion acquisition of a 14.99%
        stake in Idea Cellular, and Idea Cellular's subsequent merger
        with Spice Communications

   --  Century Aluminum's $1.7 billion unwinding of primary aluminum
        financial forward sales contracts

   --  Penn National Gaming on raising $1.25 billion in new capital
        principally from private equity funds affiliated with Fortress
        and Centerbridge Partners

   --  ING in its $900 million acquisition of CitiStreet

   --  Polaris Acquisition Corp.'s $700 million acquisition of Hughes
        Telematics

   --  GrainCorp's A$592 million scrip takeover offer for Ridley
        Corporation

   --  Capgemini's EUR 255 million acquisition of Getronics
        PinkRoccade Business Application Services

   --  Church & Dwight's $380 million acquisition of Del
        Pharmaceuticals from Coty

   Financial Restructuring

   Financial Restructuring operating revenue was $48.2 million for
the first half of 2008, compared to $38.7 million for the first half
of 2007, and was $32.7 million for the second quarter of 2008,
compared to $29.1 million for the second quarter of 2007.

   Notable Restructuring assignments completed in the second quarter
of 2008 include advising Plastech Engineered Products in connection
with its Chapter 11 bankruptcy and asset sales; Movie Gallery on
strategic issues, creditor negotiations and development of a plan of
reorganization in connection with its emergence from bankruptcy; IAP
Worldwide Services in connection with the out-of-court restructuring
of its bank debt; and Weston Presidio with regards to its interest in
Tekni-Plex.

   We continue our work on a number of other Restructuring
assignments both in and out-of-court in the second quarter 2008,
including:

   Chapter 11 restructuring advisory assignments:

   --  Tropicana Casino & Resorts

   --  Technical Olympic USA (TOUSA)

   --  Wellman Inc.

   --  LandSource Communities Development LLC

   --  UAW in connection with Delphi's bankruptcy

   Other restructuring advisory assignments:

   --  Centro Properties Limited

   --  Tarragon Corporation

   --  WCI Communities Inc

   --  UAW in implementing its VEBA settlements with GM, Ford and
        Chrysler

   --  Vertis Inc.

   --  Journal Register Company

   --  BLB Management Services

   --  Inmobiliaria Colonial

   Corporate Finance and Other

   Corporate Finance and Other operating revenue decreased to $62.1
million for the first half of 2008 compared to $68.6 million for the
first half of 2007, and decreased to $31.2 million for the second
quarter of 2008, compared to $51.6 million for the second quarter of
2007. These results were due to a decline during the second quarter in
the value of fund closings by our Private Fund Advisory Group and
public offerings advised by our Equity Capital Markets Group. Our
Equity Capital Markets transaction assignments in the second quarter
of 2008 included advising Eurotunnel, Equitable Resources and Renesola
on their follow-on capital raising transactions. In addition, the
equity capital markets group also advised Endo Pharmaceuticals, Energy
Conversion Devices and LDK Solar on their recent convertible
securities offerings.

   Our Alternative Capital Finance Group also has served as placement
agent on a number of Private Investment in Public Equity transactions
(PIPEs) and Registered Direct Offerings (RDs). Notable assignments
during the second quarter included PIPEs for Trico Marine and China
Cablecom and RDs for Dendreon Corporation and Pacific Ethanol.

   Asset Management

   Asset Management operating revenue increased 13% to a first-half
record of $347.3 million and 11% to a second-quarter record of $178.8
million for the first half and second quarter of 2008, respectively,
compared with $308.6 million and $161.6 million for the corresponding
2007 periods.

   Management fees increased 15% to a first-half record of $315.1
million and 10% to a second-quarter record of $157.1 million for the
first half and second quarter of 2008, respectively, compared with
$272.9 million and $142.2 million for the corresponding 2007 periods.
Average assets under management rose 11% for the first half of 2008 to
$136.6 billion from $123.5 billion for the first half of 2007. Assets
under management at the end of the second quarter of 2008 were $134.1
billion, representing a 5% decrease from the level of assets under
management at year-end 2007, as $4.3 billion of net inflows were
offset by market depreciation of $12.6 billion over the 2008 six-month
period. With net inflows in the second quarter of $2.6 billion, Lazard
has now achieved net inflows in nine of the last eleven quarters.

   Incentive fees were $8.4 million for the first half and second
quarter of 2008, compared with $10.8 million and $5.8 million for the
comparable 2007 periods. Incentive fees are recorded on the
measurement date, which for most of our funds that are subject to
incentive fees falls in the fourth quarter.

   Corporate

   Corporate operating revenue was a negative $13.4 million in the
first half of 2008, compared to income of $51.5 million in the first
half of 2007, as the 2008 revenue was adversely impacted by mark-downs
and losses reported in the first quarter of 2008. Corporate operating
revenue was $26.2 million in the second quarter of 2008, compared to
$32.9 million in the second quarter of 2007, as the 2007 revenue
included a gain of $9.3 million representing our interest in the net
proceeds from the sale by LFCM Holdings of a portion of its interest
in Panmure Gordon & Co. plc. The improvement in the second quarter
Corporate operating revenue, compared to the first quarter of 2008,
was primarily due to reducing the volatility of our portfolio of debt
securities to more closely align it with our long-term hold strategy.

   Expenses

   Compensation and Benefits

   The ratio of compensation and benefits expense to operating
revenue was 56.7% for the first halves and second quarters of both
2008 and 2007. Compensation and benefits expense increased 1% to
$473.6 million and 12% to $280.0 million for the first half and second
quarter of 2008, respectively, compared to $469.1 million and $249.0
million for the first half and second quarter of 2007, respectively,
consistent with the increase in operating revenue compared to the same
periods in 2007.

   Non-Compensation

   Non-compensation expenses were $196.1 million and $99.6 million
for the first half and second quarter of 2008, respectively, compared
to $154.0 million and $83.2 million for the comparable 2007 periods.
The ratio of non-compensation expenses to operating revenue was 23.0%
and 19.7% in the first half and second quarter of 2008, compared to
18.6% and 18.9% in the respective 2007 periods. The ratios for the
2008 periods exclude the effect of amortization of intangibles related
to acquisitions completed in the second half of 2007.

   Factors contributing to the increases include (i) the impact of
new offices, acquisitions made in the second half of 2007 and other
investments in our businesses, (ii) increased business development
expenses for travel, market related data and AUM growth, and (iii) the
continued impact of the weakened U.S. Dollar. In addition, the first
halves of 2008 and 2007 expenses include a provision of $4.8 million
and $4.0 million, respectively, for costs related to leases on
abandoned space. The 2008 provision was recorded in the first quarter
and the 2007 provision was recorded in the second quarter.

   The percentage of non-compensation expenses to operating revenue
can vary from quarter to quarter due to quarterly fluctuation in
revenues, among other things. Accordingly, the results in a particular
quarter may not be indicative of future results. Lazard management
believes that annual results are the most meaningful basis for
comparison.

   Provision for Income Taxes

   The provision for income taxes on a fully exchanged basis was
$26.8 million for the first half of 2008, compared to $45.3 million
for the first half of 2007, and was $21.5 million for the second
quarter of 2008, compared to $23.9 million for the second quarter of
2007. The effective tax rate for the first half and second quarter of
2008 was 25%, compared to 28% for the corresponding 2007 periods,
exclusive of LAM general partnership interest-related revenue.

   On a U.S. GAAP basis, the provision for income taxes was $23.0
million and $18.1 million for the first half and second quarter of
2008, respectively, compared with a provision for income taxes of
$37.4 million and $20.3 million in the corresponding 2007 periods. The
effective tax rate was 21.7% and 20.6% for the respective periods in
2008, compared to 22.3% and 22.8% in the corresponding 2007 periods.

   Minority Interest

   Minority interest, assuming full exchange of minority interests,
amounted to a negative $1.6 million in the 2008 first half, compared
to a positive $5.6 million in the first half of 2007, and a positive
$1.6 in the second quarter of 2008 compared to a positive $3.7 million
in the second quarter of 2007. Minority interest was included in net
revenues and is attributable to various LAM-related general
partnership interests held by our managing directors.

   Minority interest expense on a US GAAP basis also includes the
minority interest attributable to the exchangeable interests held by
LAZ-MD Holdings LLC (LAZ-MD).

   Capital and Other Matters

   At June 30, 2008, Lazard reported total stockholders' equity of
$352.8 million. Equity, on a fully exchanged basis(e), was $526.4
million. During the second quarter of 2008, Lazard repurchased 1.245
million shares of Class A common stock for an aggregate cost of $46.0
million. Lazard's remaining share repurchase authorization at June 30,
2008 was $243.1 million.

   On May 15, 2008, Lazard settled the Forward Purchase Contracts
underlying the Equity Security Units (ESUs) for $437.5 million in cash
and issued 14.6 million shares of Class A common stock. Also on May
15, 2008, Lazard Group settled the remarketing of its $437.5 million
in Senior Notes underlying our ESUs by repurchasing the remarketed
notes for $438.6 million.

   Strategic Business Developments

   During the second quarter of 2008, and in the past month, Lazard
continued to invest in both its Financial Advisory and Asset
Management businesses. The investments support the firm's five-year
strategy to create growth opportunities.

   --  In our Financial Advisory business we added new senior
        advisory talent to our aerospace & defense sectors and the
        Lazard Middle Market business in the U.S. We also continued to
        strengthen our cross-border and debt advisory expertise with
        key hires in Europe.

   --  In Asset Management we continued our geographic expansion,
        entering the Middle East with plans to open a new office in
        Bahrain. We also opened an office in Hong Kong. In addition,
        we continued to seed new strategies in our traditional and
        alternatives businesses.

   Non-GAAP Information

   Lazard discloses certain non-GAAP financial information, which
management believes provides the most meaningful basis for comparison
among present, historical and future periods. The following are
non-GAAP measures used in the accompanying financial information:

   --  Net income assuming full exchange of exchangeable interests
        (or fully exchanged basis)

   --  Operating revenue

   --  Minority interest assuming full exchange of exchangeable
        interests

   --  Equity on a fully exchanged basis

   Additional financial, statistical and business-related information
is included in a financial supplement. This earnings release, the
financial supplement and selected transaction information will be
available today on our website at www.lazard.com.

   Lazard, one of the world's preeminent financial advisory and asset
management firms, operates from 40 cities across 23 countries in North
America, Europe, Asia, Australia, Central and South America. With
origins dating back to 1848, the firm provides advice on mergers and
acquisitions, restructuring and capital raising, as well as asset
management services to corporations, partnerships, institutions,
governments, and individuals. For more information on Lazard, please
visit www.lazard.com.

   Conference Call

   Bruce Wasserstein, Chairman and Chief Executive Officer, Steven
Golub, Vice Chairman, and Michael Castellano, Chief Financial Officer,
will host a conference call today at 10am EDT to discuss the company's
financial results for the first half and second quarter of 2008. The
conference call can be accessed via a live audio web cast available
through Lazard's Investor Relations website at www.lazard.com, or by
dialing 1 (877) 718-5099 (U.S. and Canada) or +1 (719) 325-4775
(outside of the U.S. and Canada), 15 minutes prior to the start of the
conference call.

   A replay of the web cast will be available beginning at 1:00 p.m.
EDT on July 30, 2008 through August 6, 2008, via the Lazard website,
or by dialing 1 (888) 203-1112 (for the U.S. and Canada) or +1 (719)
457-0820 (outside of the U.S. and Canada); the access code is 6047402.

   Cautionary Note Regarding Forward-Looking Statements

   This press release contains "forward-looking statements." In some
cases, you can identify these statements by forward-looking words such
as "may", "might", "will", "should", "expect", "plan", "anticipate",
"believe", "estimate", "predict", "potential" or "continue", and the
negative of these terms and other comparable terminology. These
forward-looking statements are not historical facts but instead
represent only our belief regarding future results, many of which, by
their nature, are inherently uncertain and outside of our control.
There are important factors that could cause our actual results, level
of activity, performance or achievements to differ materially from the
results, level of activity, performance or achievements expressed or
implied by these forward-looking statements.

   These factors include, but are not limited to, those discussed in
our Annual Report on Form 10-K under Item 1A "Risk Factors," and also
disclosed from time to time in reports on Forms 10-Q and 8-K including
the following:

   --  A decline in general economic conditions or the global
        financial markets;

   --  Losses caused by financial or other problems experienced by
        third parties;

   --  Losses due to unidentified or unanticipated risks;

   --  A lack of liquidity, i.e., ready access to funds, for use in
        our businesses; and

   --  Competitive pressure.

   Lazard Ltd is committed to providing timely and accurate
information to the investing public, consistent with our legal and
regulatory obligations. To that end, Lazard and its operating
companies use their websites to convey information about their
businesses, including the anticipated release of quarterly financial
results, quarterly financial, statistical and business-related
information, and the posting of updates of assets under management in
various hedge funds and mutual funds and other investment products
managed by Lazard Asset Management LLC and its subsidiaries. Monthly
updates of these funds will be posted to the Lazard Asset Management
website (www.lazardnet.com) on the third business day following the
end of each month. Investors can link to Lazard and its operating
company websites through www.lazard.com.

   (a) Core operating business revenue includes the results of
Financial Advisory and Asset Management businesses, and excludes the
results of all investments in Corporate.

   (b) Operating revenue excludes interest expense relating to
financing activities and revenue/(loss) relating to the consolidation
of General Partnerships, each of which are included in net revenue.

   (c) Refers to the full conversion of all outstanding exchangeable
interests held by the members of LAZ-MD Holdings and is a non-GAAP
measure.

   (d) Operating income is after interest expense and before income
taxes and minority interests.

   (e) Refers to the full conversion of all outstanding exchangeable
interests held by the members of LAZ-MD Holdings and is a non-GAAP
measure

-0-
*T
                              LAZARD LTD
                          OPERATING REVENUE
                             (unaudited)


                                      Three Months Ended June 30,
                                   -----------------------------------
                                                         Increase /
                                     2008      2007      (Decrease)
                                   --------- --------- ---------------
                                            ($ in thousands)
Financial Advisory
   M&A and Strategic Advisory      $225,108  $164,318  $60,790   37%
   Financial Restructuring           32,666    29,073    3,593   12%
   Corporate Finance and Other       31,220    51,619  (20,399) (40%)
                                   --------- --------- --------
      Total                         288,994   245,010   43,984   18%

Asset Management
   Management Fees                  157,108   142,230   14,878   10%
   Incentive Fees                     8,429     5,752    2,677   47%
   Other Revenue                     13,289    13,666     (377)  (3%)
                                   --------- --------- --------
      Total                         178,826   161,648   17,178   11%
                                   --------- --------- --------

Core Operating Business Revenue (a) 467,820   406,658   61,162   15%

Corporate                            26,219    32,868   (6,649) (20%)
                                   --------- --------- --------

Operating Revenue (b)               494,039   439,526   54,513   12%

LAM GP Related Revenue/(Loss)         1,643     3,724   (2,081)   -
Other Interest Expense              (28,294)  (21,890)  (6,404)   -
                                   --------- --------- --------

Net Revenue                        $467,388  $421,360  $46,028   11%
                                   ========= ========= ========



                                        Six Months Ended June 30,
                                   -----------------------------------
                                                         Increase /
                                     2008      2007      (Decrease)
                                   --------- --------- ---------------
                                           ($ in thousands)
Financial Advisory
   M&A and Strategic Advisory      $391,092  $360,386   $30,706    9%
   Financial Restructuring           48,204    38,693     9,511   25%
   Corporate Finance and Other       62,126    68,554    (6,428)  (9%)
                                   --------- --------- ---------
      Total                         501,422   467,633    33,789    7%

Asset Management
   Management Fees                  315,117   272,869    42,248   15%
   Incentive Fees                     8,429    10,758    (2,329) (22%)
   Other Revenue                     23,713    24,938    (1,225)  (5%)
                                   --------- --------- ---------
      Total                         347,259   308,565    38,694   13%
                                   --------- --------- ---------

Core Operating Business Revenue
 (a)                                848,681   776,198    72,483    9%

Corporate                           (13,439)   51,525   (64,964)  NM
                                   --------- --------- ---------

Operating Revenue (b)               835,242   827,723     7,519    1%

LAM GP Related Revenue/(Loss)        (1,610)    5,555    (7,165)   -
Other Interest Expense              (58,165)  (42,720)  (15,445)   -
                                   --------- --------- ---------

Net Revenue                        $775,467  $790,558  $(15,091)  (2%)
                                   ========= ========= =========


(a) Core operating business revenue includes the results of Financial
 Advisory and Asset Management businesses and excludes the results of
 all investments in Corporate.

(b) Operating revenue excludes interest expense relating to financing
 activities and revenue/(loss) relating to the consolidation of LAM
 General Partnerships, each of which are included in net revenue.

NM - Not meaningful
*T

-0-
*T
                              LAZARD LTD
        UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF INCOME


                                           Three Months Ended
                                             Ended June 30,
                                   -----------------------------------
                                       2008         2007     % Change
                                   ------------ ------------ ---------
                                   ($ in thousands, except per share
                                                  data)

Total revenue (a)                     $504,002     $447,178      13%
LFB interest expense                    (9,963)      (7,652)
                                   ------------ ------------
   Operating revenue                   494,039      439,526      12%
LAM GP related revenue/(loss)            1,643        3,724
Other interest expense                 (28,294)     (21,890)
                                   ------------ ------------
Net revenue                            467,388      421,360      11%
Operating expenses:
   Compensation and benefits           280,021      249,046      12%

   Occupancy and equipment              22,277       24,285
   Marketing and business
    development                         25,220       16,964
   Technology and information
    services                            17,089       14,161
   Professional services                16,237       13,711
   Fund administration and
    outsourced services                  6,573        4,459
   Amortization of intangible
    assets (b)                           2,525            -
   Other                                 9,708        9,571
                                   ------------ ------------
          Total non-compensation
           expense                      99,629       83,151      20%
                                   ------------ ------------
Operating expenses                     379,650      332,197      14%
                                   ------------ ------------

Operating income                        87,738       89,163      (2%)

Provision for income taxes              18,110       20,313     (11%)
                                   ------------ ------------
Income before minority interest in
 net income                             69,628       68,850       1%
Minority interest in net income
 (excluding LAZ-MD)                      1,644        3,725
Minority interest in net income
 (LAZ-MD only)                          33,667       35,829
                                   ------------ ------------
Net income                             $34,317      $29,296      17%
                                   ============ ============

Net income assuming full exchange
 of exchangeable interests (c)         $64,570      $61,515       5%
                                   ============ ============

Weighted average shares outstanding
 (d):
   Basic                            56,416,850   51,439,125      10%
   Diluted                         126,711,796   62,737,737      NM
Net income per share:
   Basic                                 $0.61        $0.57       7%
   Diluted                               $0.54        $0.52       4%

----------------------------------------------------------------------
Supplemental Information:

Weighted average shares
 outstanding,
   assuming full exchange of
    exchangeable interests (d):
   Basic                           110,463,868  107,512,179       3%
   Diluted                         126,711,796  118,810,791       7%
Net income per share -
   assuming full exchange of
    exchangeable interests:
   Basic                                 $0.58        $0.57       2%
   Diluted                               $0.54        $0.53       2%

Ratio of compensation to operating
 revenue                                  56.7%        56.7%
Ratio of non-compensation to
 operating revenue                        20.2%        18.9%
Ratio of non-compensation to
 operating revenue as adjusted (e)        19.7%        18.9%

----------------------------------------------------------------------



                                             Six Months Ended
                                              Ended June 30,
                                    ----------------------------------
                                        2008         2007     % Change
                                    ------------ ------------ --------
                                   ($ in thousands, except per share
                                                  data)

Total revenue (a)                      $854,106     $845,790       1%
LFB interest expense                    (18,864)     (18,067)
                                    ------------ ------------
   Operating revenue                    835,242      827,723       1%
LAM GP related revenue/(loss)            (1,610)       5,555
Other interest expense                  (58,165)     (42,720)
                                    ------------ ------------
Net revenue                             775,467      790,558      (2%)
Operating expenses:
   Compensation and benefits            473,582      469,084       1%

   Occupancy and equipment               51,771       43,974
   Marketing and business
    development                          45,684       33,366
   Technology and information
    services                             33,330       26,767
   Professional services                 29,504       22,529
   Fund administration and
    outsourced services                  13,143        8,968
   Amortization of intangible
    assets (b)                            3,745            -
   Other                                 18,948       18,439
                                    ------------ ------------
          Total non-compensation
           expense                      196,125      154,043      27%
                                    ------------ ------------
Operating expenses                      669,707      623,127       7%
                                    ------------ ------------

Operating income                        105,760      167,431     (37%)

Provision for income taxes               22,950       37,374     (39%)
                                    ------------ ------------
Income before minority interest in
 net income                              82,810      130,057     (36%)
Minority interest in net income
 (excluding LAZ-MD)                      (1,609)       5,558
Minority interest in net income
 (LAZ-MD only)                           42,303       68,849
                                    ------------ ------------
Net income                              $42,116      $55,650     (24%)
                                    ============ ============

Net income assuming full exchange
 of exchangeable interests (c)          $80,526     $116,548     (31%)
                                    ============ ============

Weighted average shares
 outstanding (d):
   Basic                             53,198,522   51,439,097       3%
   Diluted                          113,713,062   90,477,035      26%
Net income per share:
   Basic                                  $0.80        $1.08     (26%)
   Diluted                                $0.70        $0.98     (29%)

----------------------------------------------------------------------
Supplemental Information:

Weighted average shares
 outstanding,
   assuming full exchange of
    exchangeable interests (d):
   Basic                            107,883,427  107,524,848       0%
   Diluted                          118,554,347  118,513,562       0%
Net income per share -
   assuming full exchange of
    exchangeable interests:
   Basic                                  $0.75        $1.08     (31%)
   Diluted                                $0.71        $1.00     (29%)

Ratio of compensation to operating
 revenue                                   56.7%        56.7%
Ratio of non-compensation to
 operating revenue                         23.5%        18.6%
Ratio of non-compensation to
 operating revenue as adjusted (e)         23.0%        18.6%

----------------------------------------------------------------------


(a) Excluding LAM General Partnership related revenue

(b) For the three and six month periods ended June 30, 2008, includes
 amortization of intangible assets resulting from the acquisition of
 Goldsmith Agio Helms & Lynner, LLC ("GAHL") and Carnegie, Wylie &
 Company ("CWC").

(c) Represents a reversal of the minority interests related to LAZ-MD
 Holdings' ownership of Lazard Group common membership interests net
 of an adjustment for Lazard Ltd entity-level taxes to effect a full
 exchange of interests as of January 1, 2007 (see "Reconciliation of
 US GAAP to Full Exchange Results").

(d) See "Reconciliation of Shares Outstanding and Basic & Diluted Net
 Income Per Share".

(e) For the three and six month periods ended June 30, 2008, excludes
 the amortization of intangible assets.

NM - Not meaningful
*T

-0-
*T
                              LAZARD LTD
                 SELECTED QUARTERLY OPERATING RESULTS
                             (unaudited)

                                     Three Months Ended
                      ------------------------------------------------

                      June 30, Mar. 31,  Dec. 31,  Sept. 30, June 30,
                        2008     2008      2007      2007      2007
                      -------- --------- --------- --------- ---------
                          ($ in thousands, except per share data)
Financial Advisory
   M&A and Strategic
    Advisory          $225,108 $165,984  $313,622   $295,401 $164,318
   Financial
    Restructuring       32,666   15,538    32,321     56,161   29,073
   Corporate Finance
    and Other           31,220   30,906    47,190     28,255   51,619
                      -------- --------- --------- --------- ---------
      Total            288,994  212,428   393,133    379,817  245,010

Asset Management
   Management Fees     157,108  158,009   165,432    157,424  142,230
   Incentive Fees        8,429        -    48,959      7,315    5,752
   Other Revenue        13,289   10,424    16,782     12,798   13,666
                      -------- --------- --------- --------- ---------
      Total            178,826  168,433   231,173    177,537  161,648
                      -------- --------- --------- --------- ---------

Core operating
 business revenue (a)  467,820  380,861   624,306    557,354  406,658

Corporate               26,219  (39,658)   (6,710)    12,164   32,868
                      -------- --------- --------- --------- ---------

Operating revenue (b) $494,039 $341,203  $617,596   $569,518 $439,526
                      ======== ========= ========= ========= =========

Operating income (c)   $87,738  $18,022  $132,278   $118,586  $89,163
                      ======== ========= ========= ========= =========

Net income             $34,317   $7,799   $59,125    $40,267  $29,296
                      ======== ========= ========= ========= =========

Net income per share
          Basic          $0.61    $0.16     $1.17      $0.79    $0.57
          Diluted        $0.54    $0.14     $1.04      $0.73    $0.52

----------------------------------------------------------------------
Supplemental
 Information:

Net income assuming
 full exchange
     of exchangeable
      interests        $64,570  $15,956  $122,577    $83,565  $61,515
                      ======== ========= ========= ========= =========

Net income per share -
     assuming full
      exchange of
     exchangeable
      interests
          Basic          $0.58    $0.15     $1.16      $0.78    $0.57
          Diluted        $0.54    $0.14     $1.04      $0.73    $0.53
Assets Under
 Management ($
 millions)            $134,139 $134,193  $141,413   $142,084 $135,350


                                          Three Months Ended
                                --------------------------------------

                                  Mar. 31, Dec. 31, Sept. 30, June 30,
                                    2007     2006     2006      2006
                                  -------- -------- --------- --------
                                  ($ in thousands, except per share
                                                 data)
Financial Advisory
   M&A and Strategic Advisory     $196,068 $247,483  $153,215 $197,856
   Financial Restructuring           9,620   20,423    15,562   21,047
   Corporate Finance and Other      16,935   34,260    18,291   43,149
                                  -------- -------- --------- --------
      Total                        222,623  302,166   187,068  262,052

Asset Management
   Management Fees                 130,639  121,589   112,726  112,203
   Incentive Fees                    5,006   42,009     3,423    7,456
   Other Revenue                    11,272   10,961     8,720   10,159
                                  -------- -------- --------- --------
      Total                        146,917  174,559   124,869  129,818
                                  -------- -------- --------- --------

Core operating business revenue
 (a)                               369,540  476,725   311,937  391,870

Corporate                           18,657   14,774     5,668   18,970
                                  -------- -------- --------- --------

Operating revenue (b)             $388,197 $491,499  $317,605 $410,840
                                  ======== ======== ========= ========

Operating income (c)               $78,268 $115,207   $49,193  $84,693
                                  ======== ======== ========= ========

Net income                         $26,354  $36,596   $13,158  $23,545
                                  ======== ======== ========= ========

Net income per share
          Basic                      $0.51    $0.88     $0.35    $0.63
          Diluted                    $0.47    $0.78     $0.34    $0.59

----------------------------------------------------------------------
Supplemental Information:

Net income assuming full
 exchange
     of exchangeable interests     $55,033  $85,817   $34,983  $62,939
                                  ======== ======== ========= ========

Net income per share -
     assuming full exchange of
     exchangeable interests
          Basic                      $0.51    $0.84     $0.35    $0.63
          Diluted                    $0.47    $0.78     $0.34    $0.60
Assets Under Management ($
 millions)                        $124,852 $110,437   $99,334  $93,901


(a) Core operating business revenue includes the results of Financial
 Advisory and Asset Management businesses and excludes the results of
 all investments in Corporate.

(b) Operating revenue excludes interest expense relating to financing
 activities and revenue/(loss) relating to the consolidation of LAM
 General Partnerships, each of which are included in net revenue.

(c) Operating income is after interest expense and before income taxes
 and minority interests.
*T

-0-
*T
                              LAZARD LTD
                   UNAUDITED CONDENSED CONSOLIDATED
                   STATEMENT OF FINANCIAL CONDITION
                           ($ in thousands)

                                               June 30,   December 31,
                                                 2008         2007
                                             ------------ ------------
                                ASSETS
----------------------------------------------------------------------
Cash and cash equivalents                       $758,664   $1,055,844
Cash segregated for regulatory purposes or
 deposited with clearing organizations            16,993       24,585
Receivables                                    1,310,856    1,097,178
Investments*
  Debt                                           432,973      585,433
  Equity                                         204,688      333,796
  Other                                          260,874      169,612
                                             ------------ ------------
                                                 898,535    1,088,841

Goodwill and other intangible assets             201,972      187,909
Other assets                                     445,291      386,056
                                             ------------ ------------

  Total assets                                $3,632,311   $3,840,413
                                             ============ ============

                  LIABILITIES & STOCKHOLDERS' EQUITY
----------------------------------------------------------------------
Liabilities
Deposits and other customer payables          $1,095,801     $858,733
Accrued compensation and benefits                109,649      498,058
Other liabilities                                553,405      623,008
Senior notes:
  Underlying equity security units                     -      437,500
  Others                                       1,150,000    1,150,000
Subordinated loans                               150,000      150,000
                                             ------------ ------------
  Total liabilities                            3,058,855    3,717,299

Commitments and contingencies
Minority interest **                             220,627       52,775

Stockholders' equity
Preferred stock, par value $.01 per share:
  Series A                                             -            -
  Series B                                             -            -
Common stock, par value $.01 per share:
  Class A                                            687          517
  Class B                                              -            -
Additional paid-in capital                       251,748     (161,924)
Accumulated other comprehensive income, net
 of tax                                           41,047       52,491
Retained earnings                                277,111      248,551
                                             ------------ ------------
                                                 570,593      139,635
Less: Class A common stock held by a
 subsidiary, at cost                            (217,764)     (69,296)
                                             ------------ ------------
Total stockholders' equity                       352,829       70,339
                                             ------------ ------------

Total liabilities, minority interest and
 stockholders' equity                         $3,632,311   $3,840,413
                                             ============ ============

* Principally at fair value, with the exception of $76,054 and $755 of
 investments accounted for under the equity method at June 30, 2008
 and December 31, 2007, respectively.

** Includes $173,541 and $nil attributable to exchangeable interests
 held by members of LAZ-MD Holdings at June 30, 2008 and December 31,
 2007, respectively.
*T

-0-
*T
                              LAZARD LTD
 RECONCILIATION OF SHARES OUTSTANDING AND BASIC & DILUTED NET INCOME
                               PER SHARE

                         BEFORE FULL EXCHANGE
----------------------------------------------------------------------

                       Three Months Ended June Six Months Ended June
                                 30,                     30,
                       ----------------------- -----------------------
                          2008        2007        2008        2007
                       ----------- ----------- ----------- -----------
                           ($ in thousands, except per share data)
Basic
Numerator:
 Net income                $34,317     $29,296     $42,116     $55,650
 Add (deduct) - net
  income associated
  with Class A common
  shares issuable on a
  non-contingent basis
  (a)                          308           -         397           -
                       ----------- ----------- ----------- -----------
 Basic net income          $34,625     $29,296     $42,513     $55,650
                       =========== =========== =========== ===========
Denominator:
 Weighted average
  shares outstanding
  (a)                   56,416,850  51,439,125  53,198,522  51,439,097
                       =========== =========== =========== ===========

Basic net income per
 share                       $0.61       $0.57       $0.80       $1.08
                       =========== =========== =========== ===========

Diluted
Numerator:
 Basic net income          $34,625     $29,296     $42,513     $55,650
 Add (deduct) -
  dilutive effect of
  adjustments to income
  for:
    Interest expense on
     convertible debt,
     net of tax (b)          1,785         469           -         930
    Minority interest
     in net income
     resulting from
     assumed share
     issuances (see
     incremental
     issuable shares in
     the denominator
     calculation below)
     and Ltd level
     income tax effect      31,554       3,061      37,527      32,156
                       ----------- ----------- ----------- -----------
 Diluted net income        $67,964     $32,826     $80,040     $88,736
                       =========== =========== =========== ===========
Denominator:
 Weighted average
  shares outstanding    56,416,850  51,439,125  53,198,522  51,439,097
 Add - dilutive effect
  of incremental
  issuable shares:
      Restricted stock
       units             5,005,928   2,600,936   4,240,368   2,310,190
      Equity security
       units (c)         7,051,000   6,066,106           -   6,046,954
      Convertible notes
       (c)               2,631,570   2,631,570           -   2,631,570
      Series A and
       Series B
       convertible
       preferred stock
       (d)               1,559,430           -   1,589,267           -
      Exchangeable
       interests (e)    54,047,018           -  54,684,905  28,049,224
                       ----------- ----------- ----------- -----------
 Diluted weighted
  average shares
  outstanding          126,711,796  62,737,737 113,713,062  90,477,035
                       =========== =========== =========== ===========

Diluted net income per
 share                       $0.54       $0.52       $0.70       $0.98
                       =========== =========== =========== ===========

(a) For the three and six month periods ended June 30, 2008, includes
 1,185,282 weighted average shares, related to the Class A common
 stock that are issuable on a non-contingent basis with respect to the
 acquisition of GAHL.

(b) For the three month period ended June 30, 2008, includes interest
 expense, net of tax related to the equity security units and
 convertible notes. For the three and six month periods ended June 30,
 2007, includes interest expense, net of tax, related to the
 convertible notes.

(c) For the six month period ended June 30, 2008, the shares assumed
 issued from equity security units and convertible notes were not
 dilutive.

(d) For the three and six month periods ended June 30, 2008, includes
 12,155 shares of Series A convertible preferred stock and 277 shares
 of Series B convertible preferred stock that will be convertible into
 Class A common stock on a non-contingent basis with respect to the
 acquisition of CWC. The rate of conversion into Class A common stock
 will be dependant, in part, on the future value of the Class A common
 stock and currency exchange rates, therefore, the shares are excluded
 from the basic net income per share calculation but included in the
 diluted net income per share calculation.

(e) For the three month period ended June 30, 2007, the LAZ-MD
 exchangeable interests were antidilutive.
*T

-0-
*T
                              LAZARD LTD
 RECONCILIATION OF SHARES OUTSTANDING AND BASIC & DILUTED NET INCOME
                               PER SHARE

ASSUMING FULL EXCHANGE OF EXCHANGEABLE INTERESTS AS OF JANUARY 1, 2007
----------------------------------------------------------------------

                   Three Months Ended June   Six Months Ended June 30,
                              30,
                   ------------------------- -------------------------
                       2008         2007         2008         2007
                   ------------ ------------ ------------ ------------
                         ($ in thousands, except per share data)
Basic
Numerator:
 Net income            $64,570      $61,515      $80,526     $116,548
                   ============ ============ ============ ============
Denominator:
 Weighted average
  shares
  outstanding (a)  110,463,868  107,512,179  107,883,427  107,524,848
                   ============ ============ ============ ============

Basic net income
 per share               $0.58        $0.57        $0.75        $1.08
                   ============ ============ ============ ============

Diluted
Numerator:
 Net income            $64,570      $61,515      $80,526     $116,548
 Add dilutive
  effect of
  adjustments to
  income for:
      Interest
       expense on
       convertible
       debt, net of
       tax (b)           3,396          887        3,396        1,764
                   ------------ ------------ ------------ ------------
 Diluted net income    $67,966      $62,402      $83,922     $118,312
                   ============ ============ ============ ============

Denominator:
 Weighted average
  shares
  outstanding      110,463,868  107,512,179  107,883,427  107,524,848
 Add - dilutive
  effect of
  incremental
  issuable shares:
      Restricted
       stock units   5,005,928    2,600,936    4,240,368    2,310,190
      Equity
       security
       units         7,051,000    6,066,106    3,525,500    6,046,954
      Convertible
       notes         2,631,570    2,631,570    1,315,785    2,631,570
      Series A and
       Series B
       convertible
       preferred
       stock (c)     1,559,430            -    1,589,267            -
                   ------------ ------------ ------------ ------------
      Diluted
       weighted
       average
       shares
       outstanding 126,711,796  118,810,791  118,554,347  118,513,562
                   ============ ============ ============ ============

Diluted net income
 per share               $0.54        $0.53        $0.71        $1.00
                   ============ ============ ============ ============

(a) For the three and six month periods ended June 30, 2008, includes
 1,185,282 weighted average shares, related to the Class A common
 stock that are issuable on a non-contingent basis with respect to the
 acquisition of GAHL.

(b) For the three and six month periods ended June 30, 2008, includes
 interest expense, net of tax related to the equity security units and
 convertible notes. For the three and six month periods ended June 30,
 2007, includes interest expense, net of tax, related to the
 convertible notes.

(c) For the three and six month periods ended June 30, 2008, includes
 12,155 shares of Series A convertible preferred stock and 277 shares
 of Series B convertible preferred stock that will be convertible into
 Class A common stock on a non-contingent basis with respect to the
 acquisition of CWC. The rate of conversion into Class A common stock
 will be dependant, in part, on the future value of the Class A common
 stock and currency exchange rates, therefore, the shares are excluded
 from the basic net income per share calculation but included in the
 diluted net income per share calculation.

          RECONCILIATION OF US GAAP TO FULL EXCHANGE RESULTS
----------------------------------------------------------------------

                   Three Months Ended June   Six Months Ended June 30,
                              30,
                   ------------------------- -------------------------
                       2008         2007         2008         2007
                   ------------ ------------ ------------ ------------
                                    ($ in thousands)
Net income - US
 GAAP                  $34,317      $29,296      $42,116      $55,650
Provision for
 income taxes (d)       (3,414)      (3,610)      (3,893)      (7,951)
Minority interest
 in net income
 (LAZ-MD only) (e)      33,667       35,829       42,303       68,849
                   ------------ ------------ ------------ ------------
Net income assuming
 full exchange of
 exchangeable
 interests             $64,570      $61,515      $80,526     $116,548
                   ============ ============ ============ ============

(d) Represents an adjustment to the Lazard Ltd tax provision to effect
 a full exchange of LAZ-MD Holdings' ownership of Lazard Group common
 membership interests at an effective rate on operating income less
 LAM GP related revenue of 25.0% for the three and six month periods
 ended June 30, 2008 and 28.0% for the three and six month periods
 ended June 30, 2007 respectively.

(e) Represents a reversal of the minority interests related to LAZ-MD
 Holdings' ownership of Lazard Group common membership interests to
 effect a full exchange of interests as of January 1, 2007.
*T

-0-
*T
                              LAZARD LTD
                   ASSETS UNDER MANAGEMENT ("AUM")

                             As of                     Variance
                -------------------------------- ---------------------
                June 30,  March 31, December 31,
                  2008      2008        2007     Qtr to Qtr    YTD
                --------- --------- ------------ ---------- ----------
                        ($ in millions)
Equities        $109,250   $110,018     $119,276     (0.7%)     (8.4%)
Fixed Income      14,630     15,398       14,233     (5.0%)      2.8%
Alternative
 Investments       4,420      3,941        3,577     12.2%      23.6%
Private Equity     1,661      1,547        1,401      7.4%      18.6%
Cash               4,178      3,289        2,926     27.0%      42.8%
                --------- --------- ------------ ---------- ----------
   Total AUM    $134,139   $134,193     $141,413     (0.0%)     (5.1%)
                ========= ========= ============ ========== ==========

                Three Months Ended               Six Months Ended June
                      June 30,                            30,
                -------------------              ---------------------
                  2008      2007                    2008       2007
                --------- ---------              ---------- ----------
                  ($ in millions)                   ($ in millions)
AUM - Beginning
 of Period      $134,193   $124,852              $141,413   $110,437

Net Flows          2,550      2,627                 4,265     14,191
Market
 Appreciation /
 (Depreciation)   (2,567)     7,680               (12,572)    10,388
Foreign Currency
 Adjustments         (37)       191                 1,033        334
                --------- ---------              ---------- ----------

AUM - End of
 Period         $134,139   $135,350              $134,139   $135,350
                ========= =========              ========== ==========

Average AUM *   $134,166   $130,101              $136,582   $123,547
                ========= =========              ========== ==========

   % Change in
    average AUM      3.1%                            10.6%
                =========                        ==========

* Average AUM is based on an average of quarterly ending balances for
 the respective periods.
*T

-0-
*T
                              LAZARD LTD
                   SCHEDULE OF INCOME TAX PROVISION

                                  Three Months      Six Months Ended
                                 Ended June 30,      Ended June 30,
                               ------------------- -------------------

                                 2008      2007      2008      2007
                               --------- --------- --------- ---------
Lazard Ltd Consolidated                   ($ in thousands)
 Effective Tax Rate
-------------------------------

Operating Income
Lazard Group
   Allocable to LAZ-MD Holdings
    (weighted average ownership
    of 46.8% and 47.6% for the
    three and six month periods
    ended June 30, 2008 and
    52.1% for the three and six
    month periods ended June
    30, 2007, respectively)     $41,217   $46,691   $50,413   $87,477

   Allocable to Lazard Ltd
    (weighted average ownership
    of 53.2% and 52.4% for the
    three and six month periods
    ended June 30, 2008 and
    47.9% for the three and six
    month periods end June 30,
    2007, respectively)          46,933    42,939    55,534    80,421
                               --------- --------- --------- ---------
      Total Lazard Group
       operating income          88,150    89,630   105,947   167,898
Lazard Ltd and its wholly owned
 subsidiaries                      (412)     (467)     (187)     (467)
                               --------- --------- --------- ---------
      Total Lazard Ltd
       consolidated operating
       income                   $87,738   $89,163  $105,760  $167,431
                               ========= ========= ========= =========

Provision for income taxes
Lazard Group (effective tax
 rates of 15.9% and 17.4% for
 the three and six month
 periods ended June 30, 2008
 and 19.1% and 18.0% for the
 three and six month periods
 ended June 30, 2007,
 respectively)
   Allocable to LAZ-MD Holdings  $6,669    $8,920    $8,910   $15,732
   Allocable to Lazard Ltd        7,386     8,205     9,482    14,464
                               --------- --------- --------- ---------
      Total Lazard Group
       provision for income
       taxes                     14,055    17,125    18,392    30,196
Tax adjustment for Lazard Ltd
 entity-level (a)                 4,055     3,188     4,558     7,178
                               --------- --------- --------- ---------
      Lazard Ltd consolidated
       provision for income
       taxes                    $18,110   $20,313   $22,950   $37,374
                               ========= ========= ========= =========

Lazard Ltd consolidated
 effective tax rate                20.6%     22.8%     21.7%     22.3%
                               ========= ========= ========= =========

Lazard Ltd Fully Exchanged Tax
 Rate
-------------------------------

Operating Income
Lazard Ltd consolidated
 operating income                87,738    89,163   105,760   167,431
Adjustments for LAM GP related
 loss/(revenue)                  (1,643)   (3,724)    1,610    (5,555)
                               --------- --------- --------- ---------
   Operating income excluding
    LAM GP related revenue      $86,095   $85,439  $107,370  $161,876
                               ========= ========= ========= =========

Provision for income taxes
Lazard Ltd consolidated
 provision for income taxes     $18,110   $20,313   $22,950   $37,374
Tax adjustment for full
 exchange (b)                     3,414     3,610     3,893     7,951
                               --------- --------- --------- ---------
   Total fully exchanged
    provision for income taxes  $21,524   $23,923   $26,843   $45,325
                               ========= ========= ========= =========

Lazard Ltd fully exchanged tax
 rate                              25.0%     28.0%     25.0%     28.0%
                               ========= ========= ========= =========

(a) Represents an adjustment to the Lazard Ltd tax provision for the
 three and six month periods ended June 30, 2008 from $7,386 to
 $11,441 and $9,482 to $14,040 and for the three and six month periods
 ended June 30, 2007 from $8,205 to $11,393 and from $14,464 to
 $21,642 to reflect an effective rate on operating income less LAM GP
 related revenue of 25.0% for the three month period ended June 30,
 2008 and 28.0% for the three month period June 30, 2007 respectively.

(b) Represents an adjustment to the Lazard Ltd tax provision to effect
 a full exchange of LAZ-MD Holdings' ownership of Lazard Group common
 membership interests at an effective rate on operating income less
 LAM GP related revenue of 25.0% for the three month and six month
 periods ended June 30, 2008 and 28.0% for the three and six month
 periods ended June 30, 2007 respectively.
*T

   LAZ-G

Media:
Judi Frost Mackey, +1-212-632-1428
judi.mackey@lazard.com
OR
Richard Creswell, +44 207 187 2305
richard.creswell@lazard.com
OR
Investors:
Michael J. Castellano, +1-212-632-8262
Chief Financial Officer
OR
Jean Greene, +1-212-632-1905
investorrelations@lazard.com

Copyright Business Wire 2008
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