##### 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, 2005
|                                            
|or -                                        
|                                            
|o                                            |  | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES EXCHANGE ACT OF 1934

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.)
|2020 Calamos Court,
    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                  
|                                     
|Class A Common Stock, $0.01 par value

o þ


o þ


þ o


S-K 10-K 10-K.


12b-2


o þ o


12b-2 o þ






DOCUMENTS INCORPORATED BY REFERENCE












---

TABLE OF CONTENTS



|                                                                               |                                                                                                                      |  |  |  |  |  |  | 
|------------------------------------------------------------------------------ | -------------------------------------------------------------------------------------------------------------------- |  |  |  |  |  |  | 
|PART I                                                                        
|                                                                               | Item 1. Business                                                                                                    
|                                                                               | Item 1A. Risk Factors                                                                                               
|                                                                               | Item 1B. Unresolved Staff Comments                                                                                  
|                                                                               | 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 Financial 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 and Related Stockholder Matters             
|                                                                               | Item 13. Certain Relationships and Related Transactions                                                             
|                                                                               | Item 14. Principal Accounting Fees and Services                                                                     
|PART IV                                                                       
|                                                                               | Item 15. Exhibits and Financial Statement Schedules                                                                 
|SIGNATURES                                                                    
|Amendment No.1 to 2nd Amended and Restated Limited Liability Company Agreement
|Consent of Independent Registered Public Accounting Firm                      
|Certification of Principal Executive Officer                                  
|Certification of Principal Financial Officer                                  
|Section 1350 Certification of Principal Executive Officer                     
|Section 1350 Certification of Principal Financial Officer                     



---



##### Table of Contents






PART I







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

we, us, our our company




Calamos Advisors


Calamos Financial Services




mutual funds open-end
funds


Overview


four stars five stars. Mutual Fund Ratings
and Rankings.








2



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Business Strategy






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





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

Mutual Fund Ratings and
Rankings.




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





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



3



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| |                                                                      
| | ---------------------------------------------------------------------
| | Selectively Expand Our Distribution Relationships and
    Client Base

day-to




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

Forbes Fortune, Pensions & Investments BusinessWeek. Barrons, BusinessWeek New
York Times,


4



---



##### Table of Contents



Investment Philosophy, Management and Process




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











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





5



---



##### Table of Contents





| |                   
| | ------------------
| | 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     |      |      |            
|                 |       | December 31, 2005 |      |      |            
|Asset Strategies |       | (in billions)     |      |      | Description
|                 |       |                   |      |      |            
|Equity           |       | $                 | 23.7 |      |             | Invests in a range of U.S. and global companies of various
    market capitalization under both growth and value disciplines
|Balanced         |       |                   | 11.3 |      |             | Invests in dynamic blend of convertible securities, equities and
    high yield securities, both in the U.S. and globally   
|Convertible      |       |                   | 5.6  |      |             | Invests primarily in convertible securities                                                                                 
|High Yield       |       |                   | 2.8  |      |             | Invests in high yield securities, or junk bonds as
    well as higher-yielding convertible securities                     
|Alternative      |       |                   | 0.4  |      |             | Invests in non-traditional strategies, including convertible
    arbitrage and leveraged equity among others                
|                 |       |                   |      |      |            
|                 | Total |                   | $    | 43.8 |             |                                                                                                                              | 
|                 |       |                   |      |      |            

Investment Products




6



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##### Table of Contents





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





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







7



---



##### Table of Contents





|                                  |  |               |      |  |            |                               |      |          |  |                                   |  |  |        |  |                   |          |     |       |  |                                                  |         |  |      |  |  |                             
|--------------------------------- |  | ------------- | ---- |  | ---------- | ----------------------------- | ---- | -------- |  | --------------------------------- |  |  | ------ |  | ----------------- | -------- | --- | ----- |  | ------------------------------------------------ | ------- |  | ---- |  |  | ----------------------------
|                                  |  |               |      |  |            | As of December 31, 2005       |      |          |  |                                   |  |  |       
|                                  |  |               |      |  |            | Overall Morningstar Rating(3) |      |          |  |                                   |  |  |       
|                                  |  |               |      |  |            |                               |      |          | 
|Fund and                          |  | Assets        |      |  | Risk (Beta |                               |      |          |  | Number of                         |  |  |        |  | Lipper Ranking(4)
|Year of                           |  | Under         |      |  | vs. S&P    |                               |      |          |  | Funds in                          |  |  | Star   |  |                   |         
|Inception(1)                      |  | Management    |      |  | 500)(2)    |                               |      | Category |  | Category                          |  |  | Rating |  |                   | Category |     | Years |  |                                                  | Ranking
|                                  |  |               |      |  |            |                               |      |          |  |                                   |  |  |        |  |                   |          |     |       |  |                                                  |        
|                                  |  | (In billions) |      |  |            |                               |      |          |  |                                   |  |  |        |  |                   |          |    
|Growth
    1990                   |  | $             | 18.1 |  |            |                               | 0.81 |          |  | Mid-cap
    growth funds          |  |  | 803    |  |                   |          | 4   |       |  | Multi-cap growth
    funds                       |         |  | 1510 |  |  | 204/409
    8/279
    1/89  
|Blue Chip
    2003                |  |               | 0.1  |  |            |                               | n/a  |          |  | Large blend                       |  |  | n/a    |  |                   |          | n/a |       |  | Multi-cap core funds                             |         |  | 1    |  |  | 516/829                     
|Value
    2002                    |  |               | 0.1  |  |            |                               | n/a  |          |  | Large blend                       |  |  | 1,490  |  |                   |          | 3   |       |  | Multi-cap core funds                             |         |  | 13   |  |  | 633/829
    177/601         
|International Growth
    2005     |  |               | 0.1  |  |            |                               | n/a  |          |  | Foreign large growth              |  |  | n/a    |  |                   |          | n/a |       |  | International
    small/mid-cap
    growth funds |         |  | n/a  |  |  | Not rated                   
|Global Growth and Income
    1996 |  |               | 0.5  |  |            |                               | 0.50 |          |  | World stock
    funds             |  |  | 392    |  |                   |          | 3   |       |  | Global multi-cap
    core funds                  |         |  | 15   |  |  | 1/69
    5/42               
|Growth and Income
    1988        |  |               | 5.7  |  |            |                               | 0.56 |          |  | Convertible funds                 |  |  | 80     |  |                   |          | 4   |       |  | Multi-cap core
    funds                         |         |  | 1510 |  |  | 230/829
    39/420
    8/132
|High Yield
    1999               |  |               | 0.2  |  |            |                               | 0.38 |          |  | High yield bond
    funds         |  |  | 447    |  |                   |          | 4   |       |  | High yield funds                                 |         |  | 15   |  |  | 233/423
    42/305          
|Convertible
    1985(5)           |  |               | 1.0  |  |            |                               | 0.55 |          |  | Convertible funds                 |  |  | 80     |  |                   |          | 4   |       |  | Convertible
    funds                            |         |  | 1510 |  |  | 31/76
    19/57
    3/33    
|Market Neutral Income
    1990(6) |  |               | 0.2  |  |            |                               | 0.12 |          |  | Conservative
    allocation funds |  |  | 318    |  |                   |          | 4   |       |  | Flexible income
    funds                        |         |  | 1510 |  |  | 12/17
    4/11
    1/7      
|                                  |  |               |      |  |            |                               |      |          |  |                                   |  |  |        |  |                   |          |     |       |  |                                                  |        
|Total                             |  | $             | 26.0 |  |            |                               |      |          |  |                                   |  |  |        |  |                   |          |     |       |  |                                                  |         |  |      |  |  |                             
|                                  |  |               |      |  |            |                               |      |          |  |                                   |  |  |        |  |                   |          |     |       |  |                                                  |        






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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 volatility. This column shows risk as
    measured by the funds beta (5 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, 2005: Growth
    Fund: 3 stars for 3 years, 4 stars for
    5 years, and 5 stars for 10 years out of 803, 613
    and 215 mid-cap
    growth funds respectively; Value Fund: 3 stars for
    3 years out of 1,490 large blend funds; Global Growth and
    Income Fund: 2 stars for 3 years and 4 stars for
    5 years out of 392 and 285 world stock funds
    respectively; Growth and Income Fund: 3 stars for 3 years,
    4 stars for 5 years, and 5 stars for 10 years out
    of 80, 70 and 46 convertible funds respectively; High Yield
    Fund: 3 stars for 3 years and 4 stars for 5 years out
    of 447 and 373 high yield bond funds respectively; Convertible
    Fund: 2 stars for 3 years, 3 stars for 5 years,
    and 5 stars for 10 years out of 80, 70 and
    46 convertible funds respectively; Market Neutral Income
    Fund: 2 stars for 3 years, 4 stars for 5 years,
    and 5 stars for 10 years out of 318, 194 and 69
    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 from March 14, 2003 through
    December 30, 2005.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                

8



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



closed-end




|                                     |       |                   |     |     |           |  |      |             |  |                                                                                                                                                                                                | 
|------------------------------------ | ----- | ----------------- | --- | --- | --------- |  | ---- | ----------- |  | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | 
|                                     |       | Assets Under      |     |     |           |  |     
|                                     |       | Management at     |     |     | Year of   |  |      |            
|Fund and Ticker                      |       | December 31, 2005 |     |     | Inception |  |      | Description
|                                     |       |                   |     |     |           |  |      |            
|                                     |       | (in billions)     |     |     |           |  |     
|Convertible Opportunities and Income |       |                   |     |     |           |  |      |             |  |                                                                                                                                                                                               
|CHI                                  |       | $                 | 1.1 |     |           |  | 2002 |             |  | Seeks total return through a combination of capital appreciation
    and current income by investing in convertible and
    non-convertible income 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.                                            
|Strategic Total Return               |       |                   |     |     |           |  |      |             |  |                                                                                                                                                                                               
|CSQ                                  |       |                   | 3.3 |     |           |  | 2004 |             |  | Seeks total return through a combination of capital appreciation
    and current income by investing in equity, convertible and high
    yield securities.                                    
|Global Total Return(1)               |       |                   |     |     |           |  |      |             |  |                                                                                                                                                                                               
|CGO                                  |       |                   | 0.1 |     |           |  | 2005 |             |  | Seeks total return through a combination of capital appreciation
    and current income by investing in a globally diversified
    portfolio of equity, convertible and high yield securities.
|                                     |       |                   |     |     |           |  |      |            
|                                     | Total |                   | $   | 5.9 |           |  |      |             |  |                                                                                                                                                                                                | 
|                                     |       |                   |     |     |           |  |      |            






|    |                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------
|(1) | Following a preferred stock offering in January 2006, CGO
    totaled approximately $180 million in assets at
    January 31, 2006.



9



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





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









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







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





10



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





Mutual Fund Ratings and Rankings


10-year 90-day 90-day








Technology and Intellectual Property






11



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##### Table of Contents







Distribution, Sales and Client Service










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





12



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Open-end funds. All nine 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 share 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 four 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 by 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







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





13



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Competition








Regulatory Environment




assignment






14



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12b-1 open-end shelf
space soft
dollar


i.e.








fiduciary


Employees




SEC Filings


10-K, 10-Q, 8-K, www.calamos.com





Item 1A.     Risk
Factors


Business Risks




15



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##### Table of Contents



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.





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



16



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| |                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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.





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





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

12b-1 12b-1 12b-1




| |                                                                                                
| | -----------------------------------------------------------------------------------------------
| | Catastrophic and unpredictable events could have a
    material adverse effect on our business.



17



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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.





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

Co-Chief Co-Chief




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



18



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12b-1 12b-1 12b-1 12b-1






| |                                                                                                                                     
| | ------------------------------------------------------------------------------------------------------------------------------------
| | 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.



19



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##### Table of Contents







| |                                                                                                                                               
| | ----------------------------------------------------------------------------------------------------------------------------------------------
| | 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.





| |                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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.



two-year


20



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##### Table of Contents







| |                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------
| | Failure to improve or protect our intellectual property
    rights may have a material adverse effect on our
    business.





| |                                                                  
| | -----------------------------------------------------------------
| | Damage to our reputation could adversely affect our
    business.



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.







21



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##### Table of Contents







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






Item 1B.     Unresolved
Staff Comments









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








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



22



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##### Table of Contents








|        |                                                    
|------- | ---------------------------------------------------
|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





|               |  |                    |       |  |      |                |       |           |  |   |       |  |  |      |       |  |      |   |      |  |  |   |      | 
|-------------- |  | ------------------ | ----- |  | ---- | -------------- | ----- | --------- |  | - | ----- |  |  | ---- | ----- |  | ---- | - | ---- |  |  | - | ---- | 
|               |  | Market Price Range |       |  |      |                |      
|               |  |                    |       |  |     
|               |  |                    |       |  |      | Cash Dividends |      
|               |  | 2005               |       |  | 2004 |                |       | per Share | 
|               |  |                    |       |  |      |                |       |           | 
|               |  | High               |       |  | Low  |                |       | High      |  |   | Low   |  |  | 2005 |       |  | 2004 |  
|               |  |                    |       |  |      |                |       |           |  |   |       |  |  |      |       |  |      |  
|First Quarter  |  | $                  | 31.40 |  |      | $              | 23.01 |           |  |   | N/A   |  |  |      | N/A   |  |      | $ | 0.07 |  |  |   | N/A  | 
|Second Quarter |  | $                  | 28.74 |  |      | $              | 20.55 |           |  |   | N/A   |  |  |      | N/A   |  |      | $ | 0.07 |  |  |   | N/A  | 
|Third Quarter  |  | $                  | 29.97 |  |      | $              | 23.23 |           |  |   | N/A   |  |  |      | N/A   |  |      | $ | 0.07 |  |  |   | N/A  | 
|Fourth Quarter |  | $                  | 32.81 |  |      | $              | 23.42 |           |  | $ | 28.35 |  |  | $    | 18.00 |  |      | $ | 0.09 |  |  | $ | 0.07 | 





Equity Compensation Plan Information


|                                                           |                        |                      |   |           |                   |                      |   |                      |      |  |   |  |           |    
|---------------------------------------------------------- | ---------------------- | -------------------- | - | --------- | ----------------- | -------------------- | - | -------------------- | ---- |  | - |  | --------- | ---
|                                                           |                        |                      |   |           |                   | Number of Securities |  
|                                                           |                        |                      |   |           |                   | Remaining Available  |  
|                                                           |                        |                      |   |           |                   | for Future Issuance  |  
|                                                           |                        | Number of Securities |   |           | Weighted-Average  |                      |   | Under Equity         |     
|                                                           |                        | to be Issued upon    |   |           | Exercise Price of |                      |   | Compensation Plans   |     
|                                                           |                        | Exercise of          |   |           | Outstanding       |                      |   | (Excluding           |     
|                                                           |                        | Outstanding Options, |   |           | Options, Warrants |                      |   | Securities Reflected |     
|                                                           |                        | Warrants and Rights  |   |           | and Rights        |                      |   | in Column (a))       |     
|Plan Category                                              |                        | (a)                  |   |           | (b)               |                      |   | (c)                  |     
|                                                           |                        |                      |   |           |                   |                      |   |                      |     
|Equity compensation plans approved by security holders:    |                        |                      |   |           |                   |                      |   |                      |      |  |   | 
|                                                           | Stock options          |                      |   | 1,009,967 |                   |                      | $ | 21.35                |      |  |   |  | (1)      
|                                                           | Restricted stock units |                      |   | 1,412,438 |                   |                      |   |                     |      |  |   |  | (1)      
|Equity compensation plans not approved by security holders |                        |                      |  |           |                   |                      |  |                      |      |  |  | 
|                                                           |                        |                      |   |           |                   |                      |   |                      |     
|                                                           |                        | Total                |   |           | 2,422,405         |                      |   | $                    | 8.89 |  |   |  | 7,577,595 | (1)
|                                                           |                        |                      |   |           |                   |                      |   |                      |     






|    |                                                                                                                                                                      
|--- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | A combined total of 10,000,000 shares of Calamos Asset
    Management, Inc.s common stock may be granted under the
    stock option and restricted stock unit plans.



23



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##### Table of Contents








|        |                        
|------- | -----------------------
|Item 6. | Selected Financial Data

three-year




10-K.


|                                                                             |                                            |                          |         |             |               |               |        |              |          |  |               |                         |         |               |         |         |               |  |        |            |         |  |        |            |        |  |       |            |        | 
|---------------------------------------------------------------------------- | ------------------------------------------ | ------------------------ | ------- | ----------- | ------------- | ------------- | ------ | ------------ | -------- |  | ------------- | ----------------------- | ------- | ------------- | ------- | ------- | ------------- |  | ------ | ---------- | ------- |  | ------ | ---------- | ------ |  | ----- | ---------- | ------ | 
|                                                                             |                                            |                          |         |             |               |               |        | Pro Forma    |          |  |              
|                                                                             |                                            | Year Ended               |         |             |               |               |        |              | Combined |  |               | Year Ended December 31, |        
|                                                                             |                                            | December 31,             |         |             | Nov. 2 to     |               |        | Jan. 1 to    |          |  | Year Ended    |                         |         |               |        
|(in thousands, except per share data)                                        |                                            | 2005                     |         |             | Dec. 31, 2004 |               |        | Nov. 1, 2004 |          |  | 2004          |                         |         | 2003          |         |         | 2002          |  |        | 2001       |        
|                                                                             |                                            |                          |         |             |               |               |        |              |          |  |               |                         |         |               |         |         |               |  |        |            |        
|                                                                             |                                            |                          |         |             |               | (Predecessor) |        |              |          |  | (Predecessor) |                         |         | (Predecessor) |         |         | (Predecessor) | 
|Income Statement Data:                                                       |                                            |                          |         |             |               |               |        |              |          |  |               |                         |         |               |         |         |               |  |        |            |         |  |        |            |        |  |       |           
|Revenues                                                                     |                                            |                          |         |             |               |               |        |              |          |  |               |                         |         |               |         |         |               |  |        |            |         |  |        |            |        |  |       |           
|                                                                             | Investment management fees                 |                          | $       | 284,951     |               |               | $      | 41,787       |          |  | $             | 168,938                 |         |               | $       | 210,725 |               |  | $      | 109,052    |         |  | $      | 62,594     |        |  | $     | 37,578     |       
|                                                                             | Distribution and underwriting fees         |                          |         | 129,250     |               |               |        | 19,350       |          |  |               | 79,578                  |         |               |         | 98,928  |               |  |        | 53,005     |         |  |        | 24,883     |        |  |       | 9,309      |       
|                                                                             | Other                                      |                          |         | 3,366       |               |               |        | 633          |          |  |               | 1,861                   |         |               |         | 2,494   |               |  |        | 328        |         |  |        | 363        |        |  |       | 454        |       
|                                                                             |                                            |                          |         |             |               |               |        |              |          |  |               |                         |         |               |         |         |               |  |        |            |        
|                                                                             |                                            | Total revenues           |         |             | 417,567       |               |        |              | 61,770   |  |               |                         | 250,377 |               |         |         | 312,147       |  |        |            | 162,385 |  |        |            | 87,840 |  |       |            | 47,341 | 
|Operating expenses                                                           |                                            |                          |         |             |               |               |        |              |          |  |               |                         |         |               |         |         |               |  |        |            |         |  |        |            |        |  |       |           
|                                                                             | Employee compensation and benefits         |                          |         | 61,029      |               |               |        | 12,537       |          |  |               | 53,170                  |         |               |         | 65,707  |               |  |        | 33,657     |         |  |        | 28,317     |        |  |       | 26,117     |       
|                                                                             | Distribution expenses                      |                          |         | 79,446      |               |               |        | 11,040       |          |  |               | 39,517                  |         |               |         | 50,557  |               |  |        | 22,576     |         |  |        | 7,982      |        |  |       | 3,634      |       
|                                                                             | Amortization of deferred sales commissions |                          |         | 31,431      |               |               |        | 5,109        |          |  |               | 24,315                  |         |               |         | 29,424  |               |  |        | 19,879     |         |  |        | 11,677     |        |  |       | 3,272      |       
|                                                                             | Marketing and sales promotion              |                          |         | 14,266      |               |               |        | 2,228        |          |  |               | 16,694                  |         |               |         | 18,922  |               |  |        | 8,949      |         |  |        | 6,002      |        |  |       | 2,210      |       
|                                                                             | General and administrative                 |                          |         | 25,301      |               |               |        | 2,622        |          |  |               | 11,445                  |         |               |         | 14,067  |               |  |        | 8,906      |         |  |        | 7,849      |        |  |       | 7,300      |       
|                                                                             |                                            |                          |         |             |               |               |        |              |          |  |               |                         |         |               |         |         |               |  |        |            |        
|                                                                             |                                            | Total operating expenses |         |             | 211,473       |               |        |              | 33,536   |  |               |                         | 145,141 |               |         |         | 178,677       |  |        |            | 93,967  |  |        |            | 61,827 |  |       |            | 42,533 | 
|                                                                             |                                            |                          |         |             |               |               |        |              |          |  |               |                         |         |               |         |         |               |  |        |            |        
|Operating income                                                             |                                            |                          | 206,094 |             |               |               | 28,234 |              |          |  | 105,236       |                         |         |               | 133,470 |         |               |  | 68,418 |            |         |  | 26,013 |            |        |  | 4,808 |           
|Other income (expense), net                                                  |                                            |                          | 5,761   |             |               |               | 1,016  |              |          |  | (1,487        | )                       |         |               | (471    | )       |               |  | 25     |            |         |  | (899   | )          |        |  | (563  | )         
|                                                                             |                                            |                          |         |             |               |               |        |              |          |  |               |                         |         |               |         |         |               |  |        |            |        
|Income before minority interest in Calamos Holdings LLC and
    income taxes |                                            |                          | 211,855 |             |               |               | 29,250 |              |          |  | 103,749       |                         |         |               | 132,999 |         |               |  | 68,443 |            |         |  | 25,114 |            |        |  | 4,245 |           
|Minority interest in Calamos Holdings LLC                                    |                                            |                          | 163,009 |             |               |               | 22,609 |              |          |  |              |                         |         |               | 22,609  |         |               |  |       |            |         |  |       |            |        |  |      |           
|                                                                             |                                            |                          |         |             |               |               |        |              |          |  |               |                         |         |               |         |         |               |  |        |            |        
|Income before income tax                                                     |                                            |                          | 48,846  |             |               |               | 6,641  |              |          |  | 103,749       |                         |         |               | 110,390 |         |               |  | 68,443 |            |         |  | 25,114 |            |        |  | 4,245 |           
|Income taxes                                                                 |                                            |                          | 19,624  |             |               |               | 2,649  |              |          |  | 1,567         |                         |         |               | 4,216   |         |               |  | 1,117  |            |         |  | 383    |            |        |  | 69    |           
|                                                                             |                                            |                          |         |             |               |               |        |              |          |  |               |                         |         |               |         |         |               |  |        |            |        
|                                                                             | Net income                                 |                          | $       | 29,222      |               |               | $      | 3,992        |          |  | $             | 102,182                 |         |               | $       | 106,174 |               |  | $      | 67,326     |         |  | $      | 24,731     |        |  | $     | 4,176      |       
|                                                                             |                                            |                          |         |             |               |               |        |              |          |  |               |                         |         |               |         |         |               |  |        |            |        
|Earnings per share                                                           |                                            |                          |         |             |               |               |        |              |          |  |               |                         |         |               |         |         |               |  |        |            |         |  |        |            |        |  |       |           
|                                                                             | Basic                                      |                          | $       | 1.27        |               |               | $      | 0.18         |          |  | $             | 1.06                    |         |               |         |         |               |  | $      | 0.70       |         |  | $      | 0.26       |        |  | $     | 0.04       |       
|                                                                             | Diluted                                    |                          | $       | 1.26        |               |               | $      | 0.17         |          |  | $             | 1.06                    |         |               |         |         |               |  | $      | 0.70       |         |  | $      | 0.26       |        |  | $     | 0.04       |       
|Weighted average shares outstanding                                          |                                            |                          |         |             |               |               |        |              |          |  |               |                         |         |               |         |         |               |  |        |            |         |  |        |            |        |  |       |           
|                                                                             | Basic(1)                                   |                          |         | 23,000,100  |               |               |        | 22,700,100   |          |  |               | 96,800,000              |         |               |         |         |               |  |        | 96,800,000 |         |  |        | 96,800,000 |        |  |       | 96,800,000 |       
|                                                                             | Diluted(2)                                 |                          |         | 100,625,824 |               |               |        | 100,491,409  |          |  |               | 96,800,000              |         |               |         |         |               |  |        | 96,800,000 |         |  |        | 96,800,000 |        |  |       | 96,800,000 |       

24



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|                                       |                            |                               |   |         |        |               |   |         |               |  |      |               |        |      |   |        |        |  |   |        |       | 
|-------------------------------------- | -------------------------- | ----------------------------- | - | ------- | ------ | ------------- | - | ------- | ------------- |  | ---- | ------------- | ------ | ---- | - | ------ | ------ |  | - | ------ | ----- | 
|                                       |                            | As of December 31,            |  
|                                       |                            |                               |  
|                                       |                            | 2005                          |   |         | 2004   |               |   | 2003    |               |  | 2002 |               |        | 2001 |  
|                                       |                            |                               |   |         |        |               |   |         |               |  |      |               |        |      |  
|                                       |                            |                               |   |         |        | (Predecessor) |   |         | (Predecessor) |  |      | (Predecessor) |       
|Balance Sheet Data (in thousands):     |                            |                               |   |         |        |               |   |         |               |  |      |               |        |      |   |        |        |  |   |       
|                                       | Investment securities      |                               | $ | 128,265 |        |               | $ | 90,444  |               |  | $    | 9,296         |        |      | $ | 6,025  |        |  | $ | 6,443  |      
|                                       | Investment in partnerships |                               |   | 79,956  |        |               |   | 60,150  |               |  |      | 2,806         |        |      |   | 2,307  |        |  |   | 1,195  |      
|                                       | Total assets               |                               |   | 665,477 |        |               |   | 516,452 |               |  |      | 104,531       |        |      |   | 57,272 |        |  |   | 33,218 |      
|                                       | Long-term debt             |                               |   | 150,000 |        |               |   | 150,000 |               |  |      | 23,008        |        |      |   | 10,945 |        |  |   | 6,866  |      
|                                       | Total liabilities          |                               |   | 205,460 |        |               |   | 191,342 |               |  |      | 58,107        |        |      |   | 32,246 |        |  |   | 18,894 |      
|                                       | Minority interests         |                               |   | 273,883 |        |               |   | 166,616 |               |  |      | 11            |        |      |   | 10     |        |  |   |       |      
|                                       | Total stockholders equity |                               |   | 186,134 |        |               |   | 158,494 |               |  |      | 46,413        |        |      |   | 25,016 |        |  |   | 14,324 |      
|Assets Under Management (in millions): |                            |                               |   |         |        |               |   |         |               |  |      |               |        |      |   |        |        |  |   |       
|                                       | Mutual funds               |                               |   | 31,898  |        |               |   | 26,951  |               |  |      | 14,651        |        |      |   | 5,712  |        |  |   | 2,241  |      
|                                       | Separate accounts          |                               |   | 11,907  |        |               |   | 11,024  |               |  |      | 9,189         |        |      |   | 7,180  |        |  |   | 7,094  |      
|                                       |                            |                               |   |         |        |               |   |         |               |  |      |               |        |      |  
|                                       |                            | Total assets under management |   | $       | 43,805 |               |   | $       | 37,975        |  |      | $             | 23,840 |      |   | $      | 12,892 |  |   | $      | 9,335 | 
|                                       |                            |                               |   |         |        |               |   |         |               |  |      |               |        |      |  






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | 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.                                                                                                                                                                                                                                                                                 
|   
|(2) | Diluted shares outstanding for 2005 and for the period
    November 2, 2004 to December 31, 2004 are calculated
    (a) assuming Calamos Family Partners, Inc. and John P.
    Calamos, Sr. exchanged all of their membership units in
    Calamos Holdings LLC for shares of the Companys
    Class A common stock on a one-for-one basis and
    (b) including the effect of outstanding restricted stock
    unit and option awards. In calculating diluted earnings per
    share for 2005 and for the period November 2, 2004 to
    December 31, 2004, the effective tax rates of 40.2% and
    39.9%, respectively, were applied to income before minority
    interest in Calamos Holdings LLC and income taxes.






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



Assets Under Management




25



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|                              |                         |                         |        |        |        |   |        |        |        |   |        |        |        | 
|----------------------------- | ----------------------- | ----------------------- | ------ | ------ | ------ | - | ------ | ------ | ------ | - | ------ | ------ | ------ | 
|(in millions)                 |                         | 2005                    |        |        | 2004   |   |        | 2003   |       
|                              |                         |                         |        |        |        |   |        |        |       
|Mutual Funds                  |                         |                         |        |        |        |   |        |        |        |   |        |       
|                              | Open-end funds          |                         | $      | 25,957 |        |   | $      | 20,921 |        |   | $      | 12,130 |       
|                              | Closed-end funds        |                         |        | 5,941  |        |   |        | 6,030  |        |   |        | 2,521  |       
|                              |                         |                         |        |        |        |   |        |        |       
|                              |                         | Total mutual funds      |        |        | 31,898 |   |        |        | 26,951 |   |        |        | 14,651 | 
|                              |                         |                         |        |        |        |   |        |        |       
|Separate Accounts             |                         |                         |        |        |        |   |        |        |        |   |        |       
|                              | Institutional accounts  |                         |        | 4,169  |        |   |        | 3,332  |        |   |        | 2,674  |       
|                              | Managed accounts        |                         |        | 6,899  |        |   |        | 7,091  |        |   |        | 6,241  |       
|                              | Private client accounts |                         |        | 748    |        |   |        | 527    |        |   |        | 258    |       
|                              | Alternative investments |                         |        | 91     |        |   |        | 74     |        |   |        | 16     |       
|                              |                         |                         |        |        |        |   |        |        |       
|                              |                         | Total separate accounts |        |        | 11,907 |   |        |        | 11,024 |   |        |        | 9,189  | 
|                              |                         |                         |        |        |        |   |        |        |       
|Total assets under management |                         | $                       | 43,805 |        |        | $ | 37,975 |        |        | $ | 23,840 |       
|                              |                         |                         |        |        |        |   |        |        |       





| |   |                                                                                                                                           
| | - | ------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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.


26



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| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Class A sharesof the open-end funds represented
    $16.9 billion of our assets under management as of
    December 31, 2005. 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 we
    are the broker of record, in which case we retain the entire
    sales charge. We received underwriting fees of $7.4 million
    for the year ended December 31, 2005. 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, 2005, we received
    Class A share
    Rule 12b-1 fees of
    $37.4 million. For the same period, we made Class A
    share Rule 12b-1
    payments to selling firms of $34.5 million.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|
| |  | Class B sharesof the open-end funds represented
    $2.3 billion of our assets under management as of
    December 31, 2005. 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, 2005, we made
    Class B share commission payments to selling firms of
    $12.9 million. If the investor redeems 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, 2005, we
    received Class B share CDSC payments of $5.0 million.
    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, 2005, we received Class B
    share Rule 12b-1
    fees of $21.4 million. For the same period, we made
    Class B share
    Rule 12b-1
    payments to selling firms of $5.3 million.
|
| |  | Class C sharesof the open-end funds represented
    $6.4 billion of our assets under management as of
    December 31, 2005. 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, 2005, we made
    Class C share commission payments to selling firms of
    $15.5 million. If the investor redeems 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, 2005, we received
    Class C share CDSC payments of $1.0 million. 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 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, 2005, we
    received Class C share
    12b-1 fees of
    $56.9 million. For the same period, we made
    Class C share
    Rule 12b-1
    payments to selling firms of $39.1 million.                                                                                                                                                                                                                                                                                                                                         

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| |   |                                                                                                                                                                                                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | Class I sharesof the open-end funds represented
    $0.4 billion of our assets under management as of
    December 31, 2005. These shares do not provide for a load
    or Rule 12b-1 fees
    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, and are offered
    directly by us and through institutional consultants.                                                                           
|
| |  | 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






| |   |                                                                                                                                                                                                                                                               
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | total value and composition of our assets under management;                                                                                                                                                                                                   
|
| |  | market appreciation or depreciation;                                                                                                                                                                                                                          
|
| |  | investment performance relative to benchmarks;                                                                                                                                                                                                                
|
| |  | 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;

28



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| |   |                                                                                                                                                                                                                                                       
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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.                                                                                                                                                                                                                                

12b-1




| |   |                                                                                                                                                                                                                 
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |  | 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

12b-1


12b-1 12b-1 12b-1




29



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##### Table of Contents







| |               
| | --------------
| | 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





30



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##### Table of Contents





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

12b-1




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

12b-1 12b-1 12b-1




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



Impact of Distribution Activities on Operating Margin




|                                           |                             |      |         |        |  
|------------------------------------------ | --------------------------- | ---- | ------- | ------ | -
|                                           |                             | 2005 |        
|                                           |                             |      |        
|Distribution and underwriting fees         |                             | $    | 129,250 |       
|Distribution and underwriting expense      |                             |      | (79,446 | )     
|Amortization of deferred sales commissions |                             |      | (31,431 | )     
|                                           |                             |      |        
|                                           | Net distribution fees       |      | $       | 18,373 |  
|                                           | Net distribution fee margin |      |         | 14     | %

31



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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




32



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Recent Developments in the Regulation of the Mutual
Fund Industry




Operating Results




| |                                                                          
| | -------------------------------------------------------------------------
| | Year Ended December 31, 2005 Compared to Year Ended
    December 31, 2004





33



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period-to


|                                          |                                              |                                                                              |                                   |               |             |               |              |        |             |           |         |         |            |         |         |         |         |         |  
|----------------------------------------- | -------------------------------------------- | ---------------------------------------------------------------------------- | --------------------------------- | ------------- | ----------- | ------------- | ------------ | ------ | ----------- | --------- | ------- | ------- | ---------- | ------- | ------- | ------- | ------- | ------- | -
|                                          |                                              |                                                                              |                                   | November 2 to |             |               | January 1 to |        |             | Pro Forma |        
|                                          |                                              |                                                                              |                                   | December 31,  |             |               | November 1,  |        |             | Combined  |        
|(in thousands except share data)          |                                              | 2005                                                                         |                                   |               | 2004        |               |              | 2004   |             |           | 2004    |        
|                                          |                                              |                                                                              |                                   |               |             |               |              |        |             |           |         |        
|                                          |                                              |                                                                              |                                   |               |             | (Predecessor) |              |        |            
|Revenues:                                 |                                              |                                                                              |                                   |               |             |               |              |        |             |           |         |         |            |         |         |        
|                                          | Investment management fees                   |                                                                              | $                                 | 284,951       |             |               | $            | 41,787 |             |           | $       | 168,938 |            |         | $       | 210,725 |        
|                                          | Distribution and underwriting fees           |                                                                              |                                   | 129,250       |             |               |              | 19,350 |             |           |         | 79,578  |            |         |         | 98,928  |        
|                                          | Other                                        |                                                                              |                                   | 3,366         |             |               |              | 633    |             |           |         | 1,861   |            |         |         | 2,494   |        
|                                          |                                              |                                                                              |                                   |               |             |               |              |        |             |           |         |        
|                                          |                                              |                                                                              | Total revenues                    |               |             | 417,567       |              |        |             | 61,770    |         |         |            | 250,377 |         |         |         | 312,147 |  
|                                          |                                              |                                                                              |                                   |               |             |               |              |        |             |           |         |        
|Expenses:                                 |                                              |                                                                              |                                   |               |             |               |              |        |             |           |         |         |            |         |         |        
|                                          | Employee compensation and benefits           |                                                                              |                                   | 61,029        |             |               |              | 12,537 |             |           |         | 53,170  |            |         |         | 65,707  |        
|                                          | Distribution and underwriting expenses       |                                                                              |                                   | 79,446        |             |               |              | 11,040 |             |           |         | 39,517  |            |         |         | 50,557  |        
|                                          | Amortization of deferred sales commissions   |                                                                              |                                   | 31,431        |             |               |              | 5,109  |             |           |         | 24,315  |            |         |         | 29,424  |        
|                                          | Marketing and sales promotion                |                                                                              |                                   | 14,266        |             |               |              | 2,228  |             |           |         | 16,694  |            |         |         | 18,922  |        
|                                          | General and administrative                   |                                                                              |                                   | 25,301        |             |               |              | 2,622  |             |           |         | 11,445  |            |         |         | 14,067  |        
|                                          |                                              |                                                                              |                                   |               |             |               |              |        |             |           |         |        
|                                          |                                              |                                                                              | Total expenses                    |               |             | 211,473       |              |        |             | 33,536    |         |         |            | 145,141 |         |         |         | 178,677 |  
|                                          |                                              |                                                                              |                                   |               |             |               |              |        |             |           |         |        
|Operating Income                          |                                              |                                                                              | 206,094                           |               |             |               | 28,234       |        |             |           | 105,236 |         |            |         | 133,470 |        
|                                          |                                              |                                                                              |                                   |               |             |               |              |        |             |           |         |        
|Other income (expense):                   |                                              |                                                                              |                                   |               |             |               |              |        |             |           |         |         |            |         |         |        
|                                          | Interest expense                             |                                                                              |                                   | (8,142        | )           |               |              | (1,339 | )           |           |         | (4,627  | )          |         |         | (5,966  | )      
|                                          | Investment income and other income           |                                                                              |                                   | 19,064        |             |               |              | 3,677  |             |           |         | 3,140   |            |         |         | 6,817   |        
|                                          | Minority interest in partnership investments |                                                                              |                                   | (5,161        | )           |               |              | (1,322 | )           |           |         |        |            |         |         | (1,322  | )      
|                                          |                                              |                                                                              |                                   |               |             |               |              |        |             |           |         |        
|                                          |                                              |                                                                              | Total other income (expense), net |               |             | 5,761         |              |        |             | 1,016     |         |         |            | (1,487  | )       |         |         | (471    | )
|                                          |                                              |                                                                              |                                   |               |             |               |              |        |             |           |         |        
|                                          |                                              | Income before minority interest in Calamos Holdings LLC and
    income taxes |                                   |               | 211,855     |               |              |        | 29,250      |           |         |         | 103,749    |         |         |         | 132,999 |        
|                                          |                                              |                                                                              |                                   |               |             |               |              |        |             |           |         |        
|Minority interest in Calamos Holdings LLC |                                              |                                                                              | 163,009                           |               |             |               | 22,609       |        |             |           |        |         |            |         | 22,609  |        
|                                          |                                              |                                                                              |                                   |               |             |               |              |        |             |           |         |        
|                                          |                                              | Income before income taxes                                                   |                                   |               | 48,846      |               |              |        | 6,641       |           |         |         | 103,749    |         |         |         | 110,390 |        
|Income taxes                              |                                              |                                                                              | 19,624                            |               |             |               | 2,649        |        |             |           | 1,567   |         |            |         | 4,216   |        
|                                          |                                              |                                                                              |                                   |               |             |               |              |        |             |           |         |        
|                                          | Net income                                   |                                                                              | $                                 | 29,222        |             |               | $            | 3,992  |             |           | $       | 102,182 |            |         | $       | 106,174 |        
|                                          |                                              |                                                                              |                                   |               |             |               |              |        |             |           |         |        
|Earnings per share                        |                                              |                                                                              |                                   |               |             |               |              |        |             |           |         |         |            |         |         |        
|                                          |                                              | Basic                                                                        |                                   | $             | 1.27        |               |              | $      | 0.18        |           |         | $       | 1.06       |         |         |         |         |        
|                                          |                                              | Diluted                                                                      |                                   | $             | 1.26        |               |              | $      | 0.17        |           |         | $       | 1.06       |         |         |         |         |        
|Weighted average shares outstanding       |                                              |                                                                              |                                   |               |             |               |              |        |             |           |         |         |            |         |         |        
|                                          |                                              | Basic                                                                        |                                   |               | 23,000,100  |               |              |        | 22,700,100  |           |         |         | 96,800,000 |         |         |         |         |        
|                                          |                                              | Diluted                                                                      |                                   |               | 100,625,824 |               |              |        | 100,491,409 |           |         |         | 96,800,000 |         |         |         |         |        



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



34



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|                              |                                   |                                 |   |        |        |  |   |        |        |  |         |        |       |  |  |     |     | 
|----------------------------- | --------------------------------- | ------------------------------- | - | ------ | ------ |  | - | ------ | ------ |  | ------- | ------ | ----- |  |  | --- | --- | 
|                              |                                   | Year Ended                      |   |        |       
|                              |                                   | December 31,                    |   |        | Change | 
|                              |                                   |                                 |   |        |        | 
|(in millions)                 |                                   | 2005                            |   |        | 2004   |  |   | Amount |        |  | Percent |       
|                              |                                   |                                 |   |        |        |  |   |        |        |  |         |       
|Mutual Funds                  |                                   |                                 |   |        |        |  |   |        |        |  |         |        |       |  |  |    
|                              | Beginning assets under management |                                 | $ | 26,951 |        |  | $ | 14,651 |        |  | $       | 12,300 |       |  |  | 84% |    
|                              | Net purchases                     |                                 |   | 3,403  |        |  |   | 9,776  |        |  |         | (6,373 | )     |  |  | 65% |    
|                              | Market appreciation               |                                 |   | 1,544  |        |  |   | 2,524  |        |  |         | (980   | )     |  |  | 39% |    
|                              |                                   |                                 |   |        |        |  |   |        |        |  |         |       
|                              |                                   | Ending assets under management  |   |        | 31,898 |  |   |        | 26,951 |  |         |        | 4,947 |  |  |     | 18% | 
|                              |                                   |                                 |   |        |        |  |   |        |        |  |         |       
|                              |                                   | Average assets under management |   |        | 28,743 |  |   |        | 20,850 |  |         |        | 7,893 |  |  |     | 38% | 
|                              |                                   |                                 |   |        |        |  |   |        |        |  |         |       
|Separate Accounts             |                                   |                                 |   |        |        |  |   |        |        |  |         |        |       |  |  |    
|                              | Beginning assets under management |                                 |   | 11,024 |        |  |   | 9,189  |        |  |         | 1,835  |       |  |  | 20% |    
|                              | Net purchases                     |                                 |   | 230    |        |  |   | 804    |        |  |         | (574   | )     |  |  | 71% |    
|                              | Market appreciation               |                                 |   | 653    |        |  |   | 1,031  |        |  |         | (378   | )     |  |  | 37% |    
|                              |                                   |                                 |   |        |        |  |   |        |        |  |         |       
|                              |                                   | Ending assets under management  |   |        | 11,907 |  |   |        | 11,024 |  |         |        | 883   |  |  |     | 8%  | 
|                              |                                   |                                 |   |        |        |  |   |        |        |  |         |       
|                              |                                   | Average assets under management |   |        | 11,230 |  |   |        | 9,857  |  |         |        | 1,373 |  |  |     | 14% | 
|                              |                                   |                                 |   |        |        |  |   |        |        |  |         |       
|Total Assets Under Management |                                   |                                 |   |        |        |  |   |        |        |  |         |        |       |  |  |    
|                              | Beginning assets under management |                                 |   | 37,975 |        |  |   | 23,840 |        |  |         | 14,135 |       |  |  | 59% |    
|                              | Net purchases                     |                                 |   | 3,633  |        |  |   | 10,580 |        |  |         | (6,947 | )     |  |  | 66% |    
|                              | Market appreciation               |                                 |   | 2,197  |        |  |   | 3,555  |        |  |         | (1,358 | )     |  |  | 38% |    
|                              |                                   |                                 |   |        |        |  |   |        |        |  |         |       
|                              |                                   | Ending assets under management  |   |        | 43,805 |  |   |        | 37,975 |  |         |        | 5,830 |  |  |     | 15% | 
|                              |                                   |                                 |   |        |        |  |   |        |        |  |         |       
|                              |                                   | Average assets under management |   | $      | 39,973 |  |   | $      | 30,707 |  |         | $      | 9,266 |  |  |     | 30% | 
|                              |                                   |                                 |   |        |        |  |   |        |        |  |         |       



35



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



|                                   |                |      |         |         |      |        |         |         |  |   |         |         |  |  |    |    |  
|---------------------------------- | -------------- | ---- | ------- | ------- | ---- | ------ | ------- | ------- |  | - | ------- | ------- |  |  | -- | -- | -
|                                   |                |      |         |         |      | Change |        
|                                   |                |      |         |         |      |        |        
|(in thousands)                     |                | 2005 |         |         | 2004 |        |         | Amount  |  |   | Percent |        
|                                   |                |      |         |         |      |        |         |         |  |   |         |        
|Investment management fees         |                | $    | 284,951 |         |      | $      | 210,725 |         |  | $ | 74,226  |         |  |  | 35 | % 
|Distribution and underwriting fees |                |      | 129,250 |         |      |        | 98,928  |         |  |   | 30,322  |         |  |  | 31 | % 
|Other                              |                |      | 3,366   |         |      |        | 2,494   |         |  |   | 872     |         |  |  | 35 | % 
|                                   |                |      |         |         |      |        |         |         |  |   |         |        
|                                   | Total revenues |      | $       | 417,567 |      |        | $       | 312,147 |  |   | $       | 105,420 |  |  |    | 34 | %
|                                   |                |      |         |         |      |        |         |         |  |   |         |        







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



|                                           |                          |      |        |         |      |        |        |         |  |   |         |        |  |  |    |    |  
|------------------------------------------ | ------------------------ | ---- | ------ | ------- | ---- | ------ | ------ | ------- |  | - | ------- | ------ |  |  | -- | -- | -
|                                           |                          |      |        |         |      | Change |       
|                                           |                          |      |        |         |      |        |       
|(in thousands)                             |                          | 2005 |        |         | 2004 |        |        | Amount  |  |   | Percent |       
|                                           |                          |      |        |         |      |        |        |         |  |   |         |       
|Employee compensation and benefits         |                          | $    | 61,029 |         |      | $      | 65,707 |         |  | $ | (4,678  | )      |  |  | 7  | % 
|Distribution expense                       |                          |      | 79,446 |         |      |        | 50,557 |         |  |   | 28,889  |        |  |  | 57 | % 
|Amortization of deferred sales commissions |                          |      | 31,431 |         |      |        | 29,424 |         |  |   | 2,007   |        |  |  | 7  | % 
|Marketing and sales promotion              |                          |      | 14,266 |         |      |        | 18,922 |         |  |   | (4,656  | )      |  |  | 25 | % 
|General and administrative                 |                          |      | 25,301 |         |      |        | 14,067 |         |  |   | 11,234  |        |  |  | 80 | % 
|                                           |                          |      |        |         |      |        |        |         |  |   |         |       
|                                           | Total operating expenses |      | $      | 211,473 |      |        | $      | 178,677 |  |   | $       | 32,796 |  |  |    | 18 | %
|                                           |                          |      |        |         |      |        |        |         |  |   |         |       



36



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12b-1 12b-1 12b-1








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



37



---



##### Table of Contents





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



|                                               |                                   |      |        |       |      |        |        |        |   |   |         |       |  |  |     |   | 
|---------------------------------------------- | --------------------------------- | ---- | ------ | ----- | ---- | ------ | ------ | ------ | - | - | ------- | ----- |  |  | --- | - | 
|                                               |                                   |      |        |       |      | Change |       
|                                               |                                   |      |        |       |      |        |       
|(in thousands)                                 |                                   | 2005 |        |       | 2004 |        |        | Amount |   |   | Percent |      
|                                               |                                   |      |        |       |      |        |        |        |   |   |         |      
|Interest expense                               |                                   | $    | (8,142 | )     |      | $      | (5,966 | )      |   | $ | (2,176  | )     |  |  | 36  | %
|Investment and other income                    |                                   |      | 19,064 |       |      |        | 6,817  |        |   |   | 12,247  |       |  |  | 180 | %
|Minority interest in investment in partnership |                                   |      | (5,161 | )     |      |        | (1,322 | )      |   |   | (3,839  | )     |  |  | 290 | %
|                                               |                                   |      |        |       |      |        |        |        |   |   |         |      
|                                               | Total other income (expense), net |      | $      | 5,761 |      |        | $      | (471   | ) |   | $       | 6,232 |  |  |     | * | 
|                                               |                                   |      |        |       |      |        |        |        |   |   |         |      






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





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

period-to


38



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##### Table of Contents





|                                                                                       |                                                  |                                   |                                           |           |               |               |             |              |        |          |            |     |           |             |         |           |         |   |        |      |         |      |             |         |         |        | 
|-------------------------------------------------------------------------------------- | ------------------------------------------------ | --------------------------------- | ----------------------------------------- | --------- | ------------- | ------------- | ----------- | ------------ | ------ | -------- | ---------- | --- | --------- | ----------- | ------- | --------- | ------- | - | ------ | ---- | ------- | ---- | ----------- | ------- | ------- | ------ | 
|                                                                                       |                                                  |                                   |                                           |           |               |               |             | Pro Forma    |        |          |            |     |          
|                                                                                       |                                                  |                                   |                                           | Nov. 2 to |               |               | Jan. 1 to   |              |        | Combined |            |     | Pro Forma |             |         | Pro Forma |        
|(in thousands, except share data)                                                      |                                                  | 2005                              |                                           |           | Dec. 31, 2004 |               |             | Nov. 1, 2004 |        |          | 2004       |     |           | Adjustments |         |           | 2004    |  
|                                                                                       |                                                  |                                   |                                           |           |               |               |             |              |        |          |            |     |           |             |         |           |         |  
|                                                                                       |                                                  |                                   |                                           |           |               | (Predecessor) |             |              |        |          |            |     |          
|Revenues                                                                               |                                                  | $                                 | 417,567                                   |           |               | $             | 61,770      |              |        | $        | 250,377    |     |           | $           | 312,147 |           |         | $ | (157   | )(1) |         | $    | 311,990     |        
|Expenses                                                                               |                                                  |                                   | 211,473                                   |           |               |               | 33,536      |              |        |          | 145,141    |     |           |             | 178,677 |           |         |   | (8     | )(1) |         |      | 178,669     |        
|                                                                                       |                                                  |                                   |                                           |           |               |               |             |              |        |          |            |     |           |             |         |           |         |  
|                                                                                       |                                                  | Operating income                  |                                           |           | 206,094       |               |             |              | 28,234 |          |            |     | 105,236   |             |         |           | 133,470 |   |        |      | (149    | )    |             |         | 133,321 |       
|                                                                                       |                                                  | Total other income (expense), net |                                           |           | 5,761         |               |             |              | 1,016  |          |            |     | (1,487    | )           |         |           | (471    | ) |        |      | (1,808  | )(1) |             |         | (2,279  | )     
|                                                                                       |                                                  |                                   |                                           |           |               |               |             |              |        |          |            |     |           |             |         |           |         |  
|Income before minority interest in Calamos Holdings LLC and
    income taxes           |                                                  |                                   | 211,855                                   |           |               |               | 29,250      |              |        |          | 103,749    |     |           |             | 132,999 |           |         |   | (1,957 | )    |         |      | 131,042     |        
|Minority interest in Calamos Holdings LLC                                              |                                                  |                                   | 163,009                                   |           |               |               | 22,609      |              |        |          |           |     |           |             | 22,609  |           |         |   | 78,293 | (2)  |         |      | 100,902     |        
|                                                                                       |                                                  |                                   |                                           |           |               |               |             |              |        |          |            |     |           |             |         |           |         |  
|                                                                                       |                                                  | Income before income taxes        |                                           |           | 48,846        |               |             |              | 6,641  |          |            |     | 103,749   |             |         |           | 110,390 |   |        |      | (80,250 | )    |             |         | 30,140  |       
|Income taxes                                                                           |                                                  |                                   | 19,624                                    |           |               |               | 2,649       |              |        |          | 1,567      |     |           |             | 4,216   |           |         |   | 7,805  | (3)  |         |      | 12,021      |        
|                                                                                       |                                                  |                                   |                                           |           |               |               |             |              |        |          |            |     |           |             |         |           |         |  
|                                                                                       |                                                  | Net income                        |                                           | $         | 29,222        |               |             | $            | 3,992  |          |            | $   | 102,182   |             |         | $         | 106,174 |   |        | $    | (88,055 | )    |             | $       | 18,119  |       
|                                                                                       |                                                  |                                   |                                           |           |               |               |             |              |        |          |            |     |           |             |         |           |         |  
|Earnings per share, basic                                                              |                                                  | $                                 | 1.27                                      |           |               | $             | 0.18        |              |        | $        | 1.06       |     |           |             |         |           |         |   |        |      |         | $    | 0.79        |        
|                                                                                       |                                                  |                                   |                                           |           |               |               |             |              |        |          |            |     |           |             |         |           |         |  
|Weighted average shares outstanding, basic                                             |                                                  |                                   | 23,000,100                                |           |               |               | 22,700,100  |              |        |          | 96,800,000 | (4) |           |             |         |           |         |   |        |      |         |      | 23,000,100  | (5)    
|                                                                                       |                                                  |                                   |                                           |           |               |               |             |              |        |          |            |     |           |             |         |           |         |  
|Calculation of earnings per share, diluted, assuming exchange of
    membership units: |                                                  |                                   |                                           |           |               |               |             |              |        |          |            |     |           |             |         |           |         |   |        |      |         |      |             |        
|                                                                                       | Income before minority interest and income taxes |                                   |                                           | 211,855   |               |               |             | 29,250       |        |          |            |     |           |             |         |           |         |   |        |      |         |      |             | 131,042 |        
|                                                                                       | Impact of income taxes(6)                        |                                   |                                           | 85,102    |               |               |             | 11,668       |        |          |            |     |           |             |         |           |         |   |        |      |         |      |             | 52,273  |        
|                                                                                       |                                                  |                                   |                                           |           |               |               |             |              |        |          |            |     |           |             |         |           |         |  
|                                                                                       |                                                  |                                   | Earnings available to common shareholders |           |               | 126,753       |             |              |        | 17,582   |            |     |           |             |         |           |         |   |        |      |         |      |             |         |         | 78,769 | 
|                                                                                       |                                                  |                                   |                                           |           |               |               |             |              |        |          |            |     |           |             |         |           |         |  
|Earnings per share, diluted                                                            |                                                  | $                                 | 1.26                                      |           |               | $             | 0.17        |              |        | $        | 1.06       |     |           |             |         |           |         |   |        |      |         | $    | 0.79        |        
|                                                                                       |                                                  |                                   |                                           |           |               |               |             |              |        |          |            |     |           |             |         |           |         |  
|Weighted average shares outstanding, diluted(7)                                        |                                                  |                                   | 100,625,824                               |           |               |               | 100,491,409 |              |        |          | 96,800,000 |     |           |             |         |           |         |   |        |      |         |      | 100,080,642 |        
|                                                                                       |                                                  |                                   |                                           |           |               |               |             |              |        |          |            |     |           |             |         |           |         |  





|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents the adjustment related to the Real Estate
    Distribution, whereby Calamos Family Partners, Inc. (formerly
    known as Calamos Holdings Inc.), distributed its interest in all
    of its owned real estate assets to its stockholders, who
    contributed those assets to a new limited liability company.
    This adjustment is presented based on actual amounts recorded
    during the periods presented.                                                      
|   
|(2) | Represents an adjustment to increase Calamos Asset Management,
    Inc.s minority interest allocation in Calamos Holdings LLC
    to 77.0%. Minority interest was determined by multiplying the
    income before minority interest in Calamos Holdings LLC and
    income taxes by Calamos Family Partners, Inc.s and John P.
    Calamos, Sr.s 77.0% aggregate ownership. The minority
    interest adjustment is presented based on the 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                                                 

39



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| |                                                                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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 the adjustment related to the Formation Transaction,
    whereby on October 15, 2004, Calamos Family Partners, Inc.
    contributed all of its assets and liabilities, including, among
    other things, all equity interests in its wholly owned
    subsidiaries, to Calamos Holdings LLC in exchange for
    96.8 million membership units of Calamos Holdings LLC.                                                                                                                                                                                                                                                       
|   
|(5) | Reflects 23.0 million shares of Class A common stock,
    which represents 23.0% of Calamos Holdings LLC. In addition to
    shares of Class A common stock, there are 100 shares
    of Class B common stock outstanding.                                                                                                                                                                                                                                                                                                                                                                                                               
|   
|(6) | In calculating diluted earnings per share, the effective tax
    rates for the years ended December 31, 2005 and 2004 of
    40.2% and 39.9%, respectively, were applied to income before
    minority interest and income taxes.                                                                                                                                                                                                                                                                                                                                                                                                        
|   
|(7) | Diluted shares outstanding for each period presented represent
    the weighted average Class A common stock after giving
    effect to the offering as of the beginning of 2004. 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.



|                            |                  |      |         |           |      |        |         |         |  |   |         |        |  |  |    |    |  
|--------------------------- | ---------------- | ---- | ------- | --------- | ---- | ------ | ------- | ------- |  | - | ------- | ------ |  |  | -- | -- | -
|                            |                  |      |         |           |      | Change |        
|                            |                  |      |         | Pro Forma |      |        |         |        
|(in thousands)              |                  | 2005 |         |           | 2004 |        |         | Amount  |  |   | Percent |       
|                            |                  |      |         |           |      |        |         |         |  |   |         |       
|Total revenues              |                  | $    | 417,567 |           |      | $      | 311,990 |         |  | $ | 105,577 |        |  |  | 34 | % 
|Total operating expenses    |                  |      | 211,473 |           |      |        | 178,669 |         |  |   | 32,804  |        |  |  | 18 | % 
|                            |                  |      |         |           |      |        |         |         |  |   |         |       
|                            | Operating income |      |         | 206,094   |      |        |         | 133,321 |  |   |         | 72,773 |  |  |    | 55 | %
|Other income (expense), net |                  |      | 5,761   |           |      |        | (2,279  | )       |  |   | 8,040   |        |  |  | *  |   
|Minority interest           |                  |      | 163,009 |           |      |        | 100,902 |         |  |   | 62,107  |        |  |  | 62 | % 
|Income taxes                |                  |      | 19,624  |           |      |        | 12,021  |         |  |   | 7,603   |        |  |  | 63 | % 
|                            |                  |      |         |           |      |        |         |         |  |   |         |       
|                            | Net income       |      | $       | 29,222    |      |        | $       | 18,119  |  |   | $       | 11,103 |  |  |    | 61 | %
|                            |                  |      |         |           |      |        |         |         |  |   |         |       






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



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



40



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period-to


|                                          |                                              |                                                                              |                                   |         |               |               |        |              |               |        |         |         |            |         |        |         |            |         | 
|----------------------------------------- | -------------------------------------------- | ---------------------------------------------------------------------------- | --------------------------------- | ------- | ------------- | ------------- | ------ | ------------ | ------------- | ------ | ------- | ------- | ---------- | ------- | ------ | ------- | ---------- | ------- | 
|                                          |                                              | Pro Forma                                                                    |                                   |         | November 2 to |               |        | January 1 to |               |        |        
|                                          |                                              | Combined                                                                     |                                   |         | December 31,  |               |        | November 1,  |               |        |        
|(in thousands except share data)          |                                              | 2004                                                                         |                                   |         | 2004          |               |        | 2004         |               |        | 2003    |        
|                                          |                                              |                                                                              |                                   |         |               |               |        |              |               |        |         |        
|                                          |                                              |                                                                              |                                   |         |               | (Predecessor) |        |              | (Predecessor) |       
|Revenues:                                 |                                              |                                                                              |                                   |         |               |               |        |              |               |        |         |         |            |         |        |        
|                                          | Investment management fees                   |                                                                              | $                                 | 210,725 |               |               | $      | 41,787       |               |        | $       | 168,938 |            |         | $      | 109,052 |           
|                                          | Distribution and underwriting fees           |                                                                              |                                   | 98,928  |               |               |        | 19,350       |               |        |         | 79,578  |            |         |        | 53,005  |           
|                                          | Other                                        |                                                                              |                                   | 2,494   |               |               |        | 633          |               |        |         | 1,861   |            |         |        | 328     |           
|                                          |                                              |                                                                              |                                   |         |               |               |        |              |               |        |         |        
|                                          |                                              |                                                                              | Total revenues                    |         |               | 312,147       |        |              |               | 61,770 |         |         |            | 250,377 |        |         |            | 162,385 | 
|                                          |                                              |                                                                              |                                   |         |               |               |        |              |               |        |         |        
|Expenses:                                 |                                              |                                                                              |                                   |         |               |               |        |              |               |        |         |         |            |         |        |        
|                                          | Employee compensation and benefits           |                                                                              |                                   | 65,707  |               |               |        | 12,537       |               |        |         | 53,170  |            |         |        | 33,657  |           
|                                          | Distribution and underwriting expenses       |                                                                              |                                   | 50,557  |               |               |        | 11,040       |               |        |         | 39,517  |            |         |        | 22,576  |           
|                                          | Amortization of deferred sales commissions   |                                                                              |                                   | 29,424  |               |               |        | 5,109        |               |        |         | 24,315  |            |         |        | 19,879  |           
|                                          | Marketing and sales promotion                |                                                                              |                                   | 18,922  |               |               |        | 2,228        |               |        |         | 16,694  |            |         |        | 8,949   |           
|                                          | General and administrative                   |                                                                              |                                   | 14,067  |               |               |        | 2,622        |               |        |         | 11,445  |            |         |        | 8,906   |           
|                                          |                                              |                                                                              |                                   |         |               |               |        |              |               |        |         |        
|                                          |                                              |                                                                              | Total expenses                    |         |               | 178,677       |        |              |               | 33,536 |         |         |            | 145,141 |        |         |            | 93,967  | 
|                                          |                                              |                                                                              |                                   |         |               |               |        |              |               |        |         |        
|Operating income                          |                                              |                                                                              | 133,470                           |         |               |               | 28,234 |              |               |        | 105,236 |         |            |         | 68,418 |        
|                                          |                                              |                                                                              |                                   |         |               |               |        |              |               |        |         |        
|Other income (expense):                   |                                              |                                                                              |                                   |         |               |               |        |              |               |        |         |         |            |         |        |        
|                                          | Interest expense                             |                                                                              |                                   | (5,966  | )             |               |        | (1,339       | )             |        |         | (4,627  | )          |         |        | (999    | )         
|                                          | Investment income and other income           |                                                                              |                                   | 6,817   |               |               |        | 3,677        |               |        |         | 3,140   |            |         |        | 1,024   |           
|                                          | Minority interest in partnership investments |                                                                              |                                   | (1,322  | )             |               |        | (1,322       | )             |        |         |        |            |         |        |        |           
|                                          |                                              |                                                                              |                                   |         |               |               |        |              |               |        |         |        
|                                          |                                              |                                                                              | Total other income (expense), net |         |               | (471          | )      |              |               | 1,016  |         |         |            | (1,487  | )      |         |            | 25      | 
|                                          |                                              |                                                                              |                                   |         |               |               |        |              |               |        |         |        
|                                          |                                              | Income before minority interest in Calamos Holdings LLC and
    income taxes |                                   |         | 132,999       |               |        |              | 29,250        |        |         |         | 103,749    |         |        |         | 68,443     |        
|Minority interest in Calamos Holdings LLC |                                              |                                                                              | 22,609                            |         |               |               | 22,609 |              |               |        |        |         |            |         |       |        
|                                          |                                              |                                                                              |                                   |         |               |               |        |              |               |        |         |        
|                                          |                                              | Income before income taxes                                                   |                                   |         | 110,390       |               |        |              | 6,641         |        |         |         | 103,749    |         |        |         | 68,443     |        
|Income taxes                              |                                              |                                                                              | 4,216                             |         |               |               | 2,649  |              |               |        | 1,567   |         |            |         | 1,117  |        
|                                          |                                              |                                                                              |                                   |         |               |               |        |              |               |        |         |        
|                                          |                                              | Net income                                                                   |                                   | $       | 106,174       |               |        | $            | 3,992         |        |         | $       | 102,182    |         |        | $       | 67,326     |        
|                                          |                                              |                                                                              |                                   |         |               |               |        |              |               |        |         |        
|Earnings per share                        |                                              |                                                                              |                                   |         |               |               |        |              |               |        |         |         |            |         |        |        
|                                          |                                              | Basic                                                                        |                                   |         |               |               |        | $            | 0.18          |        |         | $       | 1.06       |         |        | $       | 0.70       |        
|                                          |                                              | Diluted                                                                      |                                   |         |               |               |        | $            | 0.17          |        |         | $       | 1.06       |         |        | $       | 0.70       |        
|Weighted average shares outstanding       |                                              |                                                                              |                                   |         |               |               |        |              |               |        |         |         |            |         |        |        
|                                          |                                              | Basic                                                                        |                                   |         |               |               |        |              | 22,700,100    |        |         |         | 96,800,000 |         |        |         | 96,800,000 |        
|                                          |                                              | Diluted                                                                      |                                   |         |               |               |        |              | 100,491,409   |        |         |         | 96,800,000 |         |        |         | 96,800,000 |        



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



41



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

mid-2003




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



42



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









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



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



43



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12b-1 12b-1 12b-1




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



|                                             |                                   |      |        |      |      |        |       |        |  |   |         |      |   |  |     |   | 
|-------------------------------------------- | --------------------------------- | ---- | ------ | ---- | ---- | ------ | ----- | ------ |  | - | ------- | ---- | - |  | --- | - | 
|                                             |                                   |      |        |      |      | Change |      
|                                             |                                   |      |        |      |      |        |      
|(in thousands)                               |                                   | 2004 |        |      | 2003 |        |       | Amount |  |   | Percent |     
|                                             |                                   |      |        |      |      |        |       |        |  |   |         |     
|Interest expense                             |                                   | $    | (5,966 | )    |      | $      | (999  | )      |  | $ | (4,967  | )    |   |  | 497 | %
|Investment and other income                  |                                   |      | 6,817  |      |      |        | 1,024 |        |  |   | 5,793   |      |   |  | 566 | %
|Minority interest in partnership investments |                                   |      | (1,322 | )    |      |        |      |        |  |   | (1,322  | )    |   |  | *   |  
|                                             |                                   |      |        |      |      |        |       |        |  |   |         |     
|                                             | Total other income (expense), net |      | $      | (471 | )    |        | $     | 25     |  |   | $       | (496 | ) |  |     | * | 
|                                             |                                   |      |        |      |      |        |       |        |  |   |         |     






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





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



44



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##### Table of Contents



|                                                                             |                                                                                                  |                                                                              |             |               |              |           |            |            |         |   |             |         |         |           |      |         |        |   |             |            |         | 
|---------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------ | ---------------------------------------------------------------------------- | ----------- | ------------- | ------------ | --------- | ---------- | ---------- | ------- | - | ----------- | ------- | ------- | --------- | ---- | ------- | ------ | - | ----------- | ---------- | ------- | 
|                                                                             |                                                                                                  |                                                                              |             |               |              | Pro Forma |            |            |         |   |            
|                                                                             |                                                                                                  | Nov. 2 to                                                                    |             |               | Jan. 1 to    |           |            | Combined   |         |   | Pro Forma   |         |         | Pro Forma |     
|(in thousands except share data)                                             |                                                                                                  | Dec. 31, 2004                                                                |             |               | Nov. 1, 2004 |           |            | 2004       |         |   | Adjustments |         |         | 2004      |     
|                                                                             |                                                                                                  |                                                                              |             |               |              |           |            |            |         |   |             |         |         |           |     
|                                                                             |                                                                                                  |                                                                              |             | (Predecessor) |              |           |            |            |         |   |            
|Total revenues(1)                                                            |                                                                                                  | $                                                                            | 61,770      |               |              | $         | 250,377    |            |         | $ | 312,147     |         |         | $         | (157 | )       |        | $ | 311,990     |           
|Total expenses(1)                                                            |                                                                                                  |                                                                              | 33,536      |               |              |           | 145,141    |            |         |   | 178,677     |         |         |           | (8   | )       |        |   | 178,669     |           
|                                                                             |                                                                                                  |                                                                              |             |               |              |           |            |            |         |   |             |         |         |           |     
|                                                                             | Operating income                                                                                 |                                                                              |             | 28,234        |              |           |            | 105,236    |         |   |             | 133,470 |         |           |      | (149    | )      |   |             | 133,321    |        
|                                                                             | Total other income (expense), net(1)                                                             |                                                                              |             | 1,016         |              |           |            | (1,487     | )       |   |             | (471    | )       |           |      | (1,808  | )      |   |             | (2,279     | )      
|                                                                             |                                                                                                  |                                                                              |             |               |              |           |            |            |         |   |             |         |         |           |     
|                                                                             |                                                                                                  | Income before minority interest in Calamos Holdings LLC and
    income taxes |             |               | 29,250       |           |            |            | 103,749 |   |             |         | 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                                                                       |                                                                              |             | 6,641         |              |           |            | 103,749    |         |   |             | 110,390 |         |           |      | (80,250 | )      |   |             | 30,140     |        
|                                                                             | Income taxes(3)                                                                                  |                                                                              |             | 2,649         |              |           |            | 1,567      |         |   |             | 4,216   |         |           |      | 7,805   |        |   |             | 12,021     |        
|                                                                             |                                                                                                  |                                                                              |             |               |              |           |            |            |         |   |             |         |         |           |     
|                                                                             | Net income                                                                                       |                                                                              | $           | 3,992         |              |           | $          | 102,182    |         |   | $           | 106,174 |         |           | $    | (88,055 | )      |   | $           | 18,119     |        
|                                                                             |                                                                                                  |                                                                              |             |               |              |           |            |            |         |   |             |         |         |           |     
|                                                                             | Earnings per share, basic                                                                        |                                                                              | $           | 0.18          |              |           | $          | 1.06       |         |   |             |         |         |           |      |         |        |   | $           | 0.79       |        
|                                                                             |                                                                                                  |                                                                              |             |               |              |           |            |            |         |   |             |         |         |           |     
|                                                                             | Weighted average shares outstanding, basic(4)                                                    |                                                                              |             | 22,700,100    |              |           |            | 96,800,000 |         |   |             |         |         |           |      |         |        |   |             | 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(5)                                                                        |                                                                              |             | 11,668        |              |           |            |            |         |   |             |         |         |           |      |         |        |   |             | 52,273     |        
|                                                                             |                                                                                                  |                                                                              |             |               |              |           |            |            |         |   |             |         |         |           |     
|Earnings available to common shareholders                                    |                                                                                                  | $                                                                            | 17,582      |               |              |           |            |            |         |   |             |         |         |           |      |         |        | $ | 78,769      |           
|                                                                             |                                                                                                  |                                                                              |             |               |              |           |            |            |         |   |             |         |         |           |     
|Earnings per share, diluted                                                  |                                                                                                  | $                                                                            | 0.17        |               |              | $         | 1.06       |            |         |   |             |         |         |           |      |         |        | $ | 0.79        |           
|                                                                             |                                                                                                  |                                                                              |             |               |              |           |            |            |         |   |             |         |         |           |     
|Weighted average shares outstanding, diluted(6)                              |                                                                                                  |                                                                              | 100,491,409 |               |              |           | 96,800,000 |            |         |   |             |         |         |           |      |         |        |   | 100,080,642 |           
|                                                                             |                                                                                                  |                                                                              |             |               |              |           |            |            |         |   |             |         |         |           |     





|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Represents the adjustment related to the Real Estate
    Distribution, whereby Calamos Family Partners, Inc. (formerly
    known as Calamos Holdings Inc.), distributed its interest in all
    of its owned real estate assets to its stockholders, who
    contributed those assets to a new limited liability company.
    This adjustment is presented based on actual amounts recorded
    during the periods presented.                                                      
|   
|(2) | Represents an adjustment to increase Calamos Asset Management,
    Inc.s minority interest allocation in Calamos Holdings LLC
    to 77.0%. Minority interest was determined by multiplying the
    income before minority interest in Calamos Holdings LLC and
    income taxes by Calamos Family Partners, Inc.s and John P.
    Calamos, Sr.s 77.0% aggregate ownership. The minority
    interest adjustment is presented based on the 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                                               

45



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##### Table of Contents



| |                                                                                                                                                                     
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | 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% of Calamos Holdings LLC shares after the
    offering. In addition to shares of Class A common stock,
    there are 100 shares of Class B common stock
    outstanding.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
|   
|(5) | In calculating diluted earnings per share, the effective tax
    rates for the year ended December 31, 2004 of 39.9% was
    applied to income before minority interest and income taxes.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
|   
|(6) | 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 39.9% was applied to income
    before minority interest and income taxes.



|                                          |            |                  |         |         |         |   |         |        |        |   |         |        |        |  |     |    |    |  
|----------------------------------------- | ---------- | ---------------- | ------- | ------- | ------- | - | ------- | ------ | ------ | - | ------- | ------ | ------ |  | --- | -- | -- | -
|                                          |            | Pro Forma        |         |         |         |   | Change  |       
|                                          |            | Combined         |         |         |         |   |         |       
|(in thousands)                            |            | 2004             |         |         | 2003    |   |         | Amount |        |   | Percent |       
|                                          |            |                  |         |         |         |   |         |        |        |   |         |       
|Total revenues                            |            | $                | 312,147 |         |         | $ | 162,385 |        |        | $ | 149,762 |        |        |  | 92  | % 
|Total operating expenses                  |            |                  | 178,677 |         |         |   | 93,967  |        |        |   | 84,710  |        |        |  | 90  | % 
|                                          |            |                  |         |         |         |   |         |        |        |   |         |       
|                                          |            | Operating income |         |         | 133,470 |   |         |        | 68,418 |   |         |        | 65,052 |  |     |    | 95 | %
|Other income (expense), net               |            |                  | (471    | )       |         |   | 25      |        |        |   | (496    | )      |        |  | *   |   
|Minority interest in Calamos Holdings LLC |            |                  | 22,609  |         |         |   |        |        |        |   | 22,609  |        |        |  | *   |   
|Income taxes                              |            |                  | 4,216   |         |         |   | 1,117   |        |        |   | 3,099   |        |        |  | 277 | % 
|                                          |            |                  |         |         |         |   |         |        |        |   |         |       
|                                          | Net income |                  | $       | 106,174 |         |   | $       | 67,326 |        |   | $       | 38,848 |        |  |     | 58 | % 
|                                          |            |                  |         |         |         |   |         |        |        |   |         |       








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



46



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Quarterly Results of Operations




|                                      |  |                             |            |           |                            |   |            |                             |  |   |               |  |  |         |            |  |          |   |             |         |  |   |             |  |  |         |             |  |  |   |             |  |  |   |             | 
|------------------------------------- |  | --------------------------- | ---------- | --------- | -------------------------- | - | ---------- | --------------------------- |  | - | ------------- |  |  | ------- | ---------- |  | -------- | - | ----------- | ------- |  | - | ----------- |  |  | ------- | ----------- |  |  | - | ----------- |  |  | - | ----------- | 
|                                      |  | 2004                        |            |           | 2005                       |  
|                                      |  |                             |            |           |                            |  
|                                      |  | At or for the Quarter Ended |            |           | At or for the Period Ended |   |            | At or for the Quarter Ended | 
|                                      |  |                             |            |           |                            |   |            |                             | 
|(in thousands,                        |  |                             |            | Oct. 1 to |                            |   | Nov. 2 to  |                             |  |  
|except share data)                    |  | March 31                    |            |           | June 30                    |   |            | Sept. 30                    |  |   | Nov. 1        |  |  | Dec. 31 |            |  | March 31 |   |             | June 30 |  |   | Sept. 30    |  |  | Dec. 31 |            
|                                      |  |                             |            |           |                            |   |            |                             |  |   |               |  |  |         |            |  |          |   |             |         |  |   |             |  |  |         |            
|                                      |  | (Predecessor)               |            |           | (Predecessor)              |   |            | (Predecessor)               |  |   | (Predecessor) |  |  |         |            |  |          |   |             |         |  |  
|Assets under management (in millions) |  | $                           | 28,973     |           |                            | $ | 32,262     |                             |  | $ | 33,249        |  |  | $       | 33,909     |  |          | $ | 37,975      |         |  | $ | 38,246      |  |  | $       | 39,512      |  |  | $ | 42,169      |  |  | $ | 43,805      | 
|Total revenue                         |  | $                           | 63,660     |           |                            | $ | 75,855     |                             |  | $ | 81,231        |  |  | $       | 29,631     |  |          | $ | 61,770      |         |  | $ | 97,321      |  |  | $       | 99,072      |  |  | $ | 107,686     |  |  | $ | 113,488     | 
|Total operating expenses              |  |                             | 39,557     |           |                            |   | 42,554     |                             |  |   | 45,777        |  |  |         | 17,253     |  |          |   | 33,536      |         |  |   | 48,332      |  |  |         | 50,325      |  |  |   | 54,354      |  |  |   | 58,462      | 
|                                      |  |                             |            |           |                            |   |            |                             |  |   |               |  |  |         |            |  |          |   |             |         |  |   |             |  |  |         |            
|Operating income                      |  | $                           | 24,103     |           |                            | $ | 33,301     |                             |  | $ | 35,454        |  |  | $       | 12,378     |  |          | $ | 28,234      |         |  | $ | 48,989      |  |  | $       | 48,747      |  |  | $ | 53,332      |  |  | $ | 55,026      | 
|                                      |  |                             |            |           |                            |   |            |                             |  |   |               |  |  |         |            |  |          |   |             |         |  |   |             |  |  |         |            
|Net income                            |  | $                           | 23,732     |           |                            | $ | 33,418     |                             |  | $ | 33,106        |  |  | $       | 11,926     |  |          | $ | 3,992       |         |  | $ | 6,371       |  |  | $       | 7,002       |  |  | $ | 7,639       |  |  | $ | 8,210       | 
|                                      |  |                             |            |           |                            |   |            |                             |  |   |               |  |  |         |            |  |          |   |             |         |  |   |             |  |  |         |            
|Diluted earnings per share            |  | $                           | 0.25       |           |                            | $ | 0.35       |                             |  | $ | 0.34          |  |  | $       | 0.12       |  |          | $ | 0.17        |         |  | $ | 0.28        |  |  | $       | 0.30        |  |  | $ | 0.33        |  |  | $ | 0.35        | 
|Diluted shares outstanding(1)         |  |                             | 96,800,000 |           |                            |   | 96,800,000 |                             |  |   | 96,800,000    |  |  |         | 96,800,000 |  |          |   | 100,491,409 |         |  |   | 100,598,485 |  |  |         | 100,557,047 |  |  |   | 100,667,805 |  |  |   | 100,699,343 | 






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
|--- | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | Diluted shares outstanding for each period presented represent
    the weighted average Class A common stock after giving
    effect to the offering as of the beginning of 2004. 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.



Liquidity and Capital Resources




47



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|                                        |                            |      |   |         |      |  |   |         | 
|--------------------------------------- | -------------------------- | ---- | - | ------- | ---- |  | - | ------- | 
|(in thousands)                          |                            | 2005 |   |         | 2004 | 
|                                        |                            |      |   |         |      | 
|Statements of financial condition data: |                            |      |   |         |      |  |   |        
|                                        | Cash and cash equivalents  |      | $ | 210,469 |      |  | $ | 149,768 | 
|                                        | Receivables                |      |   | 34,476  |      |  |   | 27,234  | 
|                                        | Investment securities      |      |   | 128,265 |      |  |   | 90,444  | 
|                                        | Investment in partnerships |      |   | 79,956  |      |  |   | 60,150  | 
|                                        | Deferred tax asset         |      |   | 109,126 |      |  |   | 118,078 | 
|                                        | Deferred sales commissions |      |   | 58,390  |      |  |   | 61,417  | 
|                                        | Long-term debt             |      |   | 150,000 |      |  |   | 150,000 | 

step-up




|                |                                                     |      |   |          |      |               |         |         |   |           |      |         |   |      |   |          |   |  |   |         |  
|--------------- | --------------------------------------------------- | ---- | - | -------- | ---- | ------------- | ------- | ------- | - | --------- | ---- | ------- | - | ---- | - | -------- | - |  | - | ------- | -
|                |                                                     |      |   | Nov. 2   |      |               | Jan. 1  |         |   |           |      |        
|                |                                                     |      |   | through  |      |               | through |         |   | Pro Forma |      |         |  
|                |                                                     |      |   | Dec. 31, |      |               | Nov. 1, |         |   | Combined  |      |         |  
|(in thousands)  |                                                     | 2005 |   |          | 2004 |               |         | 2004    |   |           | 2004 |         |   | 2003 |  
|                |                                                     |      |   |          |      |               |         |         |   |           |      |         |   |      |  
|                |                                                     |      |   |          |      | (Predecessor) |         |         |   |           |     
|Cash flow data: |                                                     |      |   |          |      |               |         |         |   |           |      |         |   |      |   |          |   |  |   |        
|                | Net cash provided by operating activities           |      | $ | 223,592  |      |               | $       | 21,335  |   |           | $    | 112,032 |   |      | $ | 133,367  |   |  | $ | 36,825  |  
|                | Net cash used in investing activities               |      |   | (72,564  | )    |               |         | (49,851 | ) |           |      | (57,499 | ) |      |   | (107,350 | ) |  |   | (7,903  | )
|                | Net cash provided by (used in) financing activities |      |   | (90,327  | )    |               |         | 45,308  |   |           |      | 73,370  |   |      |   | 118,678  |   |  |   | (26,497 | )





48



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Contractual Obligations




|                               |       |                        |         |           |        |   |       |           |           |   |           |       |  |         |       |       |  |   |         |         | 
|------------------------------ | ----- | ---------------------- | ------- | --------- | ------ | - | ----- | --------- | --------- | - | --------- | ----- |  | ------- | ----- | ----- |  | - | ------- | ------- | 
|                               |       | Payments Due by Period |        
|                               |       |                        |        
|                               |       |                        |         | Less than |        |   |       |           | More than |  
|(in thousands)                 |       | Total                  |         |           | 1 Year |   |       | 1-3 Years |           |   | 3-5 Years |       |  | 5 Years |      
|                               |       |                        |         |           |        |   |       |           |           |   |           |       |  |         |      
|Long-term debt obligations     |       | $                      | 150,000 |           |        | $ |      |           |           | $ |          |       |  | $       |      |       |  | $ | 150,000 |        
|Operating lease obligations(1) |       |                        | 80,874  |           |        |   | 3,517 |           |           |   | 7,114     |       |  |         | 7,334 |       |  |   | 62,909  |        
|Other long-term obligations(2) |       |                        | 720     |           |        |   | 267   |           |           |   | 315       |       |  |         | 138   |       |  |   |        |        
|                               |       |                        |         |           |        |   |       |           |           |   |           |       |  |         |      
|                               | Total |                        | $       | 231,594   |        |   | $     | 3,784     |           |   | $         | 7,429 |  |         | $     | 7,472 |  |   | $       | 212,909 | 
|                               |       |                        |         |           |        |   |       |           |           |   |           |       |  |         |      






|    |                                                                                                                                                                                                                                                  
|--- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(1) | In accordance with Generally Accepted Accounting Principles,
    these obligations are not reflected in the accompanying
    consolidated statements of financial condition.                                                                     
|   
|(2) | Other long-term obligations principally represent commitments
    under equity compensation agreements. These obligations are
    included in other long-term liabilities in the accompanying
    consolidated statements of financial condition.

Critical Accounting Policies and Estimates




49



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

12b-1 12b-1


24-month






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

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




50



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##### Table of Contents









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

step-up


Recently Issued Accounting Pronouncements




Determining Whether a
General Partner, or the General Partners as a Group, Controls a
Limited Partnership or Similar Entity When the Limited Partners
Have Certain Rights 04-05). 04-05 Consolidation of Variable Interest
Entities.


Accounting
Changes and Error Corrections.


Forward-Looking Information


10-K,


51



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##### Table of Contents







best-in Risk Factors









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







52



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##### Table of Contents







53



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##### Table of Contents








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

|                                                                                                                                                                                                                                                       |  |  |     | 
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------ |  |  | --- | 
|Report of Independent Registered Public Accounting Firm                                                                                                                                                                                                |  |  | F-1 | 
|Managements Report on Internal Control Over Financial
    Reporting                                                                                                                                                                                   |  |  | F-2 | 
|Report of Independent Registered Public Accounting Firm on
    Internal Control Over Financial Reporting                                                                                                                                               |  |  | F-3 | 
|Consolidated Statements of Financial Condition at
    December 31, 2005 and 2004                                                                                                                                                                       |  |  | F-5 | 
|Consolidated Statements of Income for the year ended
    December 31, 2005, the period November 2, 2004 to
    December 31, 2004, the period January 1, 2004 to
    November 1, 2004 and the year ended December 31, 2003                              |  |  | F-6 | 
|Consolidated Statements of Changes in Stockholders Equity
    for the year ended December 31, 2005, the period
    November 2, 2004 to December 31, 2004, the period
    January 1, 2004 to November 1, 2004 and the year ended
    December 31, 2003 |  |  | F-7 | 
|Consolidated Statements of Cash Flows for the year ended
    December 31, 2005, the period November 2, 2004 to
    December 31, 2004, the period January 1, 2004 to
    November 1, 2004 and the year ended December 31, 2003                          |  |  | F-8 | 
|Notes to Consolidated Financial Statements                                                                                                                                                                                                             |  |  | F-9 | 

54



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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
















| |             
| | ------------
| | /s/ KPMG LLP





F-1



---



##### Table of Contents



MANAGEMENTS REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING


13a-15(f) 15d-15(f)








|                                                                                                                 |  |                                                                                                                 
|---------------------------------------------------------------------------------------------------------------- |  | ----------------------------------------------------------------------------------------------------------------
|                                                                                                                
|/s/ John P.
    Calamos, Sr.John P. Calamos, Sr.
    Chief Executive Officer and
    Co-Chief Investment Officer |  | /s/ Patrick H. DudasikPatrick H. Dudasik
    Executive Vice President, Chief
    Financial Officer and Treasurer



F-2



---



##### Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


ON INTERNAL CONTROL OVER FINANCIAL REPORTING
















F-3



---



##### Table of Contents







| |             
| | ------------
| | /s/ KPMG LLP





F-4



---



##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION


|                                             |                                                                                                                        |                                                |                                 |                                                                   |         |        |         |         |         |        |         | 
|-------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------- | ------------------------------- | ----------------------------------------------------------------- | ------- | ------ | ------- | ------- | ------- | ------ | ------- | 
|                                             |                                                                                                                        | December 31,                                   |                                
|                                             |                                                                                                                        |                                                |                                
|(in thousands, except share data)            |                                                                                                                        | 2005                                           |                                 |                                                                   | 2004    |       
|                                             |                                                                                                                        |                                                |                                 |                                                                   |         |       
|ASSETS:                                     
|                                             | Current assets                                                                                                         |                                                |                                 |                                                                   |         |        |         |         |        
|                                             |                                                                                                                        | Cash and cash equivalents                      |                                 | $                                                                 | 210,469 |        |         | $       | 149,768 |       
|                                             |                                                                                                                        | Receivables:                                   |                                 |                                                                   |         |        |         |         |         |       
|                                             |                                                                                                                        |                                                | Affiliates and affiliated funds |                                                                   |         | 24,670 |         |         |         | 21,222 |        
|                                             |                                                                                                                        |                                                | Customers                       |                                                                   |         | 9,806  |         |         |         | 6,012  |        
|                                             |                                                                                                                        | Investment securities                          |                                 |                                                                   | 128,265 |        |         |         | 90,444  |       
|                                             |                                                                                                                        | Investment in partnerships                     |                                 |                                                                   | 79,956  |        |         |         | 60,150  |       
|                                             |                                                                                                                        | Prepaid expenses                               |                                 |                                                                   | 2,342   |        |         |         | 1,917   |       
|                                             |                                                                                                                        | Deferred tax asset, net                        |                                 |                                                                   | 7,846   |        |         |         | 6,892   |       
|                                             |                                                                                                                        | Other assets                                   |                                 |                                                                   | 195     |        |         |         | 973     |       
|                                             |                                                                                                                        |                                                |                                 |                                                                   |         |       
|                                             |                                                                                                                        |                                                |                                 | Total current assets                                              |         |        | 463,549 |         |         |        | 337,378 | 
|                                             |                                                                                                                        |                                                |                                 |                                                                   |         |       
|                                             | Non-current assets
    Deferred tax asset, net                                                                         |                                                |                                 | 101,280                                                           |         |        |         | 111,186 |        
|                                             |                                                                                                                        | Deferred sales commissions                     |                                 |                                                                   | 58,390  |        |         |         | 61,417  |       
|                                             |                                                                                                                        | Property and equipment, net                    |                                 |                                                                   | 40,547  |        |         |         | 4,902   |       
|                                             |                                                                                                                        | Other non-current assets                       |                                 |                                                                   | 1,711   |        |         |         | 1,569   |       
|                                             |                                                                                                                        |                                                |                                 |                                                                   |         |       
|                                             |                                                                                                                        |                                                |                                 | Total non-current assets                                          |         |        | 201,928 |         |         |        | 179,074 | 
|                                             |                                                                                                                        |                                                |                                 |                                                                   |         |       
|                                             |                                                                                                                        |                                                |                                 | Total assets                                                      |         |        | 665,477 |         |         |        | 516,452 | 
|                                             |                                                                                                                        |                                                |                                 |                                                                   |         |       
|                                            
|LIABILITIES AND STOCKHOLDERS EQUITY:       
|                                             | Current liabilities                                                                                                    |                                                |                                 |                                                                   |         |        |         |         |        
|                                             |                                                                                                                        | Accounts payable:                              |                                 |                                                                   |         |        |         |         |         |       
|                                             |                                                                                                                        |                                                | Brokers                         |                                                                   |         | 18,485 |         |         |         | 12,514 |        
|                                             |                                                                                                                        |                                                | Affiliates and affiliated funds |                                                                   |         | 93     |         |         |         | 813    |        
|                                             |                                                                                                                        | Accrued compensation and benefits              |                                 |                                                                   | 19,131  |        |         |         | 9,985   |       
|                                             |                                                                                                                        | Accrued expenses and other current liabilities |                                 |                                                                   | 11,025  |        |         |         | 17,767  |       
|                                             |                                                                                                                        |                                                |                                 |                                                                   |         |       
|                                             |                                                                                                                        |                                                |                                 | Total current liabilities                                         |         |        | 48,734  |         |         |        | 41,079  | 
|                                             |                                                                                                                        |                                                |                                 |                                                                   |         |       
|                                             | Long-term liabilities
    Long-term debt                                                                               |                                                |                                 | 150,000                                                           |         |        |         | 150,000 |        
|                                             |                                                                                                                        | Other long-term liabilities                    |                                 |                                                                   | 6,726   |        |         |         | 263     |       
|                                             |                                                                                                                        |                                                |                                 |                                                                   |         |       
|                                             |                                                                                                                        |                                                |                                 | Total long-term liabilities                                       |         |        | 156,726 |         |         |        | 150,263 | 
|                                             |                                                                                                                        |                                                |                                 |                                                                   |         |       
|                                             |                                                                                                                        |                                                |                                 | Total liabilities                                                 |         |        | 205,460 |         |         |        | 191,342 | 
|                                             |                                                                                                                        |                                                |                                 |                                                                   |         |       
|Minority interest in partnership investments |                                                                                                                        |                                                | 44,453                          |                                                                   |         |        | 31,322  |        
|Minority interest in Calamos Holdings LLC    |                                                                                                                        |                                                | 229,430                         |                                                                   |         |        | 135,294 |        
|Stockholders equity                         |                                                                                                                        |                                                |                                 |                                                                   |         |        |         |        
|                                             | Class A Common Stock, $0.01 par value; authorized
    600,000,000 shares; issued and outstanding
    23,000,000 shares |                                                |                                 | 230                                                               |         |        |         | 230     |        
|                                             | Class B Common Stock, $0.01 par value; authorized
    1,000 shares; issued and outstanding 100 shares                  |                                                |                                 | 0                                                                 |         |        |         | 0       |        
|                                             | Additional paid-in capital                                                                                             |                                                |                                 | 156,274                                                           |         |        |         | 154,156 |        
|                                             | Retained earnings                                                                                                      |                                                |                                 | 26,698                                                            |         |        |         | 2,364   |        
|                                             | Accumulated other comprehensive income                                                                                 |                                                |                                 | 2,932                                                             |         |        |         | 1,744   |        
|                                             |                                                                                                                        |                                                |                                 |                                                                   |         |       
|                                             |                                                                                                                        |                                                |                                 | Total stockholders equity                                        |         |        | 186,134 |         |         |        | 158,494 | 
|                                             |                                                                                                                        |                                                |                                 |                                                                   |         |       
|                                             |                                                                                                                        |                                                |                                 | Total liabilities, minority interest and stockholders
    equity |         | $      | 665,477 |         |         | $      | 516,452 | 
|                                             |                                                                                                                        |                                                |                                 |                                                                   |         |       



F-5



---



##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


CONSOLIDATED STATEMENTS OF INCOME


|                                                 |                                                                              |                                              |                                   |         |               |               |  |              |               |             |              |         |         |            |   |        |         |            | 
|------------------------------------------------ | ---------------------------------------------------------------------------- | -------------------------------------------- | --------------------------------- | ------- | ------------- | ------------- |  | ------------ | ------------- | ----------- | ------------ | ------- | ------- | ---------- | - | ------ | ------- | ---------- | 
|                                                 |                                                                              | Year Ended                                   |                                   |         | November 2 to |               |  | January 1 to |               |             | Year Ended   |        
|                                                 |                                                                              | December 31,                                 |                                   |         | December 31,  |               |  | November 1,  |               |             | December 31, |        
|                                                 |                                                                              |                                              |                                   |         |               |               |  |              |               |             |              |        
|(in thousands of dollars, except per share data) |                                                                              | 2005                                         |                                   |         | 2004          |               |  | 2004         |               |             | 2003         |        
|                                                 |                                                                              |                                              |                                   |         |               |               |  |              |               |             |              |        
|                                                 |                                                                              |                                              |                                   |         |               | (Predecessor) |  |              | (Predecessor) |            
|Revenues:                                        |                                                                              |                                              |                                   |         |               |               |  |              |               |             |              |         |         |            |   |       
|                                                 |                                                                              | Investment management fees                   |                                   | $       | 284,951       |               |  | $            | 41,787        |             |              | $       | 168,938 |            |   | $      | 109,052 |           
|                                                 |                                                                              | Distribution and underwriting fees           |                                   |         | 129,250       |               |  |              | 19,350        |             |              |         | 79,578  |            |   |        | 53,005  |           
|                                                 |                                                                              | Other                                        |                                   |         | 3,366         |               |  |              | 633           |             |              |         | 1,861   |            |   |        | 328     |           
|                                                 |                                                                              |                                              |                                   |         |               |               |  |              |               |             |              |        
|                                                 |                                                                              |                                              | Total revenues                    |         |               | 417,567       |  |              |               | 61,770      |              |         |         | 250,377    |   |        |         | 162,385    | 
|                                                 |                                                                              |                                              |                                   |         |               |               |  |              |               |             |              |        
|Expenses:                                        |                                                                              |                                              |                                   |         |               |               |  |              |               |             |              |         |         |            |   |       
|                                                 |                                                                              | Employee compensation and benefits           |                                   |         | 61,029        |               |  |              | 12,537        |             |              |         | 53,170  |            |   |        | 33,657  |           
|                                                 |                                                                              | Distribution and underwriting expense        |                                   |         | 79,446        |               |  |              | 11,040        |             |              |         | 39,517  |            |   |        | 22,576  |           
|                                                 |                                                                              | Amortization of deferred sales commissions   |                                   |         | 31,431        |               |  |              | 5,109         |             |              |         | 24,315  |            |   |        | 19,879  |           
|                                                 |                                                                              | Marketing and sales promotion                |                                   |         | 14,266        |               |  |              | 2,228         |             |              |         | 16,694  |            |   |        | 8,949   |           
|                                                 |                                                                              | General and administrative                   |                                   |         | 25,301        |               |  |              | 2,622         |             |              |         | 11,445  |            |   |        | 8,906   |           
|                                                 |                                                                              |                                              |                                   |         |               |               |  |              |               |             |              |        
|                                                 |                                                                              |                                              | Total expenses                    |         |               | 211,473       |  |              |               | 33,536      |              |         |         | 145,141    |   |        |         | 93,967     | 
|                                                 |                                                                              |                                              |                                   |         |               |               |  |              |               |             |              |        
|                                                 |                                                                              |                                              | Operating income                  |         |               | 206,094       |  |              |               | 28,234      |              |         |         | 105,236    |   |        |         | 68,418     | 
|                                                 |                                                                              |                                              |                                   |         |               |               |  |              |               |             |              |        
|Other income (expense):                          |                                                                              |                                              |                                   |         |               |               |  |              |               |             |              |         |         |            |   |       
|                                                 |                                                                              | Interest expense                             |                                   |         | (8,142        | )             |  |              | (1,339        | )           |              |         | (4,627  | )          |   |        | (999    | )         
|                                                 |                                                                              | Investment and other income                  |                                   |         | 19,064        |               |  |              | 3,677         |             |              |         | 3,140   |            |   |        | 1,024   |           
|                                                 |                                                                              | Minority interest in partnership investments |                                   |         | (5,161        | )             |  |              | (1,322        | )           |              |         |        |            |   |        |        |           
|                                                 |                                                                              |                                              |                                   |         |               |               |  |              |               |             |              |        
|                                                 |                                                                              |                                              | Total other income (expense), net |         |               | 5,761         |  |              |               | 1,016       |              |         |         | (1,487     | ) |        |         | 25         | 
|                                                 |                                                                              |                                              |                                   |         |               |               |  |              |               |             |              |        
|                                                 | Income before minority interest in Calamos Holdings LLC and
    income taxes |                                              |                                   | 211,855 |               |               |  | 29,250       |               |             |              | 103,749 |         |            |   | 68,443 |        
|                                                 | Minority interest in Calamos Holdings LLC                                    |                                              |                                   | 163,009 |               |               |  | 22,609       |               |             |              |        |         |            |   |       |        
|                                                 |                                                                              |                                              |                                   |         |               |               |  |              |               |             |              |        
|                                                 |                                                                              | Income before income taxes                   |                                   |         | 48,846        |               |  |              | 6,641         |             |              |         | 103,749 |            |   |        | 68,443  |           
|                                                 |                                                                              | Income taxes                                 |                                   |         | 19,624        |               |  |              | 2,649         |             |              |         | 1,567   |            |   |        | 1,117   |           
|                                                 |                                                                              |                                              |                                   |         |               |               |  |              |               |             |              |        
|                                                 |                                                                              | Net income                                   |                                   | $       | 29,222        |               |  | $            | 3,992         |             |              | $       | 102,182 |            |   | $      | 67,326  |           
|                                                 |                                                                              |                                              |                                   |         |               |               |  |              |               |             |              |        
|                                                 |                                                                              | Earnings per share:                          |                                   |         |               |               |  |              |               |             |              |         |         |            |   |        |         |           
|                                                 |                                                                              |                                              | Basic                             |         | $             | 1.27          |  |              | $             | 0.18        |              |         | $       | 1.06       |   |        | $       | 0.70       | 
|                                                 |                                                                              |                                              |                                   |         |               |               |  |              |               |             |              |        
|                                                 |                                                                              |                                              | Diluted                           |         | $             | 1.26          |  |              | $             | 0.17        |              |         | $       | 1.06       |   |        | $       | 0.70       | 
|                                                 |                                                                              |                                              |                                   |         |               |               |  |              |               |             |              |        
|                                                 |                                                                              | Weighted average shares outstanding:         |                                   |         |               |               |  |              |               |             |              |         |         |            |   |        |         |           
|                                                 |                                                                              |                                              | Basic                             |         |               | 23,000,100    |  |              |               | 22,700,100  |              |         |         | 96,800,000 |   |        |         | 96,800,000 | 
|                                                 |                                                                              |                                              |                                   |         |               |               |  |              |               |             |              |        
|                                                 |                                                                              |                                              | Diluted                           |         |               | 100,625,824   |  |              |               | 100,491,409 |              |         |         | 96,800,000 |   |        |         | 96,800,000 | 
|                                                 |                                                                              |                                              |                                   |         |               |               |  |              |               |             |              |        



F-6



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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 |   |  |      
|(in thousands)                                                                                              |  | Stock  |     |            | Capital |   |         | Earnings |             |   | Income        |   |  | Total |       
|                                                                                                            |  |        |     |            |         |   |         |          |             |   |               |   |  |       |       
|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 income 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 |  
|                                                                                                            |  |        |     |            |         |   |         |          |             |   |               |   |  |       |       
|Net income                                                                                                  |  |        |    |            |         |   |        |          |             |   | 29,222        |   |  |       |       |   |  |   | 29,222  |  
|Changes in unrealized gains on available-for-sale securities,
    net of minority interest and income taxes |  |        |    |            |         |   |        |          |             |   |              |   |  |       | 1,188  |   |  |   | 1,188   |  
|                                                                                                            |  |        |     |            |         |   |         |          |             |   |               |   |  |       |        |   |  |   |         |  
|Total comprehensive income                                                                                  |  |        |     |            |         |   |         |          |             |   |               |   |  |       |        |   |  |   | 30,410  |  
|Compensation expense recognized under stock incentive plans, net
    of minority interest                   |  |        |    |            |         |   | 946     |          |             |   |              |   |  |       |       |   |  |   | 946     |  
|Dividend equivalent accrued under stock incentive plans, net of
    minority interest                       |  |        |    |            |         |   |        |          |             |   | (58           | ) |  |       |       |   |  |   | (58     | )
|Dividends declared                                                                                          |  |        |    |            |         |   |        |          |             |   | (4,830        | ) |  |       |       |   |  |   | (4,830  | )
|Net effect of corrections on initial deferred tax asset                                                     |  |        |    |            |         |   | 1,172   |          |             |   |              |   |  |       |       |   |  |   | 1,172   |  
|                                                                                                            |  |        |     |            |         |   |         |          |             |   |               |   |  |       |       
|Balance at December 31, 2005                                                                                |  | $      | 230 |            |         | $ | 156,274 |          |             | $ | 26,698        |   |  | $     | 2,932  |   |  | $ | 186,134 |  
|                                                                                                            |  |        |     |            |         |   |         |          |             |   |               |   |  |       |       



F-7



---



##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


CONSOLIDATED STATEMENTS OF CASH FLOWS


|                                                       |                                                                                                       |                                                     |                                                             |                                           |               |               |         |              |               |        |              |         |         |         |         |         |         |         |         |  
|------------------------------------------------------ | ----------------------------------------------------------------------------------------------------- | --------------------------------------------------- | ----------------------------------------------------------- | ----------------------------------------- | ------------- | ------------- | ------- | ------------ | ------------- | ------ | ------------ | ------- | ------- | ------- | ------- | ------- | ------- | ------- | ------- | -
|                                                       |                                                                                                       | Year Ended                                          |                                                             |                                           | November 2 to |               |         | January 1 to |               |        | Year Ended   |        
|                                                       |                                                                                                       | December 31,                                        |                                                             |                                           | December 31,  |               |         | November 1,  |               |        | December 31, |        
|                                                       |                                                                                                       |                                                     |                                                             |                                           |               |               |         |              |               |        |              |        
|(in thousands)                                         |                                                                                                       | 2005                                                |                                                             |                                           | 2004          |               |         | 2004         |               |        | 2003         |        
|                                                       |                                                                                                       |                                                     |                                                             |                                           |               |               |         |              |               |        |              |        
|                                                       |                                                                                                       |                                                     |                                                             |                                           |               | (Predecessor) |         |              | (Predecessor) |       
|Cash and cash equivalents at beginning of period       |                                                                                                       | $                                                   | 149,768                                                     |                                           |               | $             | 132,976 |              |               | $      | 5,073        |         |         | $       | 2,648   |        
|Cash flows from operating activities:                  |                                                                                                       |                                                     |                                                             |                                           |               |               |         |              |               |        |              |         |         |         |         |        
|                                                       | Net income                                                                                            |                                                     |                                                             | 29,222                                    |               |               |         | 3,992        |               |        |              | 102,182 |         |         |         | 67,326  |        
|                                                       | Adjustments to reconcile income to net cash provided by
    operating activities:                     |                                                     |                                                             |                                           |               |               |         |              |               |        |              |         |         |         |         |         |        
|                                                       |                                                                                                       | Minority interest in partnership investments        |                                                             |                                           | 5,161         |               |         |              | 1,322         |        |              |         |        |         |         |         |        |        
|                                                       |                                                                                                       | Minority interest in Calamos Holdings LLC           |                                                             |                                           | 163,009       |               |         |              | 22,609        |        |              |         |        |         |         |         |        |        
|                                                       |                                                                                                       | Amortization of deferred sales commissions          |                                                             |                                           | 31,431        |               |         |              | 5,109         |        |              |         | 24,315  |         |         |         | 19,879  |        
|                                                       |                                                                                                       | Other depreciation and amortization                 |                                                             |                                           | 4,772         |               |         |              | 295           |        |              |         | 1,220   |         |         |         | 973     |        
|                                                       |                                                                                                       | Unrealized appreciation on investment securities    |                                                             |                                           | (231          | )             |         |              | (297          | )      |              |         | (124    | )       |         |         | (770    | )      
|                                                       |                                                                                                       | Unrealized appreciation on partnership investments  |                                                             |                                           | (8,752        | )             |         |              | (2,515        | )      |              |         | (77     | )       |         |         | (202    | )      
|                                                       |                                                                                                       | Management fees received in partnership units       |                                                             |                                           | (151          | )             |         |              | (27           | )      |              |         | (134    | )       |         |         | (155    | )      
|                                                       |                                                                                                       | Stock-based compensation                            |                                                             |                                           | 4,114         |               |         |              | 595           |        |              |         | 32      |         |         |         |        |        
|                                                       |                                                                                                       | Deferred taxes                                      |                                                             |                                           | 9,326         |               |         |              | 1,297         |        |              |         |        |         |         |         |        |        
|                                                       |                                                                                                       | (Gain) loss on disposal of property                 |                                                             |                                           | 408           |               |         |              |              |        |              |         | (1,989  | )       |         |         |        |        
|                                                       |                                                                                                       | Non-cash donation of equipment                      |                                                             |                                           | 139           |               |         |              |              |        |              |         |        |         |         |         |        |        
|                                                       |                                                                                                       | (Increase) decrease in assets:                      |                                                             |                                           |               |               |         |              |               |        |              |         |         |         |         |         |         |        
|                                                       |                                                                                                       |                                                     | Accounts receivable:                                        |                                           |               |               |         |              |               |        |              |         |         |         |         |         |         |         |        
|                                                       |                                                                                                       |                                                     |                                                             | Affiliates and affiliated mutual funds    |               |               | (3,448  | )            |               |        | (8,466       | )       |         |         | 6,395   |         |         |         | (12,360 | )
|                                                       |                                                                                                       |                                                     |                                                             | Customers                                 |               |               | (3,794  | )            |               |        | 6,663        |         |         |         | (8,733  | )       |         |         | (1,423  | )
|                                                       |                                                                                                       |                                                     | Deferred sales commissions                                  |                                           |               | (28,404       | )       |              |               | (7,164 | )            |         |         | (34,441 | )       |         |         | (41,203 | )      
|                                                       |                                                                                                       |                                                     | Other assets                                                |                                           |               | (74           | )       |              |               | 549    |              |         |         | (865    | )       |         |         | (396    | )      
|                                                       |                                                                                                       | Increase (decrease) in liabilities:                 |                                                             |                                           |               |               |         |              |               |        |              |         |         |         |         |         |         |        
|                                                       |                                                                                                       |                                                     | Accounts payable                                            |                                           |               | 5,251         |         |              |               | (16    | )            |         |         | 7,229   |         |         |         | 727     |        
|                                                       |                                                                                                       |                                                     | Accrued compensation and benefits and deferred compensation |                                           |               | 9,146         |         |              |               | 5,017  |              |         |         | 1,212   |         |         |         | 2,120   |        
|                                                       |                                                                                                       |                                                     | Other liabilities and accrued expenses                      |                                           |               | 6,467         |         |              |               | (7,628 | )            |         |         | 15,810  |         |         |         | 2,309   |        
|                                                       |                                                                                                       |                                                     |                                                             |                                           |               |               |         |              |               |        |              |        
|                                                       |                                                                                                       |                                                     |                                                             | Net cash provided by operating activities |               |               | 223,592 |              |               |        | 21,335       |         |         |         | 112,032 |         |         |         | 36,825  |  
|                                                       |                                                                                                       |                                                     |                                                             |                                           |               |               |         |              |               |        |              |        
|Cash flows used in investing activities:               |                                                                                                       |                                                     |                                                             |                                           |               |               |         |              |               |        |              |         |         |         |         |        
|                                                       | Net additions to property and equipment                                                               |                                                     |                                                             | (40,679                                   | )             |               |         | (909         | )             |        |              | (9,090  | )       |         |         | (6,535  | )      
|                                                       | Net purchases of securities and partnership investments                                               |                                                     |                                                             | (31,885                                   | )             |               |         | (48,942      | )             |        |              | (48,409 | )       |         |         | (1,368  | )      
|                                                       |                                                                                                       |                                                     |                                                             |                                           |               |               |         |              |               |        |              |        
|                                                       |                                                                                                       | Net cash used in investing activities               |                                                             |                                           | (72,564       | )             |         |              | (49,851       | )      |              |         | (57,499 | )       |         |         | (7,903  | )      
|                                                       |                                                                                                       |                                                     |                                                             |                                           |               |               |         |              |               |        |              |        
|Cash flows provided by (used in) financing activities: |                                                                                                       |                                                     |                                                             |                                           |               |               |         |              |               |        |              |         |         |         |         |        
|                                                       | Net borrowings (payments) on bank debt                                                                |                                                     |                                                             |                                          |               |               |         |             |               |        |              | (30,199 | )       |         |         | 16,629  |        
|                                                       | Net borrowings (payments) on mortgage payable                                                         |                                                     |                                                             |                                          |               |               |         |             |               |        |              | (152    | )       |         |         | 4,077   |        
|                                                       | Net borrowings on debt offering                                                                       |                                                     |                                                             |                                          |               |               |         |             |               |        |              | 148,003 |         |         |         |        |        
|                                                       | 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 shareholders                                                          |                                                     |                                                             | (83,887                                   | )             |               |         | (4,523       | )             |        |              | (47,582 | )       |         |         | (47,203 | )      
|                                                       | Cash dividends paid to common shareholders                                                            |                                                     |                                                             | (6,440                                    | )             |               |         |             |               |        |              |        |         |         |         |        |        
|                                                       |                                                                                                       |                                                     |                                                             |                                           |               |               |         |              |               |        |              |        
|                                                       |                                                                                                       | Net cash provided by (used in) financing activities |                                                             |                                           | (90,327       | )             |         |              | 45,308        |        |              |         | 73,370  |         |         |         | (26,497 | )      
|                                                       |                                                                                                       |                                                     |                                                             |                                           |               |               |         |              |               |        |              |        
|                                                       |                                                                                                       | Net increase in cash                                |                                                             |                                           | 60,701        |               |         |              | 16,792        |        |              |         | 127,903 |         |         |         | 2,425   |        
|                                                       |                                                                                                       |                                                     |                                                             |                                           |               |               |         |              |               |        |              |        
|Cash and cash equivalents at end of period             |                                                                                                       | $                                                   | 210,469                                                     |                                           |               | $             | 149,768 |              |               | $      | 132,976      |         |         | $       | 5,073   |        
|                                                       |                                                                                                       |                                                     |                                                             |                                           |               |               |         |              |               |        |              |        
|Supplemental disclosure of cash flow information:      |                                                                                                       |                                                     |                                                             |                                           |               |               |         |              |               |        |              |         |         |         |         |        
|                                                       | Cash paid for:                                                                                        |                                                     |                                                             |                                           |               |               |         |              |               |        |              |         |         |         |         |         |        
|                                                       |                                                                                                       | Income taxes                                        |                                                             | $                                         | 10,960        |               |         | $            | 1,356         |        |              | $       | 1,161   |         |         | $       | 479     |        
|                                                       |                                                                                                       | Interest                                            |                                                             | $                                         | 7,860         |               |         | $            |              |        |              | $       | 4,432   |         |         | $       | 1,052   |        
|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-8



---



##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL STATEMENTS




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













|    |                             
|--- | ----------------------------
|(2) | Reorganization and Formation





|    |                               
|--- | ------------------------------
|(3) | Summary of Accounting Policies



| |                                                 
| | ------------------------------------------------
| | Principles of Consolidation and Use of Estimates



Treatment of
Minority Interest in Certain Real Estate Investment Trusts.


F-9



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)












| |                      
| | ---------------------
| | Financial Instruments









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





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



Accounting for Certain Investments in Debt and Equity
Securities,


F-10



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)










| |                           
| | --------------------------
| | Investment in Partnerships









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





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

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




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

Accounting for Stock-Based Compensation Accounting for Stock Appreciation Rights and
Other Variable Stock Option or


F-11



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


Award Plans, an Interpretation of APB Opinions No. 15
and 25 Accounting for
Stock-Based Compensation  Transition and
Disclosure,








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



12b-1 12b-1




| |                            
| | ---------------------------
| | Investment and Other Income





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

12b-1 12b-1


F-12



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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



Accounting for Income Taxes.




| |                   
| | ------------------
| | Earnings Per Share

Earnings per Share,




|    |                           
|--- | --------------------------
|(4) | Related-Party Transactions



F-13



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                                  |                          |        |         |         |         |   |        |         |         |   |        |        |        | 
|------------------------------------------------- | ------------------------ | ------ | ------- | ------- | ------- | - | ------ | ------- | ------- | - | ------ | ------ | ------ | 
|(in thousands)                                    |                          | 2005   |         |         | 2004    |   |        | 2003    |        
|                                                  |                          |        |         |         |         |   |        |         |        
|Investment management fees from:                  |                          |        |         |         |         |   |        |         |         |   |        |       
|                                                  | The Funds                |        | $       | 174,374 |         |   | $      | 123,264 |         |   | $      | 61,913 |       
|                                                  | The Closed-End Funds     |        |         | 50,022  |         |   |        | 39,439  |         |   |        | 10,204 |       
|                                                  | Private investment pools |        |         | 149     |         |   |        | 162     |         |   |        | 155    |       
|                                                  |                          |        |         |         |         |   |        |         |        
|                                                  |                          | Totals |         | $       | 224,545 |   |        | $       | 162,865 |   |        | $      | 72,272 | 
|                                                  |                          |        |         |         |         |   |        |         |        
|Distribution and underwriting fees from the Funds |                          | $      | 115,790 |         |         | $ | 84,666 |         |         | $ | 43,972 |       
|                                                  |                          |        |         |         |         |   |        |         |        
|Portfolio accounting fees from:                   |                          |        |         |         |         |   |        |         |         |   |        |       
|                                                  | The Funds                |        | $       | 2,628   |         |   | $      | 1,478   |         |   | $      |       |       
|                                                  | The Closed-End Funds     |        |         | 675     |         |   |        | 410     |         |   |        |       |       
|                                                  |                          |        |         |         |         |   |        |         |        
|                                                  |                          | Totals |         | $       | 3,303   |   |        | $       | 1,888   |   |        | $      |       | 
|                                                  |                          |        |         |         |         |   |        |         |        



|                                        |  |      |     |   |      |   |     |      |  |   |       | 
|--------------------------------------- |  | ---- | --- | - | ---- | - | --- | ---- |  | - | ----- | 
|(in thousands)                          |  | 2005 |     |   | 2004 |   |     | 2003 | 
|                                        |  |      |     |   |      |   |     |      | 
|General and administrative              |  | $    | 777 |   |      | $ | 459 |      |  | $ | 242   | 
|                                        |  |      |     |   |      |   |     |      | 
|Net receivable from/(payable to) Dragon |  | $    | (30 | ) |      | $ | (2  | )    |  | $ | 3,332 | 
|                                        |  |      |     |   |      |   |     |      | 



|                           |  |      |     |   |      |   |       |  
|-------------------------- |  | ---- | --- | - | ---- | - | ----- | -
|(in thousands)             |  | 2005 |     |   | 2004 |  
|                           |  |      |     |   |      |  
|General and administrative |  | $    | 672 |   |      | $ | 1,039 |  
|                           |  |      |     |   |      |  
|Net payable to AEA         |  | $    | (7  | ) |      | $ | (50   | )
|                           |  |      |     |   |      |  

month-by


F-14



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)


20-year


20-year


out-of




|                                                   |                                        |      |     |       |      |   |     |     | 
|-------------------------------------------------- | -------------------------------------- | ---- | --- | ----- | ---- | - | --- | --- | 
|(in thousands)                                     |                                        | 2005 |     |       | 2004 |  
|                                                   |                                        |      |     |       |      |  
|Expense allocated from the Company to Dragon       |                                        | $    | 139 |       |      | $ | 48  |    
|Expense allocated from the Company to CFP          |                                        |      | 479 |       |      |   | 30  |    
|Expense allocated from the Company to CPH          |                                        |      | 712 |       |      |   | 124 |    
|                                                   |                                        |      |     |       |      |  
|                                                   | Total                                  |      |     | 1,330 |      |   |     | 202 | 
|Expense allocated from CPH to the Company          |                                        |      | 561 |       |      |   | 65  |    
|                                                   |                                        |      |     |       |      |  
|                                                   | Net expense allocated from the Company |      | $   | 769   |      |   | $   | 137 | 
|                                                   |                                        |      |     |       |      |  
|Net receivable for management services from Dragon |                                        | $    | 14  |       |      | $ | 48  |    
|                                                   |                                        |      |     |       |      |  
|Net receivable for management services from CFP    |                                        | $    | 65  |       |      | $ | 30  |    
|                                                   |                                        |      |     |       |      |  
|Net receivable for management services from CPH    |                                        | $    | 28  |       |      | $ | 59  |    
|                                                   |                                        |      |     |       |      |  



F-15



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|    |                      
|--- | ---------------------
|(5) | Investment Securities



|                            |  |           |         |  |               |   |       |            |  |   |         | 
|--------------------------- |  | --------- | ------- |  | ------------- | - | ----- | ---------- |  | - | ------- | 
|                            |  | 2005      |        
|                            |  |           |        
|                            |  | Available |         |  | Broker-Dealer |   |       | Total      | 
|(in thousands)              |  | for Sale  |         |  | Securities    |   |       | Securities | 
|                            |  |           |         |  |               |   |       |            | 
|Affiliated Mutual Funds     |  | $         | 123,976 |  |               | $ | 3,634 |            |  | $ | 127,610 | 
|Other investment securities |  |           | 479     |  |               |   | 176   |            |  |   | 655     | 
|                            |  |           |         |  |               |   |       |            | 
|                            |  | $         | 124,455 |  |               | $ | 3,810 |            |  | $ | 128,265 | 
|                            |  |           |         |  |               |   |       |            | 

|                            |  |           |        |  |               |   |       |            |  |   |        | 
|--------------------------- |  | --------- | ------ |  | ------------- | - | ----- | ---------- |  | - | ------ | 
|                            |  | 2004      |       
|                            |  |           |       
|                            |  | Available |        |  | Broker-Dealer |   |       | Total      | 
|                            |  | for Sale  |        |  | Securities    |   |       | Securities | 
|                            |  |           |        |  |               |   |       |            | 
|Affiliated Mutual Funds     |  | $         | 86,689 |  |               | $ | 3,359 |            |  | $ | 90,048 | 
|Other investment securities |  |           | 345    |  |               |   | 51    |            |  |   | 396    | 
|                            |  |           |        |  |               |   |       |            | 
|                            |  | $         | 87,034 |  |               | $ | 3,410 |            |  | $ | 90,444 | 
|                            |  |           |        |  |               |   |       |            | 



|                               |                         |               |   |       |               |  |   |              |               |  |              |       |  |  |   |       | 
|------------------------------ | ----------------------- | ------------- | - | ----- | ------------- |  | - | ------------ | ------------- |  | ------------ | ----- |  |  | - | ----- | 
|                               |                         | Twelve Months |   |       |               |  |   |              | Twelve Months | 
|                               |                         | Ended         |   |       | November 2 to |  |   | January 1 to |               |  | Ended        |      
|                               |                         | December 31,  |   |       | December 31,  |  |   | November 1,  |               |  | December 31, |      
|(in thousands)                 |                         | 2005          |   |       | 2004          |  |   | 2004         |               |  | 2003         |      
|                               |                         |               |   |       |               |  |   |              |               |  |              |      
|Available for sale securities: |                         |               |   |       |               |  |   |              |               |  |              |       |  |  |   |      
|                               | Proceeds from sale      |               | $ |      |               |  | $ |             |               |  | $            |      |  |  | $ |      | 
|                               |                         |               |   |       |               |  |   |              |               |  |              |      
|                               | Realized gains (losses) |               |   |      |               |  |   |             |               |  |              |      |  |  |   |      | 
|                               |                         |               |   |       |               |  |   |              |               |  |              |      
|                               | Unrealized gains        |               |   | 8,638 |               |  |   | 6,113        |               |  |              | 1,854 |  |  |   | 1,274 | 
|                               |                         |               |   |       |               |  |   |              |               |  |              |      
|Broker-dealer securities:      |                         |               |   |       |               |  |   |              |               |  |              |       |  |  |   |      
|                               | Unrealized gains        |               |   | 231   |               |  |   | 297          |               |  |              | 124   |  |  |   | 770   | 
|                               |                         |               |   |       |               |  |   |              |               |  |              |      



|                                                                                         |                             |             |        |        |        |   |        |       |        | 
|---------------------------------------------------------------------------------------- | --------------------------- | ----------- | ------ | ------ | ------ | - | ------ | ----- | ------ | 
|(in thousands)                                                                           |                             | 2005        |        |        | 2004   |  
|                                                                                         |                             |             |        |        |        |  
|Total cumulative unrealized gains on available-for-sale
    securities with net gains:   |                             |             |        |        |        |   |        |      
|                                                                                         | Affiliated Mutual Funds     |             | $      | 18,609 |        |   | $      | 9,875 |       
|                                                                                         | Other investment securities |             |        | 190    |        |   |        | 143   |       
|                                                                                         |                             |             |        |        |        |  
|                                                                                         |                             | Total gains |        |        | 18,799 |   |        |       | 10,018 | 
|Total cumulative unrealized losses on available-for-sale
    securities with net losses: |                             |             |        |        |        |   |        |      
|                                                                                         | Affiliated Mutual Funds     |             |        | (149   | )      |   |        | (6    | )     
|                                                                                         |                             |             |        |        |        |  
|Total cumulative unrealized gains (losses) on available-for-sale
    securities          |                             | $           | 18,650 |        |        | $ | 10,012 |      
|                                                                                         |                             |             |        |        |        |  

F-16



---



##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






|    |                       
|--- | ----------------------
|(6) | Property and Equipment



|                                   |  |      |        |             |              |   |       |     |  |   |        | 
|---------------------------------- |  | ---- | ------ | ----------- | ------------ | - | ----- | --- |  | - | ------ | 
|                                   |  | 2005 |       
|                                   |  |      |       
|                                   |  |      |        | Accumulated |              |   |      
|(in thousands)                     |  | Cost |        |             | Depreciation |   |       | Net | 
|                                   |  |      |        |             |              |   |       |     | 
|Furniture, fixtures, and equipment |  | $    | 46,904 |             |              | $ | 6,357 |     |  | $ | 40,547 | 
|                                   |  |      |        |             |              |   |       |     | 

|                                   |  |      |       |             |              |   |       |     |  |   |       | 
|---------------------------------- |  | ---- | ----- | ----------- | ------------ | - | ----- | --- |  | - | ----- | 
|                                   |  | 2004 |      
|                                   |  |      |      
|                                   |  |      |       | Accumulated |              |   |      
|                                   |  | Cost |       |             | Depreciation |   |       | Net | 
|                                   |  |      |       |             |              |   |       |     | 
|Furniture, fixtures, and equipment |  | $    | 8,490 |             |              | $ | 3,588 |     |  | $ | 4,902 | 
|                                   |  |      |       |             |              |   |       |     | 





|    |     
|--- | ----
|(7) | Debt



|                       |                      |          |          |          |         
|---------------------- | -------------------- | -------- | -------- | -------- | --------
|(in thousands)         |                      | 2005     |          | 2004    
|                       |                      |          |          |         
|Senior unsecured notes |                      | $150,000 |          | $150,000
|Less current portion   |                      |         |          |        
|                       |                      |          |          |         
|                       | Total long-term debt |          | $150,000 |          | $150,000
|                       |                      |          |          |         



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





F-17



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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





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

1 4 3 8


1 4 3 8




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



F-18



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                       |                                                                                    |   |         |         |  
|-------------------------------------- | ---------------------------------------------------------------------------------- | - | ------- | ------- | -
|(in thousands)                         |                                                                                    |  
|Minority interest at November 1, 2004  |                                                                                    | $ |        |        
|                                       | Historical shareholders equity as of November 1, 2004:                            |   |         | 79,217  |  
|                                       | Net proceeds retained from the Offering                                            |   |         | 38,370  |  
|                                       | Income allocated to minority interests 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 |        
|                                       |                                                                                    |   |        
|                                       | Income allocated to minority interests                                             |   |         | 163,009 |  
|                                       | Compensation expense recognized under stock incentive plans                        |   |         | 3,168   |  
|                                       | Changes in unrealized gains on available-for-sale securities                       |   |         | 6,651   |  
|                                       | Dividend equivalent accrued under stock incentive plans                            |   |         | (196    | )
|                                       | Dividends declared                                                                 |   |         | (78,496 | )
|                                       |                                                                                    |   |        
|Minority interest at December 31, 2005 |                                                                                    | $ | 229,430 |        
|                                       |                                                                                    |   |        






|    |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
|--- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|(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-19



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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-   |         |   |         
|(in thousands)                                        |                                       | 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





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





F-20



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                             |           |        |           |           |               |   |       |       | 
|-------------------------------------------- | --------- | ------ | --------- | --------- | ------------- | - | ----- | ----- | 
|                                             |           |        |           | Weighted  |              
|                                             |           |        |           | Average   |              
|                                             |           | Number |           |           | Fair Value of |  
|                                             |           | of     |           |           | RSUs          |  
|                                             |           | Shares |           |           | Granted       |  
|                                             |           |        |           |           |               |  
|Outstanding at October 26, 2004              |           |        |          |           |               |   |       |      
|                                             |           |        |           |           |               |  
|                                             | Granted   |        |           | 1,350,212 |               |   | $     | 18.00 | 
|                                             | Forfeited |        |           | (4,276    | )             |   | $     | 18.00 | 
|                                             | Exercised |        |           |          |               |   |       |       | 
|                                             |           |        |           |           |               |  
|Outstanding at December 31, 2004             |           |        | 1,345,936 |           |               | $ | 18.00 |      
|                                             |           |        |           |           |               |  
|                                             | Granted   |        |           | 103,656   |               |   | $     | 28.78 | 
|                                             | Forfeited |        |           | (37,154   | )             |   | $     | 18.00 | 
|                                             | Exercised |        |           |          |               |   |       |       | 
|                                             |           |        |           |           |               |  
|Outstanding at December 31, 2005             |           |        | 1,412,438 |           |               | $ | 18.79 |      
|                                             |           |        |           |           |               |  
|Converted during the year ended December 31: |           |        |           |           |               |   |       |      
|                                             | 2004      |        |           |          |               |   |       |       | 
|                                             | 2005      |        |           |          |               |   |       |       | 

10-year


|                        |  |      |             |  |      |  |            | 
|----------------------- |  | ---- | ----------- |  | ---- |  | ---------- | 
|                        |  | 2005 |             |  | 2004 | 
|                        |  |      |             |  |      | 
|Dividend yield          |  |      | 0.96%-0.97% |  |      |  | 1.56%      | 
|Expected volatility     |  |      | 33.0%       |  |      |  | 33.0%      | 
|Risk-free interest rate |  |      | 3.9%-4.2%   |  |      |  | 3.7%       | 
|Expected life           |  |      | 7.5 years   |  |      |  | 7.5  years | 



|              |  |                     |           |           |                     |  |           |        |  |        |        |          |         |        |   |  |  |  |   | 
|------------- |  | ------------------- | --------- | --------- | ------------------- |  | --------- | ------ |  | ------ | ------ | -------- | ------- | ------ | - |  |  |  | - | 
|              |  | Options Outstanding |           |           | Options Exercisable | 
|              |  |                     |           |           |                     | 
|              |  |                     |           | Average   |                     |  | Weighted  |        |  |        |        | Weighted |        
|Range of      |  |                     |           | Remaining |                     |  | Average   |        |  | Number |        |          | Average |       
|Exercise      |  | Number of           |           |           | Contractual         |  |           | Option |  |        | of     |          |         | Option |  
|Prices        |  | Shares              |           |           | Life                |  |           | Price  |  |        | Shares |          |         | Price  |  
|              |  |                     |           |           |                     |  |           |        |  |        |        |          |         |        |  
|$18.00        |  |                     | 696,500   |           |                     |  | 8.8 years |        |  | $      | 18.00  |          |         |        |  |  |  |  |  | 
|$28.76-$29.11 |  |                     | 313,467   |           |                     |  | 9.3 years |        |  | $      | 28.94  |          |         |        |  |  |  |  |  | 
|              |  |                     |           |           |                     |  |           |        |  |        |        |          |         |        |  
|              |  |                     | 1,009,967 |           |                     |  | 9.1 years |        |  | $      | 21.35  |          |         |        |  |  |  |  |  | 
|              |  |                     |           |           |                     |  |           |        |  |        |        |          |         |        |  

F-21



---



##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




|                                 |           |        |           |          |          |   |       |       | 
|-------------------------------- | --------- | ------ | --------- | -------- | -------- | - | ----- | ----- | 
|                                 |           |        |           | Weighted |         
|                                 |           | Number |           |          | Average  |  
|                                 |           | of     |           |          | Exercise |  
|                                 |           | Shares |           |          | Price    |  
|                                 |           |        |           |          |          |  
|Outstanding at October 26, 2004  |           |        |          |          |          | $ |      |      
|                                 |           |        |           |          |          |  
|                                 | Granted   |        |           | 727,727  |          |   | $     | 18.00 | 
|                                 | Forfeited |        |           |         |          |   | $     |      | 
|                                 | Exercised |        |           |         |          |   | $     |      | 
|                                 |           |        |           |          |          |  
|Outstanding at December 31, 2004 |           |        | 727,727   |          |          | $ | 18.00 |      
|                                 |           |        |           |          |          |  
|                                 | Granted   |        |           | 313,467  |          |   | $     | 28.78 | 
|                                 | Forfeited |        |           | (31,227  | )        |   | $     | 18.00 | 
|                                 | Exercised |        |           |         |          |   | $     |      | 
|                                 |           |        |           |          |          |  
|Outstanding at December 31, 2005 |           |        | 1,009,967 |          |          | $ | 21.35 |      
|                                 |           |        |           |          |          |  
|Exercisable at December 31:      |           |        |           |          |          |   |       |      
|                                 | 2004      |        |           |         |          |   | $     |      | 
|                                 | 2005      |        |           |         |          |   | $     |      | 

paid-in paid-in




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





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







F-22



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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



|               |         |                             |                    |               |        |        |              |       |       |       |      |       |       |       |   |       |       |       | 
|-------------- | ------- | --------------------------- | ------------------ | ------------- | ------ | ------ | ------------ | ----- | ----- | ----- | ---- | ----- | ----- | ----- | - | ----- | ----- | ----- | 
|               |         |                             |                    | November 2 to |        |        | January 1 to |       |       |      
|               |         |                             |                    | December 31,  |        |        | November 1,  |       |       |      
|(in thousands) |         | 2005                        |                    |               | 2004   |        |              | 2004  |       |       | 2003 |      
|               |         |                             |                    |               |        |        |              |       |       |       |      |      
|Current:       |         |                             |                    |               |        |        |              |       |       |       |      |       |       |       |   |      
|               | Federal |                             | $                  | 8,309         |        |        | $            | 1,104 |       |       | $    |      |       |       | $ |      |      
|               | State   |                             |                    | 1,989         |        |        |              | 248   |       |       |      | 1,567 |       |       |   | 1,117 |      
|               |         |                             |                    |               |        |        |              |       |       |       |      |      
|               |         | Total current income taxes  |                    |               | 10,298 |        |              |       | 1,352 |       |      |       | 1,567 |       |   |       | 1,117 |      
|               |         |                             |                    |               |        |        |              |       |       |       |      |      
|Deferred:      |         |                             |                    |               |        |        |              |       |       |       |      |       |       |       |   |      
|               | Federal |                             |                    | 7,537         |        |        |              | 1,059 |       |       |      |      |       |       |   |      |      
|               | State   |                             |                    | 1,789         |        |        |              | 238   |       |       |      |      |       |       |   |      |      
|               |         |                             |                    |               |        |        |              |       |       |       |      |      
|               |         | Total deferred income taxes |                    |               | 9,326  |        |              |       | 1,297 |       |      |       |      |       |   |       |      |      
|               |         |                             |                    |               |        |        |              |       |       |       |      |      
|               |         |                             | Total income taxes |               | $      | 19,624 |              |       | $     | 2,649 |      |       | $     | 1,567 |   |       | $     | 1,117 | 
|               |         |                             |                    |               |        |        |              |       |       |       |      |      



|                          |                                                                                  |                                |                         |         |         |         |   |         |         |         | 
|------------------------- | -------------------------------------------------------------------------------- | ------------------------------ | ----------------------- | ------- | ------- | ------- | - | ------- | ------- | ------- | 
|(in thousands)            |                                                                                  | 2005                           |                         |         | 2004    |        
|                          |                                                                                  |                                |                         |         |         |        
|Deferred tax assets:      |                                                                                  |                                |                         |         |         |         |   |        
|                          | Intangible assets                                                                |                                | $                       | 114,575 |         |         | $ | 122,074 |        
|                          | Other                                                                            |                                |                         | 1,520   |         |         |   | 603     |        
|                          |                                                                                  |                                |                         |         |         |        
|                          |                                                                                  | Total deferred tax assets      |                         |         | 116,095 |         |   |         | 122,677 |        
|                          |                                                                                  |                                |                         |         |         |        
|Deferred tax liabilities: |                                                                                  |                                |                         |         |         |         |   |        
|                          | Unrealized net holding gains on investments on available for
    sale securities |                                |                         | 1,357   |         |         |   | 559     |        
|                          | Deferred sales commission                                                        |                                |                         | 4,699   |         |         |   | 3,700   |        
|                          | Other                                                                            |                                |                         | 913     |         |         |   | 340     |        
|                          |                                                                                  |                                |                         |         |         |        
|                          |                                                                                  | Total deferred tax liabilities |                         |         | 6,969   |         |   |         | 4,599   |        
|                          |                                                                                  |                                |                         |         |         |        
|                          |                                                                                  |                                | Net deferred tax assets |         | $       | 109,126 |   |         | $       | 118,078 | 
|                          |                                                                                  |                                |                         |         |         |        



mark-to stepped-up


F-23



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






paid-in




|                                                |                           |              |      |      |               |  |      |              |        |  |              |     |   |  |       |     |  
|----------------------------------------------- | ------------------------- | ------------ | ---- | ---- | ------------- |  | ---- | ------------ | ------ |  | ------------ | --- | - |  | ----- | --- | -
|                                                |                           | Twelve       |      |      |               |  |      |              | Twelve | 
|                                                |                           | Months       |      |      |               |  |      |              | Months | 
|                                                |                           | Ended        |      |      | November 2 to |  |      | January 1 to |        |  | Ended        |    
|                                                |                           | December 31, |      |      | December 31,  |  |      | November 1,  |        |  | December 31, |    
|                                                |                           | 2005         |      |      | 2004          |  |      | 2004         |        |  | 2003         |    
|                                                |                           |              |      |      |               |  |      |              |        |  |              |    
|Statutory U.S. federal income tax rate          |                           |              | 35.0 | %    |               |  | 35.0 | %            |        |  | 35.0         | %   |   |  | 35.0  | %  
|Income passed through to stockholders           |                           |              |     |      |               |  |     |              |        |  | (35.0        | %)  |   |  | (35.0 | %) 
|State income taxes, net of federal tax benefits |                           |              | 5.0  | %    |               |  | 4.8  | %            |        |  | 1.5          | %   |   |  | 1.6   | %  
|Other non-deductible items                      |                           |              | 0.2  | %    |               |  | 0.1  | %            |        |  | 0.0          | %   |   |  | 0.0   | %  
|                                                |                           |              |      |      |               |  |      |              |        |  |              |    
|                                                | Effective income tax rate |              |      | 40.2 | %             |  |      | 39.9         | %      |  |              | 1.5 | % |  |       | 1.6 | %
|                                                |                           |              |      |      |               |  |      |              |        |  |              |    



F-24



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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



|                                         |                                                                              |                               |   |               |      |  |              |         |      |  |      |         |      |  |   |        |      | 
|---------------------------------------- | ---------------------------------------------------------------------------- | ----------------------------- | - | ------------- | ---- |  | ------------ | ------- | ---- |  | ---- | ------- | ---- |  | - | ------ | ---- | 
|                                         |                                                                              |                               |   | November 2 to |      |  | January 1 to |         |      | 
|                                         |                                                                              |                               |   | December 31,  |      |  | November 1,  |         |      | 
|(in thousands, except per share amounts) |                                                                              | 2005                          |   |               | 2004 |  |              | 2004    |      |  | 2003 |        
|                                         |                                                                              |                               |   |               |      |  |              |         |      |  |      |        
|Earnings per share  basic:              |                                                                              |                               |   |               |      |  |              |         |      |  |      |         |      |  |   |       
|                                         | Earnings available to common shareholders                                    |                               | $ | 29,222        |      |  | $            | 3,992   |      |  | $    | 102,182 |      |  | $ | 67,326 |     
|                                         | Weighted average shares outstanding                                          |                               |   | 23,000        |      |  |              | 22,700  |      |  |      | 96,800  |      |  |   | 96,800 |     
|                                         |                                                                              |                               |   |               |      |  |              |         |      |  |      |        
|                                         |                                                                              | Earnings per share  basic    |   | $             | 1.27 |  |              | $       | 0.18 |  |      | $       | 1.06 |  |   | $      | 0.70 | 
|                                         |                                                                              |                               |   |               |      |  |              |         |      |  |      |        
|Earnings per share  diluted:            |                                                                              |                               |   |               |      |  |              |         |      |  |      |         |      |  |   |       
|                                         | Income before minority interest in Calamos Holdings LLC and
    income taxes |                               | $ | 211,855       |      |  | $            | 29,250  |      |  |      |         |      |  |   |        |     
|                                         | Less: Impact of income taxes                                                 |                               |   | 85,102        |      |  |              | 11,668  |      |  |      |         |      |  |   |        |     
|                                         |                                                                              |                               |   |               |      |  |              |         |      |  |      |        
|                                         | Earnings per share available to common shareholders                          |                               |   | 126,753       |      |  |              | 17,582  |      |  | $    | 102,182 |      |  | $ | 67,326 |     
|                                         | Weighted average shares outstanding                                          |                               |   | 23,000        |      |  |              | 22,700  |      |  |      | 96,800  |      |  |   | 96,800 |     
|                                         | Conversion of membership units for common stock                              |                               |   | 77,000        |      |  |              | 77,300  |      |  |      |        |      |  |   |       |     
|                                         | Dilutive impact of RSUs                                                      |                               |   | 577           |      |  |              | 491     |      |  |      |        |      |  |   |       |     
|                                         | Dilutive impact of stock options                                             |                               |   | 49            |      |  |              |        |      |  |      |        |      |  |   |       |     
|                                         |                                                                              |                               |   |               |      |  |              |         |      |  |      |        
|                                         | Weighted average shares and potential dilutive shares outstanding            |                               |   | 100,626       |      |  |              | 100,491 |      |  |      | 96,800  |      |  |   | 96,800 |     
|                                         |                                                                              |                               |   |               |      |  |              |         |      |  |      |        
|                                         |                                                                              | Earnings per share  dilutive |   | $             | 1.26 |  |              | $       | 0.17 |  |      | $       | 1.06 |  |   | $      | 0.70 | 
|                                         |                                                                              |                               |   |               |      |  |              |         |      |  |      |        







F-25



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)






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







|                        |            |                              |       |        |        | 
|----------------------- | ---------- | ---------------------------- | ----- | ------ | ------ | 
|                        |            | Minimum                      |      
|(in thousands)          |            | Payments                     |      
|                        |            |                              |      
|Year ended December 31: |            |                              |       |       
|2006                    |            | $                            | 3,517 |       
|2007                    |            |                              | 3,541 |       
|2008                    |            |                              | 3,573 |       
|2009                    |            |                              | 3,617 |       
|2010                    |            |                              | 3,717 |       
|                        | Thereafter |                              |       | 62,909 |       
|                        |            |                              |      
|                        |            | Total minimum lease payments |       | $      | 80,874 | 
|                        |            |                              |      



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

15c3-1),


|                               |  |      |       |  |      |   |       | 
|------------------------------ |  | ---- | ----- |  | ---- | - | ----- | 
|                               |  | 2005 |       |  | 2004 |  
|                               |  |      |       |  |      |  
|Net capital                    |  | $    | 6,574 |  |      | $ | 6,453 | 
|Excess of required net capital |  | $    | 5,239 |  |      | $ | 5,502 | 
|Net capital ratio              |  |      | 3.05  |  |      |   | 2.21  | 



F-26



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##### Table of Contents



CALAMOS ASSET MANAGEMENT, INC.


NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS  (Continued)




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



|                               |  |      |     |  |      |  |     |      |  |  |     | 
|------------------------------ |  | ---- | --- |  | ---- |  | --- | ---- |  |  | --- | 
|                               |  | 2005 |     |  | 2004 |  |     | 2003 | 
|                               |  |      |     |  |      |  |     |      | 
|Calamos Growth Fund            |  |      | 47% |  |      |  | 40% |      |  |  | 32% | 
|Calamos Growth and Income Fund |  |      | 16% |  |      |  | 16% |      |  |  | 15% | 



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



04-05, Determining
Whether a General Partner, or the General Partners as a Group,
Controls a Limited Partnership or Similar Entity When the
Limited Partners Have Certain Rights. Consolidation of Variable Interest Entities. 04-05


Accounting
Changes and Error Corrections.


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








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

10-K, 13a-15(e) 15d-15(e)




10-K.







|         |                  
|-------- | -----------------
|Item 9B. | Other Information






PART III







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

|                                                                                                                                                                                                                                                                                                                                                                                                                                   |  |                                                                                                                                                                                                                                                                                                                                                          |  |                                                                                                                                                                                                                                                                                                                                                                                                                                       
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- |  | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Management                                                                                                                                                                                                                                                                                                                                                                                                                         |  |                                                                                                                                                                                                                                                                                                                                                          |  | Directors                                                                                                                                                                                                                                                                                                                                                                                                                             
|John P. Calamos, Sr.Chairman, Chief Executive
    Officer and Co-Chief
    Investment OfficerNick P. CalamosSenior Executive Vice President and
    Co-Chief Investment OfficerPatrick H. DudasikExecutive Vice President,
    Chief Financial Officer and TreasurerJames S. Hamman, Jr.Executive Vice President,
    General Counsel and SecretaryScott Craven JonesExecutive Vice President and
    Chief Administrative Officer |  | James F. BakaSenior Vice President and
    National Sales
    Manager-Institutional
    ServicesNimish S. BhattSenior Vice President and
    Director of OperationsRobert M. KunimuraSenior Vice President and
    Chief Technology OfficerPhilip (Phipps) E. MoriartySenior Vice President and
    National Sales
    Manager-Intermediary
    Channels |  | John P. Calamos, Sr.Chairman, Chief Executive Officer and Co-Chief
    Investment OfficerNick P. CalamosSenior Executive Vice President and
    Co-Chief Investment OfficerG. Bradford BulkleyFounder
    Bulkley Capital, L.P.Richard W. GilbertPresident
    Gilbert Communications, Inc.Arthur L. KnightPrivate Investor and
    Business Consultant
    Former President and Chief
    Executive Officer
    Morgan Products, Ltd.



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








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








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








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



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PART IV







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









|        |       |                        |  |                                                                                                                                                                                                                                                                                                                                                                          
|------- | ----- | ---------------------- |  | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |       |                       
|Number  |       | Description of Exhibit
|        |       |                       
|        | 3(i)  |                        |  | Amended and Restated Certificate of Incorporation of the
    Registrant (incorporated by reference to Exhibit 3.1 to the
    Registrants Current Report on Form 8-K filed with the
    Securities and Exchange Commission on November 2, 2004).                                                                                                                         
|        | 3(ii) |                        |  | Amended and Restated By-Laws of the Registrant (incorporated by
    reference to Exhibit 3.2 to the Registrants Current
    Report on Form 8-K filed with the Securities and Exchange
    Commission on April 26, 2005).                                                                                                                                                
|        | 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 (incorporated by reference to Exhibit 4.1 to the
    Registrants Quarterly Report on Form 10-Q filed with
    the Securities and Exchange Commission on December 3, 2004).
|        | 4     | .2                     |  | Registration Rights Agreement between Calamos Family Partners,
    Inc., John P. Calamos, Sr. and the Registrant (incorporated
    by reference to Exhibit 4.2 to the Registrants
    Quarterly Report on Form 10-Q filed with the Securities and
    Exchange Commission on December 3, 2004).                                                                         
|        | 10    | .1                     |  | Employment Agreement between the Registrant and John P.
    Calamos, Sr. (incorporated by reference to
    Exhibit 10.1 to the Registrants Quarterly Report on
    Form 10-Q filed with the Securities and Exchange Commission
    on December 3, 2004).                                                                                                                
|        | 10    | .2                     |  | Employment Agreement between the Registrant and Nick P. Calamos
    (incorporated by reference to Exhibit 10.2 to the
    Registrants Quarterly Report on Form 10-Q filed with
    the Securities and Exchange Commission on December 3, 2004).                                                                                                                         
|        | 10    | .3                     |  | Employment Agreement between the Registrant and James S.
    Hamman, Jr. (incorporated by reference to Exhibit 10.3
    to the Registrants Quarterly Report on Form 10-Q
    filed with the Securities an Exchange Commission on
    December 3, 2004).                                                                                                                 
|        | 10    | .4                     |  | Employment Agreement between the Registrant and Patrick H.
    Dudasik (incorporated by reference to Exhibit 10.4 to the
    Registrants Quarterly Report on Form 10-Q filed with
    the Securities and Exchange Commission on December 3, 2004).                                                                                                                      
|        | 10    | .5                     |  | Calamos Asset Management, Inc. Incentive Compensation Plan
    (incorporated by reference to Exhibit 10.5 to the
    Registrants Quarterly Report on Form 10-Q filed with
    the Securities and Exchange Commission on December 3, 2004).                                                                                                                              
|        | 10    | .6                     |  | Form of EAU-Based RSU Award Statement (incorporated by reference
    to Exhibit 10.6 to the Registrants Quarterly Report
    on Form 10-Q filed with the Securities and Exchange
    Commission on December 3, 2004).                                                                                                                                                   
|        | 10    | .7                     |  | Form of IPO Equity Award Statement (incorporated by reference to
    Exhibit 10.7 to the Registrants Quarterly Report on
    Form 10-Q filed with the Securities and Exchange Commission
    on December 3, 2004).                                                                                                                                                      
|        | 10    | .8                     |  | Form of Services-Based RSU Award Statement (incorporated by
    reference to Exhibit 10.8 to the Registrants
    Quarterly Report on Form 10-Q filed with the Securities and
    Exchange Commission on December 3, 2004).                                                                                                                                              
|        | 10    | .9                     |  | Contribution Agreement between the Registrant and Calamos
    Holdings LLC (incorporated by reference to Exhibit 10.9 to
    the Registrants Quarterly Report on Form 10-Q filed
    with the Securities and Exchange Commission on December 3,
    2004).                                                                                                              

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|        |    |                        |  |                                                                                                                                                                                                                                                                                                                                                                                                            
|------- | -- | ---------------------- |  | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
|Exhibit |    |                       
|Number  |    | Description of Exhibit
|        |    |                       
|        | 10 | .10                    |  | Tax Indemnity Agreement among the Registrant, Calamos Family
    Partners, Inc. and Calamos Holdings LLC (incorporated by
    reference to Exhibit 10.10 to the Registrants
    Quarterly Report on Form 10-Q filed with the Securities and
    Exchange Commission on December 3, 2004).                                                                                                                 
|        | 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 (incorporated by reference
    to Exhibit 10.11 to the Registrants Quarterly Report
    on Form 10-Q filed with the Securities and Exchange
    Commission on December 3, 2004).
|        | 10 | .12                    |  | Amendment No. 1 to the Second Amended and Restated Limited
    Liability Company Agreement of Calamos Holdings LLC.                                                                                                                                                                                                                                                                                        
|        | 10 | .13                    |  | Amendment Number 1 to Management Services Agreement between
    the Registrant and Calamos Family Partners, Inc. (incorporated
    by reference to Exhibit 10 to the Registrants
    Quarterly Report on Form 10-Q filed with the Securities and
    Exchange Commission on August 12, 2005).                                                                                                             
|        | 10 | .14                    |  | Lease between 2020 Calamos Court LLC and Calamos Holdings LLC
    (formerly with Calamos Holdings, Inc.) (incorporated by
    reference to Exhibit 10 to the Registrants Quarterly
    Report on Form 10-Q filed with the Securities and Exchange
    Commission on November 10, 2005).                                                                                                                   
|        | 21 | .1                     |  | Subsidiaries of the Company (incorporated by reference to
    Exhibit 21.1 to the Registrants Annual Report on
    Form 10-K filed with the Securities and Exchange Commission
    on March 31, 2005).                                                                                                                                                                                                    
|        | 23 | .1                     |  | Consent of Independent Registered Public Accounting Firm, KPMG
    LLP.                                                                                                                                                                                                                                                                                                                                    
|        | 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.                                                                                                                                                                                                                                                                                                                       



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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 10, 2006
|                                            
|/s/ Patrick H. DudasikPatrick H. Dudasik     |  | Executive Vice President, Chief Financial Officer and Treasurer                                             |          | March 10, 2006
|                                            
|/s/ Nick P. CalamosNick P. Calamos           |  | Senior Executive Vice President,Co-Chief Investment Officer and Director                                    |          | March 10, 2006
|                                            
|/s/ G. Bradford BulkleyG. Bradford Bulkley   |  |                                                                                                             | Director |                |      | March 10, 2006
|                                            
|/s/ Richard W. GilbertRichard W. Gilbert     |  |                                                                                                             | Director |                |      | March 10, 2006
|                                            
|/s/ Arthur L. KnightArthur L. Knight         |  |                                                                                                             | Director |                |      | March 10, 2006

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