Gabelli Asset Management Inc. (NYSE:GBL) today reported record earnings for the quarter ended March 31, 1999.

Total revenues rose 24% to $39.7 million. Net income climbed 27% to $9.3 million in the first quarter of 1999 versus $7.3 million, on a pro forma basis. Earnings were $0.31 per share (before a non recurring charge discussed below) for the first quarter of 1999 versus $0.24 per share, on a pro forma basis and $0.28 per share on an adjusted historical basis. "We are pleased with our better than expected first quarterly results as a public company. However, we are even more excited about the future as we position our company for better than average growth in assets under management, revenues and profits." commented Mario J. Gabelli, Chairman and Chief Executive Officer.

GAMIís operating results benefited from both a 20% increase in average assets under management and a further shift toward equity products which generate higher fees. Average assets under management during the first quarter of 1999 were $16.7 billion compared to $13.9 billion during the first quarter of 1998.

Organization and Public Offering

Gabelli Asset Management Inc. was formed in connection with a reorganization of Gabelli Funds, Inc. (to be renamed Gabelli Group Capital Partners, Inc.) through which GAMI acquired most of the net operating assets of the institutional and retail asset management, mutual fund advisory, underwriting and brokerage business (the "Formation Transactionsí) in exchange for 24 million shares of Class B Common Stock.

On February 17, 1999, GAMI received proceeds of approximately $96 million, after fees and expenses, from the sale of 6 million shares of its Class A Common Stock, through underwriters led by Merrill Lynch & Co., Salomon Smith Barney and Gabelli & Company, at $17.50 per share.

The pro forma financial information presented herein reflects the results of operations as if all of the following were in effect on January 1, 1998: the Formation Transactions and the resulting impact on income and expenses; the $50 million note payable; the reduction in management fee from 20% to 10% and the conversion from a Subchapter S Corporation to a "C" Corporation and excludes the non-recurring charge expensed in the first quarter related to the note payable ($30.9 million, net of tax benefit or $1.03 per share).

The comparative adjusted historical financial information presented herein reflects the historical results of operations acquired as part of the Formation Transactions as if GAMI had existed as a separate enterprise during such periods and as if the exchange of shares had taken place. Prior to the reorganization these assets had been an integral part of Gabelli Funds, Inc. and did not constitute a separate legal or reporting entity for which separate financial statements were prepared.

Assets Under Management - Driver of Growth

On an historical basis, the Company reported the following:

At March 31, 1999, approximately 92% of total assets under management in open-end Mutual Funds were in funds with overall rankings of "four stars" or better from Morningstar, Inc. and nearly 38% were in funds ranked "five stars". Both the Gabelli Global Interactive Couch Potato® Fund and the Gabelli Growth Fund received the coveted five star rating from Morningstar, Inc. In addition, the Gabelli Global Interactive Couch Potato® Fund captured the #1 global rating by Lipper, Inc. for the 3 and 5 year periods ended March 31, 1999 out of 149 and 83 global funds, respectively.

Table II: Fund Flows - 1^st Quarter 1999 (in millions)

	Balance December 31, 1998	Net Cash Flows	Market Appreciation	Balance March 31, 1999
Mutual Funds:
Equities	$7,159	$54	$366	$7,579
Fixed Income	1,038	(28)	51	1,061
Total Mutual Funds	8,197	26	417	8,640
Institutional and Separate Accounts:
Equities	7,217	247	109	7,573
Fixed Income	740	(130)	8	618
Total Institutional and Separate Accounts	7,957	117	117	8,191
Partnerships	146	(8)	13	151
Total Assets Under Management	$16,300	$135	$547	$16,982

Table III:

	For the Three Months Ended March 31,
	Adjusted Historical 1998 (a)	Pro forma		Pro forma % Increase (Decrease)
		1998	1999(b)
Revenues. . . . . . . . . . . . . . . . .	$31,928	$31,928	$39,691	24.3
Expenses. . . . . . . . . . . . . . . . .	18,430	18,430	22,937	24.5
Operating income. . . . . . . . . . . . .	13,498	13,498	16,754	24.1
Other income, net . . . . . . . . . . . .	1,475	725	2,097
Income before management fee, income taxes and minority interest . . . . . . . . .	14,973	14,223	18,851	32.5
Management fee. . . . . . . . . . . . .	2,995	1,422	1,885
Income before income taxes and minority interest	11,978	12,801	16,966	32.5
Income taxes. . . . . . . . . . . . . .	4,753	5,075	6,973
Minority interest . . . . . . . . . . .	392	392	714
Net income. . . . . . . . . . . . . . . .	$6,833	$7,334	$9,279	26.5
Net income per share:
Basic and diluted . . . . . . . . . . .	$ .28	$ .24	$ .31	29.2
Weighted average shares outstanding:
Basic and diluted . . . . . . . . . . .	24,000	30,000	30,000

1. Adjusted historical financial information reflects the historical results of operations acquired as part of the Formation Transactions as if GAMI had existed as a separate enterprise during such periods and was treated as a "C" Corporation for Federal and state income tax purposes and as if the exchange of shares had taken place.
2. Excludes a one-time non recurring charge of $50 million ($30.9 million net of tax benefit or $1.03 per share) included in the first quarter of 1999.

Table IV:

	Actual (1)	Pro Forma Adjustments	Pro Forma Consolidated
Revenues. . . . . . . . . . . . . . . . . . .	$39,691		$39,691
Expenses. . . . . . . . . . . . . . . . . . .	22,960	(23) (a)	22,937
Operating income. . . . . . . . . . . .	16,731	23	16,754
Other income, net . . . . . . . . . . . .	4,691	(2,594) (b)	2,097
Income before management fee, income taxes and minority interest . . . . . . . . .	21,422	(2,571)	18,851
Management fee. . . . . . . . . . . . .	2,982	(1,097) (c)	1,885
Income before income taxes and minority interest . . .	18,440	(1,474)	16,966
Income taxes. . . . . . . . . . . . . .	4,712	2,261 (d)	6,973
Minority interest . . . . . . . . . . .	714		714
Net income. . . . . . . . . . . . . . . .	$13,014	$(3,735)	$9,279
Net income per share:
Basic and diluted . . . . . . . . . . .			$ .31
Weighted average shares outstanding:
Basic and diluted . . . . . . . . . . .			30,000