Media Contact:
Duff Ferguson
Equitable
212-969-1056
duff_ferguson@acml.com

Analyst Contact:
Karen Caddick
212-969-6414
karen_caddick@acml.com

New York, NY - Alliance Capital Management Holding L.P. ("Alliance Holding") (NYSE: "AC") today announced record fourth quarter 1999 net income of $0.86 per Unit, an increase of 95% compared to the fourth quarter of 1998. Alliance Holding declared an $0.85 per Unit distribution payable on February 14, 2000 to holders of its Units at the close of business on February 1, 2000. Alliance Holding's fourth quarter 1999 net income, excluding income attributed to performance fees, was $0.66 per Unit, an increase of 57% from the prior year quarter.

Alliance Capital Management L.P., the operating partnership ("Alliance Capital"), announced today, effective with 1999, annual awards granted to executives under its deferred compensation plan known as the Alliance Partners Compensation Plan will be in the form of restricted Alliance Holding Units, rather than cash. Eligible employees were awarded approximately $48 million of restricted Alliance Holding Units under the Plan during December 1999. Alliance Capital expects to engage in open-market purchases of Alliance Holding Units from time to time at its discretion to fund the awards.

Business Reorganization

In October 1999, Alliance Holding reorganized by transferring its business to Alliance Capital , the newly formed operating partnership, in exchange for Alliance Capital Units. In connection with the reorganization, Alliance Holding offered its Unitholders the opportunity to exchange Alliance Holding Units for Alliance Capital Units on a one-for-one basis. Alliance Holding Units trade on the New York Stock Exchange (NYSE) while Alliance Capital Units do not trade publicly and are subject to significant restrictions on transfer. Alliance Capital now conducts the diversified investment management services business formerly conducted by Alliance Holding and Alliance Holding is a holding company whose business consists of holding approximately 42% of the issued and outstanding Alliance Capital Units.

Business Highlights Of Alliance Capital, The Operating Partnership

Alliance Capital captured the top ranking in the US non-proprietary asset manager universe for net new mutual fund sales year to date through November 1999, fueled by a 75% increase in gross U.S. mutual fund sales to over $20 billion for full year 1999. Alliance Capital's U.S. non-proprietary mutual fund gross sales market share jumped 57% to 6.34% year to date through November over full year 1998. Year to date through November 1999, the Alliance Premier Growth Fund is the single best-selling non-proprietary fund and the Alliance Technology Fund is the top selling non-proprietary technology fund. In addition, 1999 net sales of Alliance Capital's wrap products exceeded $3.7 billion, triple net sales in 1998.

President and Chief Operating Officer John D. Carifa noted, "Alliance Capital continues to build strong mutual fund sales and market share momentum; total global gross retail sales exceeded $50 billion in 1999. We are seeing broad demand for our mutual fund products across multiple distribution channels; in addition to robust sales through brokers, we are achieving significant increases in sales through financial planners, U.S. banks and non-U.S. distribution channels, led by sales of the EPTA Funds distributed in Italy.

Chief Executive Officer Bruce W. Calvert commented on the growth of Alliance Capital's separately managed account business, "Alliance had its most successful year ever, raising over $12 billion in new client account assets. This growth was the result of not only our strong investment performance, but also expansion of our consultant relationships."

Chairman Dave H. Williams stated "We are pleased with Alliance's excellent financial results. Our extensive global research capabilities, built by entering local markets early, have enabled us to produce strong long-term investment performance which translates into new business opportunities and increased earnings. In particular, our growing hedge funds' asset base and strong 1999 investment performance have increased sharply our performance fee revenues."

Financial Results Of Alliance Capital, The Operating Partnership

• Assets under management reached a record $368 billion at December 31, 1999, a 16% increase compared to September 30, 1999 assets of $317 billion and a 28% increase from December 31, 1998 assets of $287 billion, as detailed on page 7.
• Revenues for the fourth quarter 1999 reached $585 million, increasing 68% from $349 million for fourth quarter 1998. Revenue growth for the quarter resulted primarily from increasing average assets under management, a larger proportion of higher-fee mutual fund assets under management and higher performance fees.
• Significant increases in performance fees for both the fourth quarter and full year 1999 were the result of strong capital markets, superior investment performance, the launch of new products and a refinement of the procedures for estimating such fees. A substantial amount of Alliance Capital's performance fees are generally recognized in the fourth quarter. Performance fees, which apply only to certain accounts, are based on the sharing of investment returns by Alliance Capital and its clients. Performance fees may increase the volatility of Alliance Capital's revenues and earnings.
• Pro forma net income was $168 million for fourth quarter 1999 compared to $84 for fourth quarter 1998. Excluding net income attributable to performance fees, pro forma net income for fourth quarter 1999 was $129 million versus $80 million for the prior year period. Pro forma net income for the year ended December 31, 1999 was $495 versus $324 million for the prior year. Excluding net income attributable to performance fees, pro forma net income for the year ended December 31, 1999 was $429 million versus $299 million for the prior year.
• Pre-tax margin increased to 39.2% for the fourth quarter 1999 compared to 34.4% for the prior year period. Pre-tax margin is calculated after netting distribution revenues with distribution expenses, as detailed on page 8.

Financial Results Of Alliance Holding, The Publicly Traded Partnership

Subsequent to the reorganization, Alliance Holding's principal sources of income and cash flow are attributable to its 42% ownership interest in Alliance Capital, the operating partnership. Alliance Holding is required to distribute the cash distributions it receives from Alliance Capital, less taxes and other amounts the general partner determines should be retained.

• Distributions per Alliance Holding Unit increased to $0.85 for fourth quarter 1999, a 98% increase over the $0.43 per Unit distributed for fourth quarter 1998 and $0.29 higher than the $0.56 per Unit distributed for third quarter 1999.
• Diluted net income per Alliance Holding Unit rose to $0.86 in fourth quarter 1999 from $0.44 per Unit for fourth quarter 1998. Excluding the impact of performance fees, diluted net income per Alliance Holding Unit for fourth quarter 1999 was $0.66 per Unit versus $0.42 per Unit for the prior year period, a 57% increase.

Diluted net income per Alliance Holding Unit for the year ended December 31, 1999 was $2.53 versus $1.66 per Unit for the prior year, an increase of 52%. Excluding the impact of performance fees, diluted net income per Unit for 1999 was $2.20 per Unit versus $1.53 per Unit for the prior year, a 44% increase.

About Alliance Capital

Alliance Capital is a leading global investment management firm with over US $368 billion in assets under management at December 31, 1999. Alliance Capital manages retirement assets for many of the largest U.S. public and private employee benefit plans (including 31 of the U.S. Fortune 100 companies), for public employee retirement funds in 31 out of the 50 U.S. states, and for foundations, endowments, banks, and insurance companies worldwide. Alliance Capital is also one of America's largest mutual fund sponsors, with a diverse family of fund portfolios and approximately 5 million shareholder accounts. Alliance Holding owns approximately 42% of the outstanding Alliance Capital Units. As of December 31, 1999, wholly owned subsidiaries of AXA Financial, Inc. owned general partnership interests in Alliance Capital and Alliance Holding, and approximately 95% of Alliance Capital's outstanding Units and approximately 2% of Alliance Holding's outstanding Units, which equates to an approximate 57% economic interest in Alliance Capital.