The Equitable Reports Record Results / Assets Under

Management Grew 19% to $366 Billion NEW YORK (PROTEXT) - The Equitable Companies Incorporated(NYSE: EQ) achieved record operating results for the firstquarter ended March 31, 1999, Edward D. Miller, President andCEO, announced today. For the period, after-tax operatingearnings rose 8% to a record first quarter of $230.9 million, or$1.00 per diluted share, compared with $213.9 million, or 92cents per diluted share, for the comparable period of 1998. "We are off to a strong start in 1999, and the momentum iscarrying into the second quarter," said Mr. Miller. "The strengthof our operating companies' performances continue to be driven byfocused execution of our strategies and the underlyingfundamental growth dynamics that are fueling demand for ourdiverse financial advisory services and products -- as well ascreating new opportunities. "We are very excited about the progress of our developmentalefforts to seize these opportunities," Mr. Miller continued. Theinsurance operations success in expanding distribution capacityand financial planning services, Alliance's growing distributionin Asia and European markets as well as DLJ's expansion inEurope, all continue to show strong promise. These efforts willcontribute significantly to our strategic focus of enhancing ourfranchise value as a branded distribution company of diversifiedfinancial services." Mr. Miller said that highlights for the 1999 first quarterincluded: -- Total assets under management at the end of the firstquarter grew to a record $366 billion, up 19% from the end of thefirst quarter of 1998. -- Consolidated Operating Return-on-Equity (ROE) of 17%. -- DLJ achieved an ROE of 17.8% as its financial servicesgroup more than doubled pre-tax income from the year ago period.DLJdirect, the firm's online broker, reported that assets incustomer accounts grew 90% over the same period as revenuesincreased to $47 million from $24 million last year. -- Alliance Capital's earnings rose 42% to $98.1 million,driven by robust net sales growth in mutual funds and newinstitutional accounts. Net mutual fund sales grew 39% (excludingmoney market funds) and assets under management grew 22% to$301.4 billion. -- Insurance operations posted earnings gains of 18% as feebased revenue grew 26%. Net income, which includes net realized gains (losses) andother non-recurring items, was $221.1 million, or 96 cents perdiluted share, compared to $266.6 million or $1.15 per dilutedshare in the 1998 period.

Record Results From Insurance & Annuity Operations The after-tax operating earnings contribution from TheEquitable's insurance operations rose 18% to a quarterly recordof $128.1 million, compared with $108.7 million for the openingperiod of 1998. Return on equity for the quarter was 14.5% ascompared to 13.2% from the year ago period. "The rapid growth in financial wealth, coupled with the'Graying of America,' have provided Equitable with tremendousopportunity," said Michael Hegarty, President and COO ofEquitable Life. "As consumers' financial needs becomeincreasingly more complex and responsibility for financialsecurity shifts to the individual, demand continues to escalatefor financial advisory services and products. Our strategic focusof providing value-added planning services throughout theconsumer's financial lifecycle, plus our ability to trade accessto distribution, has created a unique competitive position forEquitable." "Total sales of our life, annuity and mutual fund productlines collectively grew 11.5% for the quarter, versus a year ago,to a record $3.1 billion," Mr. Hegarty continued. "Key drivers inthis increase were a 19% rise in annuity sales and 13% growth inmutual fund sales over levels for the first quarter of 1998.Total first year, or new, sales rose 17% to $2.0 billion andvolume through our wholesale distribution channels --particularly in broker-dealer outlets -- rose substantially, withsales growing by 48%. Expenses grew by 5%, which was below ourstated goal of 8%. "The growth in annuity and mutual fund sales more than offseta slight decline in life insurance sales," Mr. Hegarty continued."During the second quarter of 1999 we will introduce a new seriesof variable life products, and expect sales in this business toimprove over the course of the year. Results of our Texas Pilotproject, which includes our Asset Management Account and feebased planning initiatives, continue to validate our strategicdirection."

Alliance Earnings Continue To Expand After-tax operating earnings -- before minority interests andother expenses -- at Alliance Capital Management rose to a newfirst quarter record of $98.1 million versus $69.0 million forthe year-ago period. "Alliance continues to benefit fromsignificant growth in assets under management and cash inflows,which produced higher management fee income," said Mr. Miller."Net mutual fund sales increased 39% for the quarter to $6.3billion and total assets under management increased to a record$301.4 billion, 22% higher than the level at the close of the1998 period. Net fund sales in the U.S. market alone rose 104%.For the latest quarter, 65 new client account mandates were won,up from 46 during the comparable period of 1998." "Alliance's individual and institutional asset managementbusinesses remain strongly positioned to benefit from long-termdemographic and investment trends," Mr. Miller added. "Theseopportunities are also being expanded by the company'sinternational growth."

Solid Performance from DLJ "DLJ once again is proving its ability to identify, nurtureand grow new opportunities," said Mr. Miller. "Pershing andDLJdirect had a tremendous quarter, and we are beginning to seeresults from their European expansion." After-tax reported earnings totaled $121.7 million versus$134.2 million a year ago with an ROE of 17.8%. "The Pershing Division, a leading provider of correspondentservices to the securities industry, posted a 57% increase in netrevenues, and DLJdirect, the firm's on-line brokerage unit sawassets in customer accounts, and revenue increase 90%, and 96%,respectively," said Mr. Miller. "DLJdirect's pre-tax profits were$11.o million in the first quarter of 1999 versus a loss of $2.2million last year. " "These two units are playing an increasingly strategic role inour branded distribution strategy," Mr. Miller continued. "Thecooperation and progress achieved between Pershing, DLJdirect andour insurance operations to launch new products and services isvery gratifying." The Equitable Companies Incorporated is one of the world'spremier financial services organizations through its primarybusinesses: The Equitable Life Assurance Society, AllianceCapital Management, and Donaldson, Lufkin & Jenrette. TheEquitable is a member of the global AXA Group -- one of theworld's largest insurer/asset managers, with operations in over50 countries and assets under management exceeding $650 billion.00 ots Original Text Service: The Equitable CompaniesIncorporated Internet: http://www.newsaktuell.de Contact: Media- Terrance L. Little of Equitable, 212-314-3113, or StephanieBinet of AXA, 011-331-40-75-59-62; or Investors - Greg Wilcox,212-314-4040, or Bob Sullivan, 212-314-5462, both of Equitable,or Pascal Thebe of AXA, 011-331-40-75-48-05

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