AllianceBernstein Holding L.P. Announces Third Quarter Diluted Net Income of $0.67 per Unit; Declares a $0.67 per Unit Cash Distribution

AllianceBernstein Holding L.P. Announces Third Quarter Diluted Net Income of
$0.67 per Unit; Declares a $0.67 per Unit Cash Distribution

NEW YORK, Oct. 29 /PRNewswire-FirstCall/ -- AllianceBernstein Holding L.P.
("AllianceBernstein Holding") (NYSE: AB) and AllianceBernstein L.P.
("AllianceBernstein") today reported financial and operating results for the
quarter ended September 30, 2009.

AllianceBernstein Holding (The Publicly-Traded Partnership):
-- Diluted net income per Unit for the quarter ended September 30, 2009
was
$0.67, a decrease of 8% from $0.73 for the same period in 2008.

-- Distribution per Unit for the third quarter of 2009 will be $0.67, an
increase of 12% from $0.60 for the same period in 2008. The
distribution is payable on November 19, 2009 to holders of record of
AllianceBernstein Holding Units at the close of business on November
9,
2009.

AllianceBernstein (The Operating Partnership):
-- Assets Under Management (AUM) at September 30, 2009 were $498 billion,
a
16% decrease from a year ago, due to equity market depreciation and
substantial net outflows.

-- Net outflows for the three months ended September 30, 2009 were $13
billion, consisting of Institutional net outflows of $10 billion,
Retail
net outflows of $2 billion and Private Client net outflows of $1
billion.

"Global capital markets continued to improve in the third quarter of 2009,
with strong absolute returns in both equity and credit, and the majority of
AllianceBernstein's investment services outperformed their benchmarks and/or
peer averages. Our Fixed Income services reflected markedly strong relative
performance with many of our retail services outperforming peer averages for
2009 as well as in one-, three-, five- and ten-year comparisons. In addition,
many of our institutional services outperformed their benchmarks. Value
equity services also continued to outperform, and a strong 2009 has
significantly improved one-year performance comparisons. Notably, those
services which emphasize our best research ideas, which we call Strategic
Value, have materially outperformed their benchmarks. Although some
institutional Growth equity services underperformed for the quarter, US
Large-Cap Growth continued to outperform and most retail Growth services
outperformed their peer averages," said Peter S. Kraus, Chairman and Chief
Executive Officer.

"Although down 16% compared to September 30, 2008, assets under management
increased by $51 billion, or 11%, compared to the second quarter of 2009, as
positive investment returns were partially offset by sequentially lower net
outflows. Total net outflows for the quarter were $13 billion, a decline of
46% from $24 billion for the second quarter of 2009, with more than one-half
of third quarter's outflows occurring in the month of July. Outflows slowed
in all three distribution channels, most notably in the Institutional channel
where outflows declined to $10 billion for the third quarter of 2009 from $19
billion for the second quarter. Our pipeline of won but unfunded
Institutional mandates increased by 20% sequentially to $3.4 billion.

"Advisory fee revenues declined by $229 million year-over-year, or 32%,
reflecting the impact of lower assets under management. Investment gains were
$107 million in the current quarter, including $71 million of gains on
investments related to employee deferred compensation, with the balance
comprised primarily of a significant gain in our venture capital fund. This
compares favorably to investment losses of $132 million in the prior-year
quarter, primarily from investments related to employee deferred compensation.

"While Institutional Research Services revenues decreased 12% compared to the
prior year's record quarter, they were flat sequentially. During the quarter,
Bernstein Research received its best-ever recognition in the annual
Institutional Investor All America survey, placing 4th on a weighted basis.
The survey recognized every Bernstein Research analyst who has been publishing
since the first quarter of 2009, ranking our analysts #1 in 10 sectors and
among the top three in 21 sectors.

"Operating expenses declined $7 million, or 1%, compared to the prior-year
quarter. Employee compensation and benefits increased $7 million, or 2%, as a
$68 million increase in deferred compensation expense, the result of current
quarter gains on employee deferred compensation investments compared to losses
in the prior-year quarter, was largely offset by lower salaries, commissions
and other compensation expenses. Promotion and servicing expenses declined by
$29 million, or 21%, due principally to lower distribution plan expenses.
General and administrative expenses increased $16 million, or 14%, compared to
the third quarter of 2008, as foreign exchange gains and lower technology and
occupancy expenses partially offset the impact of a significant insurance
reimbursement in the prior-year quarter.

"Net income attributable to AllianceBernstein Unitholders fell 9% when
compared to the third quarter of 2008, as the 11% decrease in operating income
was partially offset by higher non-operating income from the recognition of a
$10 million contingent payment related to the 2005 sale of our cash management
business and by lower income taxes. Operating margin declined to 24.4% from
28.8% in the third quarter of 2008 but increased from 18.3% in the second
quarter of 2009. Diluted net income per Unit for the publicly-traded
partnership fell 8% to $0.67 from $0.73 in the prior-year quarter. The $0.67
distribution per Unit represents a 12% increase compared to the prior-year
quarter, however, as the insurance reimbursement was excluded from that
quarter's cash distribution.

"We believe that the rise in the global capital markets reflects a rational
adjustment to accumulating evidence that global economies have steadied.
Indeed, the economic data is finally beginning to actually be "good" instead
of just "not as bad," exemplified by the recently announced 8% increase in
global industrial production for the three months ending July and a movement
in the ISM survey to over 50. We anticipate improvements to continue and for
the global economy to show moderate growth in 2010. Nonetheless, risks
remain, such as tight credit and depressed consumer spending. This
combination of improving news with continuing risks has resulted in declining
but still high risk aversion among investors. As such, most asset classes are
quite attractive relative to the perceived safety of government debt. While
equity markets appear fairly valued based on 2009 earnings expectations and
forecasted growth for 2010, further growth in equity markets will be based on
companies' abilities to sustain their current earnings growth into the latter
part of 2010 and 2011. Additionally, there exists substantial opportunity for
active asset managers to create alpha, as investors discriminate between the
companies likely to be winners or losers in the unfolding economic
environment. In fixed income, spreads have narrowed significantly, but remain
above long-term averages. As such, we still see the potential for
above-average returns in non-government bonds.

"The third quarter of 2009 showed the beneficial impact of strong investment
performance as net outflows fell by nearly 50% sequentially. Continuing
strong investment performance is paramount to a resumption in organic growth
in assets under management. Recent financial results have begun to
demonstrate the leverage inherent in our business model, which will increase
should our assets under management and revenues continue to grow and our lower
expense base remains stable," concluded Mr. Kraus.

THIRD QUARTER 2009 EARNINGS CONFERENCE CALL INFORMATION
AllianceBernstein's management will review third quarter 2009 financial and
operating results on Thursday, October 29, 2009 during a conference call
beginning at 5:00 p.m. (EDT), following the release of its financial results
after the close of the New York Stock Exchange. The conference call will be
hosted by Peter S. Kraus, Chairman and Chief Executive Officer, David A.
Steyn, Chief Operating Officer and Robert H. Joseph, Jr., Chief Financial
Officer.

Parties may access the conference call by either webcast or telephone:
1. To listen by webcast, please visit AllianceBernstein's Investor
Relations
website at http://ir.alliancebernstein.com/investorrelations at least
15
minutes prior to the call to download and install any necessary audio
software.

2. To listen by telephone, please dial (866) 556-2265 in the U.S. or (973)
935-8521 outside the U.S., 10 minutes before the 5:00 p.m. (EDT)
scheduled start time. The conference ID# is 34279638.

The presentation that will be reviewed during the conference call will be
available on AllianceBernstein's Investor Relations website shortly after the
release of third quarter 2009 financial results on October 29, 2009.

A replay of the webcast will be made available beginning at approximately 7:00
p.m. (EDT) on October 29, 2009 and will be available on AllianceBernstein's
website for one week. An audio replay of the conference call will also be
available for one week. To access the audio replay, please call (800) 642-1687
from the U.S., or outside the U.S. call (706) 645-9291, and provide conference
ID# 34279638.

Qualified Tax Notice
This announcement is intended to be a qualified notice under Treasury
Regulation §1.1446-4(b). Please note that 100% of AllianceBernstein Holding's
distributions to foreign investors is attributable to income that is
effectively connected with a United States trade or business. Accordingly,
AllianceBernstein Holding's distributions to foreign investors are subject to
federal income tax withholding at the highest applicable tax rate, currently
at 35%.

About AllianceBernstein
AllianceBernstein is a leading global investment management firm that offers
high-quality research and diversified investment services to institutional
clients, individuals and private clients in major markets around the world.
AllianceBernstein employs more than 500 investment professionals with
expertise in growth equities, value equities, fixed income securities, blend
strategies and alternative investments and, through its subsidiaries and joint
ventures, operates in more than 20 countries. AllianceBernstein's research
disciplines include fundamental research, quantitative research, economic
research and currency forecasting capabilities. Through its integrated global
platform, AllianceBernstein is well-positioned to tailor investment solutions
for its clients. AllianceBernstein also offers independent research, portfolio
strategy and brokerage-related services to institutional investors.

At September 30, 2009, AllianceBernstein Holding L.P. owned approximately
34.9% of the issued and outstanding AllianceBernstein Units and AXA, one of
the largest global financial services organizations, owned an approximate
64.1% economic interest in AllianceBernstein.

Cautions regarding Forward-Looking Statements
Certain statements provided by management in this news release are
"forward-looking statements" within the meaning of the Private Securities
Litigation Reform Act of 1995. Such forward-looking statements are subject to
risks, uncertainties, and other factors that could cause actual results to
differ materially from future results expressed or implied by such
forward-looking statements. The most significant of these factors include, but
are not limited to, the following: the performance of financial markets, the
investment performance of sponsored investment products and separately managed
accounts, general economic conditions, industry trends, future acquisitions,
competitive conditions, and government regulations, including changes in tax
regulations and rates and the manner in which the earnings of publicly traded
partnerships are taxed. We caution readers to carefully consider such factors.
Further, such forward-looking statements speak only as of the date on which
such statements are made; we undertake no obligation to update any
forward-looking statements to reflect events or circumstances after the date
of such statements. For further information regarding these forward-looking
statements and the factors that could cause actual results to differ, see
"Risk Factors" and "Cautions Regarding Forward-Looking Statements" in our Form
10-K for the year ended December 31, 2008 and Form 10-Q for the quarter ended
September 30, 2009. Any or all of the forward-looking statements that we make
in this news release, Form 10-K, Form 10-Q, other documents we file with or
furnish to the SEC, and any other public statements we issue, may turn out to
be wrong. It is important to remember that other factors besides those listed
in "Risk Factors" and "Cautions Regarding Forward-Looking Statements", and
those listed below, could also adversely affect our revenues, financial
condition, results of operations and business prospects.
The forward-looking statements referred to in the preceding paragraph include
statements regarding:
-- Our backlog of new institutional mandates not yet funded: Before they
are funded, institutional mandates do not represent legally binding
commitments to fund and, accordingly, the possibility exists that not
all mandates will be funded in the amounts and at the times we
currently
anticipate.
-- Our expectation that the global economy will grow modestly in 2010:
The
extent to which global economies may have recently stabilized is not
necessarily indicative of future growth. Global economies face
significant obstacles to sustain future growth. The actual performance
of the capital markets and other factors beyond our control will
affect
our investment success for clients and asset flows.

-- Our expectation that the leverage in our business model will increase
should our assets under management and revenues continue to grow and
our
lower expense base remains stable: Unanticipated events and factors,
including strategic initiatives, may cause us to expand our expense
base, thus limiting the extent to which we benefit from any positive
leverage in future periods. Growth in our revenues will depend on the
level of our assets under management, which in turn depends on factors
such as the actual performance of the capital markets, the performance
of our investment products and other factors beyond our control.

ALLIANCEBERNSTEIN L.P.
(THE OPERATING PARTNERSHIP)
SUMMARY CONSOLIDATED STATEMENTS OF INCOME
SEPTEMBER 30, 2009
(unaudited, $ thousands)

Three Months Ended
---------------------
9/30/09 9/30/08
------- -------
Revenues:
Investment Advisory & Services Fees $484,098 $713,229
Distribution Revenues 73,779 96,711
Institutional Research Services 109,321 124,854
Dividend and Interest Income 4,966 18,937
Investment Gains (Losses) 106,680 (131,920)
Other Revenues 27,946 28,230
------ ------
Total Revenues 806,790 850,041
Less: Interest Expense 776 9,050
--- -----
Net Revenues 806,014 840,991
------- -------

Expenses:
Employee Compensation & Benefits 335,898 328,614
Promotion & Servicing
Distribution Plan Payments 55,155 69,994
Amortization of Deferred Sales
Commissions 13,362 19,324
Other 42,059 50,013
General & Administrative 130,142 114,333
Interest on Borrowings 491 2,117
Amortization of Intangible Assets 5,437 5,179
----- -----
582,544 589,574
------- -------

Operating Income 223,470 251,417
Non-Operating Income 16,869 4,921
------ -----
Income Before Income Taxes 240,339 256,338
Income Taxes 13,844 27,258
------ ------
Net Income 226,495 229,080
Net Income in Consolidated Entities
attributable to Non-Controlling Interests (27,154) (9,551)
------- ------

Net Income attributable to
AllianceBernstein Unitholders $199,341 $219,529
======== ========

Operating Margin(1) 24.4% 28.8%

(1) "Operating Margin" = (Operating Income + Net Income attributable to
Non-Controlling Interests)/Net Revenues.

ALLIANCEBERNSTEIN HOLDING L.P.
(THE PUBLICLY-TRADED PARTNERSHIP)
SUMMARY STATEMENTS OF INCOME
(unaudited, $ thousands except per unit amounts)

Three Months Ended
------------------------
9/30/09 9/30/08
------- -------

Equity in Net Income attributable to
AllianceBernstein Unitholders $68,723 $72,936

Income Taxes 6,193 8,575
----- -----

NET INCOME 62,530 64,361

Additional Equity in Earnings of
Operating Partnership (1) 306 251
--- ---

NET INCOME - Diluted (2) $62,836 $64,612
======= =======

DILUTED NET INCOME PER UNIT $0.67 $0.73
===== =====

DISTRIBUTION PER UNIT (3) $0.67 $0.60
===== =====

(1) To reflect higher ownership in the Operating Partnership resulting
from application of the treasury stock method to outstanding options.
(2) For calculation of Diluted Net Income per Unit.
(3) Third quarter 2008 excludes insurance reimbursement received in that
quarter.

ALLIANCEBERNSTEIN L.P. AND ALLIANCEBERNSTEIN HOLDING L.P.
UNITS OUTSTANDING AND WEIGHTED AVERAGE UNITS OUTSTANDING
SEPTEMBER 30, 2009

Weighted Average Units
Three Months Ended
Period End --------------------
Units Basic Diluted
----- ----- -------

AllianceBernstein L.P. 266,146,832 266,051,125 266,685,861

AllianceBernstein Holding 92,752,989 92,657,282 93,292,018

ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
THREE MONTHS ENDED SEPTEMBER 30, 2009
($ billions)

Institutional Private
Investments Retail Client Total
----------- ------ ------ -----

Beginning of Period $277.8 $102.6 $66.6 $447.0

Sales/New accounts 5.3 5.9 2.0 13.2
Redemptions/Terminations (12.5) (5.9) (1.5) (19.9)
Cash flow (2.8) (1.6) (1.4) (5.8)
Unreinvested dividends - (0.3) (0.1) (0.4)
--- ---- ---- ----
Net outflows (10.0) (1.9) (1.0) (12.9)

Investment Performance 39.7 16.0 8.0 63.7
---- ---- --- ----

End of Period $307.5 $116.7 $73.6 $497.8
====== ====== ===== ======

ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
BY CLIENT DOMICILE
AT SEPTEMBER 30, 2009
($ billions)

Institutional Private
Investments Retail Client Total
------------- ------ -------- -----

U. S. Clients $158.9 $84.2 $71.6 $314.7
Non-U.S. Clients 148.6 32.5 2.0 183.1
----- ---- --- -----
Total $307.5 $116.7 $73.6 $497.8
====== ====== ===== ======

ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
BY INVESTMENT SERVICE
AT SEPTEMBER 30, 2009
($ billions)

Institutional
Investments Retail Private Client Total
-------------- -------- ---------------- -------
Equity:
Value
U.S. $19.9 $11.3 $14.1 $45.3
Global &
International 91.8 26.8 11.8 130.4
---- ---- ---- -----
111.7 38.1 25.9 175.7
----- ---- ---- -----
Growth
U.S. 17.3 9.1 9.9 36.3
Global &
International 36.3 13.8 6.9 57.0
---- ---- --- ----
53.6 22.9 16.8 93.3
---- ---- ---- ----

Total Equity 165.3 61.0 42.7 269.0
----- ---- ---- -----

Fixed Income:
U.S. 71.7 9.8 30.3 111.8
Global &
International 54.8 28.7 0.6 84.1
---- ---- --- ----
126.5 38.5 30.9 195.9
----- ---- ---- -----

Other:(1)
U.S. 8.3 14.4 - 22.7
Global &
International 7.4 2.8 - 10.2
--- --- --- ----
15.7 17.2 - 32.9
---- ---- --- ----

Total:
U.S. 117.2 44.6 54.3 216.1
Global &
International 190.3 72.1 19.3 281.7
----- ---- ---- -----
$307.5 $116.7 $73.6 $497.8
====== ====== ===== ======

(1) Includes Index, Structured and Asset Allocation services.

ALLIANCEBERNSTEIN L.P.
ASSETS UNDER MANAGEMENT
($ billions)

Three Month Twelve Month
Period Period
----------------- -----------------
9/30/09 9/30/08 9/30/09 9/30/08
------- ------- ------- -------

Ending Assets Under Management $497.8 $589.6 $497.8 $589.6

Average Assets Under Management $473.9 $669.2 $462.2 $749.3

SOURCE AllianceBernstein L.P.

Philip Talamo, Investor Relations, +1-212-969-2383, ir@alliancebernstein.com,
or John Meyers, Media, +1-212-969-2301, john.meyers@alliancebernstein.com