| [X] | QUARTERLY      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|-----|---------------------------------------------------------------------------------------------------|

| [      ] | TRANSITION      REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF      1934 |
|----------|----------------------------------------------------------------------------------------------------|

| GAMCO      INVESTORS, INC.                                               |
|--------------------------------------------------------------------------|
| (Exact      name of Registrant as specified in its charter)              |
|                                                                     |   |   |   |
| New      York                                                            |   |   | 13-4007862 |
| (State      of other jurisdiction of incorporation      or organization) |   |   | (I.R.S.      Employer Identification      No.) |
|                                                                     |   |   |   |   |
| One      Corporate Center, Rye, NY                                       |   |   | 10580-1422 |
| (Address      of principle executive offices)                            |   |   | (Zip      Code) |
|                                                                     |   |   |   |   |
| (914)      921-5100                                                      |
| Registrant’s      telephone number, including areacode             |

| Yes | x | No | o |
|-----|---|----|---|

| Indicate      by check mark whether the registrant is a large accelerated filer, an      accelerated filer, a non-accelerated filer, or a smaller reporting      company.  See the definitions of “large accelerated filer",      "accelerated filer", and "smaller reporting company” in Rule 12b-2 of the      Exchange Act. (Check one): |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                              |
| Large      accelerated filer  ̈                                                                                                                                                                                                                                                                                                                               |   | Accelerated      filer x |   |
|                                                                                                                                                                                                                                                                                                                                                              |   |   |   |
| Non-accelerated      filer o                                                                                                                                                                                                                                                                                                                                      |   | Smaller      reporting company o |   |

| Yes | o | No |  x |
|-----|---|----|---------|

| Class                                     |   | Outstanding at April 30,    2008 |   |
|-------------------------------------------|--------|----------------------------------|--------|
| Class      A Common Stock, .001 par value |   | 7,743,695                        |   |
| Class      B Common Stock, .001 par value |   | 20,626,644                       |   |

----

| INDEX                                       |
|---------------------------------------------|
|                                        |
| GAMCO      INVESTORS, INC. AND SUBSIDIARIES |
|                                        |   |
|                                        |   |
| PART      I.                                | FINANCIAL      INFORMATION |   |   |   |
|                                        |   |
|                                        |   |
| Item      1.                                | Financial      Statements (Unaudited) |
|                                        |   |
|                                        | Condensed      Consolidated Statements of Income: |
|                                        | -    Three      months ended March 31, 2007 and 2008 |
|                                        |   |
|                                        | Condensed      Consolidated Statements of Financial Condition: |
|                                        | -    December      31, 2007 |
|                                        | -    March      31, 2007 |
|                                        | -    March      31, 2008 |
|                                        |   |
|                                        | Condensed      Consolidated Statements of Stockholders’ Equity and Comprehensive      Income: |
|                                        | -    Three      months ended March 31, 2007 and 2008 |
|                                        |   |
|                                        | Condensed      Consolidated Statements of Cash Flows: |
|                                        | -    Three      months ended March 31, 2007 and 2008 |
|                                        |   |
|                                        | Notes      to Condensed Consolidated Financial Statements |
|                                        |   |
| Item      2.                                | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations |
|                                        | (Including      Quantitative and Qualitative Disclosure      about Market Risk) |
|                                        |   |
| Item      3.                                | Quantitative      and Qualitative      Disclosures About Market      Risk |
|                                        |   |
| Item      4.                                | Controls      and Procedures |
|                                        |   |
| PART      II.                               | OTHER      INFORMATION |   |   |   |   |
|                                        |   |
| Item      2.                                | Changes      in Securities, Use of Proceeds and Issuer Purchases of Equity      Securities |
|                                        |   |
|                                        |   |
| Item      6.                                | Exhibits |
|                                        |   |
|                                        |   |
|                                        |   |
| SIGNATURES                                  |   |
|                                        |   |

----

| GAMCO      INVESTORS, INC. AND SUBSIDIARIES                          |
|----------------------------------------------------------------------|
| CONDENSED      CONSOLIDATED STATEMENTS OF INCOME                     |
| UNAUDITED                                                            |
| (In      thousands, except per share data)                           |
|                                                                 |
|                                                                 |
|                                                                 |
|                                                                 |
|                                                                 |   | Three      Months Ended |   |
|                                                                 |   | March      31, |   |
|                                                                 |   | 2007 |   |   | 2008 |   |
|                                                                 |   |   |   |   |   |   |
| Revenues                                                             |   |   |   |   |   |   |
|   Investment advisory      and incentive fees              |   | $ | 56,560 |   |   | $ | 56,841 |   |
|   Commission      revenue                                  |   |   | 4,020 |   |   |   | 3,256 |   |
|   Distribution      fees and other income                  |   |   | 6,026 |   |   |   | 6,451 |   |
|      Total      revenues                    |   |   | 66,606 |   |   |   | 66,548 |   |
| Expenses                                                             |   |   |   |   |   |   |   |   |
|        Compensation costs                                       |   |   | 28,374 |   |   |   | 28,847 |   |
|   Management      fee                                      |   |   | 3,401 |   |   |   | 1,981 |   |
|   Distribution      costs                                  |   |   | 5,886 |   |   |   | 6,409 |   |
|   Other      operating expenses                            |   |   | 8,434 |   |   |   | 6,054 |   |
|      Total      expenses                    |   |   | 46,095 |   |   |   | 43,291 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Operating      income                                                |   |   | 20,511 |   |   |   |  23,257 |   |
| Other      income (expense)                                          |   |   |   |   |   |   |   |   |
|   Net      gain (loss) from investments                    |   |   | 5,570 |   |   |   |  (8,389 | ) |
|   Interest      and dividend income                        |   |   | 8,002 |   |   |   |  4,774 |   |
|   Interest      expense                                    |   |   | (3,380 | ) |   |   |  (2,067 | ) |
|      Total      other income (expense), net |   |   | 10,192 |   |   |   |  (5,682 | ) |
| Income      before income taxes and minority interest                |   |   | 30,703 |   |   |   |  17,575 |   |
|   Income      tax provision                                |   |   | 11,207 |   |   |   |  7,326 |   |
|   Minority      interest                                   |   |   | 332 |   |   |   |  (237 | )  |
|     Net      income                              |   | $ | 19,164 |   |   | $  |  10,486 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Net      income per share:                                           |   |   |   |   |   |   |   |   |
|   Basic                                                    |   | $ | 0.68 |   |   |  $ | 0.37 |   |
|                                                                 |   |   |   |   |   |   |   |   |
|   Diluted                                                  |   | $ | 0.67 |   |   |  $ | 0.37 |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Weighted      average shares outstanding:                            |   |   |   |   |   |   |   |   |
|   Basic                                                    |   |   | 28,228 |   |   |   | 28,175 |   |
|                                                                 |   |   |   |   |   |   |   |   |
|   Diluted                                                  |   |   | 29,196 |   |   |   | 29,031 |   |
|                                                                 |   |   |   |   |   |   |   |   |
|                                                                 |   |   |   |   |   |   |   |   |
| Dividends      declared per share:                                   |   |   |   |   |   |   |   |   |
|    Quarterly                                          |   | $ | 0.03 |   |   |  $ | 0.03 |   |
|                                                                 |   |   |   |   |   |   |   |   |
|                                                                 |   |   |   |   |   |   |   |   |
|                                                                 |   |   |   |   |   |   |   |   |
|                                                                 |   |   |   |   |   |   |   |   |
|                                                                 |
| See      accompanying notes.                                         |

----

| GAMCO      INVESTORS, INC. AND SUBSIDIARIES                                                                                                                          |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| CONDENSED      CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION                                                                                                        |   |
| (In      thousands, except share data)                                                                                                                               |   |
|                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                 |   | December      31, |   |   | March      31, |   |   | March      31, |   |
|                                                                                                                                                                 |   | 2007 |   |   | 2008 |   |   | 2007      (A) |   |
|                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                 |   |   |   |   | (unaudited) |   |
| Cash      and cash equivalents, including restricted cash of $0,      $0 and $3,418.                                                                            |   | $ | 168,319 |   |   | $ | 280,796 |   |   | $ | 103,882 |   |
| Investments      in securities, including restricted securities of $0,      $0 and $51,461.                                                                     |   |   | 394,977 |   |   |   | 325,407 |   |   |   | 532,222 |   |
| Investments      in partnerships and affiliates                                                                                                                      |   |   | 100,031 |   |   |   | 85,572 |   |   |   | 68,651 |   |
| Receivable      from brokers                                                                                                                                         |   |   | 40,145 |   |   |   | 15,186 |   |   |   | 22,794 |   |
| Investment      advisory fees receivable                                                                                                                             |   |   | 33,701 |   |   |   | 18,862 |   |   |   | 20,375 |   |
| Other      assets                                                                                                                                                    |   |   | 20,407 |   |   |   | 23,202 |   |   |   | 19,548 |   |
|                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      assets                                                                                                                                                    |   | $ | 757,580 |   |   | $ | 749,025 |   |   | $ | 767,472 |   |
|                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| LIABILITIES      AND STOCKHOLDERS' EQUITY                                                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Payable      to brokers                                                                                                                                              |   | $ | 7,562 |   |   | $ | 5,421 |   |   | $ | 40,441 |   |
| Income      taxes payable, including deferred taxes of $5,814, $(924), and      $905.                                                                           |   |   | 17,539 |   |   |   | 12,747 |   |   |   | 7,751 |   |
| Compensation      payable                                                                                                                                            |   |   | 25,362 |   |   |   | 30,278 |   |   |   | 37,942 |   |
| Capital      lease obligation                                                                                                                                        |   |   | 2,525 |   |   |   | 2,453 |   |   |   | 2,721 |   |
| Securities      sold, not yet purchased                                                                                                                              |   |   | 2,229 |   |   |   | 3,110 |   |   |   | 15,925 |   |
| Accrued      expenses and other liabilities                                                                                                                          |   |   | 38,810 |   |   |   | 34,954 |   |   |   | 31,641 |   |
|                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      operating liabilities                                                                                                                                     |   |   | 94,027 |   |   |   | 88,963 |   |   |   | 136,421 |   |
|                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Long      term liabilities                                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
| 5.5%      Senior notes (due May 15, 2013)                                                                                                                            |   |   | 100,000 |   |   |   | 100,000 |   |   |   | 100,000 |   |
| 6%      Convertible note (due August 14, 2011) (B)                                                                                                                   |   |   | 49,608 |   |   |   | 39,706 |   |   |   | 49,537 |   |
|                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|      Total      liabilities                                                                                                                 |   |   | 243,635 |   |   |   | 228,669 |   |   |   | 285,958 |   |
|                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Minority      interest                                                                                                                                               |   |   | 12,630 |   |   |   | 12,494 |   |   |   | 14,026 |   |
|                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders’      equity                                                                                                                                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Class      A Common Stock, $0.001 par value; 100,000,000                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|     shares      authorized; 12,574,995, 12,765,674 and 12,141,696                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|     issued,      respectively; 7,819,741, 7,801,831 and 7,514,242    outstanding,      respectively                     |   |   | 12 |   |   |   | 12 |   |   |   | 10 |   |
| Class      B Common Stock, $0.001 par value; 100,000,000                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|     shares      authorized; 24,000,000 shares issued,    20,626,644, 20,626,644      and 20,671,143 shares outstanding, |   |   |   |   |   |   |   |   |   |   |   |   |
|     respectively                                                                                                                                 |   |   | 21 |   |   |   | 21 |   |   |   | 23 |   |
| Additional      paid-in capital                                                                                                                                      |   |   | 230,483 |   |   |   | 242,293 |   |   |   | 229,792 |   |
| Retained      earnings                                                                                                                                               |   |   | 445,121 |   |   |   | 454,749 |   |   |   | 415,472 |   |
| Accumulated      comprehensive gain                                                                                                                                  |   |   | 20,815 |   |   |   | 16,737 |   |   |   | 11,031 |   |
| Treasury      stock, at cost (4,755,254, 4,963,843, and 4,627,454                                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |
|     shares,      respectively)                                                                                                                   |   |   | (195,137 | ) |   |   | (205,950 | ) |   |   | (188,840 | ) |
| Total      stockholders' equity                                                                                                                                      |   |   | 501,315 |   |   |   | 507,862 |   |   |   | 467,488 |   |
|                                                                                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |
| Total      liabilities and stockholders' equity                                                                                                                      |   | $ | 757,580 |   |   | $ | 749,025 |   |   | $ | 767,472 |   |

| See      accompanying notes. |
|------------------------------|

----

| GAMCO      INVESTORS, INC. AND SUBSIDIARIES                                                        |
|----------------------------------------------------------------------------------------------------|
| CONDENSED      CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY AND COMPREHENSIVE      INCOME |
| UNAUDITED                                                                                          |
| (In      thousands)                                                                                |

|                                                                                     |  Three      Months Ended |   |
|------------------------------------------------------------------------------------------|-------------------------------|--------|
|                                                                                     |  March      31,          |   |
|                                                                                     |                          | 2007   |   |   |   |  2008 |   |
| Stockholders’      equity – beginning of period                              |                          | $      | 451,576 |   |   |   | $ | 501,315 |   |
|                                                                                     |                          |   |   |   |   |   |   |   |   |
| Cumulative      effect of applying the provisions of FIN 48 at January      1, 2007 |                          |   | (822 | )  |   |   |   | -  |   |
| Comprehensive      income:                                                               |                          |   |   |   |   |   |   |   |   |
|  Net      income                                                                    |                          |   | 19,164  |   |   |   |   | 10,486 |   |
|  Foreign      currency translation adjustments                                      |                          |   | 1  |   |   |   |   | 21 |   |
|  Net unrealized      gain (loss) on securities available for sale                   |                          |   | 685  |   |   |   |   | (4,100 | )  |
| Total      comprehensive income                                                          |                          |   | 19,850  |   |   |   |   | 6,407 |   |
|                                                                                     |                          |   |   |   |   |   |   |   |   |
| Dividends      declared                                                                  |                          |   | (846 | ) |   |   |   |  (857 | )  |
| Stock      based compensation expense                                                    |                          |   | 21  |   |   |   |   |  1,198 |   |
| Conversion      of 6% convertible note                                                   |                          |   | -  |   |   |   |   | 10,000 |   |
| Exercise      of stock options including tax benefit                                     |                          |   | 72  |   |   |   |   |  612 |   |
| Purchase      of treasury stock                                                          |                          |   | (2,363 | ) |   |   |   |  (10,813 | )  |
| Stockholders’      equity – end of period                                    |                          | $      | 467,488 |   |   |   | $ |  507,862 |   |
|                                                                                     |                          |   |   |   |   |   |   |   |   |
|                                                                                     |                          |   |   |   |   |   |   |   |   |
|                                                                                     |                          |   |   |   |   |   |   |   |   |
| See      accompanying notes.                                                             |                          |   |   |   |   |   |   |   |   |

----

|  GAMCO      INVESTORS, INC. AND    SUBSIDIARIES                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| CONDENSED      CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|  UNAUDITED                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|  (In      thousands)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Three      Months Ended |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |  March      31, |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | 2007 |   |   | 2008 |   |
| Operating      activities Net income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $ | 19,164 |   |   | $ | 10,486 |   |
|  Adjustments      to reconcile net income to net cash   provided      by operating activities:                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
|   Equity      in net gains from partnerships and      affiliates                                                                            |   |   | (2,246 | ) |   |   | 2,375 |   |
|   Depreciation      and      amortization                                                                                                   |   |   | 307 |   |   |   | 229 |   |
|   Stock      based compensation      expense                                                                                                |   |   | 21 |   |   |   | 1,198 |   |
|   Deferred      income      tax                                                                                                             |   |   | 395 |   |   |   | (2,815 | ) |
|   Tax      benefit from exercise of stock      options                                                                                      |   |   | 25 |   |   |   | 43 |   |
|   Foreign      currency      loss                                                                                                           |   |   | 1 |   |   |   | 21 |   |
|   Other-than-temporary      loss on available for sale securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | - |   |   |   | 249 |   |
|   Impairment      of      goodwill                                                                                                          |   |   | 56 |   |   |   | - |   |
|        Acquisition of intangible asset                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | - |   |   |   | (4,043 | )  |
|   Market      value of donated      securities                                                                                              |   |   | 122 |   |   |   | - |   |
|   Minority      interest in net income of consolidated subsidiaries                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 275 |   |   |   | (73 | )  |
|   Realized      gains on sales of available for sale securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | (157 | ) |   |   | (253 | ) |
|   Realized      gains on sales of trading investments in securities,      net                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | (7,415 | ) |   |   | (3,121 | ) |
|   Change      in unrealized value of trading investments in securities and securities      sold, not yet purchased, net                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 2,524 |   |   |   | 7,012 |   |
|        Realized losses (gains) on covers of securities sold, not yet purchased,      net                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 917 |   |   |   | (318 | )  |
|   Amortization      on discount on debt                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 33 |   |   |   | 98 |   |
| (Increase)      decrease in operating assets:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|    Purchases      of trading investments in      securities                                                                            |   |   | (392,800 | ) |   |   | (109,155 | ) |
|    Proceeds      from sales of trading investments in securities                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | 396,399 |   |   |   | 164,837 |   |
|         Cost of covers on securities sold, not yet purchased                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | (30,745 | ) |   |   | (10,173 | )  |
|         Proceeds from sales of securities sold, not yet purchased                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 41,578 |   |   |   | 11,495 |   |
|    Investments      in partnerships and      affiliates                                                                                |   |   | (3,072 | ) |   |   | (182 | ) |
|    Distributions      from partnerships and      affiliates                                                                            |   |   | 11,485 |   |   |   | 12,728 |   |
|    Receivable      from      brokers                                                                                                   |   |   | 30,193 |   |   |   | 22,609 |   |
|    Investment      advisory fees      receivable                                                                                       |   |   | 10,764 |   |   |   | 14,994 |   |
|    Other      receivables from      affiliates                                                                                         |   |   | 4,804 |   |   |   | 2,512 |   |
|    Other      assets                                                                                                                   |   |   | (355 | )  |   |   | (1,440 | ) |
| Increase      (decrease) in operating liabilities:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
|    Payable      to      brokers                                                                                                        |   |   | 2,960 |   |   |   | (2,149 | )  |
|    Income      taxes      payable                                                                                                      |   |   | (7,213 | )  |   |   | 1,662 |   |
|    Compensation      payable                                                                                                           |   |   | 8,222 |   |   |   | 5,791 |   |
|    Accrued      expenses and other      liabilities                                                                                    |   |   | (8,652 | ) |   |   | (4,037 | )  |
| Effects      of consolidation of investment partnerships and offshore funds      consolidatedunder      FIN 46R and EITF 04-5:                                                                                                                                                                                                                                                                                                                                                                                                               |   |   |   |   |   |   |   |   |
| Realized      (losses) gains on sales of investments in securities and securities sold,      not yet purchased, net                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | (278 | )  |   |   | 67 |   |
| Change      in unrealized value of investments in securities and securities sold, not      yet purchased, net                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 200 |   |   |   | 350 |   |
| Equity      in net gains from partnerships and affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | (758 | )  |   |   | (28 | )  |
| Purchases      of trading investments in securities and securities sold, not yet      purchased                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | (14,550 | )  |   |   | (3,218 | )  |
| Proceeds      from sales of trading investments in securities and securities sold, not      yet purchased                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 12,084 |   |   |   | 4,322 |   |
| Investments      in partnerships and affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   |   | (2,000 | )  |   |   | - |   |
| Distributions      from partnerships and affiliates                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 500 |   |   |   | - |   |
| Increase      in investment advisory fees receivable                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   | (45 | )  |   |   | (155 | )  |
| Decrease      in receivable from brokers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | 695 |   |   |   | 2,350 |   |
| Increase      in other assets                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | (58 | )  |   |   | (52 | )  |
| Increase      in payable to brokers                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   | 1,135 |   |   |   | 8 |   |
| Increase      in accrued expenses and other liabilities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 49 |   |   |   | 107 |   |
| Income      (loss) related to investment partnerships and offshore      funds consolidated      under FIN 46R and EITF 04-5, net                                                                                                                                                                                                                                                                                                                                                                                                        |   |   | 490 |   |   |   | (765 | )  |
| Total      adjustments                                                                                                                                |   |   | 55,890 |   |   |   | 113,080 |   |
| Net      cash provided by operating      activities                                                                                         |   |   | 75,054 |   |   |   | 123,566 |   |

----

| GAMCO      INVESTORS, INC. AND SUBSIDIARIES                     |
|-----------------------------------------------------------------|
|  CONDENSED      CONSOLIDATED STATEMENTS OF CASH      FLOWS |
|  UNAUDITED                                                 |
|  (In      thousands)                                       |
|                                                            | Three      Months Ended |
|                                                            |  March      31, |
|                                                            | 2007 | 2008 |

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |    |    |   |   |    |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|---------|--------|--------|---------|--------|
| Investing      activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |    |    |   |   |    |   |
| Purchases      of available for sale      securities                                                                                           |   |   | (25,031 | )       |   |   | (774    | )      |
| Proceeds      from sales of available for sale      securities                                                                                 |   |   | 939     |    |   |   | 383     |   |
| Net      cash used in investing      activities                                                                                                |   |   | (24,092 | )       |   |   | (391    | )      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |    |    |   |   |    |   |
| Financing      activities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |    |    |   |   |    |   |
| Payoff      of 5.22% Senior Notes                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   | (82,308 | )       |   |   | -       |   |
| Contributions      related to investment partnerships and offshore funds consolidated      under FIN 46R and EITF 04-5, net                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 516     |    |   |   | 404     |   |
| Proceeds      from exercise of stock      options                                                                                              |   |   | 48      |    |   |   | 569     |   |
| Dividends      paid                                                                                                                            |   |   | (846    | )       |   |   | (857    | )      |
| Subsidiary      stock repurchased from minority      shareholders                                                                              |   |   | (241    | )  |   |   | -       |   |
| Purchase      of treasury      stock                                                                                                           |   |   | (2,363  | )       |   |   | (10,813 | )      |
| Net      cash used in financing      activities                                                                                                |   |   | (85,194 | )       |   |   | (10,697 | )      |
| Net      (decrease) increase in cash and cash      equivalents                                                                            |   |   | (34,232 | )       |   |   | 112,478 |   |
| Effect      of exchange rates on cash and cash equivalents                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 1       |    |   |   | (1      | )      |
| Cash      and cash equivalents at beginning of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   | 138,113 |    |   |   | 168,319 |   |
| Cash      and cash equivalents at end of period                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   | $      | 103,882 |    |   | $      | 280,796 |   |

----

----

| -   | Level      1 inputs utilize quoted prices (unadjusted) in active markets for      identical assets or liabilities.                                                                                                                                                                                                                                                                                                                                             |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| -   | Level      2 inputs utilize inputs other than quoted prices included in Level 1 that      are observable for the asset or liability, either directly or indirectly.      Level 2 inputs include quoted prices for similar assets and liabilities in      active markets and inputs other than quoted prices that are observable for      the asset or liability, such as interest rates and yield curves that are      observable at commonly-quotedintervals. |

| -   | Level      3 inputs are unobservable inputs for the asset or liability, and include      situations where there is little, if any, market activity for the asset or      liability.  |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Assets                                  |   | Quoted      Prices in Active Markets for Identical Assets (Level 1) |    |   | Significant      Other Observable Inputs (Level 2) |   |   | Significant      Unobservable Inputs (Level 3) |   |   | Balance      as of March 31, 2008 |   |
|-----------------------------------------|--------|---------------------------------------------------------------------|---------|--------|----------------------------------------------------|--------|--------|------------------------------------------------|--------|--------|-----------------------------------|--------|
| Cash and cash      equivalents          |   | $                                                                   | 280,796 |   |                                               | $      | -      |                                           |   | $      | -                                 |   |   | $ | 280,796 |   |
| Investments in      securities          |   |                                                                | 323,812 |   |                                               |   | 407    |                                           |   |   | 1,188                             |   |   |   | 325,407 |   |
| Total      financial instruments owned  |   |                                                                | 604,608 |   |                                               |   | 407    |                                           |   |   | 1,188                             |   |   |   | 606,203 |   |
| Liabilities                             |   |                                                                |    |   |                                               |   |   |                                           |   |   |                              |   |   |   |   |   |
| Securities sold, not      yet purchased |   |                                                                | 3,110   |   |                                               |   | -      |                                           |   |   | -                                 |   |   |   | 3,110 |   |

----

|                                 |   |                   |   |   | Total      Realized and Unrealized Gains or (Losses) in Income |   |   |        |   |   |                                                                                |   |   |                                                 |   |   |                          |   |   |                                          |   |
|--------------------------------------|--------|------------------------|--------|--------|----------------------------------------------------------------|--------|--------|-------------|--------|--------|-------------------------------------------------------------------------------------|--------|--------|------------------------------------------------------|--------|--------|-------------------------------|--------|--------|-----------------------------------------------|--------|
| Asset                                |   | Beginning      Balance |   |   | Trading                                                        |   |   | Investments |   |   | Total      Unrealized Gains or (Losses) Included in Other Comprehensive      Income |   |   | Total      Realized and Unrealized Gains or (Losses) |   |   | Purchases      and Sales, net |   |   | Net      Transfers In and/or (Out) of Level 3 |   |   | Ending      Balance |   |
| Financial      instruments owned:    |   |                   |   |   |                                                           |   |   |        |   |   |                                                                                |   |   |                                                 |   |   |                          |   |   |                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|  Investments      in securities |   | $                      | 1,423  |   |                                                           | $      | (235   | )           |   | $      | -                                                                                   |   |   | $                                                    | -      |   |                          | $      | (235   | )                                             |   | $ | - |   |   | $ | - |   |   | $ | 1,188 |   |
|  Total                          |   | $                      | 1,423  |   |                                                           | $      | (235   | )           |   | $      | -                                                                                   |   |   | $                                                    | -      |   |                          | $      | (235   | )                                             |   | $ | - |   |   | $ | - |   |   | $ | 1,188 |   |

----

|                                                                                                 |   | Three      Months Ended |            |
|------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------------|
|                                                                                                 |   | March      31,          |            |
| (in      thousands, except per share amounts)                                                        |   | 2007                    |            |   | 2008 |   |
| Basic:                                                                                               |   |                    |            |   |   |   |
| Net      income                                                                                      |   | $                       | 19,164          |   |   | $ | 10,486 |   |
| Average      shares outstanding                                                                      |   |                    | 28,228          |   |   |   | 28,175 |   |
| Basic      net income per share                                                                      |   | $                       |  0.68      |   |   | $ |  0.37 |   |
|                                                                                                 |   |                    |            |   |   |   |   |   |
| Diluted:                                                                                             |   |                    |            |   |   |   |   |   |
| Net      income                                                                                      |   | $                       | 19,164          |   |   | $ |  10,486 |   |
| Add      interest expense on convertible note,   net      of management fee and taxes |   |                    |   429 |   |   |   |   366 |   |
| Total                                                                                                |   | $                       | 19,593          |   |   | $ |  10,852 |   |
|                                                                                                 |   |                    |            |   |   |   |   |   |
| Average      shares outstanding                                                                      |   |                    | 28,228          |   |   |   |  28,175 |   |
| Dilutive      stock options                                                                          |   |                    | 25              |   |   |   |  52 |   |
| Assumed      conversion of convertible note                                                          |   |                    |  943       |   |   |   |  804 |   |
| Total                                                                                                |   |                    | 29,196          |   |   |   |  29,031 |   |
| Diluted      net income per share                                                                    |   | $                       |  0.67      |   |   | $ |  0.37 |   |
|                                                                                                 |   |

|           |   |   | 2007   |   |   | 2008   |   |   | 2009   |   |   | 2010   |   |   | 2011   |   |   | 2012   |   |
|----------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|           | Q1     |   |   | $      | 22     |   |   | $      | 1,198  |   |   | $      | 1,191  |   |   | $      | 1,179  |   |   | $ | 686 |   |   | $ | 685 |   |
|           | Q2     |   |   |   | 24     |   |   |   | 1,198  |   |   |   | 1,187  |   |   |   | 1,176  |   |   |   | 685 |   |   |   | 685 |   |
|           | Q3     |   |   |   | 24     |   |   |   | 1,198  |   |   |   | 1,185  |   |   |   | 1,176  |   |   |   | 685 |   |   |   | 685 |   |
|           | Q4     |   |   |   | 415    |   |   |   | 1,194  |   |   |   | 1,183  |   |   |   | 1,013  |   |   |   | 685 |   |   |   | 458 |   |
| Full      Year |   |   | $      | 483    |   |   | $      | 4,788  |   |   | $      | 4,746  |   |   | $      | 4,545  |   |   | $      | 2,741 |   |   | $ | 2,513 |   |

----

----

----

|  Table      I:                                                 |   | Assets      Under Management (millions) |   |
|---------------------------------------------------------------------|--------|-----------------------------------------|--------|
| Mutual      Funds:                                                  |   | March      31, 2007                     |   |   | March      31, 2008 |   |   | %      Inc. (Dec.)  |   | Adjusted      % Inc. (Dec.) (a) |   |
| Open-end                                                            |   | $                                       | 8,858  |   |   | $ |        9,459 |   |   | 6.8 | %  |   | (1.3 | )% |
| Closed-end                                                          |   |                                    | 6,188  |   |   |   |        5,762 |   |   | (6.9 | )  |   |        (6.9 | ) |
| Fixed      Income                                                   |   |                                    | 591    |   |   |   |        1,445 |   |   | 144.5 |   |   |        144.5 |   |
| Total      Mutual Funds                                             |   |                                    | 15,637 |   |   |   |        16,666 |   |   | 6.6 |   |   |        1.9 |   |
| Institutional      & PWM:                                       |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Equities:      direct                                               |   |                                    | 10,587 |   |   |   |        9,746 |   |   | (7.9 | )  |   | (7.9 | ) |
| “        sub-advisory |   |                                    | 2,608  |   |   |   |        1,887 |   |   | (27.6 | )  |   | 0.0 |   |
| Fixed      Income                                                   |   |                                    | 49     |   |   |   |        2 |   |   | (95.9 | )  |   | (95.9 | ) |
| Total      Institutional & PWM                                  |   |                                    | 13,244 |   |   |   |        11,635 |   |   | (12.1 | )  |   | (7.1 | ) |
| Investment      Partnerships                                        |   |                                    | 477    |   |   |   |        396 |   |   | (17.0 | )  |   | (17.0 | ) |
| Total      Assets Under Management                                  |   | $                                       | 29,358 |   |   | $ |        28,697 |   |   | (2.3 | )  |   | (2.3 | ) |
|                                                                |   |                                    |   |   |   |   |   |   |   |   |   |   |   |   |
| Equities                                                            |   | $                                       | 28,718 |   |   | $ |        27,250 |   |   | (5.1 | )  |   | (5.1 | ) |
| Fixed      Income                                                   |   |                                    | 640    |   |   |   |        1,447 |   |   | 126.1 |   |   | 126.1 |   |
| Total      Assets Under Management                                  |   | $                                       | 29,358 |   |   | $ |        28,697 |   |   | (2.3 | )  |   | (2.3 | ) |

|  Table      II:                                                |   | Assets      Under Management By Quarter (millions) |   |
|---------------------------------------------------------------------|--------|----------------------------------------------------|--------|
|                                                                |   |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   | %      Increase/(decrease) |   |
| Mutual      Funds                                                   |   |                                               | 3/07   |   |   |   | 6/07 |   |   |   | 9/07 |   |   |   | 12/07 |   |   |   | 3/08 |   |   |   | 12/07 |   |   | 12/07      (a)  |   |   |   |   |   |
| Open-end                                                            |   | $                                                  | 8,858  |   |   | $ | 9,529 |   |   | $ | 9,866 |   |   | $ | 9,774 |   |   | $ | 9,459 | (b) |   |   | (3.2 | )% |   | (8.9 | )%  |   |   |   |   |
| Closed-end                                                          |   |                                               | 6,188  |   |   |   | 6,412 |   |   |   | 6,443 |   |   |   | 6,341 |   |   |   |        5,762 |   |   |   |        (9.1 | )  |   | (9.1 | )  |   |   |   |   |
| Fixed      income                                                   |   |                                               | 591    |   |   |   | 684 |   |   |   | 1,048 |   |   |   | 1,122 |   |   |   |        1,445 |   |   |   |        28.8 |   |   | 28.8 |   |   |   |   |   |
| Total      Mutual Funds                                             |   |                                               | 15,637 |   |   |   | 16,625 |   |   |   | 17,357 |   |   |   | 17,237 |   |   |   |  16,666 |   |   |   |        (3.3 | )  |   | (6.6 | )  |   |   |   |   |
| Institutional      & PWM:                                       |   |                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equities:      direct                                               |   |                                               | 10,587 |   |   |   | 11,116 |   |   |   | 11,266 |   |   |   | 10,708 |   |   |   |  9,746 |   |   |   |        (9.0 | )  |   | (9.0 | )  |   |   |   |   |
| “        sub-advisory |   |                                               | 2,608  |   |   |   | 2,383 |   |   |   | 2,494 |   |   |   | 2,584 |   |   |   |  1,887 |  (b) |   |   |  (27.0 | )  |   | (4.7 | ) |   |   |   |  |
| Fixed      Income                                                   |   |                                               | 49     |   |   |   | 21 |   |   |   | 27 |   |   |   | 24 |   |   |   |        2 |   |   |   |  (91.7 | )  |   | (91.7 | )  |   |   |   |   |
| Total      Institutional & PWM                                  |   |                                               | 13,244 |   |   |   | 13,520 |   |   |   | 13,787 |   |   |   | 13,316 |   |   |   | 11,635 |   |   |   |  (12.6 | ) |   | (8.5 | )  |   |   |   |   |
| Investment      Partnerships                                        |   |                                               | 477    |   |   |   | 486 |   |   |   | 491 |   |   |   | 460 |   |   |   | 396 |   |   |   | (13.9 | )  |   | (13.9 | )  |   |   |   |   |
| Total      Assets Under Management                                  |   | $                                                  | 29,358 |   |   | $ | 30,631 |   |   | $ | 31,635 |   |   | $ | 31,013 |   |   | $ | 28,697 |   |   |   |        (7.5 | ) |   | (7.5 | )  |   |   |   |   |

| Table      III: | Fund      Flows – 1st Quarter 2008 (millions) |
|-----------------|-----------------------------------------------------|
|            |  December      31, 2007                        | Adjustments      (b) | Net      Cash      Flows | MarketAppreciation      / (Depreciation) | March      31, 2008 |

| Mutual      Funds:                                                  |   |   |               |   |    |   |    |   |            |    |   |   |               |
|---------------------------------------------------------------------|--------|--------|--------------------|--------|---------|--------|---------|--------|-----------------|---------|--------|--------|--------------------|
| Equities                                                            |   | $      | 16,115             |   | $  | 415    |    | $      |        9   |    |   | $      |        (1,318 | )  |   | $ |        15,221 |   |
| Fixed      Income                                                   |   |   | 1,122              |   |    | -      |    |   |        311 |    |   |   |        12     |   |   |   |        1,445 |   |
| Total      Mutual Funds                                             |   |   | 17,237             |   |    | 415    |    |   |        320 |    |   |   |        (1,306 | )  |   |   |        16,666 |   |
| Institutional      & PWM                                        |   |   |               |   |    |   |    |   |            |    |   |   |               |   |   |   |   |   |
| Equities:      direct                                               |   |   |        10,708 |   |    | -      |    |   |        130 |    |   |   |        (1,092 | )  |   |   |        9,746 |   |
| “        sub-advisory |   |   | 2,584              |   |    | (415   | )  |   |        (91 | )       |   |   |        (191   | )  |   |   |        1,887 |   |
| Fixed      Income                                                   |   |   | 24                 |   |    | -      |    |   |        (22 | )  |   |   |        -      |   |   |   |        2 |   |
| Total      Institutional & PWM                                  |   |   | 13,316             |   |    | (415   | )  |   | 17              |    |   |   |        (1,283 | )  |   |   |        11,635 |   |
|                                                                |   |   |               |   |    |   |    |   |            |    |   |   |               |   |   |   |   |   |
| Investment      Partnerships                                        |   |   | 460                |   |    | -      |    |   |        (59 | )  |   |   |        (5     | )  |   |   |        396 |   |
| Total      Assets Under Management                                  |   | $      | 31,013             |   | $  | -      |    | $      |        278 |    |   | $      |        (2,594 | )  |   | $ |        28,697 |   |

----

----

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   | 2007   |   |   | 2008   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
| Revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |
|   Investment      advisory and incentive fees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $      | 56,560 |   |   | $ | 56,841 |   |
|   Commission      revenue                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 4,020  |   |   |   | 3,256 |   |
|   Distribution      fees and other income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 6,026  |   |   |   | 6,451 |   |
|      Total      revenues                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 66,606 |   |   |   | 66,548 |   |
| Expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |   |
|   Compensation      and related costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 28,374 |   |   |   | 28,847 |   |
|   Management      fee                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 3,401  |   |   |   | 1,981 |   |
|   Distribution      costs                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   | 5,886  |   |   |   | 6,409 |   |
|   Other      operating expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 8,434  |   |   |   | 6,054 |   |
|      Total      expenses                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 46,095 |   |   |   | 43,291 |   |
| Operating      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 20,511 |   |   |   | 23,257 |   |
| Other      income (expense)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |   |   |   |   |   |   |   |   |
| Net      gain (loss) from investments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 5,570  |   |   |   | (8,389 | )  |
| Interest      and dividend income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   | 8,002  |   |   |   | 4,774 |   |
| Interest      expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | (3,380 | )      |   |   | (2,067 | ) |
| Total      other income (expense), net                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 10,192 |   |   |   | (5,682 | )  |
| Income      before taxes and minority interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   | 30,703 |   |   |   | 17,575 |   |
| Income      tax provision                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   | 11,207 |   |   |   | 7,326 |   |
| Minority      interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |   |   | 332    |   |   |   | (237 | )  |
| Net      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $      | 19,164 |   |   | $ | 10,486 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Net      income per share:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
|    Basic                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |   | $      | 0.68   |   |   | $ | 0.37 |   |
|    Diluted                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   | $      | 0.67   |   |   | $ | 0.37 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Reconciliation      of Net income to Adjusted EBITDA:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| Net      income                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   | $      | 19,164 |   |   | $ | 10,486 |   |
| Interest      Expense                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |   |   | 3,380  |   |   |   | 2,067 |   |
| Income      tax provision and minority interest                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   | 11,539 |   |   |   | 7,089 |   |
| Depreciation      and amortization                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   | 307    |   |   |   | 229 |   |
| Adjusted      EBITDA (a)                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   | $      | 34,390 |   |   | $ | 19,871 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |   |   |   |   |   |   |   |   |
| (a)      Adjusted      EBITDA is defined as earnings before interest, taxes, depreciation and      amortization, and minority interest.  Adjusted EBITDA is a      non-GAAP measure and should not be considered as an alternative to any      measure of performance as promulgated under accounting principles      generally accepted in the United States nor should it be considered as an      indicator of our overall financial performance.  We use Adjusted      EBITDA as a supplemental measure of performance as we believe it gives      investors a more complete understanding of our operating results before      the impact of financing activities as a tool for determining the private      market value of an enterprise. |

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|                                                                         |   | Three Months Ended March31, |          |
|------------------------------------------------------------------------------|--------|-----------------------------|---------------|
|                                                                         |   | 2007                        |          |   | 2008 |   |
| Cash      flows (used in) provided by:                                       |   | (in      thousands)         |          |
|    Operating      activities                                  |   | $                           | 75,054        |   |   | $ | 123,566 |   |
|    Investing      activities                                  |   |                        | (24,092       | ) |   |   | (391 | ) |
|    Financing      activities                                  |   |                        |  (85,194 | ) |   |   | (10,697 | ) |
|    (Decrease) Increase                              |   |                        | (34,232       | ) |   |   | 112,478 |   |
|    Effect      of exchange rates on cash and cash equivalents |   |                        |  1       |   |   |   | (1 | )  |
|    Cash      and cash equivalents at beginning of period      |   |                        |  138,113 |   |   |   | 168,319 |   |
|    Cash      and cash equivalents at end of period            |   | $                           | 103,882       |   |   | $ | 280,796 |   |
|                                                                         |   |                        |          |   |   |   |   |   |

----

| -   | Level      1 inputs utilize quoted prices (unadjusted) in active markets for      identical assets or liabilities.                                                                                                                                                                                                                                                                                                                                             |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| -   | Level      2 inputs utilize inputs other than quoted prices included in Level 1 that      are observable for the asset or liability, either directly or indirectly.      Level 2 inputs include quoted prices for similar assets and liabilities in      active markets and inputs other than quoted prices that are observable for      the asset or liability, such as interest rates and yield curves that are      observable at commonly-quotedintervals. |

| -   | Level      3 inputs are unobservable inputs for the asset or liability, and include      situations where there is little, if any, market activity for the asset or      liability.  |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                   |   | Fair      Value |        |   | Fair      Value assuming 10% decrease in equity prices |    |        | Fair      Value assuming 10% increase in equity prices |   |
|--------------------------------------------------------|--------|-----------------|-------------|--------|--------------------------------------------------------|---------|-------------|--------------------------------------------------------|--------|
| At      March 31, 2008:                                |   |            |        |   |                                                   |    |             |                                                   |   |   |   |   |
| Equity price      sensitive investments, at fair value |   |  $         | 302.5  |   |                                                   | $  | 272.2  |                                                   |   | $  | 332.8  |   |

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|  Period                 |   (a)      Total Number of Shares Repurchased |  (b)      Average Price Paid Per Share, net of Commissions |  (c)      Total Number of Shares Repurchased as Part of Publicly Announced Plans or      Programs |   | (d)      Maximum Number of Shares That May Yet Be Purchased Under the Plans or      Programs |   |
|------------------------------|---------------------------------------------------------|-----------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------|--------|
| 1/01/08      – 1/31/08 | -                                                       | n/a                                                             | -                                                                                                      |   |  861,361                                                                                |   |   |
| 2/01/08      – 2/29/08 | -                                                       | n/a                                                             | -                                                                                                      |   |  861,361                                                                                |   |   |
| 3/01/08      – 3/31/08 | 208,589                                                 | $51.83                                                          | 208,589                                                                                           |   |  652,772                                                                                |   |   |
| Totals                       | 208,589                                                 |                                                            | 208,589                                                                                           |   |                                                                                         |   |   |
|                         |                                                    |                                                            |                                                                                                   |   |                                                                                         |   |   |

|   | 31.1 | -- | Certification      of CEO pursuant to Rule 13a-14(a). |
|--------|------|----|-------------------------------------------------------|

|   | 31.2 | -- | Certification      of Acting co-CFO pursuant to Rule13a-14(a). |
|--------|------|----|----------------------------------------------------------------|

|   | 31.3 | -- | Certification      of Acting co-CFO pursuant to Rule13a-14(a). |
|--------|------|----|----------------------------------------------------------------|

|   | 32.1 | -- | Certification      of CEO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section      906 of the Sarbanes-Oxley Act of2002. |
|--------|------|----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | -- | Certification      of Acting co-CFOs pursuant to 18 U.S.C. Section 1350, as adopted pursuant      to Section 906 of the Sarbanes- Oxley Act of  2002. |
|--------|------|----|-------------------------------------------------------------------------------------------------------------------------------------------------------|

| By:/s/ Kieran      Caterina              | By:/s/   Diane      M. LaPointe |
|-----------------------------------------------|------------------------------------------------|
| Name:  Kieran      Caterina         | Name:  Diane      M. LaPointe        |
| Title:      Acting Co-Chief Financial Officer | Title:      Acting Co-Chief Financial Officer  |
|                                          |                                           |
| Date:      May 12, 2008                       | Date:      May 12, 2008                        |

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