----

|                                                                          |   | March 31,2010 |      |   | December 31,2009 |   |
|-------------------------------------------------------------------------------|--------|---------------|-----------|--------|------------------|--------|
|                                                                          |   | (unaudited)   |      |   |             |   |
|                                                                          |   |          |      |   |             |   |
| ASSETS                                                                        |   |          |      |   |             |   |
| Cash and cash equivalents                                                     |   | $             | 584,493   |   |             | $      | 614,216 |   |
| Cash and securities segregated, at fair value (cost: $1,004,840 and $985,213) |   |          | 1,004,841 |   |             |   | 985,331 |   |
| Receivables, net:                                                             |   |          |      |   |             |   |   |   |
| Brokers and dealers                                                           |   |          | 265,128   |   |             |   | 170,148 |   |
| Brokerage clients                                                             |   |          | 585,835   |   |             |   | 582,248 |   |
| Fees, net                                                                     |   |          | 334,436   |   |             |   | 346,482 |   |
| Investments:                                                                  |   |          |      |   |             |   |   |   |
| Deferred compensation-related                                                 |   |          | 371,562   |   |             |   | 400,959 |   |
| Other                                                                         |   |          | 406,802   |   |             |   | 373,870 |   |
| Furniture, equipment and leasehold improvements, net                          |   |          | 337,581   |   |             |   | 359,674 |   |
| Goodwill, net                                                                 |   |          | 2,893,029 |   |             |   | 2,893,029 |   |
| Intangible assets, net                                                        |   |          | 218,611   |   |             |   | 223,992 |   |
| Deferred sales commissions, net                                               |   |          | 87,029    |   |             |   | 90,187 |   |
| Other assets                                                                  |   |          | 196,548   |   |             |   | 174,804 |   |
| Total assets                                                                  |   | $             | 7,285,895 |   |             | $      | 7,214,940 |   |
|                                                                          |   |          |      |   |             |   |   |   |
| LIABILITIES AND CAPITAL                                                       |   |          |      |   |             |   |   |   |
| Liabilities:                                                                  |   |          |      |   |             |   |   |   |
| Payables:                                                                     |   |          |      |   |             |   |   |   |
| Brokers and dealers                                                           |   | $             | 120,678   |   |             | $      | 120,574 |   |
| Securities sold not yet purchased                                             |   |          | 49,354    |   |             |   | 31,806 |   |
| Brokerage clients                                                             |   |          | 1,506,606 |   |             |   | 1,430,835 |   |
| AllianceBernstein mutual funds                                                |   |          | 99,315    |   |             |   | 86,054 |   |
| Accounts payable and accrued expenses                                         |   |          | 334,924   |   |             |   | 278,398 |   |
| Accrued compensation and benefits                                             |   |          | 341,161   |   |             |   | 316,331 |   |
| Debt                                                                          |   |          | 205,996   |   |             |   | 248,987 |   |
| Total liabilities                                                             |   |          | 2,658,034 |   |             |   | 2,512,985 |   |
|                                                                          |   |          |      |   |             |   |   |   |
| Commitments and contingencies (See Note 7)                                    |   |          |      |   |             |   |   |   |
|                                                                          |   |          |      |   |             |   |   |   |
| Capital:                                                                      |   |          |      |   |             |   |   |   |
| General Partner                                                               |   |          | 48,306    |   |             |   | 48,671 |   |
| Limited partners: 275,198,437 and 274,745,592 units issued and outstanding    |   |          | 4,828,713 |   |             |   | 4,862,158 |   |
| Capital contributions receivable from General Partner                         |   |          | (19,064   | )      |             |   | (19,664 | ) |
| Holding Units held for deferred compensation plans                            |   |          | (343,649  | )      |             |   | (338,941 | ) |
| Accumulated other comprehensive income (loss)                                 |   |          | (40,327   | )      |             |   | (21,862 | ) |
| Partners’ capital attributable to AllianceBernstein Unitholders         |   |          | 4,473,979 |   |             |   | 4,530,362 |   |
| Non-controlling interests in consolidated entities                            |   |          | 153,882   |   |             |   | 171,593 |   |
| Total capital                                                                 |   |          | 4,627,861 |   |             |   | 4,701,955 |   |
| Total liabilities and capital                                                 |   | $             | 7,285,895 |   |             | $      | 7,214,940 |   |

----

|                                                                        |   |   | Three Months Ended March 31, |   |
|-----------------------------------------------------------------------------|--------|--------|------------------------------|--------|
|                                                                        |   |   | 2010                         |   |   |   | 2009 |   |
| Revenues:                                                                   |   |   |                         |   |   |   |   |   |
| Investment advisory and services fees                                       |   | $      | 512,252                      |   |   | $ | 444,962 |   |
| Bernstein research services                                                 |   |   | 110,752                      |   |   |   | 105,642 |   |
| Distribution revenues                                                       |   |   | 80,349                       |   |   |   | 58,076 |   |
| Dividend and interest income                                                |   |   | 3,911                        |   |   |   | 7,801 |   |
| Investment gains (losses)                                                   |   |   | (8,020                       | )      |   |   | (41,237 | ) |
| Other revenues                                                              |   |   | 26,562                       |   |   |   | 24,072 |   |
| Total revenues                                                              |   |   | 725,806                      |   |   |   | 599,316 |   |
| Less: Interest expense                                                      |   |   | 720                          |   |   |   | 1,752 |   |
| Net revenues                                                                |   |   | 725,086                      |   |   |   | 597,564 |   |
|                                                                        |   |   |                         |   |   |   |   |   |
| Expenses:                                                                   |   |   |                         |   |   |   |   |   |
| Employee compensation and benefits                                          |   |   | 319,425                      |   |   |   | 313,803 |   |
| Promotion and servicing:                                                    |   |   |                         |   |   |   |   |   |
| Distribution plan payments                                                  |   |   | 58,566                       |   |   |   | 42,441 |   |
| Amortization of deferred sales commissions                                  |   |   | 12,121                       |   |   |   | 14,897 |   |
| Other                                                                       |   |   | 51,012                       |   |   |   | 47,292 |   |
| General and administrative                                                  |   |   | 138,048                      |   |   |   | 139,198 |   |
| Interest on borrowings                                                      |   |   | 555                          |   |   |   | 964 |   |
| Amortization of intangible assets                                           |   |   | 5,377                        |   |   |   | 5,179 |   |
| Total expenses                                                              |   |   | 585,104                      |   |   |   | 563,774 |   |
|                                                                        |   |   |                         |   |   |   |   |   |
| Operating income                                                            |   |   | 139,982                      |   |   |   | 33,790 |   |
|                                                                        |   |   |                         |   |   |   |   |   |
| Non-operating income                                                        |   |   | 4,515                        |   |   |   | 6,285 |   |
|                                                                        |   |   |                         |   |   |   |   |   |
| Income before income taxes                                                  |   |   | 144,497                      |   |   |   | 40,075 |   |
|                                                                        |   |   |                         |   |   |   |   |   |
| Income taxes                                                                |   |   | 13,004                       |   |   |   | 8,564 |   |
|                                                                        |   |   |                         |   |   |   |   |   |
| Net income                                                                  |   |   | 131,493                      |   |   |   | 31,511 |   |
|                                                                        |   |   |                         |   |   |   |   |   |
| Net loss of consolidated entities attributable to non-controlling interests |   |   | 16,773                       |   |   |   | 5,340 |   |
|                                                                        |   |   |                         |   |   |   |   |   |
| Net income attributable to AllianceBernstein Unitholders                    |   | $      | 148,266                      |   |   | $ | 36,851 |   |
|                                                                        |   |   |                         |   |   |   |   |   |
| Net income per AllianceBernstein Unit:                                      |   |   |                         |   |   |   |   |   |
| Basic                                                                       |   | $      | 0.53                         |   |   | $ | 0.14 |   |
| Diluted                                                                     |   | $      | 0.53                         |   |   | $ | 0.14 |   |

----

|                                                                                                      |   | Three Months Ended March 31, |     |
|-----------------------------------------------------------------------------------------------------------|--------|------------------------------|----------|
|                                                                                                      |   | 2010                         |     |   | 2009 |   |
|                                                                                                      |   |                         |     |
| Cash flows from operating activities:                                                                     |   |                         |     |   |   |   |
| Net income                                                                                                |   | $                            | 131,493  |   |   | $ | 31,511 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:                         |   |                         |     |   |   |   |   |   |
| Amortization of deferred sales commissions                                                                |   |                         | 12,121   |   |   |   | 14,897 |   |
| Amortization of non-cash deferred compensation                                                            |   |                         | 25,765   |   |   |   | 16,141 |   |
| Depreciation and other amortization                                                                       |   |                         | 21,060   |   |   |   | 21,089 |   |
| Unrealized gains on deferred compensation-related investments                                             |   |                         | (23,887  | ) |   |   | (15,439 | ) |
| Unrealized loss on consolidated venture capital fund                                                      |   |                         | 20,598   |   |   |   | 5,905 |   |
| Other                                                                                                     |   |                         | 4,742    |   |   |   | 1,669 |   |
| Changes in assets and liabilities:                                                                        |   |                         |     |   |   |   |   |   |
| (Increase) decrease in segregated cash and securities                                                     |   |                         | (19,510  | ) |   |   | 350,362 |   |
| (Increase) decrease in receivables                                                                        |   |                         | (161,615 | ) |   |   | 167,897 |   |
| (Increase) in investments                                                                                 |   |                         | (606     | ) |   |   | (41,724 | ) |
| (Increase) in deferred sales commissions                                                                  |   |                         | (8,963   | ) |   |   | (3,134 | ) |
| (Increase) in other assets                                                                                |   |                         | (23,905  | ) |   |   | (18,738 | ) |
| Increase (decrease) in payables                                                                           |   |                         | 181,370  |   |   |   | (494,982 | ) |
| Increase in accounts payable and accrued expenses                                                         |   |                         | 34,031   |   |   |   | 10,620 |   |
| Increase in accrued compensation and benefits                                                             |   |                         | 25,399   |   |   |   | 1,086 |   |
| Net cash provided by operating activities                                                                 |   |                         | 218,093  |   |   |   | 47,160 |   |
|                                                                                                      |   |                         |     |   |   |   |   |   |
| Cash flows from investing activities:                                                                     |   |                         |     |   |   |   |   |   |
| Purchases of investments                                                                                  |   |                         | (63      | ) |   |   | (2,135 | ) |
| Proceeds from sales of investments                                                                        |   |                         | 31       |   |   |   | 2,416 |   |
| Additions to furniture, equipment and leasehold improvements, net                                         |   |                         | (469     | ) |   |   | (28,685 | ) |
| Net cash used in investing activities                                                                     |   |                         | (501     | ) |   |   | (28,404 | ) |
|                                                                                                      |   |                         |     |   |   |   |   |   |
| Cash flows from financing activities:                                                                     |   |                         |     |   |   |   |   |   |
| (Repayment) issuance of commercial paper, net                                                             |   |                         | (43,090  | ) |   |   | 10,613 |   |
| Proceeds from bank loans, net                                                                             |   |                         | —  |   |   |   | 66,000 |   |
| Increase (decrease) in overdrafts payable                                                                 |   |                         | 24,025   |   |   |   | (13,349 | ) |
| Distributions to General Partner and unitholders                                                          |   |                         | (194,343 | ) |   |   | (99,154 | ) |
| (Distributions to) contributions from non-controlling interests in consolidated entities                  |   |                         | (1,565   | ) |   |   | 5,505 |   |
| Capital contributions from General Partner                                                                |   |                         | 897      |   |   |   | 897 |   |
| Additional investment by Holding with proceeds from exercise of compensatory options to buy Holding Units |   |                         | 5,251    |   |   |   | — |   |
| Purchases of Holding Units to fund deferred compensation plan awards, net                                 |   |                         | (23,754  | ) |   |   | (597 | ) |
| Other                                                                                                     |   |                         | (16      | ) |   |   | 168 |   |
| Net cash used in financing activities                                                                     |   |                         | (232,595 | ) |   |   | (29,917 | ) |
|                                                                                                      |   |                         |     |   |   |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents                                              |   |                         | (14,720  | ) |   |   | (2,258 | ) |
|                                                                                                      |   |                         |     |   |   |   |   |   |
| Net (decrease) in cash and cash equivalents                                                               |   |                         | (29,723  | ) |   |   | (13,419 | ) |
| Cash and cash equivalents as of beginning of the period                                                   |   |                         | 614,216  |   |   |   | 552,577 |   |
| Cash and cash equivalents as of end of the period                                                         |   | $                            | 584,493  |   |   | $ | 539,158 |   |

----

| 1. | Business Description and Organization |
|----|---------------------------------------|

|   | • | Institutional Services – servicing our institutional clients, including unaffiliated corporate and public employee pension funds, endowment funds, domestic and foreign institutions and governments, and affiliates such as AXA and certain of its insurance company subsidiaries, by means of separately-managed accounts, sub-advisory relationships, structured products, collective investment trusts, mutual funds, hedge funds and other investment vehicles. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Retail Services – servicing our retail clients, primarily by means of retail mutual funds sponsored by AllianceBernstein or an affiliated company, sub-advisory relationships with mutual funds sponsored by third parties, separately-managed account programs sponsored by financial intermediaries worldwide and other investment vehicles. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Private Client Services – servicing our private clients, including high-net-worth individuals, trusts and estates, charitable foundations, partnerships, private and family corporations, and other entities, by means of separately-managed accounts, hedge funds, mutual funds and other investment vehicles. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Bernstein Research Services – servicing institutional investors seeking research, portfolio strategy and brokerage-related services, and issuers of publicly-traded securities seeking equity capital markets services. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Value equities, generally targeting stocks that are out of favor and considered undervalued; |
|--------|---------|----------------------------------------------------------------------------------------------|

|   | • | Growth equities, generally targeting stocks with under-appreciated growth potential; |
|--------|---------|--------------------------------------------------------------------------------------|

|   | • | Fixed income securities, including taxable and tax-exempt securities; |
|--------|---------|-----------------------------------------------------------------------|

|   | • | Blend strategies, combining style-pure investment components with systematic rebalancing; |
|--------|---------|-------------------------------------------------------------------------------------------|

|   | • | Passive management, including index and enhanced index strategies; |
|--------|---------|--------------------------------------------------------------------|

|   | • | Alternative investments, such as hedge funds, currency management strategies, venture capital and, beginning in 2010, direct real estate investing; and |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Asset allocation services, by which we offer blend strategies specifically-tailored for our clients (e.g., customized target-date fund retirement services for defined contribution plan sponsors). |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| AXA and its subsidiaries |   |   | 61.5  | %      |
|--------------------------|--------|--------|-------|--------|
| Holding                  |   |   | 36.6  |   |
| Unaffiliated holders     |   |   | 1.9   |   |
|                     |   |   | 100.0 | %      |

| 2. | Summary of Significant Accounting Policies |
|----|--------------------------------------------|

----

|   | • | net cash provided by operating activities of AllianceBernstein, |
|--------|---------|-----------------------------------------------------------------|

|   | • | proceeds from borrowings and from sales or other dispositions of assets in the ordinary course of business, and |
|--------|---------|-----------------------------------------------------------------------------------------------------------------|

|   | • | income from investments in marketable securities, liquid investments and other financial instruments that are acquired for investment purposes and that have a value that may be readily established, |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | payments in respect of the principal of borrowings, and |
|--------|---------|---------------------------------------------------------|

|   | • | amounts expended for the purchase of assets in the ordinary course of business. |
|--------|---------|---------------------------------------------------------------------------------|

----

----

----

----

| 3. | Cash and Securities Segregated Under Federal Regulations and Other Requirements |
|----|---------------------------------------------------------------------------------|

| 4. | Net Income Per Unit |
|----|---------------------|

|                                                         |   | Three Months EndedMarch 31,             |    |
|--------------------------------------------------------------|--------|-----------------------------------------|---------|
|                                                         |   | 2010                                    |    |   | 2009 |   |
|                                                         |   | (in thousands, except per unit amounts) |    |
|                                                         |   |                                    |    |   |   |   |
| Net income attributable to AllianceBernstein Unitholders     |   | $                                       | 148,266 |   |   | $ | 36,851 |   |
|                                                         |   |                                    |    |   |   |   |   |   |
| Weighted average units outstanding – basic             |   |                                    | 274,908 |   |   |   | 264,932 |   |
| Dilutive effect of compensatory options to buy Holding Units |   |                                    | 1,828   |   |   |   | — |   |
| Weighted average units outstanding – diluted           |   |                                    | 276,736 |   |   |   | 264,932 |   |
|                                                         |   |                                    |    |   |   |   |   |   |
| Basic net income per AllianceBernstein Unit                  |   | $                                       | 0.53    |   |   | $ | 0.14 |   |
| Diluted net income per AllianceBernstein Unit                |   | $                                       | 0.53    |   |   | $ | 0.14 |   |

| 5.  | Investments |
|----------|-------------|

|                                            |   | March 31, 2010 |    |   | December 31, 2009 |    |
|-------------------------------------------------|--------|----------------|---------|--------|-------------------|---------|
|                                            |   | (in thousands) |    |
|                                            |   |           |    |   |              |    |
| Available-for-sale                              |   | $              | 18,587  |   |              |  $ | 18,246 |   |
| Trading:                                        |   |           |    |   |              |    |   |   |
| Deferred compensation-related                   |   |           | 313,348 |   |              |    | 326,364 |   |
| United States Treasury Bills                    |   |           | 25,988  |   |              |    | 28,000 |   |
| Seed money                                      |   |           | 142,893 |   |              |    | 107,136 |   |
| Other                                           |   |           | 33,217  |   |              |    | 23,082 |   |
| Investments in limited partnership hedge funds: |   |           |    |   |              |    |   |   |
| Deferred compensation-related                   |   |           | 58,214  |   |              |    | 74,595 |   |
| Other                                           |   |           | 23,573  |   |              |    | 16,579 |   |
| Consolidated private equity fund                |   |           | 142,108 |   |              |    | 162,747 |   |
| Private equity                                  |   |           | 11,600  |   |              |    | 10,000 |   |
| Other                                           |   |           | 8,836   |   |              |    | 8,080 |   |
| Total investments                               |   | $              | 778,364 |   |              |  $ | 774,829 |   |

----

| 6.  | Fair Value |
|----------|------------|

|   | • | Level 1 – Quoted prices in active markets are available for identical assets or liabilities as of the reported date. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------|

|   | • | Level 2 – Quoted prices in markets that are not active or other pricing inputs that are either directly or indirectly observable as of the reported date. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Level 3 – Prices or valuation techniques that are both significant to the fair value measurement and unobservable as of the reported date. These financial instruments do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                     |   | Level 1        |    |   | Level 2 |   |      | Level 3 |   |   | Total   |   |
|------------------------------------------|--------|----------------|---------|--------|---------|--------|-----------|---------|--------|--------|---------|--------|
|                                     |   | (in thousands) |
|                                     |   |           |    |   |    |   |      |    |   |   |    |   |   |   |   |   |
| Money markets                            |   | $              | 158,277 |   |    | $      | —   |    |   | $      | — |   |   | $ | 158,277 |   |
| U.S. Treasury bills                      |   |           | — |   |    |   | 1,002,638 |    |   |   | — |   |   |   | 1,002,638 |   |
| U.K. Treasury bills                      |   |           | — |   |    |   | 167,138   |    |   |   | — |   |   |   | 167,138 |   |
| Currency forwards                        |   |           | — |   |    |   | 13        |    |   |   | — |   |   |   | 13 |   |
| Equity securities                        |   |           |    |   |    |   |      |    |   |   |    |   |   |   |   |   |
| Growth                                   |   |           | 118,840 |   |    |   | 81        |    |   |   | 356     |   |   |   | 119,277 |   |
| Value                                    |   |           | 89,347  |   |    |   | —   |    |   |   | — |   |   |   | 89,347 |   |
| Blend                                    |   |           | 123,782 |   |    |   | —   |    |   |   | — |   |   |   | 123,782 |   |
| Other(1)                                 |   |           | 27,822  |   |    |   | —   |    |   |   | — |   |   |   | 27,822 |   |
| Fixed Income securities                  |   |           |    |   |    |   |      |    |   |   |    |   |   |   |   |   |
| Taxable(2)                               |   |           | 83,039  |   |    |   | 27,995    |    |   |   | — |   |   |   | 111,034 |   |
| Tax-exempt(3)                            |   |           | 19,920  |   |    |   | —   |    |   |   | — |   |   |   | 19,920 |   |
| Blend                                    |   |           | 8,532   |   |    |   | —   |    |   |   | — |   |   |   | 8,532 |   |
| Other                                    |   |           | 16      |   |    |   | 819       |    |   |   | — |   |   |   | 835 |   |
| Long exchange-traded options             |   |           | 7,495   |   |    |   | —   |    |   |   | — |   |   |   | 7,495 |   |
| Private equity                           |   |           | 37,281  |   |    |   | 4,527     |    |   |   | 101,900 |   |   |   | 143,708 |   |
| Total assets measured at fair value      |   | $              | 674,351 |   |    | $      | 1,203,211 |    |   | $      | 102,256 |   |   | $ | 1,979,818 |   |
|                                     |   |           |    |   |    |   |      |    |   |   |    |   |   |   |   |   |
| Securities sold not yet purchased        |   |           |    |   |    |   |      |    |   |   |    |   |   |   |   |   |
| Short equities – corporate         |   | $              | 42,171  |   |    | $      | —   |    |   | $      | — |   |   | $ | 42,171 |   |
| Short exchange-traded options            |   |           | 7,183   |   |    |   | —   |    |   |   | — |   |   |   | 7,183 |   |
| Total liabilities measured at fair value |   | $              | 49,354  |   |    | $      | —   |    |   | $      | — |   |   | $ | 49,354 |   |

|   | (1) | Primarily long positions in corporate equities traded through our options desk. |
|--------|-----|---------------------------------------------------------------------------------|

|   | (2) | Primarily corporate and government securities. |
|--------|-----|------------------------------------------------|

|   | (3) | Primarily municipal bonds. |
|--------|-----|----------------------------|

|                                     |   | Level 1        |    |   | Level 2 |   |      | Level 3 |   |   | Total   |   |
|------------------------------------------|--------|----------------|---------|--------|---------|--------|-----------|---------|--------|--------|---------|--------|
|                                     |   | (in thousands) |
|                                     |   |           |    |   |    |   |      |    |   |   |    |   |   |   |   |   |
| Money markets                            |   | $              | 178,875 |   |    | $      | —   |    |   | $      | — |   |   | $ | 178,875 |   |
| U.S. Treasury bills                      |   |           | — |   |    |   | 975,888   |    |   |   | — |   |   |   | 975,888 |   |
| U.K. Treasury bills                      |   |           | — |   |    |   | 177,772   |    |   |   | — |   |   |   | 177,772 |   |
| Futures/currency forward contracts       |   |           | (15     | )      |    |   | 612       |    |   |   | — |   |   |   | 597 |   |
| Equity securities                        |   |           | 365,017 |   |    |   | 4,504     |    |   |   | 650     |   |   |   | 370,171 |   |
| Fixed income securities                  |   |           | 69,608  |   |    |   | 28,396    |    |   |   | 81      |   |   |   | 98,085 |   |
| Long exchange-traded options             |   |           | 6,572   |   |    |   | —   |    |   |   | — |   |   |   | 6,572 |   |
| Private equity                           |   |           | 2,913   |   |    |   | 62,006    |    |   |   | 97,828  |   |   |   | 162,747 |   |
| Total assets measured at fair value      |   | $              | 622,970 |   |    | $      | 1,249,178 |    |   | $      | 98,559  |   |   | $ | 1,970,707 |   |
|                                     |   |           |    |   |    |   |      |    |   |   |    |   |   |   |   |   |
| Securities sold not yet purchased        |   |           |    |   |    |   |      |    |   |   |    |   |   |   |   |   |
| Short equities – corporate         |   | $              | 28,641  |   |    | $      | —   |    |   | $      | — |   |   | $ | 28,641 |   |
| Short exchange-traded options            |   |           | 3,165   |   |    |   | —   |    |   |   | — |   |   |   | 3,165 |   |
| Total liabilities measured at fair value |   | $              | 31,806  |   |    | $      | —   |    |   | $      | — |   |   | $ | 31,806 |   |

----

|   | • | Money markets: We invest excess cash in various money market funds that are valued based on quoted prices in active markets; these are included in Level 1 of the valuation hierarchy. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Treasury bills: We hold United States Treasury Bills, which are segregated in a special reserve bank custody account as required by Rule 15c3-3 of the Exchange Act. We also hold United Kingdom Treasury Bills. These securities are valued based on quoted yields in secondary markets and are included in Level 2 of the valuation hierarchy. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •  | Futures/currency forward contracts: We hold several exchange-traded futures and currency forward contracts with counterparties that are included in Level 1 and Level 2, respectively, of the valuation hierarchy. |
|--------|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Equity and fixed income securities: Our equity and fixed income securities consist principally of company-sponsored mutual funds with exchange listed net asset values and various separately-managed portfolios consisting primarily of equity and fixed income securities with quoted prices in active markets, which are included in Level 1 of the valuation hierarchy. In addition, some fixed income securities are valued based on observable inputs from recognized pricing vendors, which are included in Level 2 of the valuation hierarchy. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | •  | Options: We hold long exchange-traded options that are included in Level 1 of the valuation hierarchy. |
|--------|---------------|--------------------------------------------------------------------------------------------------------|

|   | • | Private equity: The valuation of non-public private equity investments owned by a consolidated venture capital fund requires significant management judgment due to the absence of quoted market prices, inherent lack of liquidity and the long-term nature of such investments. Private equity investments are valued initially at cost. The carrying values of private equity investments are adjusted either up or down from cost to reflect expected exit values as evidenced by financing and sale transactions with third parties, or when determination of a valuation adjustment is confirmed through ongoing review in accordance with our valuation policies and procedures. A variety of factors are reviewed and monitored to assess positive and negative changes in valuation including, but not limited to, current operating performance and future expectations of investee companies, industry valuations of comparable public companies, changes in market outlook and the third party financing environment over time. In determining valuation adjustments resulting from the investment review process, particular emphasis is placed on current company performance and market conditions. Non-public equity investments are included in Level 3 of the valuation hierarchy because they trade infrequently and, therefore, its fair value is unobservable. Publicly-traded equity investments are included in Level 1 of the valuation hierarchy. If they contain trading restrictions, publicly-traded equity investments are included in Level 2 of the valuation hierarchy. During the first quarter, the trading restriction period expired on one of our publicly-traded equity investments and the security was transferred from a Level 2 classification to a Level 1 classification as of March 31, 2010. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Securities sold not yet purchased: Securities sold not yet purchased, primarily reflecting short positions in equities and exchange-traded options, are included in Level 1 of the valuation hierarchy. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                              |   | Three Months Ended March 31, |                           |
|-----------------------------------|--------|------------------------------|--------------------------------|
|                              |   | 2010                         |                           |   | 2009 |   |
|                              |   | (in thousands)               |                           |
|                              |   |                         |                           |   |   |   |
| Balance as of beginning of period |   | $                            |     98,559 |   |   | $ | 162,552 |   |
| Transfers (out) in, net           |   |                         | (81                            | ) |   |   | (20 | ) |
| Purchases (sales), net            |   |                         | 2,347                          |   |   |   | 604 |   |
| Realized gains (losses), net      |   |                         | 52                             |   |   |   | (22 | ) |
| Unrealized gains (losses), net    |   |                         | 1,379                          |   |   |   | (5,259 | ) |
| Balance as of end of period       |   | $                            | 102,256                        |   |   | $ | 157,855 |   |

----

| 7. | Commitments and Contingencies |
|----|-------------------------------|

| 8. | Qualified Employee Benefit Plans |
|----|----------------------------------|

----

|                                           |   | Three Months Ended March 31, |   |
|------------------------------------------------|--------|------------------------------|--------|
|                                           |   | 2010                         |   |   | 2009 |   |
|                                           |   | (in thousands)               |   |
|                                           |   |                         |   |   |   |   |
| Interest cost on projected benefit obligations |   | $                            | 1,139  |   |   | $ | 1,098 |   |
| Expected return on plan assets                 |   |                         | (1,129 | ) |   |   |  (769 | ) |
| Recognized actuarial loss                      |   |                         | 56     |   |   |   | 109 |   |
| Amortization of transition asset               |   |                         | (36    | ) |   |   | (36 | ) |
| Net pension charge                             |   | $                            | 30     |   |   | $ | 402 |   |

| 9. | Units Outstanding |
|----|-------------------|

| Outstanding as of December 31, 2009 |   |   | 274,745,592 |   |
|-------------------------------------|--------|--------|-------------|--------|
| Options exercised                   |   |   | 307,953     |   |
| Units issued                        |   |   | 145,720     |   |
| Units forfeited                     |   |   |  (828  | )      |
| Outstanding as of March 31, 2010    |   |   | 275,198,437 |   |

| 10. | Income Taxes |
|-----|--------------|

----

| 11. | Debt |
|-----|------|

|                                                          |   | March 31, 2010  |    |   | December 31, 2009 |   |
|---------------------------------------------------------------|--------|-----------------|---------|--------|-------------------|--------|
|                                                          |   | CreditAvailable |    |   | DebtOutstanding   |   |   | InterestRate |   |   | CreditAvailable |   |   | DebtOutstanding |   |   | InterestRate |   |
|                                                          |   | (in millions)   |    |
|                                                          |   |            |    |
| Revolving credit facility                                     |   | $               | 794.0   |   |              | $      | — |   |   |   | — | % |   | $ | 751.0 |   |   | $ | — |   |   |   | — | % |
| Commercial paper (1)                                          |   |            | 206.0   |   |              |   | 206.0 |   |   |   | 0.2 |   |   |   | 249.0 |   |   |   | 249.0 |   |   |   | 0.2 |   |
| Total revolving credit facility - AllianceBernstein |   |            | 1,000.0 |   |              |   | 206.0 |   |   |   | 0.2 |   |   |   | 1,000.0 |   |   |   | 249.0 |   |   |   | 0.2 |   |
| Revolving credit facility –SCB LLC                      |   |            | 950.0   |   |              |   | — |   |   |   | — |   |   |   | 950.0 |   |   |   | — |   |   |   | — |   |
| Total                                                         |   | $               | 1,950.0 |   |              | $      | 206.0 |   |   |   | 0.2 |   |   | $ | 1,950.0 |   |   | $ | 249.0 |   |   |   | 0.2 |   |

----

| 12. | Comprehensive Income |
|-----|----------------------|

|                                                                                  |   | Three Months Ended March 31, |    |
|---------------------------------------------------------------------------------------|--------|------------------------------|---------|
|                                                                                  |   | 2010                         |    |   | 2009 |   |
|                                                                                  |   | (in thousands)               |    |
|                                                                                  |   |                         |    |   |   |   |
| Net income                                                                            |   | $                            | 131,493 |   |   | $ | 31,511 |   |
| Other comprehensive income (loss), net of tax:                                        |   |                         |    |   |   |   |   |   |
| Unrealized gains on investments                                                       |   |                         | 358     |   |   |   | 382 |   |
| Foreign currency translation adjustments                                              |   |                         | (18,216 | ) |   |   | (5,275 | ) |
| Changes in retirement plan related items                                              |   |                         | 20      |   |   |   | 73 |   |
| Comprehensive income                                                                  |   |                         | 113,655 |   |   |   | 26,691 |   |
| Comprehensive loss in consolidated entities attributable to non-controlling interests |   |                         | 16,146  |   |   |   | 5,448 |   |
| Comprehensive income attributable to AllianceBernstein Unitholders                    |   | $                            | 129,801 |   |   | $ | 32,139 |   |

|   | Changes in capital as of March 31, 2010 consisted of: |
|--------|-------------------------------------------------------|

|                                                  |   | Partners’ Capital Attributable to AllianceBernstein Unitholders |      |   | Non-Controlling Interests In Consolidated Entities |   |    | Total Capital |   |
|-------------------------------------------------------|--------|-----------------------------------------------------------------------|-----------|--------|----------------------------------------------------|--------|---------|---------------|--------|
|                                                  |   | (in thousands)                                                        |      |
|                                                  |   |                                                                  |      |
| Balance as of  December 31, 2009            |   | $                                                                     | 4,530,362 |   |                                               | $      | 171,593 |          |   | $ | 4,701,955 |   |
| Comprehensive income (loss):                          |   |                                                                  |      |   |                                               |   |    |          |   |   |   |   |
| Net income (loss)                                     |   |                                                                  | 148,266   |   |                                               |   | (16,773 | )             |   |   | 131,493 |   |
| Other comprehensive income (loss), net of tax:        |   |                                                                  |      |   |                                               |   |    |          |   |   |   |   |
| Unrealized gains on investments                       |   |                                                                  | 111       |   |                                               |   | 247     |          |   |   | 358 |   |
| Foreign currency translation adjustments              |   |                                                                  | (18,596   | )      |                                               |   | 380     |          |   |   | (18,216 | ) |
| Changes in retirement plan related items              |   |                                                                  | 20        |   |                                               |   | — |          |   |   | 20 |   |
| Comprehensive income (loss)                           |   |                                                                  | 129,801   |   |                                               |   | (16,146 | )             |   |   | 113,655 |   |
|                                                  |   |                                                                  |      |   |                                               |   |    |          |   |   |   |   |
| Cash distributions to General Partner and unitholders |   |                                                                  | (194,343  | )      |                                               |   | — |          |   |   | (194,343 | ) |
| Capital contributions (distributions)                 |   |                                                                  | 897       |   |                                               |   | (1,565  | )             |   |   | (668 | ) |
| Compensation-related transactions                     |   |                                                                  | 7,262     |   |                                               |   | — |          |   |   | 7,262 |   |
| Balance as of March 31, 2010                          |   | $                                                                     | 4,473,979 |   |                                               | $      | 153,882 |          |   | $ | 4,627,861 |   |

----

|                                                  |   | Partners’ Capital Attributable to AllianceBernstein Unitholders |      |   | Non-Controlling Interests In Consolidated Entities |   |    | Total Capital |   |
|-------------------------------------------------------|--------|-----------------------------------------------------------------------|-----------|--------|----------------------------------------------------|--------|---------|---------------|--------|
|                                                  |   | (in thousands)                                                        |      |
|                                                  |   |                                                                  |      |   |                                               |   |    |          |   |
| Balance as of  December 31, 2008            |   | $                                                                     | 4,317,659 |   |                                               | $      | 169,167 |          |   | $ | 4,486,826 |   |
| Comprehensive income (loss):                          |   |                                                                  |      |   |                                               |   |    |          |   |   |   |   |
| Net income (loss)                                     |   |                                                                  | 36,851    |   |                                               |   | (5,340  | )             |   |   | 31,511 |   |
| Other comprehensive income (loss), net of tax:        |   |                                                                  |      |   |                                               |   |    |          |   |   |   |   |
| Unrealized gains (losses) on investments              |   |                                                                  | 538       |   |                                               |   | (156    | )             |   |   | 382 |   |
| Foreign currency translation adjustments              |   |                                                                  | (5,323    | )      |                                               |   | 48      |          |   |   | (5,275 | ) |
| Changes in retirement plan related items              |   |                                                                  | 73        |   |                                               |   | — |          |   |   | 73 |   |
| Comprehensive income (loss)                           |   |                                                                  | 32,139    |   |                                               |   | (5,448  | )             |   |   | 26,691 |   |
|                                                  |   |                                                                  |      |   |                                               |   |    |          |   |   |   |   |
| Cash distributions to General Partner and unitholders |   |                                                                  | (99,154   | )      |                                               |   | — |          |   |   | (99,154 | ) |
| Capital contributions                                 |   |                                                                  | 897       |   |                                               |   | 5,505   |          |   |   | 6,402 |   |
| Compensation-related transactions                     |   |                                                                  | 15,543    |   |                                               |   | — |          |   |   | 15,543 |   |
| Balance as of March 31, 2009                          |   | $                                                                     | 4,267,084 |   |                                               | $      | 169,224 |          |   | $ | 4,436,308 |   |

| 14. | Accounting Pronouncements |
|-----|---------------------------|

----

| /s/ PricewaterhouseCoopers LLP |   |   |
|--------------------------------|--------|--------|
| New York, New York             |   |
| May 3, 2010                    |   |

----

| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|---------|---------------------------------------------------------------------------------------------|

----

|           |   | As of March 31, |   |   |   |   |   |     |   |
|----------------|--------|-----------------|--------|--------|--------|--------|--------|----------|--------|
|           |   | 2010            |   |   | 2009   |   |   | $ Change |   |   | % Change |   |
|           |   | (in billions)   |   |   |   |   |
|           |   |            |   |   |   |   |   |     |   |   |   |   |
| Institutions   |   | $               | 297.0  |   |   | $      | 257.8  |     |   | $ | 39.2 |   |   |   | 15.2 | % |
| Retail         |   |            | 127.8  |   |   |   | 90.9   |     |   |   | 36.9 |   |   |   | 40.6 |   |
| Private Client |   |            | 76.5   |   |   |   | 62.0   |     |   |   | 14.5 |   |   |   | 23.3 |   |
| Total          |   | $               | 501.3  |   |   | $      | 410.7  |     |   | $ | 90.6 |   |   |   | 22.1 |   |

|                          |   | As of March 31, |   |   |   |   |   |     |   |
|-------------------------------|--------|-----------------|--------|--------|--------|--------|--------|----------|--------|
|                          |   | 2010            |   |   | 2009   |   |   | $ Change |   |   | % Change |   |
|                          |   | (in billions)   |   |   |   |   |
| Equity                        |   |            |   |   |   |   |   |     |   |   |   |   |
| Value:                        |   |            |   |   |   |   |   |     |   |   |   |   |
| U.S.                          |   | $               | 44.8   |   |   | $      | 37.4   |     |   | $ | 7.4 |   |   |   | 19.6 | % |
| Global & international    |   |            | 124.6  |   |   |   | 100.1  |     |   |   | 24.5 |   |   |   | 24.5 |   |
|                          |   |            | 169.4  |   |   |   | 137.5  |     |   |   | 31.9 |   |   |   | 23.1 |   |
| Growth:                       |   |            |   |   |   |   |   |     |   |   |   |   |   |   |   |   |
| U.S.                          |   |            | 37.5   |   |   |   | 29.8   |     |   |   | 7.7 |   |   |   | 25.8 |   |
| Global & international    |   |            | 53.7   |   |   |   | 46.2   |     |   |   | 7.5 |   |   |   | 16.2 |   |
|                          |   |            | 91.2   |   |   |   | 76.0   |     |   |   | 15.2 |   |   |   | 20.0 |   |
| Total Equity                  |   |            | 260.6  |   |   |   | 213.5  |     |   |   | 47.1 |   |   |   | 22.0 |   |
| Fixed Income:                 |   |            |   |   |   |   |   |     |   |   |   |   |   |   |   |   |
| U.S.                          |   |            | 115.1  |   |   |   | 105.2  |     |   |   | 9.9 |   |   |   | 9.4 |   |
| Global & international(2) |   |            | 77.2   |   |   |   | 55.3   |     |   |   | 21.9 |   |   |   | 39.7 |   |
|                          |   |            | 192.3  |   |   |   | 160.5  |     |   |   | 31.8 |   |   |   | 19.8 |   |
| Other(1):                     |   |            |   |   |   |   |   |     |   |   |   |   |   |   |   |   |
| U.S.                          |   |            | 27.1   |   |   |   | 17.7   |     |   |   | 9.4 |   |   |   | 53.1 |   |
| Global & international(2) |   |            | 21.3   |   |   |   | 19.0   |     |   |   | 2.3 |   |   |   | 12.3 |   |
|                          |   |            | 48.4   |   |   |   | 36.7   |     |   |   | 11.7 |   |   |   | 32.0 |   |
| Total:                        |   |            |   |   |   |   |   |     |   |   |   |   |   |   |   |   |
| U.S.                          |   |            | 224.5  |   |   |   | 190.1  |     |   |   | 34.4 |   |   |   | 18.0 |   |
| Global & international    |   |            | 276.8  |   |   |   | 220.6  |     |   |   | 56.2 |   |   |   | 25.5 |   |
| Total                         |   | $               | 501.3  |   |   | $      | 410.7  |     |   | $ | 90.6 |   |   |   | 22.1 |   |

----

|                             |   | Distribution Channel |   |   | Investment Service |   |
|----------------------------------|--------|----------------------|--------|--------|--------------------|--------|
|                             |   | Institutions         |   |   | Retail             |   |   | PrivateClient |   |   | Total |   |   | ValueEquity |   |   | GrowthEquity |   |   | FixedIncome |   |   | Other(1) |   |   | Total |   |
|                             |   | (in billions)        |   |
| Balance as of December 31, 2009  |   | $                    | 300.0  |   |               | $      | 120.7 |   |   | $ | 74.8 |   |   | $ | 495.5 |   |   | $ | 171.2 |   |   | $ | 94.1 |   |   | $ | 184.3 |   |   | $ | 45.9 |   |   | $ | 495.5 |   |
| Long-term flows:                 |   |                 |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales/new accounts               |   |                 | 3.5    |   |               |   | 10.5 |   |   |   | 2.1 |   |   |   | 16.1 |   |   |   | 2.3 |   |   |   | 2.5 |   |   |   | 10.4 |   |   |   | 0.9 |   |   |   | 16.1 |   |
| Redemptions/terminations         |   |                 | (9.9   | )      |               |   | (6.3 | ) |   |   | (1.5 | ) |   |   | (17.7 | ) |   |   | (6.7 | ) |   |   | (6.0 | ) |   |   | (4.9 | ) |   |   | (0.1 | ) |   |   | (17.7 | ) |
| Cash flow/unreinvested dividends |   |                 | (2.2   | )      |               |   | (1.7 | ) |   |   | (0.9 | ) |   |   | (4.8 | ) |   |   | (2.9 | ) |   |   | (1.4 | ) |   |   | (0.3 | ) |   |   | (0.2 | ) |   |   | (4.8 | ) |
| Net long-term inflows (outflows) |   |                 | (8.6   | )      |               |   | 2.5 |   |   |   | (0.3 | ) |   |   | (6.4 | ) |   |   | (7.3 | ) |   |   | (4.9 | ) |   |   | 5.2 |   |   |   | 0.6 |   |   |   | (6.4 | ) |
| Market appreciation              |   |                 | 5.6    |   |               |   | 4.6 |   |   |   | 2.0 |   |   |   | 12.2 |   |   |   | 5.5 |   |   |   | 2.0 |   |   |   | 2.8 |   |   |   | 1.9 |   |   |   | 12.2 |   |
| Net change                       |   |                 | (3.0   | )      |               |   | 7.1 |   |   |   | 1.7 |   |   |   | 5.8 |   |   |   | (1.8 | ) |   |   | (2.9 | ) |   |   | 8.0 |   |   |   | 2.5 |   |   |   | 5.8 |   |
| Balance as of March 31, 2010     |   | $                    | 297.0  |   |               | $      | 127.8 |   |   | $ | 76.5 |   |   | $ | 501.3 |   |   | $ | 169.4 |   |   | $ | 91.2 |   |   | $ | 192.3 |   |   | $ | 48.4 |   |   | $ | 501.3 |   |

| (1) | Includes index, structured, asset allocation services and other non-actively managed AUM. |
|-----|-------------------------------------------------------------------------------------------|

|                                    |   | Distribution Channel |   |   | Investment Service |   |
|-----------------------------------------|--------|----------------------|--------|--------|--------------------|--------|
|                                    |   | Institutions         |   |   | Retail             |   |   | PrivateClient |   |   | Total |   |   | ValueEquity |   |   | GrowthEquity |   |   | FixedIncome(2) |   |   | Other(1)(2) |   |   | Total |   |
|                                    |   | (in billions)        |   |
|                                    |   |                 |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as of  March 31, 2009 |   | $                    | 257.8  |   |               | $      | 90.9 |   |   | $ | 62.0 |   |   | $ | 410.7 |   |   | $ | 137.5 |   |   | $ | 76.0 |   |   | $ | 160.5 |   |   | $ |   36.7 |   |   | $ | 410.7 |   |
| Long-term flows:                        |   |                 |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales/new accounts                      |   |                 | 14.4   |   |               |   | 28.8 |   |   |   | 7.8 |   |   |   | 51.0 |   |   |   | 9.2 |   |   |   | 6.7 |   |   |   | 29.6 |   |   |   | 5.5 |   |   |   | 51.0 |   |
| Redemptions/terminations                |   |                 | (50.7  | )      |               |   | (24.1 | ) |   |   | (6.5 | ) |   |   | (81.3 | ) |   |   | (39.7 | ) |   |   | (21.4 | ) |   |   | (18.7 | ) |   |   | (1.5 | ) |   |   | (81.3 | ) |
| Cash flow/unreinvested dividends        |   |                 | (16.6  | )      |               |   | (7.9 | ) |   |   | (5.4 | ) |   |   | (29.9 | ) |   |   | (12.5 | ) |   |   | (5.5 | ) |   |   | (6.0 | ) |   |   | (5.9 | ) |   |   | (29.9 | ) |
| Net long-term inflows (outflows)        |   |                 | (52.9  | )      |               |   | (3.2 | ) |   |   | (4.1 | ) |   |   | (60.2 | ) |   |   | (43.0 | ) |   |   | (20.2 | ) |   |   | 4.9 |   |   |   | (1.9 | ) |   |   | (60.2 | ) |
| Market appreciation                     |   |                 | 92.1   |   |               |   | 40.1 |   |   |   | 18.6 |   |   |   | 150.8 |   |   |   | 74.9 |   |   |   | 35.4 |   |   |   | 26.9 |   |   |   | 13.6 |   |   |   | 150.8 |   |
| Net change                              |   |                 | 39.2   |   |               |   | 36.9 |   |   |   | 14.5 |   |   |   | 90.6 |   |   |   | 31.9 |   |   |   | 15.2 |   |   |   | 31.8 |   |   |   | 11.7 |   |   |   | 90.6 |   |
| Balance as of March 31, 2010            |   | $                    | 297.0  |   |               | $      | 127.8 |   |   | $ | 76.5 |   |   | $ | 501.3 |   |   | $ | 169.4 |   |   | $ | 91.2 |   |   | $ | 192.3 |   |   | $ | 48.4 |   |   | $ | 501.3 |   |

| (1) | Includes index, structured, asset allocation services and other non-actively managed AUM. |
|-----|-------------------------------------------------------------------------------------------|

| (2) | Certain client assets were reclassified among investment services to more accurately reflect how these assets are managed by our firm. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------|

|                  |   | Three Months Ended March 31, |   |   |   |   |   |     |   |
|-----------------------|--------|------------------------------|--------|--------|--------|--------|--------|----------|--------|
|                  |   | 2010                         |   |   | 2009   |   |   | $ Change |   |   | % Change |   |
|                  |   | (in billions)                |   |   |   |   |
| Distribution Channel: |   |                         |   |   |   |   |   |     |   |   |   |   |
| Institutions          |   | $                            | 294.2  |   |   | $      | 266.9  |     |   | $ | 27.3 |   |   |   | 10.2 | % |
| Retail                |   |                         | 121.5  |   |   |   | 92.8   |     |   |   | 28.7 |   |   |   | 31.0 |   |
| Private Client        |   |                         | 74.4   |   |   |   | 64.2   |     |   |   | 10.2 |   |   |   | 15.9 |   |
| Total                 |   | $                            | 490.1  |   |   | $      | 423.9  |     |   | $ | 66.2 |   |   |   | 15.6 |   |
| Investment Service:   |   |                         |   |   |   |   |   |     |   |   |   |   |   |   |   |   |
| Value Equity          |   | $                            | 165.4  |   |   | $      | 148.2  |     |   | $ | 17.2 |   |   |   | 11.6 |   |
| Growth Equity         |   |                         | 89.6   |   |   |   | 79.4   |     |   |   | 10.2 |   |   |   | 12.9 |   |
| Fixed Income(2)       |   |                         | 188.4  |   |   |   | 160.9  |     |   |   | 27.5 |   |   |   | 17.1 |   |
| Other(1)(2)           |   |                         | 46.7   |   |   |   | 35.4   |     |   |   | 11.3 |   |   |   | 32.0 |   |
| Total                 |   | $                            | 490.1  |   |   | $      | 423.9  |     |   | $ | 66.2 |   |   |   | 15.6 |   |

| (1) | Includes index, structured, asset allocation services and other non-actively managed AUM. |
|-----|-------------------------------------------------------------------------------------------|

| (2) | Certain client assets were reclassified among investment services to more accurately reflect how these assets are managed by our firm. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------|

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|                                                                        |   | Three Months Ended March 31,           |   |   |   |   |   |     |   |
|-----------------------------------------------------------------------------|--------|----------------------------------------|--------|--------|--------|--------|--------|----------|--------|
|                                                                        |   | 2010                                   |   |   | 2009   |   |   | $ Change |   |   | % Change |   |
|                                                                        |   | (in millions, except per unit amounts) |   |   |   |   |
|                                                                        |   |                                   |   |   |   |   |   |     |   |   |   |   |
| Net revenues                                                                |   | $                                      | 725.1  |   |   | $      | 597.6  |     |   | $ | 127.5 |   |   |   | 21.3 | % |
| Expenses                                                                    |   |                                   | 585.1  |   |   |   | 563.8  |     |   |   | 21.3 |   |   |   | 3.8 |   |
| Operating income                                                            |   |                                   | 140.0  |   |   |   | 33.8   |     |   |   | 106.2 |   |   |   | 314.3 |   |
| Non-operating income                                                        |   |                                   | 4.5    |   |   |   | 6.3    |     |   |   | (1.8 | ) |   |   | (28.2 | ) |
| Income before income taxes                                                  |   |                                   | 144.5  |   |   |   | 40.1   |     |   |   | 104.4 |   |   |   | 260.6 |   |
| Income taxes                                                                |   |                                   | 13.0   |   |   |   | 8.6    |     |   |   | 4.4 |   |   |   | 51.8 |   |
| Net income                                                                  |   |                                   | 131.5  |   |   |   | 31.5   |     |   |   | 100.0 |   |   |   | 317.3 |   |
| Net loss of consolidated entities attributable to non-controlling interests |   |                                   | 16.8   |   |   |   | 5.4    |     |   |   | 11.4 |   |   |   | 214.1 |   |
|                                                                        |   |                                   |   |   |   |   |   |     |   |   |   |   |   |   |   |   |
| Net income attributable to AllianceBernstein Unitholders                    |   | $                                      | 148.3  |   |   | $      | 36.9   |     |   | $ | 111.4 |   |   |   | 302.3 |   |
|                                                                        |   |                                   |   |   |   |   |   |     |   |   |   |   |   |   |   |   |
| Diluted net income per AllianceBernstein Unit                               |   | $                                      | 0.53   |   |   | $      | 0.14   |     |   | $ | 0.39 |   |   |   | 278.6 |   |
|                                                                        |   |                                   |   |   |   |   |   |     |   |   |   |   |   |   |   |   |
| Distributions per AllianceBernstein Unit                                    |   | $                                      | 0.53   |   |   | $      | 0.14   |     |   | $ | 0.39 |   |   |   | 278.6 |   |
|                                                                        |   |                                   |   |   |   |   |   |     |   |   |   |   |   |   |   |   |
| Operating margin(1)                                                         |   |                                   | 21.6   | %      |   |   | 6.5    | %        |   |   |   |   |   |   |   |   |

| (1) | Operating income including net loss attributable to non-controlling interests as a percentage of net revenues. |
|-----|----------------------------------------------------------------------------------------------------------------|

| Net income attributable to AllianceBernstein Unitholders for the three months ended March 31, 2010 increased $111.4 million, or 302.3%, from the three months ended March 31, 2009. The increase was primarily due to (in millions):  |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| $                                                                                                                                                                                                                                               | 76.9 |   | Higher base investment advisory fees |
|                                                                                                                                                                                                                                            | 21.6 |   | Lower base compensation (primarily severance which was lower by $15.7 million and salaries which were lower by $5.6 million due to workforce reductions in 2009) |
|                                                                                                                                                                                                                                            | 10.1 |   | Deferred compensation-related investment gains which were higher by $39.4 million offset by deferred compensation expense which was higher by $29.3 million resulting from mark-to-market gains on related investments |
|                                                                                                                                                                                                                                            | 7.1 |   | Foreign exchange gains of $1.4 million in the current quarter compared to foreign exchange losses of $5.7 million in the prior year quarter |
|                                                                                                                                                                                                                                            | (5.4 | ) | Higher real estate sublease-related charges ($12.0 million in the current quarter compared to $6.6 million in the prior year quarter) |
|                                                                                                                                                                                                                                            | (4.4 | ) | Higher income taxes (primarily due to higher pre-tax income in the current quarter, partially offset by a prior year quarter out-of-period adjustment of $3.4 million) |
|                                                                                                                                                                                                                                            | 5.5 |   | Other |
| $                                                                                                                                                                                                                                               | 111.4 |   | Increase in net income |

----

|                                   |   | Three Months Ended March 31, |    |   |   |   |    |     |   |
|----------------------------------------|--------|------------------------------|---------|--------|--------|--------|---------|----------|--------|
|                                   |   | 2010                         |    |   | 2009   |   |    | $ Change |   |   | % Change |   |
|                                   |   | (in millions)                |    |   |   |   |
| Investment advisory and services fees: |   |                         |    |   |   |   |    |     |   |   |   |   |
| Institutions:                          |   |                         |    |   |   |   |    |     |   |   |   |   |
| Base fees                              |   | $                            | 196.7   |   |   | $      | 184.5   |     |   | $ | 12.2 |   |   |   | 6.6 | % |
| Performance-based fees                 |   |                         | 2.7     |   |   |   | 11.5    |     |   |   | (8.8 | ) |   |   | (76.8 | ) |
|                                   |   |                         | 199.4   |   |   |   | 196.0   |     |   |   | 3.4 |   |   |   | 1.7 |   |
| Retail:                                |   |                         |    |   |   |   |    |     |   |   |   |   |   |   |   |   |
| Base fees                              |   |                         | 151.8   |   |   |   | 110.9   |     |   |   | 40.9 |   |   |   | 36.9 |   |
| Performance-based fees                 |   |                         | — |   |   |   | — |     |   |   | — |   |   |   | — |   |
|                                   |   |                         | 151.8   |   |   |   | 110.9   |     |   |   | 40.9 |   |   |   | 36.9 |   |
| Private Client:                        |   |                         |    |   |   |   |    |     |   |   |   |   |   |   |   |   |
| Base fees                              |   |                         | 161.1   |   |   |   | 137.3   |     |   |   | 23.8 |   |   |   | 17.4 |   |
| Performance-based fees                 |   |                         | — |   |   |   | 0.8     |     |   |   | (0.8 | ) |   |   | (100.0 | ) |
|                                   |   |                         | 161.1   |   |   |   | 138.1   |     |   |   | 23.0 |   |   |   | 16.7 |   |
| Total:                                 |   |                         |    |   |   |   |    |     |   |   |   |   |   |   |   |   |
| Base fees                              |   |                         | 509.6   |   |   |   | 432.7   |     |   |   | 76.9 |   |   |   | 17.8 |   |
| Performance-based fees                 |   |                         | 2.7     |   |   |   | 12.3    |     |   |   | (9.6 | ) |   |   | (78.3 | ) |
|                                   |   |                         | 512.3   |   |   |   | 445.0   |     |   |   | 67.3 |   |   |   | 15.1 |   |
|                                   |   |                         |    |   |   |   |    |     |   |   |   |   |   |   |   |   |
| Bernstein research services            |   |                         | 110.7   |   |   |   | 105.6   |     |   |   | 5.1 |   |   |   | 4.8 |   |
| Distribution revenues                  |   |                         | 80.3    |   |   |   | 58.1    |     |   |   | 22.2 |   |   |   | 38.4 |   |
| Dividend and interest income           |   |                         | 3.9     |   |   |   | 7.8     |     |   |   | (3.9 | ) |   |   | (49.9 | ) |
| Investment gains (losses)              |   |                         | (8.0    | )      |   |   | (41.2   | )        |   |   | 33.2 |   |   |   | (80.6 | ) |
| Other revenues                         |   |                         | 26.6    |   |   |   | 24.1    |     |   |   | 2.5 |   |   |   | 10.3 |   |
| Total revenues                         |   |                         | 725.8   |   |   |   | 599.4   |     |   |   | 126.4 |   |   |   | 21.1 |   |
| Less: interest expense                 |   |                         | 0.7     |   |   |   | 1.8     |     |   |   | (1.1 | ) |   |   | (58.9 | ) |
| Net revenues                           |   | $                            | 725.1   |   |   | $      | 597.6   |     |   | $ | 127.5 |   |   |   | 21.3 |   |

----

----

|                               |   | Three Months Ended March 31, |   |   |   |   |   |     |   |
|------------------------------------|--------|------------------------------|--------|--------|--------|--------|--------|----------|--------|
|                               |   | 2010                         |   |   | 2009   |   |   | $ Change |   |   | % Change |   |
|                               |   | (in millions)                |   |   |   |   |   |     |   |
|                               |   |                         |   |   |   |   |   |     |   |   |   |   |
| Employee compensation and benefits |   | $                            | 319.4  |   |   | $      | 313.8  |     |   | $ | 5.6 |   |   |   | 1.8 | % |
| Promotion and servicing            |   |                         | 121.7  |   |   |   | 104.6  |     |   |   | 17.1 |   |   |   | 16.3 |   |
| General and administrative         |   |                         | 138.0  |   |   |   | 139.2  |     |   |   | (1.2 | ) |   |   | (0.8 | ) |
| Interest                           |   |                         | 0.6    |   |   |   | 1.0    |     |   |   | (0.4 | ) |   |   | (42.4 | ) |
| Amortization of intangible assets  |   |                         | 5.4    |   |   |   | 5.2    |     |   |   | 0.2 |   |   |   | 3.8 |   |
| Total                              |   | $                            | 585.1  |   |   | $      | 563.8  |     |   | $ | 21.3 |   |   |   | 3.8 |   |

----

|                                                                                                      |   | Three Months Ended March 31, |    |   |   |   |
|-----------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|--------|--------|--------|
|                                                                                                      |   | 2010                         |    |   | 2009   |   |   | % Change |   |
|                                                                                                      |   | (in millions)                |    |   |   |   |
|                                                                                                      |   |                         |    |   |   |   |   |   |   |
| Total capital, as of March 31                                                                             |   | $                            | 4,627.9 |   |   | $      | 4,436.3 |   |   |   | 4.3 | % |
| Available Cash Flow                                                                                       |   |                         | 147.3   |   |   |   | 37.5 |   |   |   | 292.6 |   |
| Cash flow from operations                                                                                 |   |                         | 218.1   |   |   |   | 47.2 |   |   |   | 362.5 |   |
| Proceeds from sales (purchases) of investments, net                                                       |   |                         | — |   |   |   | 0.3 |   |   |   | (100.0 | ) |
| Capital expenditures                                                                                      |   |                         | (0.5    | )      |   |   | (28.7 | ) |   |   | (98.4 | ) |
| Distributions paid to General Partner and unitholders                                                     |   |                         | (194.3  | )      |   |   | (99.2 | ) |   |   | 96.0 |   |
| Purchases of Holding Units to fund deferred compensation plan awards, net                                 |   |                         | (23.8   | )      |   |   | (0.6 | ) |   |   | 3,878.9 |   |
| Additional investment by Holding with proceeds from exercise of compensatory options to buy Holding Units |   |                         | 5.3     |   |   |   | — |   |   |   | n/m |   |
| (Repayment) issuance of commercial paper, net                                                             |   |                         | (43.1   | )      |   |   | 10.6 |   |   |   | n/m |   |
| Proceeds from bank loans, net                                                                             |   |                         | — |   |   |   | 66.0 |   |   |   | (100.0 | ) |

----

|                                                          |   | March 31, 2010  |    | December 31, 2009 |            |
|---------------------------------------------------------------|--------|-----------------|---------|-------------------|-----------------|
|                                                          |   | CreditAvailable |    |              | DebtOutstanding |   |   | InterestRate |   |   | CreditAvailable |   |   | DebtOutstanding |   |   | InterestRate |   |
|                                                          |   | (in millions)   |    |
|                                                          |   |            |    |
| Revolving credit facility                                     |   | $               | 794.0   |              |            | $ | — |   |   |   | — | % |   | $ | 751.0 |   |   | $ | — |   |   |   | — | % |
| Commercial paper (1)                                          |   |            | 206.0   |              |            |   | 206.0 |   |   |   | 0.2 |   |   |   | 249.0 |   |   |   | 249.0 |   |   |   | 0.2 |   |
| Total revolving credit facility - AllianceBernstein |   |            | 1,000.0 |              |            |   | 206.0 |   |   |   | 0.2 |   |   |   | 1,000.0 |   |   |   | 249.0 |   |   |   | 0.2 |   |
| Revolving credit facility – SCB LLC                |   |            | 950.0   |              |            |   | — |   |   |   | — |   |   |   | 950.0 |   |   |   | — |   |   |   | — |   |
| Total                                                         |   | $               | 1,950.0 |              |            | $ | 206.0 |   |   |   | 0.2 |   |   | $ | 1,950.0 |   |   | $ | 249.0 |   |   |   | 0.2 |   |

| (1) | Commercial paper is short-term in nature and, as such, recorded value is estimated to approximate fair value. |
|-----|---------------------------------------------------------------------------------------------------------------|

----

----

|   | • | Our pipeline of new institutional client mandates not yet funded: Before they are funded, institutional mandates do not represent legally binding commitments to fund and, accordingly, the possibility exists that not all mandates will be funded in the amounts and at the times we currently anticipate. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Our belief that the cash flow Holding realizes from its investment in AllianceBernstein will provide Holding with the resources necessary to meet its financial obligations: Holding’s cash flow is dependent on the quarterly cash distributions it receives from AllianceBernstein. Accordingly, Holding’s ability to meet its financial obligations is dependent on AllianceBernstein’s cash flow from its operations, which is subject to the performance of the capital markets and other factors beyond our control. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Our financial condition and ability to issue public and private debt providing adequate liquidity for our general business needs: Our financial condition is dependent on our cash flow from operations, which is subject to the performance of the capital markets, our ability to maintain and grow client assets under management and other factors beyond our control. Our ability to issue public and private debt on reasonable terms, as well as the market for such debt or equity, may be limited by adverse market conditions, our profitability and changes in government regulations, including tax rates and interest rates. |
|--------|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | The possibility that prolonged weakness in the value of client assets under management may result in impairment of goodwill: To the extent that securities valuations are depressed for prolonged periods of time, client assets under management and our revenues, profitability and unit price may be adversely affected. As a result, subsequent impairment tests may be based upon different assumptions and future cash flow projections, which may result in an impairment of goodwill. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | The outcome of litigation: Litigation is inherently unpredictable, and excessive damage awards do occur. Though we have stated that we do not expect certain legal proceedings to have a material adverse effect on our results of operations or financial condition, any settlement or judgment with respect to a legal proceeding could be significant, and could have such an effect. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Item 3.  | Quantitative and Qualitative Disclosures About Market Risk |
|---------------|------------------------------------------------------------|

| Item 4. | Controls and Procedures |
|---------|-------------------------|

----