----

|                                                                                  |   | June 30,2009 |      |    | December 31,2008 |   |
|---------------------------------------------------------------------------------------|--------|--------------|-----------|---------|-----------------------|--------|
|                                                                                  |   | (unaudited)  |      |    |                  |   |
|                                                                                  |   |         |      |    |                  |   |
| ASSETS                                                                                |   |         |      |    |                  |   |
| Cash and cash equivalents                                                             |   | $            | 656,274   |    |                  | $      | 552,577 |   |
| Cash and securities segregated, at market (cost: $1,245,870 and $2,568,339)           |   |         | 1,246,086 |    |                  |   | 2,572,569 |   |
| Receivables, net:                                                                     |   |         |      |    |                  |   |   |   |
| Brokers and dealers                                                                   |   |         | 201,065   |    |                  |   | 251,644 |   |
| Brokerage clients                                                                     |   |         | 488,229   |    |                  |   | 398,979 |   |
| Fees                                                                                  |   |         | 321,049   |    |                  |   | 377,167 |   |
| Investments:                                                                          |   |         |      |    |                  |   |   |   |
| Deferred compensation related                                                         |   |         | 446,519   |    |                  |   | 305,809 |   |
| Other                                                                                 |   |         | 273,086   |    |                  |   | 272,034 |   |
| Furniture, equipment and leasehold improvements, net                                  |   |         | 373,760   |    |                  |   | 365,804 |   |
| Goodwill, net                                                                         |   |         | 2,893,029 |    |                  |   | 2,893,029 |   |
| Intangible assets, net                                                                |   |         | 234,890   |    |                  |   | 243,493 |   |
| Deferred sales commissions, net                                                       |   |         | 101,734   |    |                  |   | 113,541 |   |
| Other assets                                                                          |   |         | 192,441   |    |                  |   | 156,813 |   |
| Total assets                                                                          |   | $            | 7,428,162 |    |                  | $      | 8,503,459 |   |
|                                                                                  |   |         |      |    |                  |   |   |   |
| LIABILITIES AND CAPITAL                                                               |   |         |      |    |                  |   |   |   |
| Liabilities:                                                                          |   |         |      |    |                  |   |   |   |
| Payables:                                                                             |   |         |      |    |                  |   |   |   |
| Brokers and dealers                                                                   |   | $            | 156,257   |    |                  | $      | 110,655 |   |
| Brokerage clients                                                                     |   |         | 1,698,143 |    |                  |   | 2,755,104 |   |
| AllianceBernstein mutual funds                                                        |   |         | 60,653    |    |                  |   | 195,617 |   |
| Accounts payable and accrued expenses                                                 |   |         | 270,432   |    |                  |   | 310,392 |   |
| Accrued compensation and benefits                                                     |   |         | 455,372   |    |                  |   | 360,086 |   |
| Debt                                                                                  |   |         | 187,523   |    |                  |   | 284,779 |   |
| Total liabilities                                                                     |   |         | 2,828,380 |    |                  |   | 4,016,633 |   |
|                                                                                  |   |         |      |    |                  |   |   |   |
| Commitments and contingencies (See Note 8)                                            |   |         |      |    |                  |   |   |   |
|                                                                                  |   |         |      |    |                  |   |   |   |
| Capital:                                                                              |   |         |      |    |                  |   |   |   |
| General Partner                                                                       |   |         | 45,666    |    |                  |   | 45,010 |   |
| Limited partners: 265,844,111 and 263,717,610  units issued and outstanding |   |         | 4,551,434 |    |                  |   | 4,485,564 |   |
| Capital contributions receivable from General Partner                                 |   |         | (22,014   | )       |                  |   | (23,168 | ) |
| Deferred compensation expense                                                         |   |         | (119,491  | )       |                  |   | (117,600 | ) |
| Accumulated other comprehensive loss                                                  |   |         | (24,420   | )  |                  |   | (72,147 | ) |
| Partners’ capital attributable to AllianceBernstein Unitholders                 |   |         | 4,431,175 |    |                  |   | 4,317,659 |   |
| Non-controlling interests in consolidated entities                                    |   |         | 168,607   |    |                  |   | 169,167 |   |
| Total capital                                                                         |   |         | 4,599,782 |    |                  |   | 4,486,826 |   |
| Total liabilities and capital                                                         |   | $            | 7,428,162 |    |                  | $      | 8,503,459 |   |

----

|                                                                                 |   | Three Months Ended June 30, |    |   | Six Months Ended June 30, |   |
|--------------------------------------------------------------------------------------|--------|-----------------------------|---------|--------|---------------------------|--------|
|                                                                                 |   | 2009                        |    |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
|                                                                                 |   |                        |    |   |                      |   |   |   |   |   |   |   |
| Revenues:                                                                            |   |                        |    |   |                      |   |   |   |   |   |   |   |
| Investment advisory and services fees                                                |   | $                           | 448,110 |   |                      | $      | 794,638 |   |   | $ | 893,072 |   |   | $ | 1,611,869 |   |
| Distribution revenues                                                                |   |                        | 64,582  |   |                      |   | 107,935 |   |   |   | 122,658 |   |   |   | 217,237 |   |
| Institutional research services                                                      |   |                        | 110,867 |   |                      |   | 110,454 |   |   |   | 216,509 |   |   |   | 228,740 |   |
| Dividend and interest income                                                         |   |                        | 6,577   |   |                      |   | 21,322 |   |   |   | 14,378 |   |   |   | 52,314 |   |
| Investment gains (losses)                                                            |   |                        | 65,284  |   |                      |   | 9,056 |   |   |   | 24,047 |   |   |   | (55,174 | ) |
| Other revenues                                                                       |   |                        | 27,400  |   |                      |   | 30,687 |   |   |   | 51,472 |   |   |   | 61,467 |   |
| Total revenues                                                                       |   |                        | 722,820 |   |                      |   | 1,074,092 |   |   |   | 1,322,136 |   |   |   | 2,116,453 |   |
| Less: Interest expense                                                               |   |                        | 1,380   |   |                      |   | 10,468 |   |   |   | 3,132 |   |   |   | 23,807 |   |
| Net revenues                                                                         |   |                        | 721,440 |   |                      |   | 1,063,624 |   |   |   | 1,319,004 |   |   |   | 2,092,646 |   |
|                                                                                 |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Expenses:                                                                            |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Employee compensation and benefits                                                   |   |                        | 324,961 |   |                      |   | 428,198 |   |   |   | 638,764 |   |   |   | 861,870 |   |
| Promotion and servicing:                                                             |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Distribution plan payments                                                           |   |                        | 48,786  |   |                      |   | 78,667 |   |   |   | 91,227 |   |   |   | 157,891 |   |
| Amortization of deferred sales commissions                                           |   |                        | 13,844  |   |                      |   | 20,518 |   |   |   | 28,741 |   |   |   | 42,537 |   |
| Other                                                                                |   |                        | 44,155  |   |                      |   | 57,417 |   |   |   | 83,358 |   |   |   | 114,640 |   |
| General and administrative                                                           |   |                        | 150,153 |   |                      |   | 138,050 |   |   |   | 297,440 |   |   |   | 292,993 |   |
| Interest on borrowings                                                               |   |                        | 675     |   |                      |   | 3,251 |   |   |   | 1,639 |   |   |   | 9,816 |   |
| Amortization of intangible assets                                                    |   |                        | 5,554   |   |                      |   | 5,179 |   |   |   | 10,733 |   |   |   | 10,358 |   |
| Total expenses                                                                       |   |                        | 588,128 |   |                      |   | 731,280 |   |   |   | 1,151,902 |   |   |   | 1,490,105 |   |
|                                                                                 |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Operating income                                                                     |   |                        | 133,312 |   |                      |   | 332,344 |   |   |   | 167,102 |   |   |   | 602,541 |   |
|                                                                                 |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Non-operating income                                                                 |   |                        | 5,951   |   |                      |   | 3,591 |   |   |   | 12,236 |   |   |   | 8,343 |   |
|                                                                                 |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                                                           |   |                        | 139,263 |   |                      |   | 335,935 |   |   |   | 179,338 |   |   |   | 610,884 |   |
|                                                                                 |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Income taxes                                                                         |   |                        | 9,668   |   |                      |   | 30,991 |   |   |   | 18,232 |   |   |   | 61,036 |   |
|                                                                                 |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                           |   |                        | 129,595 |   |                      |   | 304,944 |   |   |   | 161,106 |   |   |   | 549,848 |   |
|                                                                                 |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net (income) loss in consolidated entities attributable to non-controlling interests |   |                        | (1,300  | )      |                      |   | (24,655 | ) |   |   | 4,040 |   |   |   | (22,116 | ) |
|                                                                                 |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income attributable to AllianceBernstein Unitholders                             |   | $                           | 128,295 |   |                      | $      | 280,289 |   |   | $ | 165,146 |   |   | $ | 527,732 |   |
|                                                                                 |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net income per AllianceBernstein Unit:                                               |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                                                                |   | $                           | 0.48    |   |                      | $      | 1.06 |   |   | $ | 0.62 |   |   | $ | 2.00 |   |
| Diluted                                                                              |   | $                           | 0.48    |   |                      | $      | 1.06 |   |   | $ | 0.62 |   |   | $ | 2.00 |   |

----

|                                                                                                      |   | Six Months EndedJune 30, |       |
|-----------------------------------------------------------------------------------------------------------|--------|--------------------------|------------|
|                                                                                                      |   | 2009                     |       | 2008 |   |
|                                                                                                      |   |                     |       |
| Cash flows from operating activities:                                                                     |   |                     |       |   |   |   |
| Net income                                                                                                |   | $                        | 161,106    |   |   | $ | 549,848 |   |
| Adjustments to reconcile net income to net cash provided by operating activities:                         |   |                     |       |   |   |   |   |   |
| Amortization of deferred sales commissions                                                                |   |                     | 28,741     |   |   |   | 42,537 |   |
| Amortization of non-cash deferred compensation                                                            |   |                     | 36,123     |   |   |   | 31,803 |   |
| Depreciation and other amortization                                                                       |   |                     | 42,285     |   |   |   | 52,097 |   |
| Unrealized (gains) losses on deferred compensation related investments                                    |   |                     | (82,445    | ) |   |   | 70,490 |   |
| Other, net                                                                                                |   |                     | 5,534      |   |   |   | (12,097 | ) |
| Changes in assets and liabilities:                                                                        |   |                     |       |   |   |   |   |   |
| Decrease in segregated cash and securities                                                                |   |                     | 1,326,483  |   |   |   | 640,044 |   |
| Decrease in receivables                                                                                   |   |                     | 173,528    |   |   |   | 227,666 |   |
| (Increase) in investments                                                                                 |   |                     | (50,882    | ) |   |   | (173,499 | ) |
| (Increase) in deferred sales commissions                                                                  |   |                     | (16,934    | ) |   |   | (18,073 | ) |
| (Increase) decrease in other assets                                                                       |   |                     | (35,978    | ) |   |   | 14,993 |   |
| (Decrease) in payables                                                                                    |   |                     | (1,291,150 | ) |   |   | (799,111 | ) |
| (Decrease) in accounts payable and accrued expenses                                                       |   |                     | (17,039    | ) |   |   | (40,001 | ) |
| Increase in accrued compensation and benefits                                                             |   |                     | 91,099     |   |   |   | 161,838 |   |
| Net cash provided by operating activities                                                                 |   |                     | 370,471    |   |   |   | 748,535 |   |
|                                                                                                      |   |                     |       |   |   |   |   |   |
| Cash flows from investing activities:                                                                     |   |                     |       |   |   |   |   |   |
| Purchases of investments                                                                                  |   |                     | (10,429    | ) |   |   | (6,168 | ) |
| Proceeds from sales of investments                                                                        |   |                     | 2,852      |   |   |   | 10,015 |   |
| Additions to furniture, equipment and leasehold improvements                                              |   |                     | (36,098    | ) |   |   | (45,425 | ) |
|                                                                                                      |   |                     |       |   |   |   |   |   |
| Net cash used in investing activities                                                                     |   |                     | (43,675    | ) |   |   | (41,578 | ) |
|                                                                                                      |   |                     |       |   |   |   |   |   |
| Cash flows from financing activities:                                                                     |   |                     |       |   |   |   |   |   |
| Repayment of commercial paper, net                                                                        |   |                     | (120,113   | ) |   |   | (166,974 | ) |
| Proceeds from bank loans, net                                                                             |   |                     | 22,000     |   |   |   | 120,000 |   |
| Decrease in overdrafts payable                                                                            |   |                     | (27,318    | ) |   |   | (34,014 | ) |
| Cash distributions to General Partner and unitholders                                                     |   |                     | (136,678   | ) |   |   | (555,716 | ) |
| Cash distributions to Joint Venture Partners                                                              |   |                     | —    |   |   |   | (10,544 | ) |
| Capital contributions from non-controlling interests to fund consolidated venture capital fund activities |   |                     | 1,266      |   |   |   | 29,502 |   |
| Capital contributions from General Partner                                                                |   |                     | 1,854      |   |   |   | 1,686 |   |
| Additional investment by Holding with proceeds from exercise of compensatory options to buy Holding Units |   |                     | —    |   |   |   | 12,559 |   |
| Purchases of Holding Units to fund deferred compensation plans, net of issuances                          |   |                     | (654       | ) |   |   | (4,325 | ) |
| Other                                                                                                     |   |                     | 157        |   |   |   | — |   |
| Net cash used in financing activities                                                                     |   |                     | (259,486   | ) |   |   | (607,826 | ) |
|                                                                                                      |   |                     |       |   |   |   |   |   |
| Effect of exchange rate changes on cash and cash equivalents                                              |   |                     | 36,387     |   |   |   | 5,830 |   |
|                                                                                                      |   |                     |       |   |   |   |   |   |
| Net increase in cash and cash equivalents                                                                 |   |                     | 103,697    |   |   |   | 104,961 |   |
| Cash and cash equivalents as of beginning of period                                                       |   |                     | 552,577    |   |   |   | 576,416 |   |
| Cash and cash equivalents as of end of period                                                             |   | $                        | 656,274    |   |   | $ | 681,377 |   |

----

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

|   | • | Institutional Investment 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, structuredproducts, collective investment trusts, mutual funds, hedge funds and other investment vehicles. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Retail Services – servicing our individual 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. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Institutional Research Services – servicing our institutional clients seeking independent research, portfolio strategy and brokerage-related services. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Value equities, generally targeting stocks that are out of favor and that may trade at bargain prices; |
|--------|---------|--------------------------------------------------------------------------------------------------------|

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

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

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

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

|   | • | Alternative investments, such as hedge funds, currency management strategies and venture capital; and |
|--------|---------|-------------------------------------------------------------------------------------------------------|

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

----

| AXA and its subsidiaries |   |   | 63.6  | %      |
|--------------------------|--------|--------|-------|--------|
| Holding                  |   |   | 34.4  |   |
| Unaffiliated holders     |   |   | 2.0   |   |
|                     |   |   | 100.0 | %      |

| 2. | Subsequent Events |
|----|-------------------|

| 3. | 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. |
|--------|---------|---------------------------------------------------------------------------------|

----

----

----

| 4. | Cash and Securities Segregated Under Federal Regulations and Other Requirements |
|----|---------------------------------------------------------------------------------|

----

| 5. | Net Income Per Unit |
|----|---------------------|

|                                                         |   | Three Months Ended June 30,             |    |   | Six Months Ended June 30, |   |
|--------------------------------------------------------------|--------|-----------------------------------------|---------|--------|---------------------------|--------|
|                                                         |   | 2009                                    |    |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
|                                                         |   | (in thousands, except per unit amounts) |    |
|                                                         |   |                                    |    |   |                      |   |   |   |   |   |   |   |
| Net income attributable to AllianceBernstein Unitholders     |   | $                                       | 128,295 |   |                      | $      | 280,289 |   |   | $ | 165,146 |   |   | $ | 527,732 |   |
|                                                         |   |                                    |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Weighted average units outstanding - basic                   |   |                                    | 265,625 |   |                      |   | 260,874 |   |   |   | 265,280 |   |   |   | 260,751 |   |
| Dilutive effect of compensatory options to buy Holding Units |   |                                    | 1       |   |                      |   | 206 |   |   |   | — |   |   |   | 267 |   |
| Weighted average units outstanding – diluted           |   |                                    | 265,626 |   |                      |   | 261,080 |   |   |   | 265,280 |   |   |   | 261,018 |   |
|                                                         |   |                                    |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Basic net income per AllianceBernstein Unit                  |   | $                                       | 0.48    |   |                      | $      | 1.06 |   |   | $ | 0.62 |   |   | $ | 2.00 |   |
| Diluted net income per AllianceBernstein Unit                |   | $                                       | 0.48    |   |                      | $      | 1.06 |   |   | $ | 0.62 |   |   | $ | 2.00 |   |

| 6. | Investments |
|----|-------------|

| Investments consist of:                         |   |           |    |   |
|-------------------------------------------------|--------|----------------|---------|--------|
|                                            |   |           |    |   |
|                                            |   | June 30, 2009  |    |   | December 31, 2008 |   |
|                                            |   | (in thousands) |    |
|                                            |   |           |    |   |   |   |
| Available-for-sale                              |   | $              | 17,481  |   |   | $ | 7,566 |   |
| Trading:                                        |   |           |    |   |   |   |   |   |
| Deferred compensation related                   |   |           | 373,984 |   |   |   | 238,136 |   |
| United States Treasury Bills                    |   |           | 24,992  |   |   |   | 52,694 |   |
| Other                                           |   |           | 55,383  |   |   |   | 31,717 |   |
| Investments in limited partnership hedge funds: |   |           |    |   |   |   |   |   |
| Deferred compensation related                   |   |           | 72,535  |   |   |   | 67,673 |   |
| Other                                           |   |           | 2,003   |   |   |   | 2,191 |   |
| Private equity investments                      |   |           | 171,772 |   |   |   | 176,823 |   |
| Other investments                               |   |           | 1,455   |   |   |   | 1,043 |   |
| Total investments                               |   | $              | 719,605 |   |   | $ | 577,843 |   |

|   | Total investments related to deferred compensation obligations of $446.5 million and $305.8 million as of June 30, 2009 and December 31, 2008, respectively, consist of company-sponsored mutual funds and limited partnership hedge funds. We typically purchase the investments that are notionally elected by deferred compensation plan participants and maintain them in a consolidated rabbi trust or separate custodial account.The rabbi trust and custodial account enable us to hold such investments separate from our other assets for the purpose of settling our obligations to participants. The investments held in the rabbi trust and custodial account remain available to the general creditors of AllianceBernstein. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 7. | 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 indirectlyobservable 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) |
|                                     |   |           |    |   |    |   |      |    |   |   |    |   |   |   |   |   |
| Cash equivalents                         |   | $              | 264,951 |   |    | $      | —   |    |   | $      | — |   |   | $ | 264,951 |   |
| Securities segregated                    |   |           | — |   |    |   | 1,239,221 |    |   |   | — |   |   |   | 1,239,221 |   |
| Receivables from brokers and dealers     |   |           | — |   |    |   | 6         |    |   |   | — |   |   |   | 6 |   |
| Investments – available-for-sale   |   |           | 17,481  |   |    |   | —   |    |   |   | — |   |   |   | 17,481 |   |
| Investments – trading              |   |           |    |   |    |   |      |    |   |   |    |   |   |   |   |   |
| Mutual fund investments                  |   |           | 372,628 |   |    |   | —   |    |   |   | — |   |   |   | 372,628 |   |
| Equity and fixed income securities       |   |           | 47,603  |   |    |   | 8,334     |    |   |   | 802     |   |   |   | 56,739 |   |
| U.S. Treasury Bills                      |   |           | — |   |    |   | 24,992    |    |   |   | — |   |   |   | 24,992 |   |
| Investments – private equity       |   |           | 27,020  |   |    |   | 3,422     |    |   |   | 131,328 |   |   |   | 161,770 |   |
| Total assets measured at fair value      |   | $              | 729,683 |   |    | $      | 1,275,975 |    |   | $      | 132,130 |   |   | $ | 2,137,788 |   |
|                                     |   |           |    |   |    |   |      |    |   |   |    |   |   |   |   |   |
| Payables to brokers and dealers          |   | $              | 8,547   |   |    | $      | —   |    |   | $      | — |   |   | $ | 8,547 |   |
| Total liabilities measured at fair value |   | $              | 8,547   |   |    | $      | —   |    |   | $      | — |   |   | $ | 8,547 |   |

----

|                                     |   | Level 1        |    |   | Level 2 |   |      | Level 3 |   |   | Total   |   |
|------------------------------------------|--------|----------------|---------|--------|---------|--------|-----------|---------|--------|--------|---------|--------|
|                                     |   | (in thousands) |
|                                     |   |           |    |   |    |   |      |    |   |   |    |   |   |   |   |   |
| Cash equivalents                         |   | $              | 184,404 |   |    | $      | —   |    |   | $      | — |   |   | $ | 184,404 |   |
| Securities segregated                    |   |           | — |   |    |   | 2,524,698 |    |   |   | — |   |   |   | 2,524,698 |   |
| Receivables from brokers and dealers     |   |           | (46     | )      |    |   | 680       |    |   |   | — |   |   |   | 634 |   |
| Investments – available-for-sale   |   |           | 7,566   |   |    |   | —   |    |   |   | — |   |   |   | 7,566 |   |
| Investments – trading              |   |           |    |   |    |   |      |    |   |   |    |   |   |   |   |   |
| Mutual fund investments                  |   |           | 237,529 |   |    |   | —   |    |   |   | — |   |   |   | 237,529 |   |
| Equity and fixed income securities       |   |           | 25,027  |   |    |   | 6,874     |    |   |   | 423     |   |   |   | 32,324 |   |
| U.S. Treasury Bills                      |   |           | — |   |    |   | 52,694    |    |   |   | — |   |   |   | 52,694 |   |
| Investments – private equity       |   |           | 4,694   |   |    |   | —   |    |   |   | 162,129 |   |   |   | 166,823 |   |
| Total assets measured at fair value      |   | $              | 459,174 |   |    | $      | 2,584,946 |    |   | $      | 162,552 |   |   | $ | 3,206,672 |   |
|                                     |   |           |    |   |    |   |      |    |   |   |    |   |   |   |   |   |
| Payables to brokers and dealers          |   | $              | 167     |   |    | $      | —   |    |   | $      | — |   |   | $ | 167 |   |
| Total liabilities measured at fair value |   | $              | 167     |   |    | $      | —   |    |   | $      | — |   |   | $ | 167 |   |

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

|   | • | Securities segregated: United States Treasury Bills segregated in a special reserve bank custody account as required by Rule 15c3-3 of the Exchange Act. As these securities are valued based on quoted yields in secondary markets, we have included them in Level 2 of the valuation hierarchy. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Receivables from brokers and dealers: 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. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Investments – available-for-sale and trading: Our available-for-sale investments consist principally of company-sponsored mutual funds with exchange listed net asset values, and our trading investments mainly comprise company-sponsored mutual funds with exchange listed net asset values, United States Treasury Bills, and various separately managedportfolios consisting primarily of equity securities with quoted prices in active markets.  As such, these investments are included in Level 1 or Level 2 of the valuation hierarchy. Trading investments also include a separately managed portfolio of fixed income securities that are included in Level 2 or Level 3 of the valuation hierarchy. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Investments – private equity: The valuation of non-public private equity investments held 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. Thecarrying 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 expectationsof 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, the fair value is unobservable. Publicly-traded equity investmentsare included in Level 1, or Level 2 if they contain trading restrictions, of the valuation hierarchy. |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Payables to brokers and dealers: Securities sold, but not yet purchased, are included in Level 1 of the valuation hierarchy. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------|

----

|                              |   | Three Months Ended June 30, |    |   | Six Months Ended June 30, |   |
|-----------------------------------|--------|-----------------------------|---------|--------|---------------------------|--------|
|                              |   | 2009                        |    |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
|                              |   | (in thousands)              |    |
|                              |   |                        |    |   |                      |   |   |   |   |   |   |   |
| Balance as of beginning of period |   | $                           | 157,855 |   |                      | $      | 132,252 |   |   | $ | 162,552 |   |   | $ | 125,020 |   |
|                              |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Transfer (out) in, net            |   |                        | (30,360 | )      |                      |   | — |   |   |   | (30,380 | ) |   |   | — |   |
| Purchases (sales), net            |   |                        | 5,800   |   |                      |   | 7,242 |   |   |   | 6,404 |   |   |   | 14,269 |   |
| Realized gains (losses), net      |   |                        | 813     |   |                      |   | — |   |   |   | 791 |   |   |   | — |   |
| Unrealized gains (losses), net    |   |                        | (1,978  | )      |                      |   | 24,402 |   |   |   | (7,237 | ) |   |   | 24,607 |   |
| Balance as of end of period       |   | $                           | 132,130 |   |                      | $      | 163,896 |   |   | $ | 132,130 |   |   | $ | 163,896 |   |

| 8. | Commitments and Contingencies |
|----|-------------------------------|

----

| 9. | Qualified Employee Benefit Plans |
|----|----------------------------------|

----

|                                           |   | Three Months Ended June 30, |    |   | Six Months Ended June 30, |   |
|------------------------------------------------|--------|-----------------------------|---------|--------|---------------------------|--------|
|                                           |   | 2009                        |    |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
|                                           |   | (in thousands)              |    |
|                                           |   |                        |    |   |                      |   |   |   |   |   |   |   |
| Service cost                                   |   | $                           | — |   |                      | $      | 792 |   |   | $ | — |   |   | $ | 1,584 |   |
| Interest cost on projected benefit obligations |   |                        | 1,098   |   |                      |   | 1,241 |   |   |   | 2,196 |   |   |   | 2,482 |   |
| Expected return on plan assets                 |   |                        | (769    | )      |                      |   | (1,148 | ) |   |   | (1,538 | ) |   |   | (2,296 | ) |
| Recognized actuarial loss                      |   |                        | 109     |   |                      |   | — |   |   |   | 218 |   |   |   | — |   |
| Amortization of prior service credit           |   |                        | — |   |                      |   | (109 | ) |   |   | — |   |   |   | (218 | ) |
| Amortization of transition asset               |   |                        | (36     | )      |                      |   | (36 | ) |   |   | (72 | ) |   |   | (72 | ) |
| Net pension charge                             |   | $                           | 402     |   |                      | $      | 740 |   |   | $ | 804 |   |   | $ | 1,480 |   |

| 10. | Units Outstanding |
|-----|-------------------|

|                                   |   |   |        |
|----------------------------------------|--------|--------|-------------|
| Outstanding as of December 31, 2008    |   |   | 263,717,610 |   |
| Options to buy Holding Units exercised |   |   | —     |   |
| Holding Units issued                   |   |   | 2,127,519   |   |
| Holding Units forfeited                |   |   | (1,018      | ) |
| Outstanding as of June 30, 2009        |   |   | 265,844,111 |   |

| 11. | Income Taxes |
|-----|--------------|

----

| 12. | Debt |
|-----|------|

|                                     |   | June 30, 2009   |    |   | December 31, 2008 |   |
|------------------------------------------|--------|-----------------|---------|--------|-------------------|--------|
|                                     |   | CreditAvailable |    |   | DebtOutstanding   |   |   | InterestRate |   |   | CreditAvailable |   |   | DebtOutstanding |   |   | InterestRate |   |
|                                     |   | (in millions)   |    |
| Revolving credit facility(1)             |   | $               | 834.5   |   |              | $      | — |   |   |   | — | % |   | $ | 715.2 |   |   | $ | — |   |   |   | — | % |
| Commercial paper(1) (2)                  |   |            | 165.5   |   |              |   | 165.5 |   |   |   | 0.5 |   |   |   | 284.8 |   |   |   | 284.8 |   |   |   | 1.8 |   |
| Total revolving credit facility(1)       |   |            | 1,000.0 |   |              |   | 165.5 |   |   |   | 0.5 |   |   |   | 1,000.0 |   |   |   | 284.8 |   |   |   | 1.8 |   |
| Revolving credit facility –SCB LLC |   |            | 950.0   |   |              |   | — |   |   |   | — |   |   |   | 950.0 |   |   |   | — |   |   |   | — |   |
| Uncommitted bank loan(3)                 |   |            | — |   |              |   | 22.0 |   |   |   | 3.0 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total                                    |   | $               | 1,950.0 |   |              | $      | 187.5 |   |   |   | 0.8 |   |   | $ | 1,950.0 |   |   | $ | 284.8 |   |   |   | 1.8 |   |

|   | (1) | Our $1.0 billion revolving credit facility supports our commercial paper program; amounts borrowed under the commercial paper program reduce amounts available for direct borrowing under the revolving credit facility on a dollar-for-dollar basis. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Commercial paper and the uncommitted bank loan outstanding are short-term in nature, and as such, book value approximates fair value. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | As of June 30, 2009, SCB LLC maintained four separate uncommitted credit facilities with various banks totaling $525 million, a decrease from five facilities totaling $775 million as of December 31, 2008 as a result of general credittightening. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| 13. | Comprehensive Income |
|-----|----------------------|

|                                                                                           |   | Three Months Ended June 30, |    |   | Six Months Ended June 30, |   |
|------------------------------------------------------------------------------------------------|--------|-----------------------------|---------|--------|---------------------------|--------|
|                                                                                           |   | 2009                        |    |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
|                                                                                           |   | (in thousands)              |    |
|                                                                                           |   |                        |    |   |                      |   |   |   |   |   |   |   |
| Net income                                                                                     |   | $                           | 129,595 |   |                      | $      | 304,944 |   |   | $ | 161,106 |   |   | $ | 549,848 |   |
| Other comprehensive income (loss), net of tax:                                                 |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gains (losses) on investments                                                       |   |                        | 1,019   |   |                      |   | (549 | ) |   |   | 1,401 |   |   |   | (3,777 | ) |
| Foreign currency translation adjustment                                                        |   |                        | 53,669  |   |                      |   | (376 | ) |   |   | 48,394 |   |   |   | 10,369 |   |
| Changes in retirement plan related items                                                       |   |                        | 73      |   |                      |   | (167 | ) |   |   | 146 |   |   |   | (333 | ) |
| Comprehensive income                                                                           |   |                        | 184,356 |   |                      |   | 303,852 |   |   |   | 211,047 |   |   |   | 556,107 |   |
| Comprehensive (income) loss in consolidated entities attributable to non-controlling interests |   |                        | (3,622  | )      |                      |   | (25,048 | ) |   |   | 1,826 |   |   |   | (22,406 | ) |
|                                                                                           |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income attributable to AllianceBernstein Unitholders                             |   | $                           | 180,734 |   |                      | $      | 278,804 |   |   | $ | 212,873 |   |   | $ | 533,701 |   |

| 14. | Changes in Capital |
|-----|--------------------|

|                                           |   | 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)                              |   |                                                                  | 165,146   |   |                                               |   | (4,040        | )      |   |   | 161,106 |   |
| Other comprehensive income (loss), net of tax: |   |                                                                  |      |   |                                               |   |          |   |   |   |   |   |
| Unrealized gains (losses) on investments       |   |                                                                  | 1,403     |   |                                               |   | (2            | )      |   |   | 1,401 |   |
| Foreign currency translation adjustment        |   |                                                                  | 46,178    |   |                                               |   | 2,216         |   |   |   | 48,394 |   |
| Changes in retirement plan related items       |   |                                                                  | 146       |   |                                               |   | —       |   |   |   | 146 |   |
| Comprehensive income (loss)                    |   |                                                                  | 212,873   |   |                                               |   | (1,826        | )      |   |   | 211,047 |   |
|                                           |   |                                                                  |      |   |                                               |   |          |   |   |   |   |   |
| Cash distributions                             |   |                                                                  | (136,678  | )      |                                               |   | —       |   |   |   | (136,678 | ) |
| Capital contributions                          |   |                                                                  | 1,854     |   |                                               |   | 1,266         |   |   |   | 3,120 |   |
| Compensation-related transactions              |   |                                                                  | 35,467    |   |                                               |   | —       |   |   |   | 35,467 |   |
| Balance as of June 30, 2009                    |   | $                                                                     | 4,431,175 |   |                                               | $      | 168,607       |   |   | $ | 4,599,782 |   |

| 15. | Accounting Pronouncements |
|-----|---------------------------|

----

| /s/ PricewaterhouseCoopers LLP |   |   |
|--------------------------------|--------|--------|
| New York, New York             |   |
| July 30, 2009                  |   |

----

----

----

|                      |   | As of June 30, |   |   |   |   |   |          |   |
|---------------------------|--------|----------------|--------|--------|--------|--------|--------|---------------|--------|
|                      |   | 2009           |   |   | 2008   |   |   | $ Change |   |   | % Change |   |
|                      |   | (in billions)  |   |   |   |   |
|                      |   |           |   |   |   |   |   |          |   |   |   |   |
| Institutional Investments |   | $              | 277.8  |   |   | $      | 461.0  |          |   | $ | (183.2 | ) |   |   | (39.7 | )% |
| Retail                    |   |           | 102.6  |   |   |   | 156.7  |          |   |   | (54.1 | ) |   |   | (34.5 | ) |
| Private Client            |   |           | 66.6   |   |   |   | 98.9   |          |   |   | (32.3 | ) |   |   | (32.7 | ) |
| Total                     |   | $              | 447.0  |   |   | $      | 716.6  |          |   | $ | (269.6 | ) |   |   | (37.6 | ) |

|                            |   | As of June 30, |   |   |   |   |   |          |   |
|---------------------------------|--------|----------------|--------|--------|--------|--------|--------|---------------|--------|
|                            |   | 2009           |   |   | 2008   |   |   | $ Change |   |   | % Change |   |
|                            |   | (in billions)  |   |   |   |   |
| Equity                          |   |           |   |   |   |   |   |          |   |   |   |   |
| Value:                          |   |           |   |   |   |   |   |          |   |   |   |   |   |   |   |   |
| U.S.                            |   | $              | 41.1   |   |   | $      | 86.8   |          |   | $ | (45.7 | ) |   |   | (52.6 | )% |
| Global & international |   |           | 114.7  |   |   |   | 239.3  |          |   |   | (124.6 | ) |   |   | (52.1 | ) |
|                            |   |           | 155.8  |   |   |   | 326.1  |          |   |   | (170.3 | ) |   |   | (52.2 | ) |
| Growth:                         |   |           |   |   |   |   |   |          |   |   |   |   |   |   |   |   |
| U.S.                            |   |           | 32.9   |   |   |   | 59.5   |          |   |   | (26.6 | ) |   |   | (44.6 | ) |
| Global & international |   |           | 51.3   |   |   |   | 109.3  |          |   |   | (58.0 | ) |   |   | (53.1 | ) |
|                            |   |           | 84.2   |   |   |   | 168.8  |          |   |   | (84.6 | ) |   |   | (50.1 | ) |
|                            |   |           |   |   |   |   |   |          |   |   |   |   |   |   |   |   |
| Total Equity                    |   |           | 240.0  |   |   |   | 494.9  |          |   |   | (254.9 | ) |   |   | (51.5 | ) |
|                            |   |           |   |   |   |   |   |          |   |   |   |   |   |   |   |   |
| Fixed Income:                   |   |           |   |   |   |   |   |          |   |   |   |   |   |   |   |   |
| U.S.                            |   |           | 104.3  |   |   |   | 111.0  |          |   |   | (6.7 | ) |   |   | (6.1 | ) |
| Global & international |   |           | 73.7   |   |   |   | 88.5   |          |   |   | (14.8 | ) |   |   | (16.7 | ) |
|                            |   |           | 178.0  |   |   |   | 199.5  |          |   |   | (21.5 | ) |   |   | (10.8 | ) |
| Other (1):                      |   |           |   |   |   |   |   |          |   |   |   |   |   |   |   |   |
| U.S.                            |   |           | 20.5   |   |   |   | 13.8   |          |   |   | 6.7 |   |   |   | 49.0 |   |
| Global & international |   |           | 8.5    |   |   |   | 8.4    |          |   |   | 0.1 |   |   |   | 1.4 |   |
|                            |   |           | 29.0   |   |   |   | 22.2   |          |   |   | 6.8 |   |   |   | 30.9 |   |
| Total:                          |   |           |   |   |   |   |   |          |   |   |   |   |   |   |   |   |
| U.S.                            |   |           | 198.8  |   |   |   | 271.1  |          |   |   | (72.3 | ) |   |   | (26.6 | ) |
| Global & international |   |           | 248.2  |   |   |   | 445.5  |          |   |   | (197.3 | ) |   |   | (44.3 | ) |
| Total                           |   | $              | 447.0  |   |   | $      | 716.6  |          |   | $ | (269.6 | ) |   |   | (37.6 | ) |

----

|                             |   | Distribution Channel     |   |   | Investment Service |   |
|----------------------------------|--------|--------------------------|--------|--------|--------------------|--------|
|                             |   | InstitutionalInvestments |   |   | Retail             |   |   | PrivateClient |   |   | Total |   |   | ValueEquity |   |   | GrowthEquity |   |   | FixedIncome |   |   | Other(1) |   |   | Total |   |
|                             |   | (in billions)            |   |
| Balance as of March 31, 2009     |   | $                        | 257.8  |   |               | $      | 90.9 |   |   | $ | 62.0 |   |   | $ | 410.7 |   |   | $ | 137.5 |   |   | $ | 76.0 |   |   | $ | 172.8 |   |   | $ | 24.4 |   |   | $ | 410.7 |   |
| Long-term flows:                 |   |                     |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales/new accounts               |   |                     | 1.3    |   |               |   | 4.5 |   |   |   | 1.4 |   |   |   | 7.2 |   |   |   | 1.7 |   |   |   | 1.2 |   |   |   | 3.2 |   |   |   | 1.1 |   |   |   | 7.2 |   |
| Redemptions/terminations         |   |                     | (15.8  | )      |               |   | (5.9 | ) |   |   | (1.7 | ) |   |   | (23.4 | ) |   |   | (12.1 | ) |   |   | (5.8 | ) |   |   | (4.8 | ) |   |   | (0.7 | ) |   |   | (23.4 | ) |
| Cash flow/unreinvested dividends |   |                     | (4.2   | )      |               |   | (2.1 | ) |   |   | (1.5 | ) |   |   | (7.8 | ) |   |   | (3.1 | ) |   |   | (0.8 | ) |   |   | (3.8 | ) |   |   | (0.1 | ) |   |   | (7.8 | ) |
| Net long-term inflows (outflows) |   |                     | (18.7  | )      |               |   | (3.5 | ) |   |   | (1.8 | ) |   |   | (24.0 | ) |   |   | (13.5 | ) |   |   | (5.4 | ) |   |   | (5.4 | ) |   |   | 0.3 |   |   |   | (24.0 | ) |
| Market appreciation              |   |                     | 38.7   |   |               |   | 15.2 |   |   |   | 6.4 |   |   |   | 60.3 |   |   |   | 31.8 |   |   |   | 13.6 |   |   |   | 10.6 |   |   |   | 4.3 |   |   |   | 60.3 |   |
| Net change                       |   |                     | 20.0   |   |               |   | 11.7 |   |   |   | 4.6 |   |   |   | 36.3 |   |   |   | 18.3 |   |   |   | 8.2 |   |   |   | 5.2 |   |   |   | 4.6 |   |   |   | 36.3 |   |
| Balance as of June 30, 2009      |   | $                        | 277.8  |   |               | $      | 102.6 |   |   | $ | 66.6 |   |   | $ | 447.0 |   |   | $ | 155.8 |   |   | $ | 84.2 |   |   | $ | 178.0 |   |   | $ | 29.0 |   |   | $ | 447.0 |   |

| (1) | Includes index, structured and asset allocation services. |
|-----|-----------------------------------------------------------|

|                             |   | Distribution Channel     |   |   | Investment Service |   |
|----------------------------------|--------|--------------------------|--------|--------|--------------------|--------|
|                             |   | InstitutionalInvestments |   |   | Retail             |   |   | PrivateClient |   |   | Total |   |   | ValueEquity |   |   | GrowthEquity |   |   | FixedIncome |   |   | Other(1) |   |   | Total |   |
|                             |   | (in billions)            |   |
|                             |   |                     |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as of December 31, 2008  |   | $                        | 291.4  |   |               | $      | 101.6 |   |   | $ | 69.0 |   |   | $ | 462.0 |   |   | $ | 172.4 |   |   | $ | 88.3 |   |   | $ | 177.1 |   |   | $ | 24.2 |   |   | $ | 462.0 |   |
| Long-term flows:                 |   |                     |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales/new accounts               |   |                     | 6.6    |   |               |   | 9.3 |   |   |   | 3.1 |   |   |   | 19.0 |   |   |   | 3.5 |   |   |   | 3.4 |   |   |   | 8.6 |   |   |   | 3.5 |   |   |   | 19.0 |   |
| Redemptions/terminations         |   |                     | (31.2  | )      |               |   | (13.9 | ) |   |   | (4.8 | ) |   |   | (49.9 | ) |   |   | (25.4 | ) |   |   | (12.5 | ) |   |   | (11.0 | ) |   |   | (1.0 | ) |   |   | (49.9 | ) |
| Cash flow/unreinvested dividends |   |                     | (7.5   | )      |               |   | (2.3 | ) |   |   | (3.5 | ) |   |   | (13.3 | ) |   |   | (5.3 | ) |   |   | (2.9 | ) |   |   | (5.5 | ) |   |   | 0.4 |   |   |   | (13.3 | ) |
| Net long-term inflows (outflows) |   |                     | (32.1  | )      |               |   | (6.9 | ) |   |   | (5.2 | ) |   |   | (44.2 | ) |   |   | (27.2 | ) |   |   | (12.0 | ) |   |   | (7.9 | ) |   |   | 2.9 |   |   |   | (44.2 | ) |
| Transfers                        |   |                     | 0.2    |   |               |   | — |   |   |   | (0.2 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Market appreciation              |   |                     | 18.3   |   |               |   | 7.9 |   |   |   | 3.0 |   |   |   | 29.2 |   |   |   | 10.6 |   |   |   | 7.9 |   |   |   | 8.8 |   |   |   | 1.9 |   |   |   | 29.2 |   |
| Net change                       |   |                     | (13.6  | )      |               |   | 1.0 |   |   |   | (2.4 | ) |   |   | (15.0 | ) |   |   | (16.6 | ) |   |   | (4.1 | ) |   |   | 0.9 |   |   |   | 4.8 |   |   |   | (15.0 | ) |
| Balance as of June 30, 2009      |   | $                        | 277.8  |   |               | $      | 102.6 |   |   | $ | 66.6 |   |   | $ | 447.0 |   |   | $ | 155.8 |   |   | $ | 84.2 |   |   | $ | 178.0 |   |   | $ | 29.0 |   |   | $ | 447.0 |   |

| (1) | Includes index, structured and asset allocation services. |
|-----|-----------------------------------------------------------|

|                             |   | Distribution Channel     |   |   | Investment Service |   |
|----------------------------------|--------|--------------------------|--------|--------|--------------------|--------|
|                             |   | InstitutionalInvestments |   |   | Retail             |   |   | PrivateClient |   |   | Total |   |   | ValueEquity |   |   | GrowthEquity |   |   | FixedIncome |   |   | Other(1) |   |   | Total |   |
|                             |   | (in billions)            |   |
|                             |   |                     |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as of June 30, 2008      |   | $                        | 461.0  |   |               | $      | 156.7 |   |   | $ | 98.9 |   |   | $ | 716.6 |   |   | $ | 326.1 |   |   | $ | 168.8 |   |   | $ | 199.5 |   |   | $ | 22.2 |   |   | $ | 716.6 |   |
| Long-term flows:                 |   |                     |   |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Sales/new accounts               |   |                     | 17.3   |   |               |   | 17.8 |   |   |   | 7.6 |   |   |   | 42.7 |   |   |   | 13.5 |   |   |   | 8.8 |   |   |   | 16.0 |   |   |   | 4.4 |   |   |   | 42.7 |   |
| Redemptions/terminations         |   |                     | (53.0  | )      |               |   | (35.4 | ) |   |   | (9.7 | ) |   |   | (98.1 | ) |   |   | (51.7 | ) |   |   | (24.6 | ) |   |   | (20.7 | ) |   |   | (1.1 | ) |   |   | (98.1 | ) |
| Cash flow/unreinvested dividends |   |                     | (11.9  | )      |               |   | (7.4 | ) |   |   | (7.5 | ) |   |   | (26.8 | ) |   |   | (13.5 | ) |   |   | (10.5 | ) |   |   | (11.8 | ) |   |   | 9.0 |   |   |   | (26.8 | ) |
| Net long-term inflows (outflows) |   |                     | (47.6  | )      |               |   | (25.0 | ) |   |   | (9.6 | ) |   |   | (82.2 | ) |   |   | (51.7 | ) |   |   | (26.3 | ) |   |   | (16.5 | ) |   |   | 12.3 |   |   |   | (82.2 | ) |
| Transfers                        |   |                     | (10.1  | )      |               |   | 10.3 |   |   |   | (0.2 | ) |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Market (depreciation)            |   |                     | (125.5 | )      |               |   | (39.4 | ) |   |   | (22.5 | ) |   |   | (187.4 | ) |   |   | (118.6 | ) |   |   | (58.3 | ) |   |   | (5.0 | ) |   |   | (5.5 | ) |   |   | (187.4 | ) |
| Net change                       |   |                     | (183.2 | )      |               |   | (54.1 | ) |   |   | (32.3 | ) |   |   | (269.6 | ) |   |   | (170.3 | ) |   |   | (84.6 | ) |   |   | (21.5 | ) |   |   | 6.8 |   |   |   | (269.6 | ) |
| Balance as of June 30, 2009      |   | $                        | 277.8  |   |               | $      | 102.6 |   |   | $ | 66.6 |   |   | $ | 447.0 |   |   | $ | 155.8 |   |   | $ | 84.2 |   |   | $ | 178.0 |   |   | $ | 29.0 |   |   | $ | 447.0 |   |

| (1) | Includes index, structured and asset allocation services. |
|-----|-----------------------------------------------------------|

----

|                      |   | Three Months Ended |   |   |    |   |   |     |   |   | Six Months Ended |   |   |    |   |   |    |   |
|---------------------------|--------|--------------------|--------|--------|---------|--------|--------|----------|--------|--------|------------------|--------|--------|---------|--------|--------|---------|--------|
|                      |   | 6/30/09            |   |   | 6/30/08 |   |   | $ Change |   |   | % Change         |   |   | 6/30/09 |   |   | 6/30/08 |   |   | $ Change |   |   | % Change |   |
|                      |   | (in billions)      |   |
|                      |   |               |   |   |    |   |   |     |   |   |             |   |   |    |   |   |    |   |   |   |   |   |   |   |
| Distribution Channel:     |   |               |   |   |    |   |   |     |   |   |             |   |   |    |   |   |    |   |   |   |   |   |   |   |
| Institutional Investments |   | $                  | 273.2  |   |    | $      | 480.2  |     |   | $      | (207.0           | )      |   |    | (43.1  | )%     |    | $      | 271.8 |   |   | $ | 483.7 |   |   | $ | (211.9 | ) |   |   | (43.8 | )% |
| Retail                    |   |               | 99.1   |   |    |   | 164.9  |     |   |   | (65.8            | )      |   |    | (39.9  | )      |    |   | 96.6 |   |   |   | 168.4 |   |   |   | (71.8 | ) |   |   | (42.6 | ) |
| Private Client            |   |               | 65.2   |   |    |   | 102.7  |     |   |   | (37.5            | )      |   |    | (36.5  | )      |    |   | 65.1 |   |   |   | 103.5 |   |   |   | (38.4 | ) |   |   | (37.1 | ) |
| Total                     |   | $                  | 437.5  |   |    | $      | 747.8  |     |   | $      | (310.3           | )      |   |    | (41.5  | )      |    | $      | 433.5 |   |   | $ | 755.6 |   |   | $ | (322.1 | ) |   |   | (42.6 | ) |
|                      |   |               |   |   |    |   |   |     |   |   |             |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment Service:       |   |               |   |   |    |   |   |     |   |   |             |   |   |    |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Value Equity              |   | $                  | 152.3  |   |    | $      | 348.2  |     |   | $      | (195.9           | )      |   |    | (56.3  | )%     |    | $      | 152.0 |   |   | $ | 353.7 |   |   | $ | (201.7 | ) |   |   | (57.0 | )% |
| Growth Equity             |   |               | 81.6   |   |    |   | 176.0  |     |   |   | (94.4            | )      |   |    | (53.7  | )      |    |   | 81.1 |   |   |   | 179.0 |   |   |   | (97.9 | ) |   |   | (54.7 | ) |
| Fixed Income              |   |               | 176.0  |   |    |   | 201.5  |     |   |   | (25.5            | )      |   |    | (12.6  | )      |    |   | 175.2 |   |   |   | 200.9 |   |   |   | (25.7 | ) |   |   | (12.8 | ) |
| Other (1)                 |   |               | 27.6   |   |    |   | 22.1   |     |   |   | 5.5              |   |   |    | 24.8   |   |    |   | 25.2 |   |   |   | 22.0 |   |   |   | 3.2 |   |   |   | 14.4 |   |
| Total                     |   | $                  | 437.5  |   |    | $      | 747.8  |     |   | $      | (310.3           | )      |   |    | (41.5  | )      |    | $      | 433.5 |   |   | $ | 755.6 |   |   | $ | (322.1 | ) |   |   | (42.6 | ) |

| (1) | Includes index, structured and asset allocation services. |
|-----|-----------------------------------------------------------|

|                                                                                 |   |                                   |   |   |    |   |    |     |   |   |             |   |   |    |   |   |    |   |    |     |   |   |     |   |
|--------------------------------------------------------------------------------------|--------|----------------------------------------|--------|--------|---------|--------|---------|----------|--------|--------|------------------|--------|--------|---------|--------|--------|---------|--------|---------|----------|--------|--------|----------|--------|
|                                                                                 |   | Three Months Ended                     |   |   |    |   |    |     |   |   | Six Months Ended |   |   |    |   |   |    |   |
|                                                                                 |   | 6/30/09                                |   |   | 6/30/08 |   |    | $ Change |   |   | % Change         |   |   | 6/30/09 |   |   | 6/30/08 |   |    | $ Change |   |   | % Change |   |
|                                                                                 |   | (in millions, except per unit amounts) |   |
|                                                                                 |   |                                   |   |   |    |   |    |     |   |   |             |   |   |    |   |   |    |   |    |     |   |   |     |   |
| Net revenues                                                                         |   | $                                      | 721.4  |   |    | $      | 1,063.6 |     |   | $      | (342.2           | )      |   |    | (32.2  | )%     |    | $      | 1,319.0 |     |   | $      | 2,092.6  |   |   | $ | (773.6 | ) |   |   | (37.0 | )% |
| Expenses                                                                             |   |                                   | 588.1  |   |    |   | 731.3   |     |   |   | (143.2           | )      |   |    | (19.6  | )      |    |   | 1,151.9 |     |   |   | 1,490.1  |   |   |   | (338.2 | ) |   |   | (22.7 | ) |
| Operating income                                                                     |   |                                   | 133.3  |   |    |   | 332.3   |     |   |   | (199.0           | )      |   |    | (59.9  | )      |    |   | 167.1   |     |   |   | 602.5    |   |   |   | (435.4 | ) |   |   | (72.3 | ) |
| Non-operating income                                                                 |   |                                   | 6.0    |   |    |   | 3.6     |     |   |   | 2.4              |   |   |    | 65.7   |   |    |   | 12.2    |     |   |   | 8.4      |   |   |   | 3.8 |   |   |   | 46.7 |   |
| Income before income taxes                                                           |   |                                   | 139.3  |   |    |   | 335.9   |     |   |   | (196.6           | )      |   |    | (58.5  | )      |    |   | 179.3   |     |   |   | 610.9    |   |   |   | (431.6 | ) |   |   | (70.6 | ) |
| Income taxes                                                                         |   |                                   | 9.7    |   |    |   | 31.0    |     |   |   | (21.3            | )      |   |    | (68.8  | )      |    |   | 18.2    |     |   |   | 61.1     |   |   |   | (42.9 | ) |   |   | (70.1 | ) |
| Net income                                                                           |   |                                   | 129.6  |   |    |   | 304.9   |     |   |   | (175.3           | )      |   |    | (57.5  | )      |    |   | 161.1   |     |   |   | 549.8    |   |   |   | (388.7 | ) |   |   | (70.7 | ) |
| Net (income) loss in consolidated entities attributable to non-controlling interests |   |                                   | (1.3   | )      |    |   | (24.6   | )        |   |   | 23.3             |   |   |    | (94.7  | )      |    |   | 4.0     |     |   |   | (22.1    | )      |   |   | 26.1 |   |   |   | n/m |   |
| Net income attributable to AllianceBernstein Unitholders                             |   | $                                      | 128.3  |   |    | $      | 280.3   |     |   | $      | (152.0           | )      |   |    | (54.2  | )      |    | $      | 165.1   |     |   | $      | 527.7    |   |   | $ | (362.6 | ) |   |   | (68.7 | ) |
|                                                                                 |   |                                   |   |   |    |   |    |     |   |   |             |   |   |    |   |   |    |   |    |     |   |   |     |   |   |   |   |   |   |   |   |   |
| Diluted net income per AllianceBernstein Unit                                        |   | $                                      | 0.48   |   |    | $      | 1.06    |     |   | $      | 0.58             |   |   |    | (54.7  | )      |    | $      | 0.62    |     |   | $      | 2.00     |   |   | $ | (1.38 | ) |   |   | (69.0 | ) |
|                                                                                 |   |                                   |   |   |    |   |    |     |   |   |             |   |   |    |   |   |    |   |    |     |   |   |     |   |   |   |   |   |   |   |   |   |
| Distributions per AllianceBernstein Unit                                             |   | $                                      | 0.48   |   |    | $      | 1.06    |     |   | $      | 0.58             |   |   |    | (54.7  | )      |    | $      | 0.62    |     |   | $      | 2.00     |   |   | $ | (1.38 | ) |   |   | (69.0 | ) |
|                                                                                 |   |                                   |   |   |    |   |    |     |   |   |             |   |   |    |   |   |    |   |    |     |   |   |     |   |   |   |   |   |   |   |   |   |
| Operating margin (1)                                                                 |   |                                   | 18.3   | %      |    |   | 28.9    | %        |   |   |             |   |   |    |   |   |    |   | 13.0    | %        |   |   | 27.7     | %      |   |   |   |   |   |   |   |   |

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

----

|                                   |   | Three Months Ended |    |   |    |   |    |     |   |   | Six Months Ended |   |   |    |    |   |    |   |
|----------------------------------------|--------|--------------------|---------|--------|---------|--------|---------|----------|--------|--------|------------------|--------|--------|---------|---------|--------|---------|--------|
|                                   |   | 6/30/09            |    |   | 6/30/08 |   |    | $ Change |   |   | % Change         |   |   | 6/30/09 |    |   | 6/30/08 |   |   | $ Change |   |   | % Change |   |
|                                   |   | (in millions)      |    |
| Investment advisory and services fees: |   |               |    |   |    |   |    |     |   |   |             |   |   |    |    |   |    |   |   |   |   |   |   |   |
| Institutional Investments:             |   |               |    |   |    |   |    |     |   |   |             |   |   |    |    |   |    |   |   |   |   |   |   |   |
| Base fees                              |   | $                  | 192.7   |   |    | $      | 348.8   |     |   | $      | (156.1           | )      |   |    | (44.8   | )%     |    | $      | 377.2 |   |   | $ | 701.9 |   |   | $ | (324.7 | ) |   |   | (46.3 | )% |
| Performance-based fees                 |   |               | 0.9     |   |    |   | 3.8     |     |   |   | (2.9             | )      |   |    | (76.6   | )      |    |   | 12.4 |   |   |   | 10.4 |   |   |   | 2.0 |   |   |   | 19.9 |   |
|                                   |   |               | 193.6   |   |    |   | 352.6   |     |   |   | (159.0           | )      |   |    | (45.1   | )      |    |   | 389.6 |   |   |   | 712.3 |   |   |   | (322.7 | ) |   |   | (45.3 | ) |
| Retail:                                |   |               |    |   |    |   |    |     |   |   |             |   |   |    |    |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Base fees                              |   |               | 122.6   |   |    |   | 215.1   |     |   |   | (92.5            | )      |   |    | (42.9   | )      |    |   | 233.5 |   |   |   | 435.4 |   |   |   | (201.9 | ) |   |   | (46.4 | ) |
| Performance-based fees                 |   |               | — |   |    |   | — |     |   |   | —          |   |   |    | — |   |    |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
|                                   |   |               | 122.6   |   |    |   | 215.1   |     |   |   | (92.5            | )      |   |    | (42.9   | )      |    |   | 233.5 |   |   |   | 435.4 |   |   |   | (201.9 | ) |   |   | (46.4 | ) |
| Private Client:                        |   |               |    |   |    |   |    |     |   |   |             |   |   |    |    |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Base fees                              |   |               | 131.9   |   |    |   | 226.8   |     |   |   | (94.9            | )      |   |    | (41.9   | )      |    |   | 269.2 |   |   |   | 462.9 |   |   |   | (193.7 | ) |   |   | (41.9 | ) |
| Performance-based fees                 |   |               | — |   |    |   | 0.2     |     |   |   | (0.2             | )      |   |    | (100.0  | )      |    |   | 0.8 |   |   |   | 1.3 |   |   |   | (0.5 | ) |   |   | (41.4 | ) |
|                                   |   |               | 131.9   |   |    |   | 227.0   |     |   |   | (95.1            | )      |   |    | (41.9   | )      |    |   | 270.0 |   |   |   | 464.2 |   |   |   | (194.2 | ) |   |   | (41.9 | ) |
| Total:                                 |   |               |    |   |    |   |    |     |   |   |             |   |   |    |    |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Base fees                              |   |               | 447.2   |   |    |   | 790.7   |     |   |   | (343.5           | )      |   |    | (43.4   | )      |    |   | 879.9 |   |   |   | 1,600.2 |   |   |   | (720.3 | ) |   |   | (45.0 | ) |
| Performance-based fees                 |   |               | 0.9     |   |    |   | 4.0     |     |   |   | (3.1             | )      |   |    | (77.8   | )      |    |   | 13.2 |   |   |   | 11.7 |   |   |   | 1.5 |   |   |   | 12.8 |   |
|                                   |   |               | 448.1   |   |    |   | 794.7   |     |   |   | (346.6           | )      |   |    | (43.6   | )      |    |   | 893.1 |   |   |   | 1,611.9 |   |   |   | (718.8 | ) |   |   | (44.6 | ) |
|                                   |   |               |    |   |    |   |    |     |   |   |             |   |   |    |    |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Distribution revenues                  |   |               | 64.6    |   |    |   | 107.9   |     |   |   | (43.3            | )      |   |    | (40.2   | )      |    |   | 122.6 |   |   |   | 217.2 |   |   |   | (94.6 | ) |   |   | (43.5 | ) |
| Institutional research services        |   |               | 110.8   |   |    |   | 110.4   |     |   |   | 0.4              |   |   |    | 0.4     |   |    |   | 216.5 |   |   |   | 228.7 |   |   |   | (12.2 | ) |   |   | (5.3 | ) |
| Dividend and interest income           |   |               | 6.6     |   |    |   | 21.3    |     |   |   | (14.7            | )      |   |    | (69.2   | )      |    |   | 14.4 |   |   |   | 52.3 |   |   |   | (37.9 | ) |   |   | (72.5 | ) |
| Investment gains (losses)              |   |               | 65.3    |   |    |   | 9.1     |     |   |   | 56.2             |   |   |    | 620.9   |   |    |   | 24.0 |   |   |   | (55.2 | ) |   |   | 79.2 |   |   |   | n/m |   |
| Other revenues                         |   |               | 27.4    |   |    |   | 30.7    |     |   |   | (3.3             | )      |   |    | (10.7   | )      |    |   | 51.5 |   |   |   | 61.5 |   |   |   | (10.0 | ) |   |   | (16.3 | ) |
| Total revenues                         |   |               | 722.8   |   |    |   | 1,074.1 |     |   |   | (351.3           | )      |   |    | (32.7   | )      |    |   | 1,322.1 |   |   |   | 2,116.4 |   |   |   | (794.3 | ) |   |   | (37.5 | ) |
| Less: interest expense                 |   |               | 1.4     |   |    |   | 10.5    |     |   |   | (9.1             | )      |   |    | (86.8   | )      |    |   | 3.1 |   |   |   | 23.8 |   |   |   | (20.7 | ) |   |   | (86.8 | ) |
| Net revenues                           |   | $                  | 721.4   |   |    | $      | 1,063.6 |     |   | $      | (342.2           | )      |   |    | (32.2   | )      |    | $      | 1,319.0 |   |   | $ | 2,092.6 |   |   | $ | (773.6 | ) |   |   | (37.0 | ) |

----

----

|                               |   | Three Months Ended |   |   |    |   |   |     |   |   | Six Months Ended |   |   |    |   |   |    |   |
|------------------------------------|--------|--------------------|--------|--------|---------|--------|--------|----------|--------|--------|------------------|--------|--------|---------|--------|--------|---------|--------|
|                               |   | 6/30/09            |   |   | 6/30/08 |   |   | $ Change |   |   | % Change         |   |   | 6/30/09 |   |   | 6/30/08 |   |   | $ Change |   |   | % Change |   |
|                               |   | (in millions)      |   |
| Employee compensation and benefits |   | $                  | 324.9  |   |    | $      | 428.2  |     |   | $      | (103.3           | )      |   |    | (24.1  | )%     |    | $      | 638.8 |   |   | $ | 861.9 |   |   | $ | (223.1 | ) |   |   | (25.9 | )% |
| Promotion and servicing            |   |               | 106.8  |   |    |   | 156.6  |     |   |   | (49.8            | )      |   |    | (31.8  | )      |    |   | 203.3 |   |   |   | 315.0 |   |   |   | (111.7 | ) |   |   | (35.5 | ) |
| General and administrative         |   |               | 150.1  |   |    |   | 138.1  |     |   |   | 12.0             |   |   |    | 8.8    |   |    |   | 297.5 |   |   |   | 293.0 |   |   |   | 4.5 |   |   |   | 1.5 |   |
| Interest                           |   |               | 0.7    |   |    |   | 3.2    |     |   |   | (2.5             | )      |   |    | (79.2  | )      |    |   | 1.6 |   |   |   | 9.8 |   |   |   | (8.2 | ) |   |   | (83.3 | ) |
| Amortization of intangible assets  |   |               | 5.6    |   |    |   | 5.2    |     |   |   | 0.4              |   |   |    | 7.2    |   |    |   | 10.7 |   |   |   | 10.4 |   |   |   | 0.3 |   |   |   | 3.6 |   |
| Total                              |   | $                  | 588.1  |   |    | $      | 731.3  |     |   | $      | (143.2           | )      |   |    | (19.6  | )      |    | $      | 1,151.9 |   |   | $ | 1,490.1 |   |   | $ | (338.2 | ) |   |   | (22.7 | ) |

----

----

|                                                                                                       |   | Six Months Ended June 30, |    |   |   |   |
|------------------------------------------------------------------------------------------------------------|--------|---------------------------|---------|--------|--------|--------|
|                                                                                                       |   | 2009                      |    |   | 2008   |   |   | % Change |   |
|                                                                                                       |   | (in millions)        |    |   |   |   |
|                                                                                                       |   |                      |    |   |   |   |   |   |   |
| Total capital, as of June 30                                                                               |   | $                         | 4,599.8 |   |   | $      | 4,749.9 |   |   |   | (3.2 | ) |
| Cash flow from operations                                                                                  |   |                      | 370.5   |   |   |   | 748.5 |   |   |   | 50.5 |   |
| Proceeds from sales (purchases) of investments, net                                                        |   |                      | (7.6    | )      |   |   | 3.8 |   |   |   | n/m |   |
| Capital expenditures                                                                                       |   |                      | (36.1   | )      |   |   | (45.4 | ) |   |   | (20.5 | ) |
| Distributions paid to General Partner and unitholders                                                      |   |                      | (136.7  | )      |   |   | (555.7 | ) |   |   | (75.4 | ) |
| Purchases of Holding Units to fund deferred compensation plans, net of issuances                           |   |                      | (0.7    | )      |   |   | (4.3 | ) |   |   | (84.9 | ) |
| Additional investments by Holding with proceeds from exercise of compensatory options to buy Holding Units |   |                      | — |   |   |   | 12.6 |   |   |   | (100.0 | ) |
| Repayment of commercial paper, net                                                                         |   |                      | (120.1  | )      |   |   | (167.0 | )  |   |   | (28.1 | ) |
| Proceeds from bank loans, net                                                                              |   |                      | 22.0    |   |   |   | 120.0 |   |   |   | (81.7 | ) |
| Available Cash Flow                                                                                        |   |                      | 166.4   |   |   |   | 527.1 |   |   |   | (68.4 | ) |

|                                     |   | June 30, 2009   |    |   | December 31, 2008 |   |
|------------------------------------------|--------|-----------------|---------|--------|-------------------|--------|
|                                     |   | CreditAvailable |    |   | DebtOutstanding   |   |   | InterestRate |   |   | CreditAvailable |   |   | DebtOutstanding |   |   | InterestRate |   |
|                                     |   | (in millions)   |    |
| Revolving credit facility(1)             |   | $               | 834.5   |   |              | $      | — |   |   |   | — | % |   |  $ | 715.2 |   |   |  $ | — |   |   |   | — | % |
| Commercial paper(1) (2)                  |   |            | 165.5   |   |              |   | 165.5 |   |   |   | 0.5 |   |   |   | 284.8 |   |   |   | 284.8 |   |   |   | 1.8 |   |
| Total revolving credit facility(1)       |   |            | 1,000.0 |   |              |   | 165.5 |   |   |   | 0.5 |   |   |   | 1,000.00 |   |   |   | 284.8 |   |   |   | 1.8 |   |
| Revolving credit facility –SCB LLC |   |            | 950.0   |   |              |   | — |   |   |   | — |   |   |   | 950.0 |   |   |   | — |   |   |   | — |   |
| Uncommitted bank loan(3)                 |   |            | — |   |              |   | 22.0 |   |   |   | 3.0 |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Total                                    |   | $               | 1,950.0 |   |              | $      | 187.5 |   |   |   | 0.8 |   |   | $ | 1,950.0 |   |   | $ | 284.8 |   |   |   | 1.8 |   |

| (1) | Our $1.0 billion revolving credit facility supports our commercial paper program; amounts borrowed under the commercial paper program reduce amounts available for direct borrowing under the revolving credit facility on a dollar-for-dollar basis. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Commercial paper and the uncommitted bank loan outstanding are short-term in nature, and as such, book value approximates fair value. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------|

| (3) | As of June 30, 2009, SCB LLC maintained four separate uncommitted credit facilities with various banks totaling $525 million, a decrease from five facilities totaling $775 million as of December 31, 2008 as a result of general credit tightening.  |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

|   | • | Our backlog 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. |
|--------|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | The possibility that prolonged weakness in the value of client assets under management may result in impairment of goodwill, intangible assets and the deferred sales commission asset: To the extent that securities valuations remain depressed for prolonged periods of time and market conditions stagnate or worsen, client assets under management and ourrevenues, 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, intangible assets and the deferred sales commission asset. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | The cash flow Holding realizes from its investment in AllianceBernstein providing 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 onAllianceBernstein’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 access to 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 access to public and private debt, as well as the market for debt or equity we may choose to issue on reasonable terms, may be limited by adverse market conditions, our profitability and changes in government regulations, including tax rates and interest rates. |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | 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 couldhave such an effect. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | Our expectation that the significant challenges that persist in today’s global capital markets should provide active asset managers with long-term opportunities to generate positive relative performance for their clients: Historical performance is not necessarily indicative of future results or market movements. The actual performance of the capitalmarkets and other factors beyond our control will affect our investment success for clients and asset flows. |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   |  • | Our expectation that our lower expense base should provide for operating leverage as revenues grow: Unanticipated events and factors, including strategic initiatives, may cause us to expand our expense base, thus limiting the extent to which we benefit from any positive leverage in future periods. Growth in our revenues will depend on the level of ourassets under management, which in turn depends on factors such as the actual performance of the capital markets, the performance of our investment products and other factors beyond our control. |
|--------|---------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----