New York, NY – Donaldson, Lufkin & Jenrette, Inc. (NYSE: DLJ) today reported a fourfold rise in net income to $122.2 million for the third quarter of 1999, up from $25.7 million for the comparable quarter a year ago. Third quarter earnings per diluted share of $0.85 for the current quarter represent a fivefold increase from the $0.15 per diluted share reported for the same quarter a year ago, when financial services firms were affected by the crises in Russia and Asia. For the nine-month period ended September 30, 1999, DLJ’s net income increased 36 percent to a record $409.5 million, or $2.84 per diluted share.

DLJ’s total revenues for the third quarter of 1999 rose 59 percent to $1.7 billion. Net revenues for the third quarter of 1999, or total revenues minus interest expense, grew 91 percent to $1.3 billion.

In a joint statement, Joe L. Roby, President and Chief Executive Officer of Donaldson, Lufkin & Jenrette, Inc., and John S. Chalsty, DLJ’s Chairman, said, “DLJ’s businesses performed well during the third quarter of 1999 and the firm posted significantly stronger results in all revenue categories compared to the exceptionally difficult third quarter of 1998. Consequently, DLJ’s record net income for the nine months ended September 30, 1999 exceeds the full-year results for 1997 – our strongest year ever.”

They continued, “DLJ’s Banking Group led the firm in profitability during the third quarter, contributing to an outstanding 41 percent firmwide increase in fee income to a record $449 million. Fees from merger and acquisition assignments nearly doubled, also rising to record levels. At September 30, 1999, DLJ ranked fifth in completed global M&A assignments and fourth in completed U.S. assignments, up dramatically from eleventh place in both measures a year ago. Our Sprout Group of venture capital funds also turned in an excellent quarter, benefiting from strong increases in both realized and unrealized portfolio gains.”

They continued, “Third quarter results, however, reflect the double impact of a generally slower underwriting and trading environment compared to the second quarter of 1999, as well as the costs associated with the ongoing expansion of our international businesses and the anticipated, seasonal slowdown of the European marketplace.”

Increasing its Lead in High-Yield

Messrs. Roby and Chalsty noted, “In the face of increasingly challenging market conditions during the third quarter of 1999, DLJ significantly increased its market share as an underwriter of high-yield bonds. During the quarter, DLJ underwrote $4.3 billion of new high-yield issues to earn a first-place ranking and a market share of 25 percent, almost 15 market share points more than the market share of its nearest competitor.”

For the nine months ended September 30, 1999, DLJ also ranked first as an underwriter of high-yield bonds, with market share of 20 percent, up significantly from a 15.6 percent share for the comparable period a year ago and nearly 60 percent larger than the market share of its nearest competitor.

International Expansion on Target

During the third quarter of 1999, DLJ continued to build out its international investment banking and equities businesses, and revenues from these activities increased sharply. The firm opened an investment banking office in Frankfurt in September and added banking coverage for two important sectors in Europe: utilities and technology. DLJ also completed the first phase of its launch of an international equities research, sales and trading business. Forty analysts now provide DLJ’s institutional clients with coverage of more than 300 companies in 15 industry segments representing nearly 90 percent of the market capitalization for European equities. A similar business in Asia now provides coverage of approximately 60 percent of the Asian equities markets.

Overall revenues from DLJ’s international activities in the third quarter increased by 181 percent over the third quarter of last year.

DLJdirect Posts 82 Percent Increase in Revenues

DLJdirect (NYSE: DIR), DLJ’s online brokerage service, reported total revenues of $54.9 million for the third quarter of 1999, an 82 percent increase over the $30.2 million in revenues reported for the comparable period a year ago. DLJdirect reported a net after-tax loss of $3.3 million, or $0.03 per share (diluted), for the third quarter of 1999. This compares to net income of $0.8 million, or $0.01 per share (pro forma diluted), for the third quarter of 1998.

Average customer assets per active account now stand at $47,000, up 38 percent from $34,000 twelve months ago. Total customer assets reached a record $14.2 billion at the end of the third quarter of 1999.

Total trades executed and average trades per day during the third quarter of 1999 were up significantly versus the third quarter of 1998, although they declined 12 percent and 14 percent respectively compared to the record levels of the second quarter of 1999. These declines reflect the general slowdown in the U.S. equities market during the current quarter, as well as historical, seasonal variations in online investors’ behavior.

Nine-Month Highlights: Record Income and Revenues

Net income for the nine-month period ended September 30, 1999 was a record $409.5 million, up 36 percent from the comparable period a year ago. Diluted earnings per share were $2.84, up 30 percent from the comparable nine months of 1998. Total revenues for the period were a record $5 billion, 22 percent more than for the first nine months of 1998.

For the nine months ended September 30, 1999, commissions were $841 million, up 34 percent. Underwriting income was $912 million, or 19 percent more than a year ago and fee income was $1.1 billion, 20 percent higher than for the first nine months of 1998. All three revenue categories reached record levels for the nine months.

About Donaldson, Lufkin & Jenrette

Donaldson, Lufkin & Jenrette is a leading integrated investment and merchant bank serving institutional, corporate, government and individual clients. DLJ’s businesses include securities underwriting; sales and trading; investment and merchant banking; financial advisory services; investment research; venture capital; correspondent brokerage services; online, interactive brokerage services; and asset management. Founded in 1959 and headquartered in New York City, DLJ employs approximately 9,700 people worldwide and maintains offices in 13 cities in the United States and 14 cities in Europe, Latin America and Asia. The company has two classes of common stock trading on the New York Stock Exchange. Shares trading under the ticker symbol “DLJ” represent Donaldson, Lufkin & Jenrette, Inc. Shares trading under the ticker symbol “DIR” track the performance of DLJdirect, its online brokerage business. For more information on Donaldson, Lufkin & Jenrette, refer to the company’s World Wide Web site at http://www.DLJ.com. The firm’s world headquarters are located at 277 Park Avenue, New York, NY 10172; telephone number 212-892-3000.