A.G. Edwards Announces First-Quarter Results for Fiscal 2004

ST. LOUIS, June 19, 2003 -- A.G. Edwards, Inc. (NYSE: AGE) today announced results for the first quarter of fiscal 2004, which ended May 31, 2003.

Net earnings for the quarter were $28 million, or $0.35 diluted earnings per share, on net revenues of $552 million. For the same quarter last year, net earnings were $39 million, or $0.48 diluted earnings per share, on net revenues of $598 million. For the fourth quarter of fiscal 2003, net earnings were $21 million, or $0.26 diluted earnings per share, on net revenues of $514 million.

"We were pleased to see a 31 percent improvement in our quarterly earnings compared to the fourth quarter of fiscal 2003," said Robert L. Bagby, chairman, president and chief executive officer. "While these results reflect a short time frame, we continue to be excited about our longer-term opportunities to develop more client relationships as we create better awareness of A.G. Edwards through the rollout of our branding campaign later this year.

"As another key component of our growth plan, we continue to emphasize training so that we can offer our clients what we think are the best-educated, best-prepared financial consultants in the industry. This emphasis was recognized by Training magazine, which for the third consecutive year named A.G. Edwards University as one of the top 100 corporate training programs in the country. This accolade validates our commitment to provide high-quality advice and information to help clients reach their financial goals."

RESULTS OF OPERATIONS
Commissions - Commission revenues during the first quarter declined 4 percent ($10 million) versus the same quarter a year ago. However, commission revenues increased 13 percent ($27 million) versus the fourth quarter of fiscal 2003 as clients increased their activity across all commission revenue categories.
Asset management and service fees - Compared to the first quarter last year, asset management and service fee revenues decreased 12 percent ($20 million) largely because of lower distribution fees received from certain money funds with expense caps and lower valuations in fee-based accounts.
Principal transactions - Revenues for principal transactions decreased 16 percent ($13 million) compared to a year ago. These results reflect reduced client activity in municipal and corporate fixed-income products.
Investment banking - Investment-banking revenues increased 13 percent ($8 million) and 34 percent ($18 million) versus the first and fourth quarters of fiscal 2003, respectively, fueled primarily by the firm's underwriting of a variety of closed-end fund products.
Net interest revenue - Interest revenue net of interest expense in the first quarter decreased 12 percent ($3 million) from the same three-month period last year due to a decline in average client margin balances and a decrease in average interest rates charged on these balances.
Other revenue - Changes in private equity valuations were primarily responsible for a $2 million loss in other revenue during the first quarter this year versus a $6 million gain in the same quarter a year ago.
Non-interest expenses - Total non-interest expenses during the first quarter declined 5 percent ($28 million) versus the first quarter last year.

Compensation and benefits declined 6 percent ($23 million) from the same quarter in fiscal 2003. The decrease is primarily attributed to a decline in commissionable revenue and a lower number of employees.

Non-compensation-related expenses declined 4 percent ($6 million) from the same quarter last year as a result of lower communication and technology expenses related in part to the depreciation of the firm's Client One broker workstations. The decrease in non-compensation-related expenses was partially offset by increased expenses for various legal matters.

ADDITIONAL INFORMATION
Total client assets at the end of the first quarter were $248 billion, a 9 percent increase when compared to the end of the fourth quarter of 2003.

As of May 31, 2003, stockholders' equity was $1.7 billion, or $20.99 per share. Diluted per-share earnings for the first quarter were based on 80.7 million average common and common equivalent shares outstanding compared to 81.8 million in the prior year.

ABOUT A.G. EDWARDS, INC.
A.G. Edwards, Inc. is a financial services holding company whose primary subsidiary is the national investment firm of A.G. Edwards & Sons, Inc. For more than 116 years, individuals and businesses have turned to A.G. Edwards & Sons to develop strong personal relationships with financial consultants dedicated to a client-first philosophy of providing financial solutions tailored to their clients' individual needs. A.G. Edwards and its affiliates encompass 7,090 financial consultants in 707 offices nationwide and in London, England.

A. G. EDWARDS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share amounts)
(Unaudited)
	For the Three Months Ended
	May 31,		May 31,		Increase/		%
	2003		2002		(Decrease)		Chg.
REVENUES:
Commissions	$	241,800	$	251,373	$	(9,573)		(3.8)
Asset management and service fees		148,435		168,855		(20,420)		(12.1)
Principal transactions		70,396		83,646		(13,250)		(15.8)
Investment banking		69,684		61,858		7,826		12.7
Interest		24,186		28,972		(4,786)		(16.5)
Other		(1,619)		5,725		(7,344)		(128.3)
TOTAL REVENUES		552,882		600,429		(47,547)		(7.9)
Interest expense		784		2,238		(1,454)		(65.0)
NET REVENUES		552,098		598,191		(46,093)		(7.7)
NON-INTEREST EXPENSES:
Compensation and benefits		372,855		395,509		(22,654)		(5.7)
Communication and technology		64,519		73,026		(8,507)		(11.6)
Occupancy and equipment		32,242		31,988		254		0.8
Marketing and business development		9,792		10,120		(328)		(3.2)
Floor brokerage and clearance		4,660		5,420		(760)		(14.0)
Other		24,695		21,129		3,566		16.9
TOTAL NON-INTEREST EXPENSES		508,763		537,192		(28,429)		(5.3)
EARNINGS BEFORE INCOME TAX		43,335		60,999		(17,664)		(29.0)
INCOME TAXES		15,459		21,935		(6,476)		(29.5)
NET EARNINGS	$	27,876	$	39,064	$	(11,188)		(28.6)
EARNINGS PER SHARE:
Diluted	$	0.35	$	0.48	$	(0.13)		(27.1)
Basic	$	0.35	$	0.48	$	(0.13)		(27.1)
AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING:
Diluted		80,738		81,770
Basic		80,337		80,732
STOCKHOLDERS' EQUITY	$	1,674,808	$	1,652,396
BOOK VALUE PER SHARE	$	20.99	$	20.64
TOTAL SHARES OUTSTANDING (end of period)		79,788		80,049

A. G. EDWARDS, INC.
QUARTERLY CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share amounts)
(Unaudited)
	For the Three Months Ended
		May 31,		February 28,		November 30,		August 31,		May 31,
		2003		2003		2002		2002		2002
REVENUES:
Commissions	$	241,800	$	214,698	$	204,664	$	224,284	$	251,373
Asset management and service fees		148,435		146,480		146,944		163,347		168,855
Principal transactions		70,396		74,328		69,418		83,732		83,646
Investment banking		69,684		51,913		65,552		71,857		61,858
Interest		24,186		23,249		25,985		27,821		28,972
Other		(1,619)		3,522		1,474		(482)		5,725
TOTAL REVENUES		552,882		514,190		514,037		570,559		600,429
Interest expense		784		507		1,051		1,418		2,238
NET REVENUES		552,098		513,683		512,986		569,141		598,191
NON-INTEREST EXPENSES:
Compensation and benefits		372,855		342,509		336,983		378,670		395,509
Communication and technology		64,519		68,112		67,778		73,687		73,026
Occupancy and equipment		32,242		33,712		34,408		34,041		31,988
Marketing and business development		9,792		9,643		10,383		10,031		10,120
Floor brokerage and clearance		4,660		4,820		6,038		6,186		5,420
Other		24,695		22,057		21,077		25,240		21,129
TOTAL NON-INTEREST EXPENSES		508,763		480,853		476,667		527,855		537,192
EARNINGS BEFORE INCOME TAX		43,335		32,830		36,319		41,286		60,999
INCOME TAXES		15,459		11,629		4,352		14,690		21,935
NET EARNINGS	$	27,876	$	21,201	$	31,967	$	26,596	$	39,064
EARNINGS PER SHARE:
Diluted	$	0.35	$	0.26	$	0.39	$	0.33	$	0.48
Basic	$	0.35	$	0.26	$	0.40	$	0.34	$	0.48
AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING:
Diluted		80,738		81,574		81,013		80,313		81,770
Basic		80,337		80,400		79,945		79,453		80,732
STOCKHOLDERS' EQUITY	$	1,674,808	$	1,688,537	$	1,668,482	$	1,627,319	$	1,652,396
BOOK VALUE PER SHARE	$	20.99	$	20.92	$	20.85	$	20.59	$	20.64

A.G. EDWARDS, INC.
QUARTERLY STATISTICAL INFORMATION
(Dollars in thousands, except per share amounts)
(Unaudited)
		1Q FY04		4Q FY03		3Q FY03		2Q FY03		1Q FY03
Net Revenues	$	552,098	$	513,683	$	512,986	$	569,141	$	598,191
Earnings Before Income Taxes	$	43,335	$	32,830	$	36,319	$	41,286	$	60,999
Net Earnings	$	27,876	$	21,201	$	31,967	$	26,596	$	39,064
Net Earnings as a
Percent of Net Revenues		5.0%		4.1%		6.2%		4.7%		6.5%
Average Diluted Shares-
(000's Omitted)		80,738		81,574		81,013		80,313		81,770
Earnings Per Share (Diluted)	$	0.35	$	0.26	$	0.39	$	0.33	$	0.48
Dividends Per Share	$	0.16	$	0.16	$	0.16	$	0.16	$	0.16
Stockholders' Equity	$	1,674,808	$	1,688,537	$	1,668,482	$	1,627,319	$	1,652,396
Book Value Per Share	$	20.99	$	20.92	$	20.85	$	20.59	$	20.64
Return On Average Equity-
(Quarter Results Annualized)		6.6%		5.1%		7.8%		6.5%		9.5%
Total Assets	$	3,921,934	$	3,980,094	$	3,912,376	$	3,922,854	$	4,155,923
Financial Consultants		7,090		7,222		7,279		7,345		7,361
Full-time Employees		15,919		16,181		16,333		16,574		16,620
Locations		707		709		709		708		706
Total Client Assets	$	248,000,000	$	228,000,000	$	236,000,000	$	234,000,000	$	251,000,000
Assets In Fee-based Accounts	$	21,769,000	$	19,973,000	$	20,882,000	$	20,339,000	$	22,147,000