Gabelli Expects to Report Record Results

    RYE, N.Y.--(BUSINESS WIRE)--Jan. 18, 2005--Gabelli Asset
Management Inc. (NYSE:GBL) expects to report record revenues and
operating income for the fourth quarter 2004. As a result, Gabelli
expects to report earnings in excess of $0.60 per fully diluted share
for the quarter ended December 31, 2004 versus $0.54 per fully diluted
share in the comparable 2003 quarter, substantially exceeding street
estimates of $0.48 to $0.53 per fully diluted share. Earnings for the
full year 2004 are expected to be in excess of $2.00 per fully diluted
share.
    Our fourth quarter 2004 revenues were driven by solid investment
performance. The resulting increase in fourth quarter 2004 operating
income of approximately 20% from the prior year period was partially
offset by lower other income as compared to the 2003 quarter. Assets
under management (AUM) reached a record $28.7 billion on December 31,
2004, up 4.0% from year-end 2003 assets of $27.6 billion, and 5.2%
ahead of the $27.2 billion in AUM on September 30, 2004. We expect to
issue a complete earnings release during the week of January 24th.
    Gabelli Asset Management Inc., through its subsidiaries, manages
assets of private advisory accounts (GAMCO), mutual funds and
closed-end funds (Gabelli Funds, LLC), and partnerships and offshore
funds (Alternative Investment Group).

    SPECIAL NOTE REGARDING FORWARD-LOOKING INFORMATION

    Our disclosure and analysis in this press release contain some
forward-looking statements. Forward-looking statements give our
current expectations or forecasts of future events. You can identify
these statements because they do not relate strictly to historical or
current facts. They use words such as "anticipate," "estimate,"
"expect," "project," "intend," "plan," "believe," and other words and
terms of similar meaning. They also appear in any discussion of future
operating or financial performance. In particular, these include
statements relating to future actions, future performance of our
products, expenses, the outcome of any legal proceedings, and
financial results. Although we believe that we are basing our
expectations and beliefs on reasonable assumptions within the bounds
of what we currently know about our business and operations, there can
be no assurance that our actual results will not differ materially
from what we expect or believe. Some of the factors that could cause
our actual results to differ from our expectations or beliefs include,
without limitation: the adverse effect from a decline in the
securities markets; a decline in the performance of our products; a
general downturn in the economy; changes in government policy or
regulation; changes in our ability to attract or retain key employees;
and unforeseen costs and other effects related to legal proceedings or
investigations of governmental and self-regulatory organizations. We
also direct your attention to any more specific discussions of risk
contained in our Form 10-K and other public filings. We are providing
these statements as permitted by the Private Litigation Reform Act of
1995. We do not undertake to update publicly any forward-looking
statements if we subsequently learn that we are unlikely to achieve
our expectations or if we receive any additional information relating
to the subject matters of our forward-looking statements.

    CONTACT: Gabelli Asset Management
             Michael R. Anastasio, 914-921-5147