##### Table of Contents









UNITED STATES SECURITIES AND EXCHANGE COMMISSION


Washington, D.C. 20549


Form 10-K


|   |  |                                                                                             
|-- |  | --------------------------------------------------------------------------------------------
|þ  |  | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934    
|  
|   |  | For the fiscal year ended: December 31, 2004                                                
|  
|or
|  
|o  |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934
|  
|   |  | For the transition period
    from           to                                             

Commission file number: 000-51003


Calamos Asset Management, Inc.


(Exact name of Registrant as specified in its charter)


|                                                                                           |  |                                         
|------------------------------------------------------------------------------------------ |  | ----------------------------------------
|Delaware                                                                                   |  | 32-0122554                              
|(State or other jurisdiction of
    incorporation or organization)                         |  | (I.R.S. Employer
    Identification No.)
|                                                                                          
|1111 E. Warrenville Road,
    Naperville, Illinois(Address of principal executive offices) |  | 60563(Zip Code)                         

Registrants telephone number, including area code:


630-245-7200


Securities registered pursuant to Section 12(b) of the
Act:


None


Securities registered pursuant to Section 12(g) of the
Act:


|                                      |  |                                          
|------------------------------------- |  | -----------------------------------------
|Title of Each Class                   |  | Name of Each Exchange on Which Registered
|                                      |  |                                          
|Class A Common Stock, $0.01 par value |  | Nasdaq National Market                   

þ o


þ o


o þ






DOCUMENTS INCORPORATED BY REFERENCE












---

TABLE OF CONTENTS



|                                                                        |                                                                                                                       |  |  |  |  |  |  | 
|----------------------------------------------------------------------- | --------------------------------------------------------------------------------------------------------------------- |  |  |  |  |  |  | 
|PART I                                                                 
|                                                                        | Item 1. Business.                                                                                                    
|                                                                        | Item 2. Properties.                                                                                                  
|                                                                        | Item 3. Legal Proceedings.                                                                                           
|                                                                        | Item 4. Submission of Matters to a Vote of Security Holders.                                                         
|PART II                                                                
|                                                                        | Item 5. Market for Registrants Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
|                                                                        | Item 6. Selected Historical Financial and Other Data.                                                                
|                                                                        | Item 7. Managements Discussion and Analysis of Financial Condition and Results of Operation.                        
|                                                                        | Item 7A. Quantitative and Qualitative Disclosures About Market Risk.                                                 
|                                                                        | Item 8. Financial Statements and Supplementary Data.                                                                 
|                                                                        | Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure.                        
|                                                                        | Item 9A. Controls and Procedures.                                                                                    
|                                                                        | Item 9B. Other Information.                                                                                          
|PART III                                                               
|                                                                        | Item 10. Directors and Executive Officers of the Registrant.                                                         
|                                                                        | Item 11. Executive Compensation.                                                                                     
|                                                                        | Item 12. Security Ownership of Certain Beneficial Owners and Management.                                             
|                                                                        | Item 13. Certain Relationships and Related Transactions.                                                             
|                                                                        | Item 14. Principal Accounting Fees and Services.                                                                     
|PART IV                                                                
|                                                                        | Item 15. Exhibits, Financial Statement Schedules.                                                                    
|SIGNATURES                                                             
|Subsidiaries of the Company                                            
|Consent of Independent Registered Public Accounting Firm               
|Certification of Principal Executive Officer pursuant to Rule 13a-14(a)
|Certification of Principal Financial Officer pursuant to Rule 13a-14(a)
|Certification of Principal Executive Officer pursuant to 18 U.S.C.     
|Certification of Principal Financial Officer pursuant to 18 U.S.C.     



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##### Table of Contents






PART I







|        |          
|------- | ---------
|Item 1. | Business.













Overview






2



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##### Table of Contents







Business Strategy






| |                 
| | ----------------
| | Focus on Clients





| |                                         
| | ----------------------------------------
| | Maintain Superior Investment Performance





| |                                     
| | ------------------------------------
| | Focus on Serving Long-Term Investors



3



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| |                                             
| | --------------------------------------------
| | Selectively Expand Our Investment Strategies





| |                                                                   
| | ------------------------------------------------------------------
| | Selectively Expand Our Products and Distribution
    Relationships





| |                                                 
| | ------------------------------------------------
| | Capitalize on Our Recognized and Respected Brand

BusinessWeek


4



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Wall Street Week, Market Week, Power
Lunch Closing Bell


Investment Philosophy, Management and Process




| |                      
| | ---------------------
| | Investment Philosophy











| |                      
| | ---------------------
| | Investment Management





5



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| |                   
| | ------------------
| | Investment Process







| |   |                                                                                                                                                                                                                              
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Assess Business Value. We analyze businesses as would a
    buyer of the entire company, analyzing financial statements to
    determine an economic enterprise value.                                                       
|
| |  | Assess Security Value. Once we understand the value of a
    business, our investment team focuses on individual security
    values within its capital structure.                                                           
|
| |  | Assess Investment Opportunities. By understanding all
    aspects of a companys capital structure, we seek to
    identify opportunities across asset classes (where applicable),
    as well as investment strategies.     
|
| |  | Assess the Opportunitys Role in the Portfolio.
    Using risk management and portfolio construction techniques, we
    determine whether an individual security has a place in our
    investment portfolios and strategies.

Investment Strategies




|            |  |                   |      |  |             |                                                                                                                                       
|----------- |  | ----------------- | ---- |  | ----------- | --------------------------------------------------------------------------------------------------------------------------------------
|            |  | Assets Under      |      |  |            
|            |  | Management at     |      |  |            
|Asset Class |  | December 31, 2004 |      |  | Description
|            |  |                   |      |  |            
|            |  | (In billions)     |      |  |            
|Equity      |  | $                 | 17.1 |  |             | Invests in a range of U.S. and global companies of various
    market capitalization under both growth and value disciplines          
|Balanced    |  |                   | 10.4 |  |             | Invests in convertible securities, equities and high yield
    securities, both in the U.S. and globally                              
|Convertible |  |                   | 7.1  |  |             | Invests primarily in convertible securities                                                                                           
|High Yield  |  |                   | 2.8  |  |             | Invests primarily in high yield securities, or junk
    bonds                                                                       
|Alternative |  |                   | 0.6  |  |             | Invests primarily in convertible securities and uses short sales
    of the underlying stock to generate income and hedge against risk
|            |  |                   |      |  |            
|Total       |  | $                 | 38.0 |  |             |                                                                                                                                       
|            |  |                   |      |  |            

Investment Products




6



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| |             
| | ------------
| | Mutual Funds





| |               
| | --------------
| | Open-End Funds







|                                  |  |               |      |            |         |                               |      |          |           |                                   |  |  |        |                   |  |          |           |       |  |                                 |         |  |      |  |  |                            
|--------------------------------- |  | ------------- | ---- | ---------- | ------- | ----------------------------- | ---- | -------- | --------- | --------------------------------- |  |  | ------ | ----------------- |  | -------- | --------- | ----- |  | ------------------------------- | ------- |  | ---- |  |  | ---------------------------
|                                  |  |               |      |            |         | As of December 31, 2004       |      |          |           |                                   |  |  |       
|                                  |  |               |      |            |         | Overall Morningstar Rating(3) |      |          |           |                                   |  |  |       
|                                  |  |               |      |            |         |                               |      |          |          
|                                  |  |               |      | Risk (Beta |         |                               |      |          | Number of |                                   |  |  |        | Lipper Ranking(4)
|Fund and                          |  | Assets Under  |      |            | vs. S&P |                               |      |          |           | Funds in                          |  |  |        |                   | 
|Year of Inception(1)              |  | Management    |      |            | 500)(2) |                               |      | Category |           | Category                          |  |  | Rating |                   |  | Category |           | Years |  |                                 | Ranking
|                                  |  |               |      |            |         |                               |      |          |           |                                   |  |  |        |                   |  |          |           |       |  |                                 |        
|                                  |  | (In billions) |      |            |         |                               |      |          |           |                                   |  |  |        |                   |  |          |          
|Growth
    1990                   |  | $             | 13.8 |            |         |                               | 0.73 |          |           | Mid-cap
    growth funds          |  |  | 641    |                   |  |          | 5 stars   |       |  | Multi-cap growth
    funds      |         |  | 3510 |  |  | 7/343
    1/223
    1/74   
|Growth and Income
    1988        |  |               | 4.7  |            |         |                               | 0.53 |          |           | Convertible funds                 |  |  | 64     |                   |  |          | 5 stars   |       |  | Multi-cap core
    funds        |         |  | 3510 |  |  | 28/514
    49/347
    6/118
|Convertible
    1985(5)           |  |               | 1.2  |            |         |                               | 0.56 |          |           | Convertible funds                 |  |  | 64     |                   |  |          | 4 stars   |       |  | Convertible
    funds           |         |  | 3510 |  |  | 25/62
    11/54
    1/26   
|Market Neutral
    1990(6)        |  |               | 0.5  |            |         |                               | 0.07 |          |           | Conservative
    allocation funds |  |  | 228    |                   |  |          | 4 stars   |       |  | Flexible income
    funds       |         |  | 3510 |  |  | 5/12
    3/8
    1/6       
|Global Growth and Income
    1996 |  |               | 0.3  |            |         |                               | 0.49 |          |           | World stock
    funds             |  |  | 274    |                   |  |          | 3 stars   |       |  | Global multi-cap
    core funds |         |  | 35   |  |  | 24/49
    10/26            
|High Yield
    1999               |  |               | 0.2  |            |         |                               | 0.37 |          |           | High yield bond
    funds         |  |  | 347    |                   |  |          | 4 stars   |       |  | High yield funds                |         |  | 35   |  |  | 101/346
    10/275         
|Blue Chip
    2003                |  |               | 0.1  |            |         |                               | n/a  |          |           | Large blend                       |  |  |        |                   |  |          | Not rated |       |  | Multi-cap core funds            |         |  | 1    |  |  | 462/722                    
|Value
    2002                    |  |               | 0.1  |            |         |                               | n/a  |          |           | Mid-cap blend                     |  |  |        |                   |  |          | Not rated |       |  | Multi-cap core funds            |         |  | 12   |  |  | 190/722
    111/631        
|                                  |  |               |      |            |         |                               |      |          |           |                                   |  |  |        |                   |  |          |           |       |  |                                 |        
|Total                             |  | $             | 20.9 |            |         |                               |      |          |           |                                   |  |  |        |                   |  |          |           |       |  |                                 |         |  |      |  |  |                            
|                                  |  |               |      |            |         |                               |      |          |           |                                   |  |  |        |                   |  |          |           |       |  |                                 |        






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                        
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Performance of the Blue Chip and Value funds reflects the
    effects of an expense reimbursement, which improved results. For
    some funds, performance shown includes the effects of an
    overpayment of dividends and/or capital gains distribution to
    shareholders of certain classes of shares of the fund (and a
    corresponding capital contribution by Calamos Advisors), which
    increased certain return figures.
|   
|(2) | Source: Russell/ Mellon Analytical Services LLC. Beta is a
    historic measure of a funds relative volatility. A beta of
    0.5 reflects one-half of the markets volatility, while a
    beta of 2.0 reflects twice the markets                                                                                                                                                                                                   

7



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|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | volatility. This column shows risk as measured by the
    funds beta (3 year) compared to the S&P 500
    Index, which is an unmanaged index generally considered
    representative of the U.S. stock market.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   
|(3) | For a description of overall Morningstar ratings, see
    Mutual Fund Ratings and Rankings. Rankings are
    for Class A shares. As of December 31, 2004: Growth
    Fund: 5 stars for 3, 5 and 10 years out of 641, 430
    and 160 mid-cap growth funds, respectively; Growth and Income
    Fund: 4 stars for 3 years, 4 stars for 5 years and 5
    stars for 10 years out of 64, 56 and 27 convertible funds,
    respectively; Global Growth and Income Fund: 3 stars for
    3 years and 4 stars for 5 years out of 274 and 208
    world stock funds, respectively; High Yield Fund: 3 stars for
    3 years and 5 stars for 5 years out of 347 and 274
    high yield bond funds, respectively; Convertible Fund: 3 stars
    for 3 years and 5 years, 5 stars for 10 years out
    of 64, 56 and 27 convertible funds, respectively; Market Neutral
    Fund: 4 stars for 3, 5 and 10 years out of 228, 164
    and 53 conservative allocation funds, respectively.
|   
|(4) | For a description of Lipper rankings, see Mutual
    Fund Ratings and Rankings. Rankings are for
    Class A shares.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|   
|(5) | Closed to new investments, effective April 30, 2003.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           
|   
|(6) | Closed to new investments, effective March 14, 2003.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           





| |                 
| | ----------------
| | Closed-End Funds







8



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|                                             |  |                   |     |  |           |  |      |             |  |                                                                                                                                                                                                                                                                                                  
|-------------------------------------------- |  | ----------------- | --- |  | --------- |  | ---- | ----------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|                                             |  | Assets Under      |     |  |           |  |     
|                                             |  | Management at     |     |  | Year of   |  |      |            
|Fund and Ticker                              |  | December 31, 2004 |     |  | Inception |  |      | Description
|                                             |  |                   |     |  |           |  |      |            
|                                             |  | (In billions)     |     |  |           |  |     
|Convertible Opportunities and Income
    CHI |  | $                 | 1.2 |  |           |  | 2002 |             |  | Seeks total return through a combination of capital appreciation
    and current income by investing in convertible and
    non-convertible income securities, maintaining at least 35% of
    managed assets in convertible securities.                                                         
|Convertible and High Income
    CHY          |  |                   | 1.4 |  |           |  | 2003 |             |  | Seeks total return through a combination of capital appreciation
    and current income by investing in convertible and high yield
    securities, maintaining at least 20% of managed assets in each
    of the above categories.                                                               
|Strategic Total Return
    CSQ               |  |                   | 3.4 |  |           |  | 2004 |             |  | Seeks total return through a combination of capital appreciation
    and current income by investing in equity, convertible and high
    yield securities, maintaining at least 50% of managed assets in
    equity securities and in securities that are convertible into
    equity securities.
|                                             |  |                   |     |  |           |  |      |            
|Total                                        |  | $                 | 6.0 |  |           |  |      |             |  |                                                                                                                                                                                                                                                                                                  
|                                             |  |                   |     |  |           |  |      |            





| |                  
| | -----------------
| | Separate Accounts





| |                       
| | ----------------------
| | Institutional Accounts





9



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| |                 
| | ----------------
| | Managed Accounts







| |                        
| | -----------------------
| | Private Client Accounts







| |                        
| | -----------------------
| | Alternative Investments





Mutual Fund Ratings And Rankings




10



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Technology and Intellectual Property








Distribution, Sales and Client Service






| |                         
| | ------------------------
| | Financial Intermediaries



11



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Open-end funds. All eight of the open-end funds managed
    by Calamos Advisors offer share classes with sales charges paid
    primarily to the financial intermediary. As such, we believe
    this product type is attractive to our network of financial
    intermediaries. The open-end funds are offered continuously to
    investors through four different shares classes, Class A,
    Class B, Class C and Class I, each of which has a
    different sales charge structure designed to meet the needs of
    our financial intermediaries and their clients.                                                                                                                                                                 
|
| |  | Closed-end funds. Calamos Advisors is currently the
    investment advisor for three closed-end funds. Historically, we
    have used this type of product to take advantage of a market
    opportunity and to deliver a timely investment strategy to
    investors quickly and efficiently. The closed-end funds are
    distributed through national and regional broker-dealers through
    underwritten public offerings. As the offering periods for
    closed-end funds are limited and are accompanied by intensive
    sales efforts, closed-end fund offerings provide us with a
    product that allows us to build scale in an investment strategy
    and deepen brand recognition in a relatively short period of
    time.
|
| |  | Managed accounts. Since 1989, we have offered separately
    managed account products to individual and institutional
    investors through national and regional broker-dealers. Managed
    accounts are offered by financial intermediaries to individual
    and institutional investors. These types of accounts are an
    attractive alternative to some investors, as they provide the
    opportunity to customize investment guidelines and tax
    efficiencies.                                                                                                                                                                                                                                                                







| |             
| | ------------
| | Institutions



12



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| |                
| | ---------------
| | Private Clients







Competition






| |   |                                                                                                          
| | - | ---------------------------------------------------------------------------------------------------------
| |  | investment performance;                                                                                  
|
| |  | quality of service provided to clients;                                                                  
|
| |  | brand recognition and business reputation;                                                               
|
| |  | continuity of client relationships and of assets under
    management;                                   
|
| |  | continuity of our selling arrangements with intermediaries;                                              
|
| |  | the range of products offered;                                                                           
|
| |  | level of fees and commissions charged for services;                                                      
|
| |  | level of expenses paid to financial intermediaries related to
    administration and/or distribution; and
|
| |  | financial strength.                                                                                      







| |   |                                                                                                                                                                                                                                                                                                   
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Some of our competitors have greater capital and other
    resources, and offer more comprehensive lines of products and
    services, than we do.                                                                                                                                                
|
| |  | Consolidation within the investment management industry, and the
    securities industry in general, has served to increase the size
    and strength of a number of our competitors.                                                                                                             
|
| |  | There are relatively few barriers to entry by new investment
    management firms, and the successful efforts of new entrants
    into our various lines of business, including major banks,
    insurance companies and other financial institutions, have
    resulted in increased competition.
|
| |  | Other industry participants will from time to time seek to
    recruit our investment professionals and other employees away
    from us.                                                                                                                                                         



13



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Regulatory Environment










i.e.




14



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Employees




SEC Filings


www.calamos.com


Business Risks









|        |            
|------- | -----------
|Item 2. | Properties.








|        |                   
|------- | ------------------
|Item 3. | Legal Proceedings.



15



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|        |                                                         
|------- | --------------------------------------------------------
|Item 4. | Submission of Matters to a Vote of Security
    Holders.






PART II







|        |                                                                                                                      
|------- | ---------------------------------------------------------------------------------------------------------------------
|Item 5. | Market for Registrants Common Equity, Related
    Stockholder Matters and Issuer Purchases of Equity
    Securities.





| |      |  |  |  |   |         |  |                         |         |  |     |         |  |  |         |  |  |  |     |  |  |   |       |  |  | 
| | ---- |  |  |  | - | ------- |  | ----------------------- | ------- |  | --- | ------- |  |  | ------- |  |  |  | --- |  |  | - | ----- |  |  | 
| |      |  |  |  |   | 1st     |  |                         | 2nd     |  |     | 3rd     |  |  | 4th     | 
| |      |  |  |  |   | Quarter |  |                         | Quarter |  |     | Quarter |  |  | Quarter | 
| |      |  |  |  |   |         |  |                         |         |  |     |         |  |  |         | 
| | 2004 |  |  |  |  |         |  | High price              |         |  | N/A |         |  |  | N/A     |  |  |  | N/A |  |  | $ | 28.35 | 
| |      |  |  |  |   |         |  | Low price               |         |  | N/A |         |  |  | N/A     |  |  |  | N/A |  |  | $ | 18.00 | 
| |      |  |  |  |   |         |  | Cash dividends declared |         |  | N/A |         |  |  | N/A     |  |  |  | N/A |  |  | $ | 0.07  | 





Equity Compensation Plan Information


|                                                           |       |                   |           |           |                  |            |      |                      |  |  |           |           | 
|---------------------------------------------------------- | ----- | ----------------- | --------- | --------- | ---------------- | ---------- | ---- | -------------------- |  |  | --------- | --------- | 
|                                                           |       |                   |           |           |                  | Number of  |     
|                                                           |       |                   |           |           |                  | Securities |     
|                                                           |       | Number of         |           |           | Weighted-        |            |      | Remaining Available  | 
|                                                           |       | Securities to be  |           |           | Average Exercise |            |      | for Future Issuance  | 
|                                                           |       | Issued upon       |           |           | Price of         |            |      | Under Equity         | 
|                                                           |       | Exercise of       |           |           | Outstanding      |            |      | Compensation Plans   | 
|                                                           |       | Outstanding       |           |           | Options,         |            |      | (Excluding           | 
|                                                           |       | Options, Warrants |           |           | Warrants and     |            |      | Securities Reflected | 
|                                                           |       | and Rights        |           |           | Rights           |            |      | in Column (a))       | 
|Plan Category                                              |       | (a)               |           |           | (b)              |            |      | (c)                  | 
|                                                           |       |                   |           |           |                  |            |      |                      | 
|Equity compensation plans approved by security holders     |       |                   | 2,070,666 |           |                  | $          | 6.26 |                      |  |  | 7,929,334 |          
|Equity compensation plans not approved by security holders |       |                   |          |           |                  |            |     |                      |  |  |          |          
|                                                           |       |                   |           |           |                  |            |      |                      | 
|                                                           | Total |                   |           | 2,070,666 |                  |            | $    | 6.26                 |  |  |           | 7,929,334 | 
|                                                           |       |                   |           |           |                  |            |      |                      | 





16



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|        |                                              
|------- | ---------------------------------------------
|Item 6. | Selected Historical Financial and Other Data.







17



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|                                                 |                                        |                                       |        |            |               |   |        |               |            |   |               |            |  |               |         |            |               |   |         |            |  |   |        |             |  |   |         |  | 
|------------------------------------------------ | -------------------------------------- | ------------------------------------- | ------ | ---------- | ------------- | - | ------ | ------------- | ---------- | - | ------------- | ---------- |  | ------------- | ------- | ---------- | ------------- | - | ------- | ---------- |  | - | ------ | ----------- |  | - | ------- |  | 
|                                                 |                                        |                                       |        |            |               |   |        |               |            |   |               |            |  | Proforma      |        
|                                                 |                                        |                                       |        |            |               |   |        | Combined      |           
|                                                 |                                        | Year Ended December 31,               |        |            |               |   |        |               | Year Ended |  
|                                                 |                                        |                                       |        |            | Jan. 1 to     |   |        | Nov. 2 to     |            |   | Dec. 31,      |           
|                                                 |                                        | 2000(1)                               |        |            | 2001          |   |        | 2002          |            |   | 2003          |            |  | Nov. 1, 2004  |         |            | Dec. 31, 2004 |   |         | 2004       | 
|                                                 |                                        |                                       |        |            |               |   |        |               |            |   |               |            |  |               |         |            |               |   |         |            | 
|                                                 |                                        | (Predecessor)                         |        |            | (Predecessor) |   |        | (Predecessor) |            |   | (Predecessor) |            |  | (Predecessor) |         |            |               |   |        
|                                                 |                                        | (In thousands, except per share data) |       
|Income Statement Data:                           |                                        |                                       |        |            |               |   |        |               |            |   |               |            |  |               |         |            |               |   |         |            |  |   |        |             |  |   |         | 
|Revenues                                         |                                        |                                       |        |            |               |   |        |               |            |   |               |            |  |               |         |            |               |   |         |            |  |   |        |             |  |   |         | 
|Investment management fees                       |                                        | $                                     | 26,937 |            |               | $ | 37,578 |               |            | $ | 62,594        |            |  | $             | 109,052 |            |               | $ | 168,938 |            |  | $ | 41,787 |             |  | $ | 210,725 | 
|Distribution and underwriting fees               |                                        |                                       | 1,012  |            |               |   | 9,309  |               |            |   | 24,883        |            |  |               | 53,005  |            |               |   | 79,578  |            |  |   | 19,350 |             |  |   | 98,928  | 
|Other revenue                                    |                                        |                                       | 498    |            |               |   | 454    |               |            |   | 363           |            |  |               | 328     |            |               |   | 1,861   |            |  |   | 633    |             |  |   | 2,494   | 
|                                                 |                                        |                                       |        |            |               |   |        |               |            |   |               |            |  |               |         |            |               |   |         |            | 
|Total revenue                                    |                                        |                                       | 28,447 |            |               |   | 47,341 |               |            |   | 87,840        |            |  |               | 162,385 |            |               |   | 250,377 |            |  |   | 61,770 |             |  |   | 312,147 | 
|Operating expenses                               |                                        |                                       |        |            |               |   |        |               |            |   |               |            |  |               |         |            |               |   |         |            |  |   |        |             |  |   |         | 
|Employee compensation and benefits               |                                        |                                       | 13,008 |            |               |   | 26,117 |               |            |   | 28,317        |            |  |               | 33,657  |            |               |   | 53,170  |            |  |   | 12,537 |             |  |   | 65,707  | 
|Distribution expenses                            |                                        |                                       | 1,023  |            |               |   | 3,634  |               |            |   | 7,982         |            |  |               | 22,576  |            |               |   | 39,517  |            |  |   | 11,040 |             |  |   | 50,557  | 
|Amortization of deferred sales commissions       |                                        |                                       |       |            |               |   | 3,272  |               |            |   | 11,677        |            |  |               | 19,879  |            |               |   | 24,315  |            |  |   | 5,109  |             |  |   | 29,424  | 
|Marketing and sales promotion                    |                                        |                                       | 3,165  |            |               |   | 2,210  |               |            |   | 6,002         |            |  |               | 8,949   |            |               |   | 16,694  |            |  |   | 2,228  |             |  |   | 18,922  | 
|General and administrative                       |                                        |                                       | 4,340  |            |               |   | 7,300  |               |            |   | 7,849         |            |  |               | 8,906   |            |               |   | 11,445  |            |  |   | 2,622  |             |  |   | 14,067  | 
|                                                 |                                        |                                       |        |            |               |   |        |               |            |   |               |            |  |               |         |            |               |   |         |            | 
|Total operating expenses                         |                                        |                                       | 21,536 |            |               |   | 42,533 |               |            |   | 61,827        |            |  |               | 93,967  |            |               |   | 145,141 |            |  |   | 33,536 |             |  |   | 178,677 | 
|                                                 |                                        |                                       |        |            |               |   |        |               |            |   |               |            |  |               |         |            |               |   |         |            | 
|Operating income                                 |                                        |                                       | 6,911  |            |               |   | 4,808  |               |            |   | 26,013        |            |  |               | 68,418  |            |               |   | 105,236 |            |  |   | 28,234 |             |  |   | 133,470 | 
|Other income (expense)                           |                                        |                                       | 528    |            |               |   | (563   | )             |            |   | (899          | )          |  |               | 25      |            |               |   | (1,487  | )          |  |   | 2,338  |             |  |   | 851     | 
|                                                 |                                        |                                       |        |            |               |   |        |               |            |   |               |            |  |               |         |            |               |   |         |            | 
|Income before minority interest and income taxes |                                        |                                       | 7,439  |            |               |   | 4,245  |               |            |   | 25,114        |            |  |               | 68,443  |            |               |   | 103,749 |            |  |   | 30,572 |             |  |   | 134,321 | 
|Minority interest in investment in partnerships  |                                        |                                       |       |            |               |   |       |               |            |   |              |            |  |               |        |            |               |   |        |            |  |   | 1,322  |             |  |   | 1,322   | 
|Minority interest in Calamos Holdings LLC        |                                        |                                       |       |            |               |   |       |               |            |   |              |            |  |               |        |            |               |   |        |            |  |   | 22,609 |             |  |   | 22,609  | 
|Income before income tax                         |                                        |                                       | 7,439  |            |               |   | 4,245  |               |            |   | 25,114        |            |  |               | 68,443  |            |               |   | 103,749 |            |  |   | 6,641  |             |  |   | 110,390 | 
|Income tax                                       |                                        |                                       | 96     |            |               |   | 69     |               |            |   | 383           |            |  |               | 1,117   |            |               |   | 1,567   |            |  |   | 2,649  |             |  |   | 4,216   | 
|                                                 |                                        |                                       |        |            |               |   |        |               |            |   |               |            |  |               |         |            |               |   |         |            | 
|Net income                                       |                                        | $                                     | 7,343  |            |               | $ | 4,176  |               |            | $ | 24,731        |            |  | $             | 67,326  |            |               | $ | 102,182 |            |  | $ | 3,992  |             |  | $ | 106,174 | 
|                                                 |                                        |                                       |        |            |               |   |        |               |            |   |               |            |  |               |         |            |               |   |         |            | 
|Earnings per share:                              |                                        |                                       |        |            |               |   |        |               |            |   |               |            |  |               |         |            |               |   |         |            |  |   |        |             |  |   |         | 
|                                                 | Basic                                  |                                       | $      | 0.08       |               |   | $      | 0.04          |            |   | $             | 0.26       |  |               | $       | 0.70       |               |   | $       | 1.06       |  |   | $      | 0.18        |  |   |         |  | 
|                                                 | Weighted average shares outstanding(2) |                                       |        | 96,800,000 |               |   |        | 96,800,000    |            |   |               | 96,800,000 |  |               |         | 96,800,000 |               |   |         | 96,800,000 |  |   |        | 22,700,100  |  |   |         |  | 
|                                                 | Diluted                                |                                       | $      | 0.08       |               |   | $      | 0.04          |            |   | $             | 0.26       |  |               | $       | 0.70       |               |   | $       | 1.06       |  |   | $      | 0.17        |  |   |         |  | 
|                                                 | Weighted average shares outstanding(3) |                                       |        | 96,800,000 |               |   |        | 96,800,000    |            |   |               | 96,800,000 |  |               |         | 96,800,000 |               |   |         | 96,800,000 |  |   |        | 100,491,409 |  |   |         |  | 

18



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|                                       |  |                    |        |  |               |   |        |               |  |   |               |  |  |      |         |  |  |   |         | 
|-------------------------------------- |  | ------------------ | ------ |  | ------------- | - | ------ | ------------- |  | - | ------------- |  |  | ---- | ------- |  |  | - | ------- | 
|                                       |  | As of December 31, |       
|                                       |  |                    |       
|                                       |  | 2000(1)            |        |  | 2001          |   |        | 2002          |  |   | 2003          |  |  | 2004 |        
|                                       |  |                    |        |  |               |   |        |               |  |   |               |  |  |      |        
|                                       |  | (Predecessor)      |        |  | (Predecessor) |   |        | (Predecessor) |  |   | (Predecessor) |  |  |     
|Balance Sheet Data (in thousands):     |  |                    |        |  |               |   |        |               |  |   |               |  |  |      |         |  |  |   |         | 
|Investment securities                  |  | $                  | 6,956  |  |               | $ | 6,443  |               |  | $ | 6,860         |  |  | $    | 10,389  |  |  | $ | 147,521 | 
|Total assets                           |  |                    | 20,078 |  |               |   | 33,218 |               |  |   | 57,272        |  |  |      | 104,531 |  |  |   | 516,452 | 
|Long-term debt                         |  |                    | 4,014  |  |               |   | 6,866  |               |  |   | 10,945        |  |  |      | 23,008  |  |  |   | 150,000 | 
|Total liabilities                      |  |                    | 8,653  |  |               |   | 18,894 |               |  |   | 32,246        |  |  |      | 58,107  |  |  |   | 191,342 | 
|Minority Interest                      |  |                    |       |  |               |   |       |               |  |   | 10            |  |  |      | 11      |  |  |   | 166,616 | 
|Total stockholders equity             |  |                    | 11,425 |  |               |   | 14,324 |               |  |   | 25,016        |  |  |      | 46,413  |  |  |   | 158,494 | 
|Assets Under Management (in millions): |  |                    |        |  |               |   |        |               |  |   |               |  |  |      |         |  |  |   |         | 
|Mutual funds                           |  | $                  | 529    |  |               | $ | 2,241  |               |  | $ | 5,712         |  |  | $    | 14,651  |  |  | $ | 26,951  | 
|Separate accounts                      |  |                    | 5,602  |  |               |   | 7,094  |               |  |   | 7,180         |  |  |      | 9,189   |  |  |   | 11,024  | 
|                                       |  |                    |        |  |               |   |        |               |  |   |               |  |  |      |        
|Total assets under management          |  | $                  | 6,131  |  |               | $ | 9,335  |               |  | $ | 12,892        |  |  | $    | 23,840  |  |  | $ | 37,975  | 
|                                       |  |                    |        |  |               |   |        |               |  |   |               |  |  |      |        






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Incorporated on December 21, 2001, Calamos Family Partners,
    Inc. became the sole stockholder of Calamos Advisors, Calamos
    Financial Services and Calamos Property Management when it
    acquired each entity under a non-taxable Type D acquisitive
    reorganization, effectively transferring stock in exchange for
    the assets of each entity. The transaction was accounted for, at
    historical cost, as a combination of entities under common
    control. As such, for the period ended December 31, 2000,
    the financial statements presented are on a combined basis. In
    the opinion of management, such information contains all
    adjustments, consisting of necessary eliminating adjustments,
    necessary for a fair presentation of the financial condition
    items presented and results of operations.                                                                                                                                                                     
|   
|(2) | Basic shares for the periods to November 2, 2004 reflect
    the 96,800,000 existing after giving effect to the formation
    transaction, whereby on October 15, 2004, Calamos Family
    Partners, Inc. contributed all of its assets and liabilities,
    including all equity interest in its wholly-owned subsidiaries,
    to Calamos Holdings LLC in exchange for 96,800,000 of the
    membership units of Calamos Holdings LLC.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
|   
|(3) | Diluted shares outstanding for the period of November 2,
    2004 to December 31, 2004 represent our weighted average
    Class A common stock after giving effect to the offering as
    of November 2, 2004. The diluted shares outstanding are
    calculated: (a) assuming Calamos Family Partners, Inc. and
    John P. Calamos, Sr. exchanged all of their membership
    units in Calamos Holdings LLC for, and converted all outstanding
    shares of our Class B common stock into, shares of our
    Class A common stock, in each case on a one-for-one basis
    and (b) including the effect of outstanding restricted
    stock unit and option awards. In calculating diluted earnings
    available to common shareholders for the period November 2,
    2004 to December 31, 2004, an effective tax rate of 39.89%
    was applied to income before minority interest in Calamos
    Holdings LLC and income taxes of $29,250, resulting in earnings
    available to common shareholders of $17,582.






|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 7. | Managements Discussion and Analysis of Financial
    Condition and Results of Operation.



Assets Under Management




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|                              |                         |                 |        |       |      |   |        |        |  |   |        |        | 
|----------------------------- | ----------------------- | --------------- | ------ | ----- | ---- | - | ------ | ------ |  | - | ------ | ------ | 
|                              |                         | At December 31, |       
|                              |                         |                 |       
|                              |                         | 2002            |        |       | 2003 |   |        | 2004   | 
|                              |                         |                 |        |       |      |   |        |        | 
|                              |                         | (In millions)   |       
|Mutual Funds                  |                         |                 |        |       |      |   |        |        |  |   |        |       
|                              | Open-end funds          |                 | $      | 4,872 |      |   | $      | 12,130 |  |   | $      | 20,921 | 
|                              | Closed-end funds        |                 |        | 840   |      |   |        | 2,521  |  |   |        | 6,030  | 
|                              |                         |                 |        |       |      |   |        |        | 
|                              | Total mutual funds      |                 |        | 5,712 |      |   |        | 14,651 |  |   |        | 26,951 | 
|Separate Accounts             |                         |                 |        |       |      |   |        |        |  |   |        |       
|                              | Institutional accounts  |                 |        | 1,964 |      |   |        | 2,674  |  |   |        | 3,332  | 
|                              | Managed accounts        |                 |        | 5,097 |      |   |        | 6,241  |  |   |        | 7,091  | 
|                              | Private client accounts |                 |        | 104   |      |   |        | 258    |  |   |        | 527    | 
|                              | Alternative investments |                 |        | 15    |      |   |        | 16     |  |   |        | 74     | 
|                              |                         |                 |        |       |      |   |        |        | 
|                              | Total separate accounts |                 |        | 7,180 |      |   |        | 9,189  |  |   |        | 11,024 | 
|                              |                         |                 |        |       |      |   |        |        | 
|Total assets under management |                         | $               | 12,892 |       |      | $ | 23,840 |        |  | $ | 37,975 |       
|                              |                         |                 |        |       |      |   |        |        | 





| |   |                                                                                                                                           
| | - | ------------------------------------------------------------------------------------------------------------------------------------------
| |  | purchases and redemptions of shares of the open-end funds and
    other investment products;                                              
|
| |  | fluctuations in the financial markets around the world that
    result in appreciation or depreciation of assets under
    management; and
|
| |  | our introduction of new investment strategies and products.                                                                               





| |   |                                                                                                                           
| | - | --------------------------------------------------------------------------------------------------------------------------
| |  | our ability to educate our target clients about our investment
    philosophy and provide them with best-in-class service;
|
| |  | the relative investment performance of our investment products
    as compared to competing offerings and market indices; 
|
| |  | competitive conditions in the mutual fund, asset management and
    broader financial services sectors;                   
|
| |  | investor sentiment and confidence; and                                                                                    
|
| |  | our decision to close strategies when deemed in the best
    interests of our clients.                                    

Investment Products




| |             
| | ------------
| | Mutual Funds



Open-End Funds.


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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Class A sharesof the open-end funds represented
    $13.2 billion and $7.2 billion of our assets under
    management as of December 31, 2004 and December 31,
    2003, respectively. These shares provide for a front-end sales
    charge at the time of investment. The sales charge is equal to a
    maximum of 4.75% of the amount invested. We retain an
    underwriting fee representing a portion of this sales charge and
    pay any remaining amounts to the selling firm, except where our
    subsidiary, Calamos Financial Services, is the broker of record,
    in which case we retain the entire sales charge. We received
    underwriting fees of $9.4 million and $5.7 million for
    the year ended December 31, 2004 and the year ended
    December 31, 2003, respectively. We receive Rule 12b-1
    distribution and service fees on Class A shares at a rate
    of 0.25% of Class A share assets under management, which is
    generally offset by a 0.25% fee paid to third-party selling
    agents. For the year ended December 31, 2004 and the year
    ended December 31, 2003, we received Class A share
    Rule 12b-1 fees of $25.3 million and
    $12.0 million, respectively. For the same periods, we made
    Class A share Rule 12b-1 payments to selling firms of
    $22.6 million and $10.4 million, respectively.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|
| |  | Class B sharesof the open-end funds represented
    $2.1 billion and $1.4 billion of our assets under
    management as of December 31, 2004 and December 31,
    2003, respectively. Investors in Class B shares do not pay
    a sales charge at the time of investment; instead, we pay an
    upfront commission equal to 4.0% of the amount invested directly
    to the selling firm when the investment is made. This advance
    payment is capitalized when paid as a deferred sales commission
    asset. For the year ended December 31, 2004 and the year
    ended December 31, 2003, we made Class B share
    commission payments to selling firms of $22.7 million and
    $24.5 million, respectively. If the investor sells
    Class B shares within one year of investment, we receive
    from the proceeds of the sale a contingent deferred sales
    charge, often referred to as a CDSC, equal to 5.0% of the lesser
    of the redemption price or purchase price excluding amounts not
    subject to the charge. This contingent deferred sales charge
    generally decreases by 1.0% per year beginning on the first
    anniversary of the investment and terminates completely after
    six years of ownership. For the year ended December 31,
    2004 and the year ended December 31, 2003, we received
    Class B share CDSC payments of $3.4 million and
    $2.2 million, respectively. We receive Rule 12b-1 fees
    on Class B shares at the rate of 1.0% of Class B share
    assets under management (consisting of a 0.75% distribution fee
    and a 0.25% service fee) and record these fees as distribution
    and underwriting fee revenue. We make Class B share
    Rule 12b-1 service fee payments to the selling firm at the
    rate of 0.25% of Class B share assets under management and
    record these payments as a distribution expense. The
    Rule 12b-1 fees that we retain help us recover the upfront
    commissions that we paid to the selling firm. Rule 12b-1
    payments continue for eight years, at which point Class B
    shares automatically convert into Class A shares. For the
    year ended December 31, 2004 and the year ended
    December 31, 2003, we received Class B share
    Rule 12b-1 fees of $17 million and $9.7 million,
    respectively. For the same periods, we made Class B share
    Rule 12b-1 payments to selling firms of $4.3 million
    and $2.4 million, respectively.
|
| |  | Class C sharesof the open-end funds represented
    $5.3 billion and $3.4 billion of our assets under
    management as of December 31, 2004 and December 31,
    2003, respectively. Investors in Class C shares do not pay
    a sales charge at the time of investment; instead, we pay an
    upfront commission equal to 1.0% of the amount invested directly
    to the selling firm when the investment is made. This advance
    payment is capitalized when paid as a deferred sales commission
    asset. For the year ended December 31, 2004 and the year
    ended December 31, 2003, we made Class C share
    commission payments to selling firms of $18.9 million and
    $16.2 million, respectively. If the investor sells
    Class C shares within one year of investment, we receive
    from the proceeds of the sale a CDSC equal to 1.0% of the lesser
    of the redemption price or purchase price excluding amounts not
    subject to the charge. For the year ended December 31, 2004
    and the year ended December 31, 2003, we received
    Class C share CDSC payments of $0.9 million and
    $0.7 million, respectively. We receive Rule 12b-1 fees
    on Class C shares at the rate of 1.0% of Class C share
    assets under management (consisting of a 0.75% distribution fee
    and a 0.25% service fee) and record these fees as distribution
    and underwriting fee revenue. We                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         

21



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | - | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   | make Class C share Rule 12b-1 distribution and service
    fee payments to the selling firm beginning in the second year
    following the sale at the rate of 1.0% of Class C share
    assets under management and record these payments as a
    distribution expense. The first years Rule 12b-1 fee
    helps us to recoup the up front commission we paid to the
    selling firm. For the year ended December 31, 2004 and the
    year ended December 31, 2003, we received Class C
    share 12b-1 fees of $42.4 million and $22.4 million,
    respectively. For the same periods, we made Class C share
    Rule 12b-1 payments to selling firms of $22.6 million
    and $9.4 million, respectively.
|
| |  | Class I sharesof the open-end funds represented
    $0.3 billion and $0.2 billion of our assets under
    management as of December 31, 2004 and December 31,
    2003, respectively. These shares do not provide for a load and
    are generally offered to individual and institutional investors
    making initial investments of $5 million or more.                                                                                                                                                                                                                                                                                                                                                       

Closed-End Funds.




| |                  
| | -----------------
| | Separate Accounts





| |   |                                                                                                                                                                                                                                                                                                                            
| | - | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Institutional accountsare separately managed accounts
    for institutional investors such as public and private pension
    funds, public funds and endowment funds.                                                                                                                                                      
|
| |  | Managed accountsare separately managed accounts for
    individual and institutional investors offered primarily through
    national and regional broker-dealers. Managed accounts may be
    structured as investment management agreements between us and
    the investor directly or between us and the broker-dealer.
|
| |  | Private client accountsare separately managed accounts
    for individual investors offered directly by us.                                                                                                                                                                                                                
|
| |  | Alternative investmentsinclude non-registered investment
    vehicles, primarily hedge funds, offered directly by us to
    qualified individual and institutional investors.                                                                                                                                              

Revenues




22



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| |   |                                                                                                                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | total value and composition of our assets under management;                                                                                                                                                                                                   
|
| |  | market appreciation or depreciation;                                                                                                                                                                                                                          
|
| |  | level of net purchases and redemptions, which represent the sum
    of new client assets, additional funding from existing clients,
    withdrawals of assets from and termination of client accounts
    and purchases and redemptions of mutual fund shares;
|
| |  | distribution of assets under management among our investment
    products;                                                                                                                                                                                    
|
| |  | recent regulatory initiatives designed to increase the
    independence of mutual fund directors, as well as recent trends
    in the investment management industry generally, may result in
    downward pressure on our investment management fees;        
|
| |  | a determination by the independent directors of the mutual funds
    to terminate or significantly alter the funds investment
    management agreements with us; and                                                                                         
|
| |  | increased competition.                                                                                                                                                                                                                                        





| |   |                                                                                                                                                                                                             
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | total value and composition of our assets under management
    generally and by share class;                                                                                                                
|
| |  | market appreciation or depreciation;                                                                                                                                                                        
|
| |  | the level of purchases and redemptions; and                                                                                                                                                                 
|
| |  | recent regulatory and legislative initiatives, including the
    Mutual Fund Reform Act of 2004, which would, among other
    things, eliminate Rule 12b-1 distribution and/or service
    fees, if adopted.



| |                           
| | --------------------------
| | Investment Management Fees







| |                                   
| | ----------------------------------
| | Distribution and Underwriting Fees





23



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| |               
| | --------------
| | Other Revenues



Operating Expenses






| |   |                                                                                                                                                                                                                                                     
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | variations in the level of total compensation expense due to,
    among other things, bonuses, changes in our employee count and
    mix, and competitive factors;                                                                                  
|
| |  | changes in distribution expense as a result of fluctuations in
    mutual fund sales, level of redemptions and market appreciation
    or depreciation of assets under management                                                                   
|
| |  | the amount of Rule 12b-1 distribution and/or service fees
    that we receive, as well as our continued ability to receive
    those fees in the future, which would affect the amortization
    expenses associated with the receipt of these fees;
|
| |  | changes in the level of our marketing and promotion expenses in
    response to market conditions, including our efforts to further
    penetrate our existing distribution channels;                                                               
|
| |  | expenses and capital costs, such as technology assets,
    depreciation, amortization, and research and development,
    incurred to maintain and enhance our administrative and
    operating services infrastructure;                             
|
| |  | unanticipated costs that may be incurred to protect investor
    accounts and the goodwill of our clients; and                                                                                                                                      
|
| |  | disruptions of services, including those provided by third
    parties, such as facilities, communications, power, and the
    mutual fund transfer agent and accounting systems.                                                                   



| |                                   
| | ----------------------------------
| | Employee Compensation and Benefits



24



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##### Table of Contents









| |                     
| | --------------------
| | Distribution Expense





| |                                           
| | ------------------------------------------
| | Amortization of Deferred Sales Commissions





| |                         
| | ------------------------
| | Other Operating Expenses



25



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##### Table of Contents



Other Income (Expense), Net




Minority Interest






Income Taxes






Dilutive Effect of Issuance of New Shares of Class A
Common Stock






26



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##### Table of Contents









Recent Developments in the Regulation of the Mutual
Fund Industry




Reorganization and Holding Company Structure






27



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##### Table of Contents





Operating Results




| |                                                                          
| | -------------------------------------------------------------------------
| | Year Ended December 31, 2004 Compared to Year Ended
    December 31, 2003



28



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##### Table of Contents



|                                               |                                            |                                                  |                                                              |         |               |         |            |               |         |         |              |        |        |        |         |         |         |         | 
|---------------------------------------------- | ------------------------------------------ | ------------------------------------------------ | ------------------------------------------------------------ | ------- | ------------- | ------- | ---------- | ------------- | ------- | ------- | ------------ | ------ | ------ | ------ | ------- | ------- | ------- | ------- | 
|                                               |                                            |                                                  |                                                              |         |               |         |            | Pro Forma     |        
|(In thousands except per share and share data) |                                            |                                                  |                                                              |         |               |         |            | Combined Year |        
|                                               |                                            | Year Ended                                       |                                                              |         | January 1 to  |         |            | November 2 to |         |         | Ended        |       
|                                               |                                            | December 31,                                     |                                                              |         | November 1,   |         |            | December 31,  |         |         | December 31, |       
|                                               |                                            | 2003                                             |                                                              |         | 2004          |         |            | 2004          |         |         | 2004         |       
|                                               |                                            |                                                  |                                                              |         |               |         |            |               |         |         |              |       
|                                               |                                            | (Predecessor)                                    |                                                              |         | (Predecessor) |         |            |               |         |        
|Revenues:                                      |                                            |                                                  |                                                              |         |               |         |            |               |         |         |              |        |        |        |         |        
|                                               | Investment management fees                 |                                                  | $                                                            | 109,052 |               |         | $          | 168,938       |         |         | $            | 41,787 |        |        | $       | 210,725 |        
|                                               | Distribution and underwriting fees         |                                                  |                                                              | 53,005  |               |         |            | 79,578        |         |         |              | 19,350 |        |        |         | 98,928  |        
|                                               | Other                                      |                                                  |                                                              | 328     |               |         |            | 1,861         |         |         |              | 633    |        |        |         | 2,494   |        
|                                               |                                            |                                                  |                                                              |         |               |         |            |               |         |         |              |       
|                                               |                                            |                                                  | Total revenues                                               |         |               | 162,385 |            |               |         | 250,377 |              |        |        | 61,770 |         |         |         | 312,147 | 
|                                               |                                            |                                                  |                                                              |         |               |         |            |               |         |         |              |       
|Expenses:                                      |                                            |                                                  |                                                              |         |               |         |            |               |         |         |              |        |        |        |         |        
|                                               | Employee compensation and benefits         |                                                  |                                                              | 33,657  |               |         |            | 53,170        |         |         |              | 12,537 |        |        |         | 65,707  |        
|                                               | Distribution and underwriting expenses     |                                                  |                                                              | 22,576  |               |         |            | 39,517        |         |         |              | 11,040 |        |        |         | 50,557  |        
|                                               | Amortization of deferred sales commissions |                                                  |                                                              | 19,879  |               |         |            | 24,315        |         |         |              | 5,109  |        |        |         | 29,424  |        
|                                               | Marketing and sales promotion              |                                                  |                                                              | 8,949   |               |         |            | 16,694        |         |         |              | 2,228  |        |        |         | 18,922  |        
|                                               | General and administrative                 |                                                  |                                                              | 8,906   |               |         |            | 11,445        |         |         |              | 2,622  |        |        |         | 14,067  |        
|                                               |                                            |                                                  |                                                              |         |               |         |            |               |         |         |              |       
|                                               |                                            |                                                  | Total expenses                                               |         |               | 93,967  |            |               |         | 145,141 |              |        |        | 33,536 |         |         |         | 178,677 | 
|                                               |                                            |                                                  |                                                              |         |               |         |            |               |         |         |              |       
|Operating Income                               |                                            |                                                  | 68,418                                                       |         |               |         | 105,236    |               |         |         | 28,234       |        |        |        | 133,470 |        
|                                               |                                            |                                                  |                                                              |         |               |         |            |               |         |         |              |       
|Other income (expenses):                       |                                            |                                                  |                                                              |         |               |         |            |               |         |         |              |        |        |        |         |        
|                                               | Interest expense                           |                                                  |                                                              | (999    | )             |         |            | (4,627        | )       |         |              | (1,339 | )      |        |         | (5,966  | )      
|                                               | Investment income and other income         |                                                  |                                                              | 1,024   |               |         |            | 3,140         |         |         |              | 3,677  |        |        |         | 6,817   |        
|                                               |                                            |                                                  |                                                              |         |               |         |            |               |         |         |              |       
|                                               |                                            |                                                  | Total other income (expenses), net                           |         |               | 25      |            |               |         | (1,487  | )            |        |        | 2,338  |         |         |         | 851     | 
|                                               |                                            |                                                  |                                                              |         |               |         |            |               |         |         |              |       
|                                               |                                            | Income before minority interest and income taxes |                                                              |         | 68,443        |         |            |               | 103,749 |         |              |        | 30,572 |        |         |         | 134,321 |        
|                                               |                                            |                                                  | Minority interest in partnership investments                 |         |               |        |            |               |         |        |              |        |        | 1,322  |         |         |         | 1,322   | 
|                                               |                                            |                                                  | Income before minority interest in Holdings and income taxes |         |               | 68,443  |            |               |         | 103,749 |              |        |        | 29,250 |         |         |         | 132,999 | 
|                                               |                                            |                                                  |                                                              |         |               |         |            |               |         |         |              |       
|Minority interest in Holdings                  |                                            |                                                  |                                                             |         |               |         |           |               |         |         | 22,609       |        |        |        | 22,609  |        
|                                               |                                            |                                                  |                                                              |         |               |         |            |               |         |         |              |       
|                                               |                                            |                                                  | Income before income taxes                                   |         |               | 68,443  |            |               |         | 103,749 |              |        |        | 6,641  |         |         |         | 110,390 | 
|Income taxes                                   |                                            |                                                  | 1,117                                                        |         |               |         | 1,567      |               |         |         | 2,649        |        |        |        | 4,216   |        
|                                               |                                            |                                                  |                                                              |         |               |         |            |               |         |         |              |       
|                                               | Net income                                 |                                                  | $                                                            | 67,326  |               |         | $          | 102,182       |         |         | $            | 3,992  |        |        | $       | 106,174 |        
|                                               |                                            |                                                  |                                                              |         |               |         |            |               |         |         |              |       
|Earnings per share, basic                      |                                            | $                                                | 0.70                                                         |         |               | $       | 1.06       |               |         | $       | 0.18         |        |        |        |         |        
|Weighted average shares outstanding, basic     |                                            |                                                  | 96,800,000                                                   |         |               |         | 96,800,000 |               |         |         | 22,700,100   |        |        |        |         |        
|Earnings per share, diluted                    |                                            | $                                                | 0.70                                                         |         |               | $       | 1.06       |               |         | $       | 0.17         |        |        |        |         |        
|Weighted average shares outstanding, diluted   |                                            |                                                  | 96,800,000                                                   |         |               |         | 96,800,000 |               |         |         | 100,491,409  |        |        |        |         |        



| |                        
| | -----------------------
| | Assets Under Management



29



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|                              |                                   |                                 |   |               |                  |  |   |          |        |  |          |        |        |  |  |     |     |  
|----------------------------- | --------------------------------- | ------------------------------- | - | ------------- | ---------------- |  | - | -------- | ------ |  | -------- | ------ | ------ |  |  | --- | --- | -
|                              |                                   | Year Ended                      |   |               |                 
|                              |                                   | December 31,                    |   |               | Period-to-Period | 
|                              |                                   |                                 |   |               |                  | 
|                              |                                   | 2003                            |   |               | 2004             |  |   | $ Change |        |  | % Change |       
|                              |                                   |                                 |   |               |                  |  |   |          |        |  |          |       
|                              |                                   |                                 |   | (In millions) |                  |  |  
|                              |                                   | (In millions)                   |   |               |                  |  |  
|Mutual Funds                  |                                   |                                 |   |               |                  |  |   |          |        |  |          |        |        |  |  |    
|                              | Beginning assets under management |                                 | $ | 5,712         |                  |  | $ | 14,651   |        |  | $        | 8,939  |        |  |  | 156 | %  
|                              | Net purchases                     |                                 |   | 6,556         |                  |  |   | 9,776    |        |  |          | 3,220  |        |  |  | 49  | %  
|                              | Market appreciation               |                                 |   | 2,383         |                  |  |   | 2,524    |        |  |          | 141    |        |  |  | 6   | %  
|                              |                                   |                                 |   |               |                  |  |   |          |        |  |          |       
|                              |                                   | Ending assets under management  |   |               | 14,651           |  |   |          | 26,951 |  |          |        | 12,300 |  |  |     | 84  | %
|                              |                                   |                                 |   |               |                  |  |   |          |        |  |          |       
|                              |                                   | Average assets under management |   |               | 9,752            |  |   |          | 20,850 |  |          |        | 11,098 |  |  |     | 114 | %
|                              |                                   |                                 |   |               |                  |  |   |          |        |  |          |       
|Separate Accounts             |                                   |                                 |   |               |                  |  |   |          |        |  |          |        |        |  |  |    
|                              | Beginning assets under management |                                 |   | 7,180         |                  |  |   | 9,189    |        |  |          | 2,009  |        |  |  | 28  | %  
|                              | Net purchases                     |                                 |   | 475           |                  |  |   | 804      |        |  |          | 329    |        |  |  | 69  | %  
|                              | Market appreciation               |                                 |   | 1,534         |                  |  |   | 1,031    |        |  |          | (503   | )      |  |  | 33  | %  
|                              |                                   |                                 |   |               |                  |  |   |          |        |  |          |       
|                              |                                   | Ending assets under management  |   |               | 9,189            |  |   |          | 11,024 |  |          |        | 1,835  |  |  |     | 20  | %
|                              |                                   |                                 |   |               |                  |  |   |          |        |  |          |       
|                              |                                   | Average assets under management |   |               | 8,085            |  |   |          | 9,857  |  |          |        | 1,772  |  |  |     | 22  | %
|                              |                                   |                                 |   |               |                  |  |   |          |        |  |          |       
|Total Assets Under Management |                                   |                                 |   |               |                  |  |   |          |        |  |          |        |        |  |  |    
|                              | Beginning assets under management |                                 |   | 12,892        |                  |  |   | 23,840   |        |  |          | 10,948 |        |  |  | 85  | %  
|                              | Net purchases                     |                                 |   | 7,031         |                  |  |   | 10,580   |        |  |          | 3,549  |        |  |  | 50  | %  
|                              | Market appreciation               |                                 |   | 3,917         |                  |  |   | 3,555    |        |  |          | (362   | )      |  |  | 9   | %  
|                              |                                   |                                 |   |               |                  |  |   |          |        |  |          |       
|                              |                                   | Ending assets under management  |   |               | 23,840           |  |   |          | 37,975 |  |          |        | 14,135 |  |  |     | 59  | %
|                              |                                   |                                 |   |               |                  |  |   |          |        |  |          |       
|                              |                                   | Average assets under management |   | $             | 17,837           |  |   | $        | 30,707 |  |          | $      | 12,870 |  |  |     | 72  | %
|                              |                                   |                                 |   |               |                  |  |   |          |        |  |          |       





| |         
| | --------
| | Revenues



30



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##### Table of Contents





|                                   |                |                         |         |         |                  |   |         |          |  |   |          |         |  |  |     |    |  
|---------------------------------- | -------------- | ----------------------- | ------- | ------- | ---------------- | - | ------- | -------- |  | - | -------- | ------- |  |  | --- | -- | -
|                                   |                | Year Ended December 31, |         |         | Period-to-Period |  
|                                   |                |                         |         |         |                  |  
|                                   |                | 2003                    |         |         | 2004             |   |         | $ Change |  |   | % Change |        
|                                   |                |                         |         |         |                  |   |         |          |  |   |          |        
|                                   |                | (In thousands)          |         |         | (In thousands)   |   |         |         
|Investment management fees         |                | $                       | 109,052 |         |                  | $ | 210,725 |          |  | $ | 101,673  |         |  |  | 93  | % 
|Distribution and underwriting fees |                |                         | 53,005  |         |                  |   | 98,928  |          |  |   | 45,923   |         |  |  | 87  | % 
|Other                              |                |                         | 328     |         |                  |   | 2,494   |          |  |   | 2,166    |         |  |  | 660 | % 
|                                   |                |                         |         |         |                  |   |         |          |  |   |          |        
|                                   | Total revenues |                         | $       | 162,385 |                  |   | $       | 312,147  |  |   | $        | 149,762 |  |  |     | 92 | %
|                                   |                |                         |         |         |                  |   |         |          |  |   |          |        









| |                   
| | ------------------
| | Operating Expenses



|                                           |                          |                |        |        |                  |   |        |          |  |   |          |        |  |  |     |    |  
|------------------------------------------ | ------------------------ | -------------- | ------ | ------ | ---------------- | - | ------ | -------- |  | - | -------- | ------ |  |  | --- | -- | -
|                                           |                          | Year Ended     |        |        |                 
|                                           |                          | December 31,   |        |        | Period-to-Period |  
|                                           |                          |                |        |        |                  |  
|                                           |                          | 2003           |        |        | 2004             |   |        | $ Change |  |   | % Change |       
|                                           |                          |                |        |        |                  |   |        |          |  |   |          |       
|                                           |                          | (In thousands) |        |        | (In thousands)   |   |        |         
|Employee compensation and benefits         |                          | $              | 33,657 |        |                  | $ | 65,707 |          |  | $ | 32,050   |        |  |  | 95  | % 
|Distribution expense                       |                          |                | 22,576 |        |                  |   | 50,557 |          |  |   | 27,981   |        |  |  | 124 | % 
|Amortization of deferred sales commissions |                          |                | 19,879 |        |                  |   | 29,424 |          |  |   | 9,545    |        |  |  | 48  | % 
|Marketing and sales promotion              |                          |                | 8,949  |        |                  |   | 18,922 |          |  |   | 9,973    |        |  |  | 111 | % 
|General and administrative                 |                          |                | 8,906  |        |                  |   | 14,067 |          |  |   | 5,161    |        |  |  | 58  | % 
|                                           |                          |                |        |        |                  |   |        |          |  |   |          |       
|                                           | Total operating expenses |                | $      | 93,967 |                  |   | $      | 178,677  |  |   | $        | 84,710 |  |  |     | 90 | %
|                                           |                          |                |        |        |                  |   |        |          |  |   |          |       



31



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##### Table of Contents







| |                            
| | ---------------------------
| | Other Income (Expense), Net



|                            |                                   |                |       |    |                  |   |        |          |  |   |          |     |  |  |     |   | 
|--------------------------- | --------------------------------- | -------------- | ----- | -- | ---------------- | - | ------ | -------- |  | - | -------- | --- |  |  | --- | - | 
|                            |                                   | Year Ended     |       |    |                 
|                            |                                   | December 31,   |       |    | Period-to-Period |  
|                            |                                   |                |       |    |                  |  
|                            |                                   | 2003           |       |    | 2004             |   |        | $ Change |  |   | % Change |    
|                            |                                   |                |       |    |                  |   |        |          |  |   |          |    
|                            |                                   | (In thousands) |       |    | (In thousands)   |   |        |         
|Investment and other income |                                   | $              | 1,024 |    |                  | $ | 6,817  |          |  | $ | 5,793    |     |  |  | 566 | %
|Interest expense            |                                   |                | (999  | )  |                  |   | (5,966 | )        |  |   | (4,967   | )   |  |  | 497 | %
|                            |                                   |                |       |    |                  |   |        |          |  |   |          |    
|                            | Total other income (expense), net |                | $     | 25 |                  |   | $      | 851      |  |   | $        | 826 |  |  |     | * | 
|                            |                                   |                |       |    |                  |   |        |          |  |   |          |    






|  |                
|- | ---------------
|* | Not meaningful.



| |           
| | ----------
| | Net Income

1,
2, 3


32



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##### Table of Contents





|                                                                             |                                                                                                  |                                                  |            |         |               |           |             |               |        |   |             |         |         |               |       |         |        |   |             |          |         | 
|---------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------ | ------------------------------------------------ | ---------- | ------- | ------------- | --------- | ----------- | ------------- | ------ | - | ----------- | ------- | ------- | ------------- | ----- | ------- | ------ | - | ----------- | -------- | ------- | 
|(In thousands except per share and share                                     |                                                                                                  |                                                  |            |         |               | Pro Forma |             |               |        |   |            
|data)                                                                        |                                                                                                  |                                                  |            |         |               | Combined  |             |               |        |   | Pro Forma   |        
|                                                                             |                                                                                                  | Jan. 1 to                                        |            |         | Nov. 2 to     |           |             | Year Ended    |        |   | Pro Forma   |         |         | Year Ended    |      
|                                                                             |                                                                                                  | Nov. 1, 2004                                     |            |         | Dec. 31, 2004 |           |             | Dec. 31, 2004 |        |   | Adjustments |         |         | Dec. 31, 2004 |      
|                                                                             |                                                                                                  |                                                  |            |         |               |           |             |               |        |   |             |         |         |               |      
|                                                                             |                                                                                                  | (Predecessor)                                    |            |         |               |           |             |               |        |   |            
|Total revenues(1)                                                            |                                                                                                  | $                                                | 250,377    |         |               | $         | 61,770      |               |        | $ | 312,147     |         |         | $             | (157  | )       |        | $ | 311,990     |         
|Total expenses(1)                                                            |                                                                                                  |                                                  | 145,141    |         |               |           | 33,536      |               |        |   | 178,677     |         |         |               | (8    | )       |        |   | 178,669     |         
|                                                                             |                                                                                                  |                                                  |            |         |               |           |             |               |        |   |             |         |         |               |      
|                                                                             | Operating income                                                                                 |                                                  |            | 105,236 |               |           |             | 28,234        |        |   |             | 133,470 |         |               |       | (149    | )      |   |             | 133,321  |        
|                                                                             | Total other income (expense), net(1)                                                             |                                                  |            | (1,487  | )             |           |             | 2,338         |        |   |             | 851     |         |               |       | (1,808  | )      |   |             | (957     | )      
|                                                                             |                                                                                                  |                                                  |            |         |               |           |             |               |        |   |             |         |         |               |      
|                                                                             |                                                                                                  | Income before minority interest and income taxes |            |         | 103,749       |           |             |               | 30,572 |   |             |         | 134,321 |               |       |         | (1,957 | ) |             |          | 132,364 | 
|Minority interest in partnership investments                                 |                                                                                                  |                                                  |           |         |               |           | (1,322      | )             |        |   | (1,322      | )       |         |               |      |         |        |   | (1,322      | )       
|                                                                             |                                                                                                  |                                                  |            |         |               |           |             |               |        |   |             |         |         |               |      
|                                                                             | Income before minority interest in Calamos Holdings LLC and
    income taxes                     |                                                  |            | 103,749 |               |           |             | 29,250        |        |   |             | 132,999 |         |               |       | (1,957  | )      |   |             | 131,042  |        
|                                                                             | Minority interest in Calamos Holdings LLC(2)                                                     |                                                  |            |        |               |           |             | (22,609       | )      |   |             | (22,609 | )       |               |       | (78,293 | )      |   |             | (100,902 | )      
|                                                                             |                                                                                                  |                                                  |            |         |               |           |             |               |        |   |             |         |         |               |      
|                                                                             | Income before income taxes                                                                       |                                                  |            | 103,749 |               |           |             | 6,641         |        |   |             | 110,390 |         |               |       | (80,250 | )      |   |             | 30,140   |        
|Income taxes(3)                                                              |                                                                                                  |                                                  | 1,567      |         |               |           | 2,649       |               |        |   | 4,216       |         |         |               | 7,805 |         |        |   | 12,021      |         
|                                                                             |                                                                                                  |                                                  |            |         |               |           |             |               |        |   |             |         |         |               |      
|                                                                             | Net income                                                                                       |                                                  | $          | 102,182 |               |           | $           | 3,992         |        |   | $           | 106,174 |         |               | $     | (88,055 | )      |   | $           | 18,119   |        
|                                                                             |                                                                                                  |                                                  |            |         |               |           |             |               |        |   |             |         |         |               |      
|Pro forma earnings per share, basic                                          |                                                                                                  | $                                                | 1.06       |         |               | $         | 0.18        |               |        |   |             |         |         |               |       |         |        | $ | 0.79        |         
|                                                                             |                                                                                                  |                                                  |            |         |               |           |             |               |        |   |             |         |         |               |      
|Weighted average shares outstanding, basic(4)                                |                                                                                                  |                                                  | 96,800,000 |         |               |           | 22,700,100  |               |        |   |             |         |         |               |       |         |        |   | 23,000,100  |         
|                                                                             |                                                                                                  |                                                  |            |         |               |           |             |               |        |   |             |         |         |               |      
|                                                                             | Calculation of pro forma earnings per share, diluted, assuming
    exchange of membership units: |                                                  |            |         |               |           |             |               |        |   |             |         |         |               |       |         |        |   |             |          |        
|Income before minority interest in Calamos Holdings LLC and
    income taxes |                                                                                                  |                                                  |            |         |               | $         | 29,250      |               |        |   |             |         |         |               |       |         |        | $ | 131,042     |         
|Impact of income taxes                                                       |                                                                                                  |                                                  |            |         |               |           | 11,668      |               |        |   |             |         |         |               |       |         |        |   | 52,273      |         
|                                                                             |                                                                                                  |                                                  |            |         |               |           |             |               |        |   |             |         |         |               |      
|                                                                             | Proforma net income                                                                              |                                                  |            |         |               |           | $           | 17,582        |        |   |             |         |         |               |       |         |        |   | $           | 78,769   |        
|                                                                             |                                                                                                  |                                                  |            |         |               |           |             |               |        |   |             |         |         |               |      
|Pro forma earnings per share, diluted                                        |                                                                                                  | $                                                | 1.06       |         |               | $         | 0.17        |               |        |   |             |         |         |               |       |         |        | $ | 0.79        |         
|                                                                             |                                                                                                  |                                                  |            |         |               |           |             |               |        |   |             |         |         |               |      
|Weighted average shares outstanding, diluted(5)                              |                                                                                                  |                                                  | 96,800,000 |         |               |           | 100,491,409 |               |        |   |             |         |         |               |       |         |        |   | 100,080,642 |         
|                                                                             |                                                                                                  |                                                  |            |         |               |           |             |               |        |   |             |         |         |               |      





|    |                                                                                                                                                                                                                                                                                                                                
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents the adjustment related to the Real Estate
    Distribution based on actual amounts recorded during the periods
    presented.                                                                                                                                                                                       
|   
|(2) | Represents an adjustment to increase Calamos Asset Management,
    Inc.s minority interest allocation to 77 percent.
    Minority interest was determined by multiplying the combined
    income before minority interest and taxes by Calamos Family
    Partners, Inc.s and John P. Calamos, Sr.s
    77 percent aggregate

33



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##### Table of Contents



|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|    | ownership. The minority interest adjustment is presented based
    on the combined income for the periods presented.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|   
|(3) | Reflects the impact of federal and state income taxes on the
    income allocated from Calamos Holdings LLC to Calamos Asset
    Management, Inc. Historically, Calamos Family Partners, Inc.
    operated as an S corporation and was not subject to
    U.S. federal and certain state income taxes, but was
    subject to Illinois replacement taxes. The amount of pro forma
    adjustment was determined by eliminating the Illinois
    replacement tax and applying the combined projected federal
    corporate income tax rate and applicable state tax rates to
    income before income taxes.                                                                                                                                                                                                           
|   
|(4) | Represents 23,000,000 shares of Class A common stock,
    which represents 23.0 percent of the outstanding shares
    after the offering. In addition to shares of Class A common
    stock, there are 100 shares of Class B common stock
    outstanding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
|   
|(5) | Diluted shares outstanding for each period presented represent
    our weighted average Class A common stock after giving
    effect to the offering as of the beginning of each period
    presented. The diluted shares outstanding are calculated:
    (a) including the effect of outstanding restricted stock
    unit and option awards and (b) assuming Calamos Family
    Partners, Inc. and John P. Calamos, Sr. exchanged all of
    their membership units in Calamos Holdings LLC for, and
    converted all outstanding shares of our Class B common
    stock into, shares of our Class A common stock, in each
    case on a one-for-one basis. In calculating diluted earnings per
    share an effective tax rate of 39.89 percent was applied to
    income before minority interest and income taxes.



|                            |                  |                         |         |           |                  |   |         |          |  |   |          |        |  |  |     |    |  
|--------------------------- | ---------------- | ----------------------- | ------- | --------- | ---------------- | - | ------- | -------- |  | - | -------- | ------ |  |  | --- | -- | -
|                            |                  | Year Ended December 31, |         |           | Period-to-Period |  
|                            |                  |                         |         |           |                  |  
|                            |                  |                         |         | Pro Forma |                  |   |        
|                            |                  | 2003                    |         |           | 2004             |   |         | $ Change |  |   | % Change |       
|                            |                  |                         |         |           |                  |   |         |          |  |   |          |       
|                            |                  | (In thousands)          |         |           | (In thousands)   |   |         |         
|Total revenues              |                  | $                       | 162,385 |           |                  | $ | 312,147 |          |  | $ | 149,762  |        |  |  | 92  | % 
|Total operating expenses    |                  |                         | 93,967  |           |                  |   | 178,677 |          |  |   | 84,710   |        |  |  | 90  | % 
|                            |                  |                         |         |           |                  |   |         |          |  |   |          |       
|                            | Operating income |                         |         | 68,418    |                  |   |         | 133,470  |  |   |          | 65,052 |  |  |     | 95 | %
|Other income (expense), net |                  |                         | 25      |           |                  |   | 851     |          |  |   | 826      |        |  |  | *   |   
|Minority interest           |                  |                         |        |           |                  |   | 23,931  |          |  |   | 23,931   |        |  |  | *   |   
|Income taxes                |                  |                         | 1,117   |           |                  |   | 4,216   |          |  |   | 3,099    |        |  |  | 277 | % 
|                            |                  |                         |         |           |                  |   |         |          |  |   |          |       
|                            | Net income       |                         | $       | 67,326    |                  |   | $       | 106,174  |  |   | $        | 38,848 |  |  |     | 58 | %
|                            |                  |                         |         |           |                  |   |         |          |  |   |          |       






|  |                
|- | ---------------
|* | Not meaningful.





| |                                                                          
| | -------------------------------------------------------------------------
| | Year Ended December 31, 2003 Compared to Year Ended
    December 31, 2002



| |                        
| | -----------------------
| | Assets Under Management



34



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##### Table of Contents



|                              |                                   |                                 |   |       |                  |  |   |          |        |  |          |       |        |  |  |     |     |  
|----------------------------- | --------------------------------- | ------------------------------- | - | ----- | ---------------- |  | - | -------- | ------ |  | -------- | ----- | ------ |  |  | --- | --- | -
|                              |                                   | Year Ended                      |   |       |                 
|                              |                                   | December 31,                    |   |       | Period-to-Period | 
|                              |                                   |                                 |   |       |                  | 
|                              |                                   | 2002                            |   |       | 2003             |  |   | $ Change |        |  | % Change |      
|                              |                                   |                                 |   |       |                  |  |   |          |        |  |          |      
|                              |                                   | (In millions)                   |   |       | (In millions)    | 
|Mutual Funds                  |                                   |                                 |   |       |                  |  |   |          |        |  |          |       |        |  |  |    
|                              | Beginning assets under management |                                 | $ | 2,241 |                  |  | $ | 5,712    |        |  | $        | 3,471 |        |  |  | 155 | %  
|                              | Net purchases                     |                                 |   | 3,928 |                  |  |   | 6,556    |        |  |          | 2,628 |        |  |  | 67  | %  
|                              | Market appreciation               |                                 |   | (457  | )                |  |   | 2,383    |        |  |          | 2,840 |        |  |  | 621 | %  
|                              |                                   |                                 |   |       |                  |  |   |          |        |  |          |      
|                              |                                   | Ending assets under management  |   |       | 5,712            |  |   |          | 14,651 |  |          |       | 8,939  |  |  |     | 156 | %
|                              |                                   |                                 |   |       |                  |  |   |          |        |  |          |      
|                              |                                   | Average assets under management |   |       | 4,091            |  |   |          | 9,752  |  |          |       | 5,661  |  |  |     | 138 | %
|                              |                                   |                                 |   |       |                  |  |   |          |        |  |          |      
|Separate Accounts             |                                   |                                 |   |       |                  |  |   |          |        |  |          |       |        |  |  |    
|                              | Beginning assets under management |                                 |   | 7,094 |                  |  |   | 7,180    |        |  |          | 86    |        |  |  | 1   | %  
|                              | Net purchases                     |                                 |   | 469   |                  |  |   | 475      |        |  |          | 6     |        |  |  | 1   | %  
|                              | Market appreciation               |                                 |   | (383  | )                |  |   | 1,534    |        |  |          | 1,917 |        |  |  | 501 | %  
|                              |                                   |                                 |   |       |                  |  |   |          |        |  |          |      
|                              |                                   | Ending assets under management  |   |       | 7,180            |  |   |          | 9,189  |  |          |       | 2,009  |  |  |     | 28  | %
|                              |                                   |                                 |   |       |                  |  |   |          |        |  |          |      
|                              |                                   | Average assets under management |   |       | 7,037            |  |   |          | 8,085  |  |          |       | 1,048  |  |  |     | 15  | %
|                              |                                   |                                 |   |       |                  |  |   |          |        |  |          |      
|Total Assets Under Management |                                   |                                 |   |       |                  |  |   |          |        |  |          |       |        |  |  |    
|                              | Beginning assets under management |                                 |   | 9,335 |                  |  |   | 12,892   |        |  |          | 3,557 |        |  |  | 38  | %  
|                              | Net purchases                     |                                 |   | 4,397 |                  |  |   | 7,031    |        |  |          | 2,634 |        |  |  | 60  | %  
|                              | Market appreciation               |                                 |   | (840  | )                |  |   | 3,917    |        |  |          | 4,757 |        |  |  | 566 | %  
|                              |                                   |                                 |   |       |                  |  |   |          |        |  |          |      
|                              |                                   | Ending assets under management  |   |       | 12,892           |  |   |          | 23,840 |  |          |       | 10,948 |  |  |     | 85  | %
|                              |                                   |                                 |   |       |                  |  |   |          |        |  |          |      
|                              |                                   | Average assets under management |   | $     | 11,128           |  |   | $        | 17,837 |  |          | $     | 6,709  |  |  |     | 60  | %
|                              |                                   |                                 |   |       |                  |  |   |          |        |  |          |      





| |         
| | --------
| | Revenues



|                                   |                |                |        |        |                  |   |         |          |  |   |          |        |  |  |     |    |  
|---------------------------------- | -------------- | -------------- | ------ | ------ | ---------------- | - | ------- | -------- |  | - | -------- | ------ |  |  | --- | -- | -
|                                   |                | Year Ended     |        |        |                 
|                                   |                | December 31,   |        |        | Period-to-Period |  
|                                   |                |                |        |        |                  |  
|                                   |                | 2002           |        |        | 2003             |   |         | $ Change |  |   | % Change |       
|                                   |                |                |        |        |                  |   |         |          |  |   |          |       
|                                   |                | (In thousands) |        |        | (In thousands)   |   |         |         
|Investment management fees         |                | $              | 62,594 |        |                  | $ | 109,052 |          |  | $ | 46,458   |        |  |  | 74  | % 
|Distribution and underwriting fees |                |                | 24,883 |        |                  |   | 53,005  |          |  |   | 28,122   |        |  |  | 113 | % 
|Other                              |                |                | 363    |        |                  |   | 328     |          |  |   | (35      | )      |  |  | 10  | % 
|                                   |                |                |        |        |                  |   |         |          |  |   |          |       
|                                   | Total revenues |                | $      | 87,840 |                  |   | $       | 162,385  |  |   | $        | 74,545 |  |  |     | 85 | %
|                                   |                |                |        |        |                  |   |         |          |  |   |          |       

35



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##### Table of Contents









| |                   
| | ------------------
| | Operating Expenses



|                                           |                          |                |        |        |                  |   |        |          |  |   |          |        |  |  |     |    |  
|------------------------------------------ | ------------------------ | -------------- | ------ | ------ | ---------------- | - | ------ | -------- |  | - | -------- | ------ |  |  | --- | -- | -
|                                           |                          | Year Ended     |        |        |                 
|                                           |                          | December 31,   |        |        | Period-to-Period |  
|                                           |                          |                |        |        |                  |  
|                                           |                          | 2002           |        |        | 2003             |   |        | $ Change |  |   | % Change |       
|                                           |                          |                |        |        |                  |   |        |          |  |   |          |       
|                                           |                          | (In thousands) |        |        | (In thousands)   |   |        |         
|Employee compensation and benefits         |                          | $              | 28,317 |        |                  | $ | 33,657 |          |  | $ | 5,340    |        |  |  | 19  | % 
|Distribution expense                       |                          |                | 7,982  |        |                  |   | 22,576 |          |  |   | 14,594   |        |  |  | 183 | % 
|Amortization of deferred sales commissions |                          |                | 11,677 |        |                  |   | 19,879 |          |  |   | 8,202    |        |  |  | 70  | % 
|Marketing and sales promotion              |                          |                | 6,002  |        |                  |   | 8,949  |          |  |   | 2,947    |        |  |  | 49  | % 
|General and administrative                 |                          |                | 7,849  |        |                  |   | 8,906  |          |  |   | 1,057    |        |  |  | 13  | % 
|                                           |                          |                |        |        |                  |   |        |          |  |   |          |       
|                                           | Total operating expenses |                | $      | 61,827 |                  |   | $      | 93,967   |  |   | $        | 32,140 |  |  |     | 52 | %
|                                           |                          |                |        |        |                  |   |        |          |  |   |          |       



36



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##### Table of Contents





| |                            
| | ---------------------------
| | Other Income (Expense), Net



|                            |                                   |                |      |      |                  |   |       |          |  |   |          |     |  |  |   |     |  
|--------------------------- | --------------------------------- | -------------- | ---- | ---- | ---------------- | - | ----- | -------- |  | - | -------- | --- |  |  | - | --- | -
|                            |                                   | Year Ended     |      |      |                 
|                            |                                   | December 31,   |      |      | Period-to-Period |  
|                            |                                   |                |      |      |                  |  
|                            |                                   | 2002           |      |      | 2003             |   |       | $ Change |  |   | % Change |    
|                            |                                   |                |      |      |                  |   |       |          |  |   |          |    
|                            |                                   | (In thousands) |      |      | (In thousands)   |   |       |         
|Investment and other income |                                   | $              | 18   |      |                  | $ | 1,024 |          |  | $ | 1,006    |     |  |  | * |    
|Interest expense            |                                   |                | (917 | )    |                  |   | (999  | )        |  |   | (82      | )   |  |  | 9 | %  
|                            |                                   |                |      |      |                  |   |       |          |  |   |          |    
|                            | Total other income (expense), net |                | $    | (899 | )                |   | $     | 25       |  |   | $        | 924 |  |  |   | 103 | %
|                            |                                   |                |      |      |                  |   |       |          |  |   |          |    






|  |                
|- | ---------------
|* | Not meaningful.



| |           
| | ----------
| | Net Income



|                            |                  |                |        |        |                  |   |         |          |  |   |          |        |  |  |     |     |  
|--------------------------- | ---------------- | -------------- | ------ | ------ | ---------------- | - | ------- | -------- |  | - | -------- | ------ |  |  | --- | --- | -
|                            |                  | Year Ended     |        |        |                 
|                            |                  | December 31,   |        |        | Period-to-Period |  
|                            |                  |                |        |        |                  |  
|                            |                  | 2002           |        |        | 2003             |   |         | $ Change |  |   | % Change |       
|                            |                  |                |        |        |                  |   |         |          |  |   |          |       
|                            |                  | (In thousands) |        |        | (In thousands)   |   |         |         
|Total revenues              |                  | $              | 87,840 |        |                  | $ | 162,385 |          |  | $ | 74,545   |        |  |  | 85  | %  
|Total operating expenses    |                  |                | 61,827 |        |                  |   | 93,967  |          |  |   | 32,140   |        |  |  | 52  | %  
|                            |                  |                |        |        |                  |   |         |          |  |   |          |       
|                            | Operating income |                |        | 26,013 |                  |   |         | 68,418   |  |   |          | 42,405 |  |  |     | 163 | %
|Other income (expense), net |                  |                | (899   | )      |                  |   | 25      |          |  |   | 924      |        |  |  | 103 | %  
|Income tax expense          |                  |                | 383    |        |                  |   | 1,117   |          |  |   | 734      |        |  |  | 192 | %  
|                            |                  |                |        |        |                  |   |         |          |  |   |          |       
|                            | Net income       |                | $      | 24,731 |                  |   | $       | 67,326   |  |   | $        | 42,595 |  |  |     | 172 | %
|                            |                  |                |        |        |                  |   |         |          |  |   |          |       



Quarterly Results of Operations




|                                      |  |                             |            |  |               |   |            |               |  |   |               |  |  |   |            | 
|------------------------------------- |  | --------------------------- | ---------- |  | ------------- | - | ---------- | ------------- |  | - | ------------- |  |  | - | ---------- | 
|                                      |  | At or for the Quarter Ended |           
|                                      |  |                             |           
|                                      |  | March 31,                   |            |  | June 30,      |   |            | Sept. 30,     |  |   | Dec. 31,      | 
|                                      |  | 2003                        |            |  | 2003          |   |            | 2003          |  |   | 2003          | 
|                                      |  |                             |            |  |               |   |            |               |  |   |               | 
|                                      |  | (Predecessor)               |            |  | (Predecessor) |   |            | (Predecessor) |  |   | (Predecessor) | 
|                                      |  | (In thousands)              |           
|Assets under management (in millions) |  | $                           | 14,140     |  |               | $ | 17,756     |               |  | $ | 20,191        |  |  | $ | 23,840     | 
|                                      |  |                             |            |  |               |   |            |               |  |   |               | 
|Total revenue                         |  | $                           | 28,926     |  |               | $ | 35,327     |               |  | $ | 44,647        |  |  | $ | 53,485     | 
|Total operating expenses              |  |                             | 18,774     |  |               |   | 21,271     |               |  |   | 24,247        |  |  |   | 29,675     | 
|                                      |  |                             |            |  |               |   |            |               |  |   |               | 
|Operating income                      |  | $                           | 10,152     |  |               | $ | 14,056     |               |  | $ | 20,400        |  |  | $ | 23,810     | 
|                                      |  |                             |            |  |               |   |            |               |  |   |               | 
|Net income                            |  | $                           | 9,802      |  |               | $ | 14,055     |               |  | $ | 19,974        |  |  | $ | 23,495     | 
|                                      |  |                             |            |  |               |   |            |               |  |   |               | 
|Diluted earnings per share(1)         |  | $                           | 0.10       |  |               | $ | 0.15       |               |  | $ | 0.21          |  |  | $ | 0.24       | 
|Diluted shares outstanding            |  |                             | 96,800,000 |  |               |   | 96,800,000 |               |  |   | 96,800,000    |  |  |   | 96,800,000 | 

[Additional columns below]

[Continued from above table, first column and heading repeated]

|                                      |  |                             |            |                |                |   |                |               |  |   |               |  |  |          |            |  |  |   |             | 
|------------------------------------- |  | --------------------------- | ---------- | -------------- | -------------- | - | -------------- | ------------- |  | - | ------------- |  |  | -------- | ---------- |  |  | - | ----------- | 
|                                      |  | At or for the Quarter Ended |            |                | For the Period |  
|                                      |  |                             |            |                |                |  
|                                      |  |                             |            | Oct. 1 through |                |   | Nov. 2 through |              
|                                      |  | March 31,                   |            |                | June 30,       |   |                | Sept. 30,     |  |   | Nov. 1,       |  |  | Dec. 31, |           
|                                      |  | 2004                        |            |                | 2004           |   |                | 2004          |  |   | 2004          |  |  | 2004     |           
|                                      |  |                             |            |                |                |   |                |               |  |   |               |  |  |          |           
|                                      |  | (Predecessor)               |            |                | (Predecessor)  |   |                | (Predecessor) |  |   | (Predecessor) |  |  |         
|                                      |  | (In thousands)              |           
|Assets under management (in millions) |  | $                           | 28,973     |                |                | $ | 32,262         |               |  | $ | 33,248        |  |  | $        | 33,909     |  |  | $ | 37,975      | 
|                                      |  |                             |            |                |                |   |                |               |  |   |               |  |  |          |           
|Total revenue                         |  | $                           | 63,660     |                |                | $ | 75,854         |               |  | $ | 81,231        |  |  | $        | 29,632     |  |  | $ | 61,770      | 
|Total operating expenses              |  |                             | 39,557     |                |                |   | 42,554         |               |  |   | 45,776        |  |  |          | 17,254     |  |  |   | 33,536      | 
|                                      |  |                             |            |                |                |   |                |               |  |   |               |  |  |          |           
|Operating income                      |  | $                           | 24,103     |                |                | $ | 33,300         |               |  | $ | 35,455        |  |  | $        | 12,378     |  |  | $ | 28,234      | 
|                                      |  |                             |            |                |                |   |                |               |  |   |               |  |  |          |           
|Net income                            |  | $                           | 23,732     |                |                | $ | 33,417         |               |  | $ | 33,107        |  |  | $        | 11,926     |  |  | $ | 3,992       | 
|                                      |  |                             |            |                |                |   |                |               |  |   |               |  |  |          |           
|Diluted earnings per share(1)         |  | $                           | 0.25       |                |                | $ | 0.35           |               |  | $ | 0.34          |  |  | $        | 0.12       |  |  | $ | 0.17        | 
|Diluted shares outstanding            |  |                             | 96,800,000 |                |                |   | 96,800,000     |               |  |   | 96,800,000    |  |  |          | 96,800,000 |  |  |   | 100,491,409 | 






|    |                                                                                                                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Diluted shares outstanding for each period presented represent
    our weighted average Class A common stock after giving
    effect to the offering as of the beginning of each period
    presented. The diluted shares

37



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##### Table of Contents



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | outstanding are calculated: (a) including the effect of
    outstanding restricted stock unit and option awards and
    (b) assuming Calamos Family Partners, Inc. and John P.
    Calamos, Sr. exchanged all of their membership units in
    Calamos Holdings LLC for, and converted all outstanding shares
    of our Class B common stock into, shares of our
    Class A common stock, in each case on a one-for-one basis.
    In calculating diluted earnings per share for the period
    November 2 through December 31, 2004, an effective tax rate
    of 39.89 percent was applied to income before minority
    interest and income taxes to determine the earnings available to
    common stockholders.

Liquidity and Capital Resources






|                                        |                              |                 |   |        |      |  |   |         | 
|--------------------------------------- | ---------------------------- | --------------- | - | ------ | ---- |  | - | ------- | 
|                                        |                              | At December 31, |  
|                                        |                              |                 |  
|                                        |                              | 2003            |   |        | 2004 | 
|                                        |                              |                 |   |        |      | 
|                                        |                              | (In thousands)  |  
|Statements of financial condition data: |                              |                 |   |        |      |  |   |        
|                                        | Cash and cash equivalents    |                 | $ | 5,073  |      |  | $ | 149,768 | 
|                                        | Receivables                  |                 |   | 23,093 |      |  |   | 27,234  | 
|                                        | Investments                  |                 |   | 10,389 |      |  |   | 147,521 | 
|                                        | Deferred sales commissions   |                 |   | 49,236 |      |  |   | 61,417  | 
|                                        | Current portion of bank debt |                 |   | 15,676 |      |  |   |        | 
|                                        | Long-term debt               |                 |   | 23,008 |      |  |   | 150,000 | 



|                |                                                     |                |   |        |             |  |   |              |   |  |              |         |   |      |   |         |   |  |   |          |  
|--------------- | --------------------------------------------------- | -------------- | - | ------ | ----------- |  | - | ------------ | - |  | ------------ | ------- | - | ---- | - | ------- | - |  | - | -------- | -
|                |                                                     |                |   |        |             |  |   | Pro Forma    |  
|                |                                                     | Year Ended     |   |        | January 1   |  |   | November 2   |   |  | Combined     |        
|                |                                                     | December 31,   |   |        | through     |  |   | through      |   |  | Year Ended   |        
|                |                                                     |                |   |        | November 1, |  |   | December 31, |   |  | December 31, |        
|                |                                                     | 2002           |   |        | 2003        |  |   | 2004         |   |  | 2004         |         |   | 2004 |  
|                |                                                     |                |   |        |             |  |   |              |   |  |              |         |   |      |  
|                |                                                     | (In thousands) |  
|Cash flow data: |                                                     |                |   |        |             |  |   |              |   |  |              |         |   |      |   |         |   |  |   |         
|                | Net cash provided by (used in) operating activities |                | $ | 9,275  |             |  | $ | 36,825       |   |  | $            | 111,866 |   |      | $ | 21,288  |   |  | $ | 133,154  |  
|                | Net cash provided by (used in) investing activities |                |   | (2,161 | )           |  |   | (7,903       | ) |  |              | (57,499 | ) |      |   | (49,851 | ) |  |   | (107,350 | )
|                | Net cash provided by (used in) financing activities |                |   | (4,836 | )           |  |   | (26,497      | ) |  |              | 73,536  |   |      |   | 45,355  |   |  |   | 118,891  |  





38



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Contractual Obligations




|                                                                  |       |                            |         |           |        |   |       |           |           |   |           |       |  |         |       |       |  |   |         |         | 
|----------------------------------------------------------------- | ----- | -------------------------- | ------- | --------- | ------ | - | ----- | --------- | --------- | - | --------- | ----- |  | ------- | ----- | ----- |  | - | ------- | ------- | 
|                                                                  |       | Payments Due by Pay Period |        
|                                                                  |       |                            |        
|                                                                  |       |                            |         | Less Than |        |   |       |           | More Than |  
|                                                                  |       | Total                      |         |           | 1 Year |   |       | 1-3 Years |           |   | 3-5 Years |       |  | 5 Years |      
|                                                                  |       |                            |         |           |        |   |       |           |           |   |           |       |  |         |      
|                                                                  |       | (In thousands)             |        
|Long-term debt obligations                                        |       | $                          | 150,000 |           |        | $ |      |           |           | $ |          |       |  | $       |      |       |  | $ | 150,000 |        
|Operating lease obligations                                       |       |                            | 77,982  |           |        |   | 3,041 |           |           |   | 5,991     |       |  |         | 6,248 |       |  |   | 62,702  |        
|Purchase obligations                                              |       |                            |        |           |        |   |      |           |           |   |          |       |  |         |      |       |  |   |        |        
|Other long-term liabilities reflected on balance sheet under GAAP |       |                            | 263     |           |        |   |      |           |           |   | 212       |       |  |         | 31    |       |  |   | 20      |        
|                                                                  |       |                            |         |           |        |   |       |           |           |   |           |       |  |         |      
|                                                                  | Total |                            | $       | 228,245   |        |   | $     | 3,041     |           |   | $         | 6,203 |  |         | $     | 6,279 |  |   | $       | 212,722 | 
|                                                                  |       |                            |         |           |        |   |       |           |           |   |           |       |  |         |      

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Critical Accounting Policies and Estimates








| |                           
| | --------------------------
| | Deferred Sales Commissions









| |                   
| | ------------------
| | Compensation Plans

Accounting for Stock Based
Compensation, Accounting for


40



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Stock Appreciation Rights and Other Variable Stock Option or
Award Plans, an Interpretation of APB Opinions No. 15
and 25, or










| |             
| | ------------
| | Income Taxes





| |                                          
| | -----------------------------------------
| | Recently Issued Accounting Pronouncements





Business Risks




41



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Risks Related to Our Industry




| |                                                                                                                                                                                                                                               
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Changes in laws or regulations or in governmental policies
    could limit the sources and amounts of our revenues, increase
    our costs of doing business, decrease our profitability and
    materially and adversely affect our business.







| |                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------
| | To the extent we are forced to compete on the basis of
    price, we may not be able to maintain our current fee
    structure.





| |                                                                                                                                                      
| | -----------------------------------------------------------------------------------------------------------------------------------------------------
| | Regulatory developments designed to increase the
    independence of mutual fund boards of directors may result in
    downward pressure on our fees.



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| |                                                                                                           
| | ----------------------------------------------------------------------------------------------------------
| | We derive a substantial portion of our revenues from
    contracts that may be terminated on short notice.





| |                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Investors in the open-end funds can redeem their
    investments in these funds at any time without prior notice,
    which could adversely affect our earnings.





| |                                                                                                                                                                                            
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The elimination of our ability to receive fees from
    open-end funds pursuant to distribution plans adopted under the
    Investment Company Act would adversely affect our
    revenues.



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| |                                                                                                             
| | ------------------------------------------------------------------------------------------------------------
| | Regulatory developments designed to increase oversight of
    hedge funds may adversely affect our business.





| |                                                                                                                  
| | -----------------------------------------------------------------------------------------------------------------
| | Legislation eliminating joint management of mutual funds
    and hedge funds could adversely affect our business.





| |                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------
| | Failure to comply with fair value pricing and
    late trading policies and procedures may adversely 
     affect us.

i.e.


Risks Related to Our Business




| |                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------
| | Control by Calamos family members of a majority of the
    combined voting power of our common stock may give rise to
    conflicts of interests.



44



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| |                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------
| | A decline in the prices of securities would lead to a
    decline in our assets under management, revenues and
    earnings.





| |                                                                                     
| | ------------------------------------------------------------------------------------
| | The loss of key executives could have a material adverse
    affect on our business.





| |                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------
| | We depend on third-party distribution channels to market
    our investment products and access our client base.



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| |                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------
| | Our ability to operate our company effectively could be
    impaired if we are unable to attract and retain qualified
    personnel.







| |                                                                                           
| | ------------------------------------------------------------------------------------------
| | We derive a substantial portion of our revenues from a
    limited number of our products.



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| |                                                                                                                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our failure to comply with guidelines set by our clients
    and the boards of mutual funds could result in damage awards
    against us and a loss of assets under management, either of
    which could cause our earnings to decline.





| |                                                                                                                                               
| | ----------------------------------------------------------------------------------------------------------------------------------------------
| | We are dependent on Calamos Holdings LLC to distribute
    cash to us in amounts sufficient to pay our tax liabilities and
    other expenses.





| |                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | We intend to pay regular dividends to our stockholders,
    but our ability to do so is subject to the discretion of our
    board of directors and may be limited by our holding company
    structure and applicable provisions of Delaware law.





| |                                                                                                                                                                             
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Our business is dependent on the performance of
    third-party vendors and if they fail to perform properly, we may
    suffer financial loss and liability to our clients.



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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | A change of control of our company would automatically
    terminate our investment management agreements with our clients,
    unless our separate account clients consent and, in the case of
    fund clients, the funds boards of directors and
    shareholders voted to continue the agreements, and could prevent
    us for a two-year period from increasing the investment advisory
    fees we are able to charge our mutual fund clients.





Risks Related to the Company




| |                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------
| | The disparity in the voting rights among the classes of
    shares may have a potential adverse effect on the price of our
    Class A common stock.





| |                                                                                                                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Future sales of our Class A common stock in the
    public market could lower our stock price, and any additional
    capital raised by us through the sale of equity or convertible
    securities may dilute our stockholders ownership in us.







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| |                                                                                                 
| | ------------------------------------------------------------------------------------------------
| | The requirements of being a public company may strain our
    resources and distract management.





| |                                                                                                                                                                                                                                                                                                                         
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | The Calamos familys beneficial ownership of our
    Class B common stock, as well as anti-takeover provisions
    in our amended and restated certificate of incorporation and
    bylaws, could discourage a change of control that our
    stockholders may favor, which could negatively affect our stock
    price.





| |                                                                                                                                                                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | If we were deemed an investment company under the
    Investment Company Act as a result of our ownership of Calamos
    Holdings LLC, applicable restrictions could make it impractical
    for us to continue our business as contemplated and could have a
    material adverse effect on our business.



49



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If the Internal Revenue Service disallows all or any
portion of the tax amortization deductions to be allocated to
the company in association with the section 754 election to
be made by Calamos Holdings LLC, this action could have a
material adverse effect on our business.




Forward-Looking Information








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|         |                                                                
|-------- | ---------------------------------------------------------------
|Item 7A. | Quantitative and Qualitative Disclosures About Market
    Risk.







51



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|        |                                             
|------- | --------------------------------------------
|Item 8. | Financial Statements and Supplementary Data.

|                                                                                                                                                                                                                               |  |      |     | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  | ---- | --- | 
|                                                                                                                                                                                                                               |  | Page |    
|                                                                                                                                                                                                                               |  |      |    
|Report of Independent Registered Public Accounting Firm                                                                                                                                                                        |  |      | F-2 | 
|Consolidated Statements of Financial Condition at
    December 31, 2003 and 2004                                                                                                                                               |  |      | F-3 | 
|Consolidated Statements of Income for the period
    November 2, 2004 to December 31, 2004, the period
    January 1, 2004 to November 1, 2004 and the two years
    ended December 31, 2002 and 2003                          |  |      | F-4 | 
|Consolidated Statements of Changes in Stockholders Equity
    for the period November 2, 2004 to December 31, 2004,
    the period January 1, 2004 to November 1, 2004 and the
    two years ended December 31, 2002 and 2003 |  |      | F-5 | 
|Consolidated Statements of Cash Flows for the period
    November 2, 2004 to December 31, 2004, the period
    January 1, 2004 to November 1, 2004 and the two years
    ended December 31, 2002 and 2003                      |  |      | F-6 | 
|Notes to Consolidated Financial Statements                                                                                                                                                                                     |  |      | F-7 | 

52



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM












Accounting for Stock Based
Compensation.




| |         
| | --------
| | KPMG LLP





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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION


|                                             |                                                                                                                               |                                                       |                                 |                                                                   |        |        |         |         |         |        |         | 
|-------------------------------------------- | ----------------------------------------------------------------------------------------------------------------------------- | ----------------------------------------------------- | ------------------------------- | ----------------------------------------------------------------- | ------ | ------ | ------- | ------- | ------- | ------ | ------- | 
|                                             |                                                                                                                               | December 31,                                          |                                
|                                             |                                                                                                                               |                                                       |                                
|                                             |                                                                                                                               | 2003                                                  |                                 |                                                                   | 2004   |       
|                                             |                                                                                                                               |                                                       |                                 |                                                                   |        |       
|                                             |                                                                                                                               | (Predecessor)                                         |                                 |                                                                   |       
|                                             |                                                                                                                               | (In thousands of dollars)                             |                                
|ASSETS:                                     
|                                             | Current assets                                                                                                                |                                                       |                                 |                                                                   |        |        |         |         |        
|                                             |                                                                                                                               | Cash and cash equivalents                             |                                 | $                                                                 | 5,073  |        |         | $       | 149,768 |       
|                                             |                                                                                                                               | Receivables:                                          |                                 |                                                                   |        |        |         |         |         |       
|                                             |                                                                                                                               |                                                       | Affiliates and affiliated funds |                                                                   |        | 19,151 |         |         |         | 21,222 |        
|                                             |                                                                                                                               |                                                       | Customers                       |                                                                   |        | 3,942  |         |         |         | 6,012  |        
|                                             |                                                                                                                               | Investment securities, trading and available for sale |                                 |                                                                   | 10,389 |        |         |         | 147,521 |       
|                                             |                                                                                                                               | Prepaid expenses                                      |                                 |                                                                   | 978    |        |         |         | 1,917   |       
|                                             |                                                                                                                               | Deferred tax asset, net                               |                                 |                                                                   |       |        |         |         | 6,892   |       
|                                             |                                                                                                                               | Other                                                 |                                 |                                                                   | 2,187  |        |         |         | 4,046   |       
|                                             |                                                                                                                               |                                                       |                                 |                                                                   |        |       
|                                             |                                                                                                                               |                                                       |                                 | Total current assets                                              |        |        | 41,720  |         |         |        | 337,378 | 
|                                             |                                                                                                                               |                                                       |                                 |                                                                   |        |       
|                                             | Non-current assets                                                                                                            |                                                       |                                 |                                                                   |        |        |         |         |        
|                                             |                                                                                                                               | Deferred tax asset, net                               |                                 |                                                                   |       |        |         |         | 111,186 |       
|                                             |                                                                                                                               | Deferred sales commissions                            |                                 |                                                                   | 49,236 |        |         |         | 61,417  |       
|                                             |                                                                                                                               | Property and equipment, net                           |                                 |                                                                   | 12,260 |        |         |         | 4,902   |       
|                                             |                                                                                                                               | Other non-current assets                              |                                 |                                                                   | 1,315  |        |         |         | 1,569   |       
|                                             |                                                                                                                               |                                                       |                                 |                                                                   |        |       
|                                             |                                                                                                                               |                                                       |                                 | Total noncurrent assets                                           |        |        | 62,811  |         |         |        | 179,074 | 
|                                             |                                                                                                                               |                                                       |                                 |                                                                   |        |       
|                                             |                                                                                                                               |                                                       |                                 | Total assets                                                      |        |        | 104,531 |         |         |        | 516,452 | 
|                                             |                                                                                                                               |                                                       |                                 |                                                                   |        |       
|                                            
|LIABILITIES:                                
|                                             | Current liabilities:                                                                                                          |                                                       |                                 |                                                                   |        |        |         |         |        
|                                             |                                                                                                                               | Accounts payable:                                     |                                 |                                                                   |        |        |         |         |         |       
|                                             |                                                                                                                               |                                                       | Brokers                         |                                                                   |        | 6,094  |         |         |         | 12,514 |        
|                                             |                                                                                                                               |                                                       | Affiliates                      |                                                                   |        | 20     |         |         |         | 813    |        
|                                             |                                                                                                                               | Accrued compensation and benefits                     |                                 |                                                                   | 3,756  |        |         |         | 9,985   |       
|                                             |                                                                                                                               | Current portion of debt                               |                                 |                                                                   | 15,676 |        |         |         |        |       
|                                             |                                                                                                                               | Accrued expenses and other current liabilities        |                                 |                                                                   | 5,343  |        |         |         | 17,767  |       
|                                             |                                                                                                                               |                                                       |                                 |                                                                   |        |       
|                                             |                                                                                                                               |                                                       |                                 | Total current liabilities                                         |        |        | 30,889  |         |         |        | 41,079  | 
|                                             |                                                                                                                               |                                                       |                                 |                                                                   |        |       
|                                             | Long-term liabilities:                                                                                                        |                                                       |                                 |                                                                   |        |        |         |         |        
|                                             |                                                                                                                               | Long-term debt                                        |                                 |                                                                   | 23,008 |        |         |         | 150,000 |       
|                                             |                                                                                                                               | Other long-term liabilities                           |                                 |                                                                   | 4,210  |        |         |         | 263     |       
|                                             |                                                                                                                               |                                                       |                                 |                                                                   |        |       
|                                             |                                                                                                                               |                                                       |                                 | Total long-term liabilities                                       |        |        | 27,218  |         |         |        | 150,263 | 
|                                             |                                                                                                                               |                                                       |                                 |                                                                   |        |       
|                                             |                                                                                                                               |                                                       |                                 | Total liabilities                                                 |        |        | 58,107  |         |         |        | 191,342 | 
|                                             |                                                                                                                               |                                                       |                                 |                                                                   |        |       
|Minority interest in partnership investments |                                                                                                                               |                                                       | 11                              |                                                                   |        |        | 31,322  |        
|Minority interest in Holdings                |                                                                                                                               |                                                       |                                |                                                                   |        |        | 135,294 |        
|Stockholders equity:                        |                                                                                                                               |                                                       |                                 |                                                                   |        |        |         |        
|                                             | Class A Voting Common Stock, $0.01 par value.
    Authorized 600,000,000 shares; issued and outstanding
    23,000,000 shares |                                                       |                                 |                                                                   |        |        |         | 230     |        
|                                             | Class B Non-Voting Common Stock, $0.01 par value.
    Authorized 1,000 share; issued and outstanding
    100 shares           |                                                       |                                 |                                                                   |        |        |         | 0       |        
|                                             | Class A Voting Common Stock, no par value. (Predecessor)                                                                      |                                                       |                                 |                                                                  |        |        |         |         |        
|                                             | Class B Non-Voting Common Stock, no par value. (Predecessor)                                                                  |                                                       |                                 |                                                                  |        |        |         |         |        
|                                             | Additional paid-in capital                                                                                                    |                                                       |                                 | 2,274                                                             |        |        |         | 154,156 |        
|                                             | Retained earnings                                                                                                             |                                                       |                                 | 42,094                                                            |        |        |         | 2,364   |        
|                                             | Accumulated other comprehensive income                                                                                        |                                                       |                                 | 2,045                                                             |        |        |         | 1,744   |        
|                                             |                                                                                                                               |                                                       |                                 |                                                                   |        |       
|                                             |                                                                                                                               |                                                       |                                 | Total stockholders equity                                        |        |        | 46,413  |         |         |        | 158,494 | 
|                                             |                                                                                                                               |                                                       |                                 |                                                                   |        |       
|                                             |                                                                                                                               |                                                       |                                 | Total liabilities, minority interest and stockholders
    equity |        | $      | 104,531 |         |         | $      | 516,452 | 
|                                             |                                                                                                                               |                                                       |                                 |                                                                   |        |       



F-3



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


CONSOLIDATED STATEMENTS OF INCOME


|                         |                                              |                                                  |                                                                              |            |               |        |   |               |         |         |      |            |         |         |   |             |        |        | 
|------------------------ | -------------------------------------------- | ------------------------------------------------ | ---------------------------------------------------------------------------- | ---------- | ------------- | ------ | - | ------------- | ------- | ------- | ---- | ---------- | ------- | ------- | - | ----------- | ------ | ------ | 
|                         |                                              | Year Ended December 31,                          |                                                                              |            | January 1 to  |        |   | November 2 to |        
|                         |                                              |                                                  |                                                                              |            | November 1,   |        |   | December 31,  |        
|                         |                                              | 2002                                             |                                                                              |            | 2003          |        |   | 2004          |         |         | 2004 |           
|                         |                                              |                                                  |                                                                              |            |               |        |   |               |         |         |      |           
|                         |                                              | (Predecessor)                                    |                                                                              |            | (Predecessor) |        |   | (Predecessor) |         |         |     
|                         |                                              | (In thousands of dollars, except per share data) |                                                                             
|Revenues:                |                                              |                                                  |                                                                              |            |               |        |   |               |         |         |      |            |         |         |   |            
|                         |                                              | Investment management fees                       |                                                                              | $          | 62,594        |        |   | $             | 109,052 |         |      | $          | 168,938 |         |   | $           | 41,787 |       
|                         |                                              | Distribution and underwriting fees               |                                                                              |            | 24,883        |        |   |               | 53,005  |         |      |            | 79,578  |         |   |             | 19,350 |       
|                         |                                              | Other                                            |                                                                              |            | 363           |        |   |               | 328     |         |      |            | 1,861   |         |   |             | 633    |       
|                         |                                              |                                                  |                                                                              |            |               |        |   |               |         |         |      |           
|                         |                                              |                                                  | Total revenues                                                               |            |               | 87,840 |   |               |         | 162,385 |      |            |         | 250,377 |   |             |        | 61,770 | 
|                         |                                              |                                                  |                                                                              |            |               |        |   |               |         |         |      |           
|Expenses:                |                                              |                                                  |                                                                              |            |               |        |   |               |         |         |      |            |         |         |   |            
|                         |                                              | Employee compensation and benefits               |                                                                              |            | 28,317        |        |   |               | 33,657  |         |      |            | 53,170  |         |   |             | 12,537 |       
|                         |                                              | Distribution and underwriting expenses           |                                                                              |            | 7,982         |        |   |               | 22,576  |         |      |            | 39,517  |         |   |             | 11,040 |       
|                         |                                              | Amortization of deferred sales commissions       |                                                                              |            | 11,677        |        |   |               | 19,879  |         |      |            | 24,315  |         |   |             | 5,109  |       
|                         |                                              | Marketing and sales promotion                    |                                                                              |            | 6,002         |        |   |               | 8,949   |         |      |            | 16,694  |         |   |             | 2,228  |       
|                         |                                              | General and administrative                       |                                                                              |            | 7,849         |        |   |               | 8,906   |         |      |            | 11,445  |         |   |             | 2,622  |       
|                         |                                              |                                                  |                                                                              |            |               |        |   |               |         |         |      |           
|                         |                                              |                                                  | Total expenses                                                               |            |               | 61,827 |   |               |         | 93,967  |      |            |         | 145,141 |   |             |        | 33,536 | 
|                         |                                              |                                                  |                                                                              |            |               |        |   |               |         |         |      |           
|                         |                                              |                                                  | Operating income                                                             |            |               | 26,013 |   |               |         | 68,418  |      |            |         | 105,236 |   |             |        | 28,234 | 
|                         |                                              |                                                  |                                                                              |            |               |        |   |               |         |         |      |           
|Other income (expenses): |                                              |                                                  |                                                                              |            |               |        |   |               |         |         |      |            |         |         |   |            
|                         |                                              | Interest expense                                 |                                                                              |            | (917          | )      |   |               | (999    | )       |      |            | (4,627  | )       |   |             | (1,339 | )     
|                         |                                              | Investment income and other income               |                                                                              |            | 18            |        |   |               | 1,024   |         |      |            | 3,140   |         |   |             | 3,677  |       
|                         |                                              |                                                  |                                                                              |            |               |        |   |               |         |         |      |           
|                         |                                              |                                                  | Total other income (expenses), net                                           |            |               | (899   | ) |               |         | 25      |      |            |         | (1,487  | ) |             |        | 2,338  | 
|                         |                                              |                                                  |                                                                              |            |               |        |   |               |         |         |      |           
|                         |                                              |                                                  | Income before minority interest and income taxes                             |            |               | 25,114 |   |               |         | 68,443  |      |            |         | 103,749 |   |             |        | 30,572 | 
|                         | Minority interest in partnership investments |                                                  |                                                                              |           |               |        |   |              |         |         |      |           |         |         |   | 1,322       |       
|                         |                                              |                                                  |                                                                              |            |               |        |   |               |         |         |      |           
|                         |                                              |                                                  | Income before minority interest in Calamos Holdings LLC and
    income taxes |            |               | 25,114 |   |               |         | 68,443  |      |            |         | 103,749 |   |             |        | 29,250 | 
|                         | Minority interest in Calamos Holdings LLC    |                                                  |                                                                              |           |               |        |   |              |         |         |      |           |         |         |   | 22,609      |       
|                         |                                              |                                                  |                                                                              |            |               |        |   |               |         |         |      |           
|                         |                                              | Income before income taxes                       |                                                                              |            | 25,114        |        |   |               | 68,443  |         |      |            | 103,749 |         |   |             | 6,641  |       
|                         | Income taxes                                 |                                                  |                                                                              | 383        |               |        |   | 1,117         |         |         |      | 1,567      |         |         |   | 2,649       |       
|                         |                                              |                                                  |                                                                              |            |               |        |   |               |         |         |      |           
|                         |                                              | Net income                                       |                                                                              | $          | 24,731        |        |   | $             | 67,326  |         |      | $          | 102,182 |         |   | $           | 3,992  |       
|                         |                                              |                                                  |                                                                              |            |               |        |   |               |         |         |      |           
|                         | Earnings per share, basic                    |                                                  | $                                                                            | 0.26       |               |        | $ | 0.70          |         |         | $    | 1.06       |         |         | $ | 0.18        |       
|                         | Weighted average shares outstanding, basic   |                                                  |                                                                              | 96,800,000 |               |        |   | 96,800,000    |         |         |      | 96,800,000 |         |         |   | 22,700,100  |       
|                         | Earnings per share, diluted                  |                                                  | $                                                                            | 0.26       |               |        | $ | 0.70          |         |         | $    | 1.06       |         |         | $ | 0.17        |       
|                         | Weighted average shares outstanding, diluted |                                                  |                                                                              | 96,800,000 |               |        |   | 96,800,000    |         |         |      | 96,800,000 |         |         |   | 100,491,409 |       



F-4



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS
EQUITY


|                                                                                                     |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |        |   |  |   |         |  
|---------------------------------------------------------------------------------------------------- |  | ------------------------- | --- | ---------- | ------- | - | ------- | -------- | ----------- | - | ------------- | - |  | ----- | ------ | - |  | - | ------- | -
|                                                                                                     |  |                           |     | Additional |         |   |         |          | Accumulated |   |               |  
|                                                                                                     |  | Common                    |     |            | Paid-in |   |         | Retained |             |   | Comprehensive |   |  |      
|                                                                                                     |  | Stock                     |     |            | Capital |   |         | Earnings |             |   | Income        |   |  | Total |       
|                                                                                                     |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |       
|                                                                                                     |  | (In thousands of dollars) |    
|Balance at December 31, 2001                                                                         |  | $                         |    |            |         | $ | 2,274   |          |             | $ | 10,843        |   |  | $     | 1,206  |   |  | $ | 14,323  |  
|                                                                                                     |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |       
|Net income                                                                                           |  |                           |    |            |         |   |        |          |             |   | 24,731        |   |  |       |       |   |  |   | 24,731  |  
|Changes in unrealized gain on available-for-sale securities                                          |  |                           |    |            |         |   |        |          |             |   |              |   |  |       | (435   | ) |  |   | (435    | )
|                                                                                                     |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |       
|Total comprehensive income                                                                           |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |        |   |  |   | 24,296  |  
|Dividends paid                                                                                       |  |                           |    |            |         |   |        |          |             |   | (13,603       | ) |  |       |       |   |  |   | (13,603 | )
|                                                                                                     |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |       
|Balance at December 31, 2002                                                                         |  |                           |    |            |         |   | 2,274   |          |             |   | 21,971        |   |  |       | 771    |   |  |   | 25,016  |  
|                                                                                                     |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |       
|Net income                                                                                           |  |                           |    |            |         |   |        |          |             |   | 67,326        |   |  |       |       |   |  |   | 67,326  |  
|                                                                                                     |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |       
|Changes in unrealized gains on available-for-sale securities                                         |  |                           |    |            |         |   |        |          |             |   |              |   |  |       | 1,274  |   |  |   | 1,274   |  
|                                                                                                     |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |       
|Total comprehensive income                                                                           |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |        |   |  |   | 68,600  |  
|Dividends paid                                                                                       |  |                           |    |            |         |   |        |          |             |   | (47,203       | ) |  |       |       |   |  |   | (47,203 | )
|                                                                                                     |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |       
|Balance at December 31, 2003                                                                         |  |                           |    |            |         |   | 2,274   |          |             |   | 42,094        |   |  |       | 2,045  |   |  |   | 46,413  |  
|                                                                                                     |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |       
|Net income                                                                                           |  |                           |    |            |         |   |        |          |             |   | 102,182       |   |  |       |       |   |  |   | 102,182 |  
|Changes in unrealized gains on available-for-sale securities                                         |  |                           |    |            |         |   |        |          |             |   |              |   |  |       | 1,854  |   |  |   | 1,854   |  
|                                                                                                     |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |       
|Total comprehensive income                                                                           |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |        |   |  |   | 104,036 |  
|Additional capital contributions, in cash                                                            |  |                           |    |            |         |   | 3,300   |          |             |   |              |   |  |       |       |   |  |   | 3,300   |  
|Classification of EAU liability to additional paid-in-capital                                        |  |                           |    |            |         |   | 6,679   |          |             |   |              |   |  |       |       |   |  |   | 6,679   |  
|Compensation expense recognized under stock incentive plans                                          |  |                           |    |            |         |   | 33      |          |             |   |              |   |  |       |       |   |  |   | 33      |  
|Dividends paid                                                                                       |  |                           |    |            |         |   |        |          |             |   | (57,581       | ) |  |       |       |   |  |   | (57,581 | )
|                                                                                                     |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |       
|Balance at November 1, 2004                                                                          |  |                           |    |            |         |   | 12,286  |          |             |   | 86,695        |   |  |       | 3,899  |   |  |   | 102,880 |  
|Reclassify historical retained earnings to additional
    paid-in-capital                            |  |                           |    |            |         |   | 86,695  |          |             |   | (86,695       | ) |  |       |       |   |  |   |        |  
|                                                                                                     |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |       
|Balance at November 2, 2004 after reclassification                                                   |  |                           |    |            |         |   | 98,981  |          |             |   |              |   |  |       | 3,899  |   |  |   | 102,880 |  
|Allocation of 77% to minority interest                                                               |  |                           |    |            |         |   | (76,215 | )        |             |   |              |   |  |       | (3,002 | ) |  |   | (79,217 | )
|                                                                                                     |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |       
|Balance at November 2, 2004 before proceeds of IPO                                                   |  |                           |    |            |         |   | 22,766  |          |             |   |              |   |  |       | 897    |   |  |   | 23,663  |  
|23% of net proceeds from IPO                                                                         |  |                           | 230 |            |         |   | 11,231  |          |             |   |              |   |  |       |       |   |  |   | 11,461  |  
|Impact of overallotment option on allocated income                                                   |  |                           |    |            |         |   | 88      |          |             |   |              |   |  |       |       |   |  |   | 88      |  
|Initial deferred tax asset                                                                           |  |                           |    |            |         |   | 119,934 |          |             |   |              |   |  |       |       |   |  |   | 119,934 |  
|Net income                                                                                           |  |                           |    |            |         |   |        |          |             |   | 3,992         |   |  |       |       |   |  |   | 3,992   |  
|Changes in unrealized gains on available-for-sale securities,
    net of minority interest and taxes |  |                           |    |            |         |   |        |          |             |   |              |   |  |       | 847    |   |  |   | 847     |  
|                                                                                                     |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |       
|Total comprehensive income                                                                           |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |        |   |  |   | 4,839   |  
|Compensation expense recognized under stock incentive plans, net
    of minority interest            |  |                           |    |            |         |   | 137     |          |             |   |              |   |  |       |       |   |  |   | 137     |  
|Dividend equivalent accrued under stock incentive plans, net of
    minority interest                |  |                           |    |            |         |   |        |          |             |   | (18           | ) |  |       |       |   |  |   | (18     | )
|Dividends declared                                                                                   |  |                           |    |            |         |   |        |          |             |   | (1,610        | ) |  |       |       |   |  |   | (1,610  | )
|                                                                                                     |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |       
|Balance at December 31, 2004                                                                         |  | $                         | 230 |            |         | $ | 154,156 |          |             | $ | 2,364         |   |  | $     | 1,744  |   |  | $ | 158,494 |  
|                                                                                                     |  |                           |     |            |         |   |         |          |             |   |               |   |  |       |       



F-5



---



##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                       |                                                                                                       |                                                                       |                                                             |                                           |               |         |               |               |         |         |         |         |         |         |         |          |         |        |        |  
|------------------------------------------------------ | ----------------------------------------------------------------------------------------------------- | --------------------------------------------------------------------- | ----------------------------------------------------------- | ----------------------------------------- | ------------- | ------- | ------------- | ------------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | -------- | ------- | ------ | ------ | -
|                                                       |                                                                                                       |                                                                       |                                                             | January 1 to                              |               |         | November 2 to |              
|                                                       |                                                                                                       | Year Ending December 31,                                              |                                                             |                                           | November 1,   |         |               | December 31,  |        
|                                                       |                                                                                                       |                                                                       |                                                             |                                           |               |         |               |               |        
|                                                       |                                                                                                       | 2002                                                                  |                                                             |                                           | 2003          |         |               | 2004          |         |         | 2004    |        
|                                                       |                                                                                                       |                                                                       |                                                             |                                           |               |         |               |               |         |         |         |        
|                                                       |                                                                                                       | (Predecessor)                                                         |                                                             |                                           | (Predecessor) |         |               | (Predecessor) |         |         |        
|                                                       |                                                                                                       | (In thousands of dollars)                                             |                                                            
|Cash and cash equivalents at beginning of period       |                                                                                                       | $                                                                     | 370                                                         |                                           |               | $       | 2,648         |               |         | $       | 5,073   |         |         | $       | 132,976 |         
|Cash flows from operating activities:                  |                                                                                                       |                                                                       |                                                             |                                           |               |         |               |               |         |         |         |         |         |         |         |         
|                                                       | Net income                                                                                            |                                                                       |                                                             | 24,731                                    |               |         |               | 67,326        |         |         |         | 102,182 |         |         |         | 3,992    |        
|                                                       | Adjustments to reconcile income to net cash provided by
    operating activities:                     |                                                                       |                                                             |                                           |               |         |               |               |         |         |         |         |         |         |         |          |        
|                                                       |                                                                                                       | Minority interest in partnership investments                          |                                                             |                                           |              |         |               |               |        |         |         |         |        |         |         |          | 1,322   |       
|                                                       |                                                                                                       | Minority interest in Calamos Holdings LLC                             |                                                             |                                           |              |         |               |               |        |         |         |         |        |         |         |          | 22,609  |       
|                                                       |                                                                                                       | Amortization of deferred sales commissions                            |                                                             |                                           | 11,677        |         |               |               | 19,879  |         |         |         | 24,315  |         |         |          | 5,109   |       
|                                                       |                                                                                                       | Other depreciation and amortization                                   |                                                             |                                           | 863           |         |               |               | 973     |         |         |         | 1,054   |         |         |          | 248     |       
|                                                       |                                                                                                       | Unrealized (appreciation) depreciation on trading securities          |                                                             |                                           | 324           |         |               |               | (886    | )       |         |         | (144    | )       |         |          | (2,801  | )     
|                                                       |                                                                                                       | Unrealized (appreciation) depreciation on partnership
    investments |                                                             |                                           | (177          | )       |               |               | (86     | )       |         |         | (57     | )       |         |          | (11     | )     
|                                                       |                                                                                                       | Management fees received in partnership units                         |                                                             |                                           | (100          | )       |               |               | (155    | )       |         |         | (134    | )       |         |          | (27     | )     
|                                                       |                                                                                                       | Stock based compensation                                              |                                                             |                                           |              |         |               |               |        |         |         |         | 32      |         |         |          | 595     |       
|                                                       |                                                                                                       | Deferred taxes                                                        |                                                             |                                           |              |         |               |               |        |         |         |         |        |         |         |          | 1,297   |       
|                                                       |                                                                                                       | Gain on disposal of property                                          |                                                             |                                           |              |         |               |               |        |         |         |         | (1,989  | )       |         |          |        |       
|                                                       |                                                                                                       | (Increase) decrease in assets:                                        |                                                             |                                           |               |         |               |               |         |         |         |         |         |         |         |          |         |       
|                                                       |                                                                                                       |                                                                       | Accounts receivable:                                        |                                           |               |         |               |               |         |         |         |         |         |         |         |          |         |        |       
|                                                       |                                                                                                       |                                                                       |                                                             | Customers                                 |               |         | 553           |               |         |         | (1,423  | )       |         |         | (8,733  | )        |         |        | 6,663  |  
|                                                       |                                                                                                       |                                                                       |                                                             | Affiliates and affiliated Mutual Funds    |               |         | (3,894        | )             |         |         | (12,360 | )       |         |         | 6,395   |          |         |        | (8,466 | )
|                                                       |                                                                                                       |                                                                       | Deferred acquisition costs                                  |                                           |               | (28,095 | )             |               |         | (41,203 | )       |         |         | (34,441 | )       |          |         | (7,164 | )     
|                                                       |                                                                                                       |                                                                       | Other assets                                                |                                           |               | (1,203  | )             |               |         | (396    | )       |         |         | (865    | )       |          |         | 549    |       
|                                                       |                                                                                                       | Increase (decrease) in liabilities:                                   |                                                             |                                           |               |         |               |               |         |         |         |         |         |         |         |          |         |       
|                                                       |                                                                                                       |                                                                       | Accounts payables                                           |                                           |               | 597     |               |               |         | 727     |         |         |         | 7,229   |         |          |         | (16    | )     
|                                                       |                                                                                                       |                                                                       | Accrued compensation and benefits and deferred compensation |                                           |               | 2,132   |               |               |         | 2,120   |         |         |         | 1,212   |         |          |         | 5,017  |       
|                                                       |                                                                                                       |                                                                       | Other liabilities and accrued expenses                      |                                           |               | 1,867   |               |               |         | 2,309   |         |         |         | 15,810  |         |          |         | (7,628 | )     
|                                                       |                                                                                                       |                                                                       |                                                             |                                           |               |         |               |               |         |         |         |        
|                                                       |                                                                                                       |                                                                       |                                                             | Net cash provided by operating activities |               |         | 9,275         |               |         |         | 36,825  |         |         |         | 111,866 |          |         |        | 21,288 |  
|                                                       |                                                                                                       |                                                                       |                                                             |                                           |               |         |               |               |         |         |         |        
|Cash flows used in investing activities:               |                                                                                                       |                                                                       |                                                             |                                           |               |         |               |               |         |         |         |         |         |         |         |         
|                                                       | Net additions to property and equipment                                                               |                                                                       |                                                             | (985                                      | )             |         |               | (6,535        | )       |         |         | (9,090  | )       |         |         | (909     | )      
|                                                       | Net purchases of securities and partnership investments                                               |                                                                       |                                                             | (1,176                                    | )             |         |               | (1,368        | )       |         |         | (48,409 | )       |         |         | (48,942  | )      
|                                                       |                                                                                                       |                                                                       |                                                             |                                           |               |         |               |               |         |         |         |        
|                                                       |                                                                                                       | Net cash used in investing activity                                   |                                                             |                                           | (2,161        | )       |               |               | (7,903  | )       |         |         | (57,499 | )       |         |          | (49,851 | )     
|                                                       |                                                                                                       |                                                                       |                                                             |                                           |               |         |               |               |         |         |         |        
|Cash flows provided by (used in) financing activities: |                                                                                                       |                                                                       |                                                             |                                           |               |         |               |               |         |         |         |         |         |         |         |         
|                                                       | Net borrowings (payments) on bank debt                                                                |                                                                       |                                                             | 7,534                                     |               |         |               | 16,629        |         |         |         | (30,199 | )       |         |         |         |        
|                                                       | Net borrowings (payments) on mortgage payable                                                         |                                                                       |                                                             | 1,233                                     |               |         |               | 4,077         |         |         |         | (152    | )       |         |         |         |        
|                                                       | Net borrowings on debt offering                                                                       |                                                                       |                                                             |                                          |               |         |               |              |         |         |         | 148,169 |         |         |         | 47       |        
|                                                       | Capital contributions received                                                                        |                                                                       |                                                             |                                          |               |         |               |              |         |         |         | 3,300   |         |         |         |         |        
|                                                       | Net proceeds from issuance of common stock                                                            |                                                                       |                                                             |                                          |               |         |               |              |         |         |         |        |         |         |         | 382,131  |        
|                                                       | Proceeds from issuances of common stock used to purchase
    membership units in Calamos Holdings LLC |                                                                       |                                                             |                                          |               |         |               |              |         |         |         |        |         |         |         | (332,300 | )      
|                                                       | Cash dividends paid to minority interests                                                             |                                                                       |                                                             | (13,603                                   | )             |         |               | (47,203       | )       |         |         | (47,582 | )       |         |         | (4,523   | )      
|                                                       |                                                                                                       |                                                                       |                                                             |                                           |               |         |               |               |         |         |         |        
|                                                       |                                                                                                       | Net cash provided by (used in) financing activities                   |                                                             |                                           | (4,836        | )       |               |               | (26,497 | )       |         |         | 73,536  |         |         |          | 45,355  |       
|                                                       |                                                                                                       |                                                                       |                                                             |                                           |               |         |               |               |         |         |         |        
|                                                       |                                                                                                       | Net increase in cash                                                  |                                                             |                                           | 2,278         |         |               |               | 2,425   |         |         |         | 127,903 |         |         |          | 16,792  |       
|                                                       |                                                                                                       |                                                                       |                                                             |                                           |               |         |               |               |         |         |         |        
|Cash and cash equivalents at end of period             |                                                                                                       | $                                                                     | 2,648                                                       |                                           |               | $       | 5,073         |               |         | $       | 132,976 |         |         | $       | 149,768 |         
|                                                       |                                                                                                       |                                                                       |                                                             |                                           |               |         |               |               |         |         |         |        
|Supplemental disclosure of cash flow information:      |                                                                                                       |                                                                       |                                                             |                                           |               |         |               |               |         |         |         |         |         |         |         |         
|                                                       | Cash paid during the year for income taxes                                                            |                                                                       | $                                                           | 83                                        |               |         | $             | 479           |         |         | $       | 1,161   |         |         | $       | 1,356    |        
|                                                       | Interest paid                                                                                         |                                                                       | $                                                           | 832                                       |               |         | $             | 1,052         |         |         | $       | 4,432   |         |         | $       |         |        
|Supplement schedule of noncash activities:             |                                                                                                       |                                                                       |                                                             |                                           |               |         |               |               |         |         |         |         |         |         |         |         
|                                                       | Fair value of fixed assets and other assets distributed to
    stockholders                           |                                                                       | $                                                           |                                          |               |         | $             |              |         |         | $       | (18,354 | )       |         | $       |         |        
|                                                       | Fair value of mortgage payable and other liabilities assumed by
    stockholders                      |                                                                       | $                                                           |                                          |               |         | $             |              |         |         | $       | 8,355   |         |         | $       |         |        
|                                                       |                                                                                                       |                                                                       |                                                             |                                           |               |         |               |               |         |         |         |        
|                                                       | Fair value of distribution to stockholders                                                            |                                                                       | $                                                           |                                          |               |         | $             |              |         |         | $       | (9,999  | )       |         | $       |         |        
|                                                       |                                                                                                       |                                                                       |                                                             |                                           |               |         |               |               |         |         |         |        



F-6



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS


December 31, 2004, 2003 and 2002


(In thousands of dollars except per share data)




|    |                                         
|--- | ----------------------------------------
|(1) | Organization and Description of Business

















F-7



---



##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










|    |                               
|--- | ------------------------------
|(2) | Summary of Accounting Policies



| |                            
| | ---------------------------
| | Principles of Consolidation













| |                          
| | -------------------------
| | Cash and Cash Equivalents





| |                           
| | --------------------------
| | Receivables from Customers



F-8



---



##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                      
| | ---------------------
| | Investment Securities





Accounting for Certain Investments in Debt and Equity
Securities






| |                       
| | ----------------------
| | Property and Equipment





| |                              
| | -----------------------------
| | Internally Developed Software

Accounting for the Costs of Computer Software Developed or
Obtained for Internal Use




| |                 
| | ----------------
| | Debt Issue Costs

Interest on
Receivables and Payables. Classification of Debt Issue Costs in the Statement of Cash
Flows




| |                   
| | ------------------
| | Compensation Plans

Accounting for Stock Based
Compensation


F-9



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Accounting
for Stock Appreciation Rights and Other Variable Stock Option or
Award Plans, an Interpretation of APB Opinions No. 15 and
25 Accounting for Stock
Based Compensation  Transition and Disclosure








| |                    
| | -------------------
| | Revenue Recognition









| |                           
| | --------------------------
| | Deferred Sales Commissions





F-10



---



##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |             
| | ------------
| | Income Taxes



Accounting for Income Taxes.




| |                            
| | ---------------------------
| | Investments in Partnerships









| |                   
| | ------------------
| | Earnings per Share

Earnings per Share


F-11



---



##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                                                                
| | ---------------------------------------------------------------
| | Use of Estimates in the Preparation of Financial
    Statements





|    |                           
|--- | --------------------------
|(3) | Related-Party Transactions



|                                                  |                          |                     |        |        |        |   |        |        |        |   |        |         |         | 
|------------------------------------------------- | ------------------------ | ------------------- | ------ | ------ | ------ | - | ------ | ------ | ------ | - | ------ | ------- | ------- | 
|                                                  |                          | Twelve Months Ended |       
|                                                  |                          | December 31,        |       
|                                                  |                          |                     |       
|                                                  |                          | 2002                |        |        | 2003   |   |        | 2004   |       
|                                                  |                          |                     |        |        |        |   |        |        |       
|Investment management fees from:                  |                          |                     |        |        |        |   |        |        |        |   |        |        
|                                                  | The Funds                |                     | $      | 29,885 |        |   | $      | 61,913 |        |   | $      | 123,264 |        
|                                                  | The Closed-End Funds     |                     |        | 2,011  |        |   |        | 10,204 |        |   |        | 39,439  |        
|                                                  | Private investment pools |                     |        | 100    |        |   |        | 155    |        |   |        | 162     |        
|                                                  |                          |                     |        |        |        |   |        |        |       
|                                                  |                          | Totals              |        | $      | 31,996 |   |        | $      | 72,272 |   |        | $       | 162,865 | 
|                                                  |                          |                     |        |        |        |   |        |        |       
|Distribution and underwriting fees from the Funds |                          | $                   | 19,482 |        |        | $ | 43,972 |        |        | $ | 84,666 |        
|                                                  |                          |                     |        |        |        |   |        |        |       
|Portfolio accounting fees from:                   |                          |                     |        |        |        |   |        |        |        |   |        |        
|                                                  | The Funds                |                     | $      |       |        |   | $      |       |        |   | $      | 1,478   |        
|                                                  | The Closed-End Funds     |                     |        |       |        |   |        |       |        |   |        | 410     |        
|                                                  |                          |                     |        |        |        |   |        |        |       
|                                                  |                          | Totals              |        | $      |       |   |        | $      |       |   |        | $       | 1,888   | 
|                                                  |                          |                     |        |        |        |   |        |        |       



|                           |  |                     |     |  |      |   |     |      |  |   |     | 
|-------------------------- |  | ------------------- | --- |  | ---- | - | --- | ---- |  | - | --- | 
|                           |  | Twelve Months Ended |    
|                           |  | December 31,        |    
|                           |  |                     |    
|                           |  | 2002                |     |  | 2003 |   |     | 2004 | 
|                           |  |                     |     |  |      |   |     |      | 
|General and administrative |  | $                   | 639 |  |      | $ | 242 |      |  | $ | 459 | 
|                           |  |                     |     |  |      |   |     |      | 

|                                        |  |              |       |  |      |   |    |  
|--------------------------------------- |  | ------------ | ----- |  | ---- | - | -- | -
|                                        |  | December 31, |      
|                                        |  |              |      
|                                        |  | 2003         |       |  | 2004 |  
|                                        |  |              |       |  |      |  
|Net receivable from/(payable to) Dragon |  | $            | 3,332 |  |      | $ | (2 | )
|                                        |  |              |       |  |      |  

F-12



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










|    |                      
|--- | ---------------------
|(4) | Investment Securities



|                            |  |                   |       |  |            |   |       |            |  |   |        | 
|--------------------------- |  | ----------------- | ----- |  | ---------- | - | ----- | ---------- |  | - | ------ | 
|                            |  | December 31, 2003 |      
|                            |  |                   |      
|                            |  | Available         |       |  | Trading    |   |       | Total      | 
|                            |  | for Sale          |       |  | Securities |   |       | Securities | 
|                            |  |                   |       |  |            |   |       |            | 
|Affiliated Mutual Funds     |  | $                 | 6,073 |  |            | $ | 2,906 |            |  | $ | 8,979  | 
|Treasury securities         |  |                   | 250   |  |            |   |      |            |  |   | 250    | 
|Other investment securities |  |                   |      |  |            |   | 1,160 |            |  |   | 1,160  | 
|                            |  |                   |       |  |            |   |       |            | 
|                            |  | $                 | 6,323 |  |            | $ | 4,066 |            |  | $ | 10,389 | 
|                            |  |                   |       |  |            |   |       |            | 

|                            |  |                   |        |  |            |   |        |            |  |   |         | 
|--------------------------- |  | ----------------- | ------ |  | ---------- | - | ------ | ---------- |  | - | ------- | 
|                            |  | December 31, 2004 |       
|                            |  |                   |       
|                            |  | Available         |        |  | Trading    |   |        | Total      | 
|                            |  | for Sale          |        |  | Securities |   |        | Securities | 
|                            |  |                   |        |  |            |   |        |            | 
|Affiliated Mutual Funds     |  | $                 | 86,689 |  |            | $ | 3,359  |            |  | $ | 90,048  | 
|Treasury securities         |  |                   | 275    |  |            |   |       |            |  |   | 275     | 
|Other investment securities |  |                   | 70     |  |            |   | 57,128 |            |  | $ | 57,198  | 
|                            |  |                   |        |  |            |   |        |            | 
|                            |  | $                 | 87,034 |  |            | $ | 60,487 |            |  | $ | 147,521 | 
|                            |  |                   |        |  |            |   |        |            | 

F-13



---



##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                               |                                                                        |               |   |      |              |  |   |               |  |  |      |       |  |  |   |       | 
|------------------------------ | ---------------------------------------------------------------------- | ------------- | - | ---- | ------------ |  | - | ------------- |  |  | ---- | ----- |  |  | - | ----- | 
|                               |                                                                        | Twelve Months |   |      |              |  |  
|                               |                                                                        | Ended         |   |      |              |  |  
|                               |                                                                        | December 31,  |   |      | January 1 to |  |   | November 2 to | 
|                               |                                                                        |               |   |      | November 1,  |  |   | December 31,  | 
|                               |                                                                        | 2002          |   |      | 2003         |  |   | 2004          |  |  | 2004 |      
|                               |                                                                        |               |   |      |              |  |   |               |  |  |      |      
|Available for sale securities: |                                                                        |               |   |      |              |  |   |               |  |  |      |       |  |  |   |      
|                               | Proceeds from sale of available-for-sale securities                    |               | $ | 2    |              |  | $ |              |  |  | $    |      |  |  | $ |      | 
|                               | Realized gains (losses) from sale of available-for-sale
    securities |               |   |     |              |  |   |              |  |  |      |      |  |  |   |      | 
|                               | Unrealized gains (losses) on available-for-sale securities             |               |   | (435 | )            |  |   | 1,274         |  |  |      | 1,854 |  |  |   | 6,113 | 
|Trading securities:            |                                                                        |               |   |      |              |  |   |               |  |  |      |       |  |  |   |      
|                               | Unrealized gains (losses) on trading securities                        |               |   | (324 | )            |  |   | 886           |  |  |      | 144   |  |  |   | 2,801 | 



|                                                                                         |                         |              |       |       |       |   |        |       |        | 
|---------------------------------------------------------------------------------------- | ----------------------- | ------------ | ----- | ----- | ----- | - | ------ | ----- | ------ | 
|                                                                                         |                         | December 31, |      
|                                                                                         |                         |              |      
|                                                                                         |                         | 2003         |       |       | 2004  |  
|                                                                                         |                         |              |       |       |       |  
|Total cumulative unrealized gains on available-for-sale
    securities with net gains:   |                         |              |       |       |       |   |        |      
|                                                                                         | Affiliated Mutual Funds |              | $     | 1,930 |       |   | $      | 9,875 |       
|                                                                                         | Treasury securities     |              |       | 117   |       |   |        | 143   |       
|                                                                                         |                         |              |       |       |       |  
|                                                                                         |                         | Total gains  |       |       | 2,047 |   |        |       | 10,018 | 
|Total cumulative unrealized losses on available-for-sale
    securities with net losses: |                         |              |       |       |       |   |        |      
|                                                                                         | Affiliated Mutual Funds |              |       | (2    | )     |   |        | (6    | )     
|                                                                                         |                         |              |       |       |       |  
|Total cumulative unrealized gains (losses) on available-for-sale
    securities          |                         | $            | 2,045 |       |       | $ | 10,012 |      
|                                                                                         |                         |              |       |       |       |  





|    |                       
|--- | ----------------------
|(5) | Property and Equipment



F-14



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                   |  |                   |        |             |              |   |       |     |  |   |        | 
|---------------------------------- |  | ----------------- | ------ | ----------- | ------------ | - | ----- | --- |  | - | ------ | 
|                                   |  | December 31, 2003 |       
|                                   |  |                   |       
|                                   |  |                   |        | Accumulated |              |   |      
|                                   |  | Cost              |        |             | Depreciation |   |       | Net | 
|                                   |  |                   |        |             |              |   |       |     | 
|Land                               |  | $                 | 4,890  |             |              | $ |      |     |  | $ | 4,890  | 
|Building                           |  |                   | 2,154  |             |              |   | 538   |     |  |   | 1,616  | 
|Furniture, fixtures, and equipment |  |                   | 8,737  |             |              |   | 2,983 |     |  |   | 5,754  | 
|                                   |  |                   |        |             |              |   |       |     | 
|                                   |  | $                 | 15,781 |             |              | $ | 3,521 |     |  | $ | 12,260 | 
|                                   |  |                   |        |             |              |   |       |     | 

|                                   |  |                   |       |             |              |   |       |     |  |   |       | 
|---------------------------------- |  | ----------------- | ----- | ----------- | ------------ | - | ----- | --- |  | - | ----- | 
|                                   |  | December 31, 2004 |      
|                                   |  |                   |      
|                                   |  |                   |       | Accumulated |              |   |      
|                                   |  | Cost              |       |             | Depreciation |   |       | Net | 
|                                   |  |                   |       |             |              |   |       |     | 
|Land                               |  | $                 |      |             |              | $ |      |     |  | $ |      | 
|Building                           |  |                   |      |             |              |   |      |     |  |   |      | 
|Furniture, fixtures, and equipment |  |                   | 8,490 |             |              |   | 3,588 |     |  |   | 4,902 | 
|                                   |  |                   |       |             |              |   |       |     | 
|                                   |  | $                 | 8,490 |             |              | $ | 3,588 |     |  | $ | 4,902 | 
|                                   |  |                   |       |             |              |   |       |     | 



|    |     
|--- | ----
|(6) | Debt



|                           |                      |              |         |        |      |   |         |         | 
|-------------------------- | -------------------- | ------------ | ------- | ------ | ---- | - | ------- | ------- | 
|                           |                      | December 31, |        
|                           |                      |              |        
|                           |                      | 2003         |         |        | 2004 |  
|                           |                      |              |         |        |      |  
|Bank debt  term loan      |                      | $            | 24,216  |        |      | $ |        |        
|Bank debt  revolving loan |                      |              | 2,484   |        |      |   |        |        
|Bank debt  line of credit |                      |              | 3,500   |        |      |   |        |        
|Mortgage  building        |                      |              | 4,104   |        |      |   |        |        
|Mortgage  land            |                      |              | 4,381   |        |      |   |        |        
|Senior unsecured notes     |                      |              |        |        |      |   | 150,000 |        
|                           |                      |              |         |        |      |  
|                           | Total debt           |              |         | 38,685 |      |   |         | 150,000 | 
|Less current portion       |                      |              | (15,677 | )      |      |   |        |        
|                           |                      |              |         |        |      |  
|                           | Total long-term debt |              | $       | 23,008 |      |   | $       | 150,000 | 
|                           |                      |              |         |        |      |  



| |          
| | ---------
| | Bank Debt

1 4 3 8




F-15



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


1 4 3 8






| |         
| | --------
| | Mortgage





| |                       
| | ----------------------
| | Senior Unsecured Notes







|    |                                    
|--- | -----------------------------------
|(7) | Fair Value of Financial Instruments



F-16



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|             |                                                               |                   |   |        |                   |  |          |        |  |  |            |         |  |  |   |         | 
|------------ | ------------------------------------------------------------- | ----------------- | - | ------ | ----------------- |  | -------- | ------ |  |  | ---------- | ------- |  |  | - | ------- | 
|             |                                                               | December 31, 2003 |   |        | December 31, 2004 | 
|             |                                                               |                   |   |        |                   | 
|             |                                                               | Carrying          |   |        |                   |  | Carrying |        |  | 
|             |                                                               | Amount            |   |        | Fair Value        |  |          | Amount |  |  | Fair Value |        
|             |                                                               |                   |   |        |                   |  |          |        |  |  |            |        
|Assets:      |                                                               |                   |   |        |                   |  |          |        |  |  |            |         |  |  |   |        
|             | Cash and cash equivalents                                     |                   | $ | 5,073  |                   |  | $        | 5,073  |  |  | $          | 149,768 |  |  | $ | 149,768 | 
|             | Investment securities, trading and available for sale         |                   |   | 10,389 |                   |  |          | 10,389 |  |  |            | 147,521 |  |  |   | 147,521 | 
|             | Investment in partnerships (included in other current assets) |                   |   | 1,713  |                   |  |          | 1,713  |  |  |            | 3,072   |  |  |   | 3,072   | 
|            
|Liabilities: |                                                               |                   |   |        |                   |  |          |        |  |  |            |         |  |  |   |        
|             | Current portion of debt                                       |                   |   | 15,676 |                   |  |          | 15,676 |  |  |            |        |  |  |   |        | 
|             | Long-term debt                                                |                   |   | 23,008 |                   |  |          | 23,008 |  |  |            | 150,000 |  |  |   | 156,056 | 



|    |                                          
|--- | -----------------------------------------
|(8) | Minority Interest in Calamos Holdings LLC



|                                                             |  |   |         |  
|------------------------------------------------------------ |  | - | ------- | -
|Minority Interest at November 1, 2004                        |  | $ |        |  
|Historical shareholders equity as of November 1, 2004:      |  |   | 79,217  |  
|Net proceeds retained from the Offering                      |  |   | 38,370  |  
|Net income from November 2 to December 31, 2004(1)           |  |   | 22,604  |  
|Impact of overallotment option on allocated income(2)        |  |   | (88     | )
|Compensation expense recognized under stock incentive plans  |  |   | 458     |  
|Changes in unrealized gains on available-for-sale securities |  |   | 4,707   |  
|Dividend equivalent accrued under stock incentive plans      |  |   | (61     | )
|Dividends paid and declared                                  |  |   | (9,913  | )
|                                                             |  |   |        
|Minority Interest at December 31, 2004                       |  | $ | 135,294 |  
|                                                             |  |   |        






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Because CAM owned 20% of Holdings from November 2, 2004 through
    November 7, 2004 and 23% from November 8, 2004 through December
    31, 2004, the net income allocation of 77.3% is a result of the
    weighted average based upon the actual number of days.                                                                                                                                                                                                                                                                                                                
|   
|(2) | The subsequent purchase of 3,000,000 units on
    November 8, 2004, resulting from the underwriters
    exercise of the overallotment option, increased CAMs
    ownership in Holdings by 3% to 23%. As a result, the 3% of
    income from November 2, 2004 through November 7, 2004
    is not allocated to CAM in the income statement. However, CAM
    purchased 3% of the total equity of Holdings, including 3% of
    income from November 2, 2004 through November 7, 2004,
    which is reflected as an increase in equity and as a decrease to
    minority interest.



|    |             
|--- | ------------
|(9) | Common Stock



F-17



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|     |                                                              
|---- | -------------------------------------------------------------
|(10) | Effect of Initial Public Offering to Stockholders
    Equity



|                                                      |                                       |        |     |            |         |   |          |        |  |   |          |        | 
|----------------------------------------------------- | ------------------------------------- | ------ | --- | ---------- | ------- | - | -------- | ------ |  | - | -------- | ------ | 
|                                                      |                                       |        |     | Additional |         |   |         
|                                                      |                                       |        |     | Paid-in-   |         |   |         
|                                                      |                                       | Common |     |            | Capital |   |          | Total  | 
|                                                      |                                       |        |     |            |         |   |          |        | 
|Net proceeds from issuance of common stock            |                                       | $      | 230 |            |         | $ | 381,901  |        |  | $ | 382,131  |       
|Use of proceeds to purchase membership units from CFP |                                       |        |    |            |         |   | (332,300 | )      |  |   | (332,300 | )     
|                                                      |                                       |        |     |            |         |   |          |        | 
|Net proceeds retained by the Company                  |                                       |        | 230 |            |         |   | 49,601   |        |  |   | 49,831   |       
|Allocation of 77% to minority interest                |                                       |        |    |            |         |   | (38,370  | )      |  |   | (38,370  | )     
|                                                      |                                       |        |     |            |         |   |          |        | 
|                                                      | 23% of net proceeds from the Offering |        | $   | 230        |         |   | $        | 11,231 |  |   | $        | 11,461 | 
|                                                      |                                       |        |     |            |         |   |          |        | 



|     |                    
|---- | -------------------
|(11) | Profit Sharing Plan





|     |                   
|---- | ------------------
|(12) | Compensation Plans





| |                          
| | -------------------------
| | Equity Appreciation Units







F-18



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




| |                      
| | ---------------------
| | Incentive Stock Plans





|                                            |  |        |           | 
|------------------------------------------- |  | ------ | --------- | 
|                                            |  | Shares |          
|                                            |  |        |          
|Outstanding, October 26, 2004               |  |        |          | 
|Granted on October 27, 2004                 |  |        | 1,350,212 | 
|Forfeited                                   |  |        | 6,700     | 
|Exercised                                   |  |        |          | 
|                                            |  |        |          
|Outstanding, December 31, 2004              |  |        | 1,343,512 | 
|                                            |  |        |          
|RSUs converted during the year              |  |        |          | 
|Weighted average fair value of RSUs granted |  | $      | 18.00     | 





|                                               |  |        |         |          |                |   |       | 
|---------------------------------------------- |  | ------ | ------- | -------- | -------------- | - | ----- | 
|                                               |  |        |         | Weighted |               
|                                               |  |        |         | Average  |               
|                                               |  | Shares |         |          | Exercise Price |  
|                                               |  |        |         |          |                |  
|Outstanding, October 26, 2004                  |  |        |        |          |                |   |      | 
|Granted on October 27, 2004                    |  |        | 720,454 |          |                | $ | 18.00 | 
|Forfeited                                      |  |        |        |          |                |   |      | 
|Exercised                                      |  |        |        |          |                |   |      | 
|                                               |  |        |         |          |                |  
|Outstanding, December 31, 2004                 |  |        | 720,454 |          |                | $ | 18.00 | 
|                                               |  |        |         |          |                |  
|Options exercisable at year-end                |  |        |        |          |                |   |       | 
|Weighted average fair value of options granted |  | $      | 6.43    |          |                |   |       | 

F-19



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






| |                                                         
| | --------------------------------------------------------
| | Supplemental Incentive Compensation Award Plan
    Units





|     |             
|---- | ------------
|(13) | Income Taxes



|                            |         |      |     |     |      |              |       |       |               |   |       |       |  |   |       |       | 
|--------------------------- | ------- | ---- | --- | --- | ---- | ------------ | ----- | ----- | ------------- | - | ----- | ----- |  | - | ----- | ----- | 
|                            |         |      |     |     |      | January 1 to |       |       | November 2 to |  
|                            |         |      |     |     |      | November 1,  |       |       | December 31,  |  
|                            |         | 2002 |     |     | 2003 |              |       | 2004  |               |   | 2004  |      
|                            |         |      |     |     |      |              |       |       |               |   |       |      
|Current:                    |         |      |     |     |      |              |       |       |               |   |       |       |  |   |       |      
|                            | Federal |      | $   |    |      |              | $     |      |               |   | $     |      |  |   | $     | 1,104 | 
|                            | State   |      |     | 383 |      |              |       | 1,117 |               |   |       | 1,567 |  |   |       | 248   | 
|                            |         |      |     |     |      |              |       |       |               |   |       |      
|Total current income taxes  |         | $    | 383 |     |      | $            | 1,117 |       |               | $ | 1,567 |       |  | $ | 1,352 |      
|                            |         |      |     |     |      |              |       |       |               |   |       |      
|Deferred:                   |         |      |     |     |      |              |       |       |               |   |       |       |  |   |       |      
|                            | Federal |      | $   |    |      |              | $     |      |               |   | $     |      |  |   | $     | 1,059 | 
|                            | State   |      |     |    |      |              |       |      |               |   |       |      |  |   |       | 238   | 
|                            |         |      |     |     |      |              |       |       |               |   |       |      
|Total deferred income taxes |         | $    |    |     |      | $            |      |       |               | $ |      |       |  | $ | 1,297 |      
|                            |         |      |     |     |      |              |       |       |               |   |       |      
|Total income taxes          |         | $    | 383 |     |      | $            | 1,117 |       |               | $ | 1,567 |       |  | $ | 2,649 |      
|                            |         |      |     |     |      |              |       |       |               |   |       |      



|                               |                                                                                  |              |   |      |  |   |         |         | 
|------------------------------ | -------------------------------------------------------------------------------- | ------------ | - | ---- |  | - | ------- | ------- | 
|                               |                                                                                  | December 31, |  
|                               |                                                                                  |              |  
|                               |                                                                                  | 2003         |   | 2004 | 
|                               |                                                                                  |              |   |      | 
|Deferred tax assets:           |                                                                                  |              |   |      |  |   |         |        
|                               | Intangible assets                                                                |              | $ |     |  |   | $       | 115,586 | 
|                               | Deferred sales commissions                                                       |              |   |      |  |   |         | 2,788   | 
|                               | Other                                                                            |              |   |     |  |   |         | 603     | 
|                               |                                                                                  |              |   |      |  |  
|Total deferred tax assets      |                                                                                  |              |  |      |  |   | 118,977 |        
|                               |                                                                                  |              |   |      |  |  
|Deferred tax liabilities:      |                                                                                  |              |   |      |  |   |         |        
|                               | Unrealized net holding gains
    on investments on available for sale securities |              |   |      |  |   |         | 559     | 
|                               | Other                                                                            |              |   |     |  |   |         | 340     | 
|                               |                                                                                  |              |   |      |  |  
|Total deferred tax liabilities |                                                                                  |              |  |      |  |   | 899     |        
|                               |                                                                                  |              |   |      |  |  
|Net deferred tax assets        |                                                                                  | $            |  |      |  | $ | 118,078 |        
|                               |                                                                                  |              |   |      |  |  

F-20



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)








|                                                |                           |               |       |     |              |  |       |               |   |  |       |     |   |  |      |      |  
|----------------------------------------------- | ------------------------- | ------------- | ----- | --- | ------------ |  | ----- | ------------- | - |  | ----- | --- | - |  | ---- | ---- | -
|                                                |                           | Twelve Months |       |     |              |  |      
|                                                |                           | Ended         |       |     |              |  |      
|                                                |                           | December 31,  |       |     | January 1 to |  |       | November 2 to |  
|                                                |                           |               |       |     | November 1,  |  |       | December 31,  |  
|                                                |                           | 2002          |       |     | 2003         |  |       | 2004          |   |  | 2004  |    
|                                                |                           |               |       |     |              |  |       |               |   |  |       |    
|Statutory U.S. federal income tax rate          |                           |               | 35.0  | %   |              |  | 35.0  | %             |   |  | 35.0  | %   |   |  | 35.0 | %   
|Income passed through to stockholders           |                           |               | (35.0 | )%  |              |  | (35.0 | )%            |   |  | (35.0 | %)  |   |  |     |     
|State income taxes, net of federal tax benefits |                           |               | 1.5   | %   |              |  | 1.6   | %             |   |  | 1.5   | %   |   |  | 4.8  | %   
|Other non-deductible items                      |                           |               | 0.0   | %   |              |  | 0.0   | %             |   |  | 0.0   | %   |   |  | 0.1  | %   
|                                                |                           |               |       |     |              |  |       |               |   |  |       |    
|                                                | Effective income tax rate |               |       | 1.5 | %            |  |       | 1.6           | % |  |       | 1.5 | % |  |      | 39.9 | %
|                                                |                           |               |       |     |              |  |       |               |   |  |       |    



F-21



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|     |                   
|---- | ------------------
|(14) | Earnings Per Share



|                             |                                                                              |                                          |   |        |      |              |   |        |               |  |      |         |  |  |   |         | 
|---------------------------- | ---------------------------------------------------------------------------- | ---------------------------------------- | - | ------ | ---- | ------------ | - | ------ | ------------- |  | ---- | ------- |  |  | - | ------- | 
|                             |                                                                              |                                          |   |        |      | January 1 to |   |        | November 2 to | 
|                             |                                                                              |                                          |   |        |      | November 1,  |   |        | December 31,  | 
|                             |                                                                              | 2002                                     |   |        | 2003 |              |   | 2004   |               |  | 2004 |        
|                             |                                                                              |                                          |   |        |      |              |   |        |               |  |      |        
|                             |                                                                              | (In thousands, except per share amounts) |  
|Earnings per share  basic   |                                                                              |                                          |   |        |      |              |   |        |               |  |      |         |  |  |   |        
|                             | Earnings available to common shareholders                                    |                                          | $ | 24,731 |      |              | $ | 67,326 |               |  | $    | 102,182 |  |  | $ | 3,992   | 
|                             | Weighted average shares outstanding                                          |                                          |   | 96,800 |      |              |   | 96,800 |               |  |      | 96,800  |  |  |   | 22,700  | 
|                             |                                                                              |                                          |   |        |      |              |   |        |               |  |      |        
|                             | Earnings per share  basic                                                   |                                          | $ | 0.26   |      |              | $ | 0.70   |               |  | $    | 1.06    |  |  | $ | 0.18    | 
|                             |                                                                              |                                          |   |        |      |              |   |        |               |  |      |        
|Earnings per share  diluted |                                                                              |                                          |   |        |      |              |   |        |               |  |      |         |  |  |   |        
|                             | Income before minority interest and taxes                                    |                                          |   |        |      |              |   |        |               |  |      |         |  |  | $ | 30,572  | 
|                             | Less: Minority interest in Calamos Equity Opportunities
    Fund LP          |                                          |   |        |      |              |   |        |               |  |      |         |  |  |   | 1,322   | 
|                             |                                                                              |                                          |   |        |      |              |   |        |               |  |      |        
|                             | Income before minority interest in Calamos Holdings LLC and
    income taxes |                                          |   |        |      |              |   |        |               |  |      |         |  |  |   | 29,250  | 
|                             | Less: Impact of income taxes                                                 |                                          |   |        |      |              |   |        |               |  |      |         |  |  |   | 11,668  | 
|                             |                                                                              |                                          |   |        |      |              |   |        |               |  |      |        
|                             | Earnings per share available to common shareholders                          |                                          | $ | 24,731 |      |              | $ | 67,326 |               |  | $    | 102,182 |  |  | $ | 17,582  | 
|                             | Weighted average shares outstanding                                          |                                          |   | 96,800 |      |              |   | 96,800 |               |  |      | 96,800  |  |  |   | 22,700  | 
|                             | Conversion of membership units for common stock                              |                                          |   |       |      |              |   |       |               |  |      |        |  |  |   | 77,300  | 
|                             | Dilutive impact of RSUs                                                     |                                          |   |       |      |              |   |       |               |  |      |        |  |  |   | 491     | 
|                             | Dilutive impact of stock options                                             |                                          |   |       |      |              |   |       |               |  |      |        |  |  |   |        | 
|                             |                                                                              |                                          |   |        |      |              |   |        |               |  |      |        
|                             | Weighted average shares and potential dilutive shares outstanding            |                                          |   | 96,800 |      |              |   | 96,800 |               |  |      | 96,800  |  |  |   | 100,491 | 
|                             |                                                                              |                                          |   |        |      |              |   |        |               |  |      |        
|                             | Earnings per share  dilutive                                                |                                          | $ | 0.26   |      |              | $ | 0.70   |               |  | $    | 1.06    |  |  | $ | 0.17    | 
|                             |                                                                              |                                          |   |        |      |              |   |        |               |  |      |        





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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|     |                              
|---- | -----------------------------
|(15) | Commitments and Contingencies







|                        |            |                              |  |        |        | 
|----------------------- | ---------- | ---------------------------- |  | ------ | ------ | 
|                        |            | Minimum                      | 
|                        |            | Payments                     | 
|                        |            |                              | 
|Year ended December 31: |            |                              |  |       
|                        | 2005       |                              |  | 3,041  |       
|                        | 2006       |                              |  | 2,990  |       
|                        | 2007       |                              |  | 3,001  |       
|                        | 2008       |                              |  | 3,079  |       
|                        | 2009       |                              |  | 3,169  |       
|                        | Thereafter |                              |  | 62,702 |       
|                        |            |                              | 
|                        |            | Total minimum lease payments |  | $      | 77,982 | 
|                        |            |                              | 



|     |                                        
|---- | ---------------------------------------
|(16) | Regulatory and Net Capital Requirements



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                               |  |              |       |  |      |   |       | 
|------------------------------ |  | ------------ | ----- |  | ---- | - | ----- | 
|                               |  | December 31, |      
|                               |  |              |      
|                               |  | 2003         |       |  | 2004 |  
|                               |  |              |       |  |      |  
|Net capital                    |  | $            | 3,550 |  |      | $ | 6,453 | 
|Excess of required net capital |  | $            | 3,135 |  |      | $ | 5,502 | 
|Net capital ratio              |  |              | 1.75  |  |      |   | 2.21  | 





|     |                   
|---- | ------------------
|(17) | Concentration Risk





|     |                                          
|---- | -----------------------------------------
|(18) | Recently Issued Accounting Pronouncements





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##### Table of Contents








|        |                                                                                          
|------- | -----------------------------------------------------------------------------------------
|Item 9. | Changes in and Disagreements With Accountants on
    Accounting and Financial Disclosure.








|         |                         
|-------- | ------------------------
|Item 9A. | Controls and Procedures.






Item 9B.     Other
Information.









PART III







|         |                                                    
|-------- | ---------------------------------------------------
|Item 10. | Directors and Executive Officers of the Registrant.










|         |                        
|-------- | -----------------------
|Item 11. | Executive Compensation.






|         |                                                                    
|-------- | -------------------------------------------------------------------
|Item 12. | Security Ownership of Certain Beneficial Owners and
    Management.






|         |                                                
|-------- | -----------------------------------------------
|Item 13. | Certain Relationships and Related Transactions.






|         |                                        
|-------- | ---------------------------------------
|Item 14. | Principal Accounting Fees and Services.








PART IV







|         |                                         
|-------- | ----------------------------------------
|Item 15. | Exhibits, Financial Statement Schedules.









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##### Table of Contents



|        |    |                        |  |                                                                                                                                                                                                                              
|------- | -- | ---------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |                       
|Number  |    | Description of Exhibit
|        |    |                       
|        | 3  | .1                     |  | Amended and Restated Certificate of Incorporation of the
    Registrant.(1)                                                                                                                                                  
|       
|        | 3  | .2                     |  | Amended and Restated By-Laws of the Registrant.(1)                                                                                                                                                                           
|       
|        | 4  | .1                     |  | Stockholders Agreement among John P. Calamos, Sr.,
    Nick P. Calamos and John P. Calamos, Jr., certain trusts
    controlled by them, Calamos Family Partners, Inc. and the
    Registrant.(2)                            
|       
|        | 4  | .2                     |  | Registration Rights Agreement between Calamos Family Partners,
    Inc., John P. Calamos, Sr. and the Registrant.(2)                                                                                                         
|       
|        | 10 | .1                     |  | Employment Agreement between the Registrant and John P.
    Calamos, Sr.(2)                                                                                                                                                  
|       
|        | 10 | .2                     |  | Employment Agreement between the Registrant and Nick P.
    Calamos.(2)                                                                                                                                                      
|       
|        | 10 | .3                     |  | Employment Agreement between the Registrant and James S.
    Hamman, Jr.(2)                                                                                                                                                  
|       
|        | 10 | .4                     |  | Employment Agreement between the Registrant and Patrick H.
    Dudasik.(2)                                                                                                                                                   
|       
|        | 10 | .5                     |  | Calamos Asset Management, Inc. Incentive Compensation Plan.(2)                                                                                                                                                               
|       
|        | 10 | .6                     |  | Form of EAU-Based RSU Award Statement.(2)                                                                                                                                                                                    
|       
|        | 10 | .7                     |  | Form of IPO Equity Award Statement.(2)                                                                                                                                                                                       
|       
|        | 10 | .8                     |  | Form of Services-Based RSU Award Statement.(2)                                                                                                                                                                               
|       
|        | 10 | .9                     |  | Contribution Agreement between the Registrant and Calamos
    Holdings, LLC.(2)                                                                                                                                              
|       
|        | 10 | .10                    |  | Tax Indemnity Agreement among the Registrant, Calamos Family
    Partners, Inc. and Calamos Family Holdings LLC.(2)                                                                                                          
|       
|        | 10 | .11                    |  | Second Amended and Restated Limited Liability Company Agreement
    of Calamos Holdings LLC effective as of November 2, 2004,
    by and among Calamos Family Partners, Inc., John P.
    Calamos, Sr. and the Registrant.(2)
|       
|        | 10 | .12                    |  | Management Services Agreement between the Registrant and Calamos
    Family Partners, Inc.(2)                                                                                                                                
|       
|        | 21 | .1                     |  | Subsidiaries of the Company.                                                                                                                                                                                                 
|       
|        | 23 | .1                     |  | Consent of Independent Registered Public Accounting Firm, KPMG
    LLP.                                                                                                                                                      
|       
|        | 24 | .1                     |  | Power of Attorney (included on signature page of this report).                                                                                                                                                               
|       
|        | 31 | .1                     |  | Certification of Principal Executive Officer pursuant to
    Rule 13a-14(a).                                                                                                                                                 
|       
|        | 31 | .2                     |  | Certification of Principal Financial Officer pursuant to
    Rule 13a-14(a).                                                                                                                                                 
|       
|        | 32 | .1                     |  | Certification of Principal Executive Officer pursuant to
    18 U.S.C. Section 1350.                                                                                                                                         
|       
|        | 32 | .2                     |  | Certification of Principal Financial Officer pursuant to
    18 U.S.C. Section 1350.                                                                                                                                         






|    |                                                                                                                                                        
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Incorporated by reference to the Companys current report
    on Form 8-K filed with the Securities and Exchange
    Commission on November 2, 2004.   
|   
|(2) | Incorporated by reference to the Companys quarterly report
    on Form 10-Q filed with the Securities and Exchange
    Commission on December 3, 2004.

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##### Table of Contents






SIGNATURES






| |                               
| | ------------------------------
| | CALAMOS ASSET MANAGEMENT, INC.



| |     |                       
| | --- | ----------------------
| | By: | /s/ Patrick H. Dudasik

| |                                    
| | -----------------------------------
| |                                    
| | Name:        Patrick H.
    Dudasik

| |        |                                                                
| | ------ | ---------------------------------------------------------------
| | Title: | Executive Vice President, Chief Financial Officer and Treasurer



|                                               |  |                                                                                                             |          |                |      |                |  | 
|---------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------- | -------- | -------------- | ---- | -------------- |  | 
|Signature                                      |  | Title                                                                                                       |          |                | Date
|                                               |  |                                                                                                             |          |                |     
|                                              
|/s/ John P. Calamos Sr.John
    P. Calamos Sr. |  | Chairman of the Board, Chief Executive Officer and Co-Chief Investment Officer(Principal Executive Officer) |          | March 30, 2005
|                                              
|/s/ Patrick H. DudasikPatrick
    H. Dudasik   |  | Executive Vice President, Chief Financial Officer and Treasurer                                             |          | March 30, 2005
|                                              
|/s/ Nick P. CalamosNick
    P. Calamos         |  | Senior Executive Vice President,Co-Chief Investment Officer and Director                                    |          | March 30, 2005
|                                              
|/s/ G. Bradford BulkleyG.
    Bradford Bulkley |  |                                                                                                             | Director |                |      | March 30, 2005
|                                              
|/s/ Richard W. GilbertRichard
    W. Gilbert   |  |                                                                                                             | Director |                |      | March 30, 2005
|                                              
|/s/ Arthur L. KnightArthur
    L. Knight       |  |                                                                                                             | Director |                |      | March 30, 2005

II-3