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                                  Diamond Hill
                                  ------------
                                  Investments


FOR IMMEDIATE RELEASE:
                                             Investor Contact:
                                             James F. Laird
                                             Chief Financial Officer
                                             614-255-3353
                                             E-mail: (jlaird@diamond-hill.com)

     DIAMOND HILL INVESTMENT GROUP, INC. REPORTS 2006 FINANCIAL RESULTS

	Columbus, Ohio - February 16, 2007 - Diamond Hill Investment Group,
Inc. (NASDAQ:DHIL) today reported results for the year ended December 31,
2006. Assets under management increased by 147% to $3.7 billion compared to
$1.5 billion at the end of 2005 while revenue of $31.9 million for the year
increased by 211% compared to 2005.  Net income for the year was $8.1 million
or $3.63 per diluted share compared to $3.7 million or $1.83 per diluted share
in 2005.

	Ric Dillon, president and chief investment officer stated, "Our primary
goal is to fulfill our fiduciary responsibility to our clients by achieving
excellent long-term investment returns.  We define long-term as five years and
by that measure all of our strategies have delivered strong returns for
clients.  Our investment results for 2006 were mixed with some strategies
exceeding benchmarks and others trailing. We must and will continue to focus
all our resources on meeting our long-term commitment to clients."

	Jim Laird, chief financial officer noted, "In 2006 new client
investments, net of withdrawals, totaled $1.9 billion, up 124% from $850
million in 2005.  We expanded our efforts to grow our business by adding
resources to support existing distribution channels including independent
registered investment advisors, financial planners, investment consultants and
401(k) plans.  Further,in 2006 we began to market into the wirehouse and
regional broker dealer markets. In addition our efforts to market our private
investment funds to institutional clients in the U.S. and abroad have been
successful."

Full Year Results		   	   2006	  	   2005		Change
Investment advisory fees		$20,246,624    	$ 6,488,767	+212%
Investment incentive fees		$ 7,947,434	$ 2,915,771	+173%
Mutual fund administration, net		$ 3,710,141	$   841,527	+341%
Total Revenue				$31,904,199	$10,246,065	+211%
Net operating income			$ 9,768,568	$ 1,394,314	+601%
Net operating income margin	  	     30.6%	     13.6%
Investment return			$ 2,526,620	$   594,777	+325%
Pre-tax income				$12,295,188	$ 1,989,091	+518%
Net income				$ 8,065,133	$ 3,650,766	+121%
Pro-forma net income			$ 8,065,133	$ 1,208,206	+568%
Earnings per share - diluted		$     3.63	$     1.83	 +98%
Pro-forma earnings per share - diluted	$     3.63	$     0.61	+495%
Assets under management			$3.7 billion	$1.5  billion	+147%
New investments, net of withdrawals	$1.9 billion	$0.85 billion	+124%

Quarter ended December 31		   Q4 2006	  Q4 2005	Change
Investment management revenue		$ 6,679,716	$2,385,334	+180%
Investment incentive Fees		$ 5,437,558	$  996,152	+446%
Fund administration, net		$ 1,303,237	$  369,385	+253%
Total Revenue				$13,420,511	$3,750,871	+258%
Net operating income			$ 4,447,367	$  802,527	+454%
Net operating income margin		     33.1%	    21.4%
Investment return			$ 1,623,333	$  216,308	+650%
Pre-tax income				$ 6,070,699	$1,018,835	+496%
Net income				$ 4,082,108	     n.m.	 n.m.
Earnings per share - diluted		$     1.72	     n.m.	 n.m.

	Mutual Fund Administration - Mr. Laird described a change made to the
company's financial statements at the end of 2006.  "Effective December 31,
2006 we are reporting mutual fund administration, net of fund-related costs,
in the operating section of the income statement.  Mutual fund assets have
grown dramatically in the past two years from $238 million at the end of 2004
to $2.5 billion at the end of 2006.  As a result mutual fund administration,
which operated at breakeven in 2005 and at a loss in prior years, contributed
$2 million to operating income in 2006 despite our reduction in administration
fees charged to the funds of more than 10% in each of the past two years."

	Investment Incentive Fees - the company reported that 25% of revenue,
or $7.9 million, were performance incentive fees earned from strong returns in
certain investment portfolios.  Management cautioned that it is unlikely that
the proportion of incentive fees to total revenue will be as high in the future.

	Income taxes - In 2006 the company accrued federal and city income taxes
at an effective tax rate of 34%.  In 2005 the company recorded a non-cash income
tax benefit of $1.66 million, reflecting the likelihood that tax loss
carryforwards of $8.1 million would be utilized in 2006 and future years.
This one time benefit resulted in a significant increase in net income in 2005
and, as expected, the company began incurring income tax expense in 2006 and
partially utilized the carryforwards.  In the first quarter of 2007, the
company's CEO exercised non-qualified warrants that were granted in 2000,
which will result in a $7.6 million tax deduction but, in accordance with
generally accepted accounting principles (GAAP), $0 financial statement
expense.

	Pro Forma Earnings - Pro forma results illustrate the company's 2005
earnings adjusted for the impact of federal income taxes.  Under GAAP, the
company recorded an income tax benefit of $1.66 million reflecting the
likelihood that tax loss carryforwards would be utilized in future years.
Therefore, under GAAP, the company did not incur income tax expense in 2005
despite $1.989 million in net income before tax and, instead, recorded an
income tax benefit for the year. Pro forma earnings, which the company believes
are useful for readers of the financial statements to ascertain the underlying
profitability of the company, do not include the tax benefit of $1.66 million
but instead reflect income tax expense of $781 thousand assuming the company
paid federal income tax on taxable income.  A reconciliation of pro forma and
GAAP earnings is shown below.

				PRO FORMA	AS PRESENTED
						   (GAAP)
				  2005		    2005	DIFFERENCE
Net Income (loss) before tax	$1,989,091	$1,989,091	$        0
Income tax (expense) benefit	($ 780,885)	$1,661,675	$2,442,560
Net Income			$1,208,206	$3,650,766	$2,442,560
Earnings per share - diluted	$    0.61	$    1.83	$    1.22

	2007 Annual Meeting of Shareholders - Diamond Hill announced that the
2007Annual Shareholder meeting will be held May 24, 2007 at the Arena Grand
Theatre, 175 W. Nationwide Boulevard Columbus, Ohio at 1:00 pm along with an
investor conference call.

About Diamond Hill:
Diamond Hill provides investment management services to institutions and
financial intermediaries seeking to preserve and build wealth. The firm
currently manages mutual funds, separate accounts and private investment funds.
For more information on Diamond Hill, visit www.diamond-hill.com.

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            325 John H. McConnell Blvd, Suite 200, Columbus, Ohio 43215
                         614-255-3333  fax 614-255-3363