FOR IMMEDIATE RELEASE

A.G. Edwards Announces Results for the Third Quarter and First Nine Months of Fiscal 2005

Year-To-Date Net Earnings Up 29% Over Year-Ago Period

ST. LOUIS, Dec. 22, 2004 -- A.G. Edwards, Inc. (NYSE: AGE) today announced results for the third quarter and first nine months of fiscal 2005, which ended Nov. 30, 2004.

Net earnings for the quarter were $49 million, or $0.63 diluted earnings per share, on net revenues of $638 million. For the same quarter last year, net earnings were $40 million, or $0.49 diluted earnings per share, on net revenues of $629 million.

For the first nine months of fiscal 2005, net earnings were $136 million, or $1.72 diluted earnings per share, on net revenues of $1.9 billion. For the same period last year, net earnings were $105 million, or $1.30 diluted earnings per share, on net revenues of $1.8 billion.

"Our third-quarter and nine-month results reflect the continued strong growth in our asset-management revenues as we deliver on our ability to provide clients a broad and high-quality array of fee-based products and services," said Robert L. Bagby, chairman and chief executive officer. "We reached all-time highs in total client assets and assets in fee-based accounts thanks to the hard work of our financial consultants.

"We also were pleased to show solid expense control during the quarter. In reviewing our communication and technology expenses, we are starting to see the benefits of a more disciplined approach to our technology-spending strategy over the past three years while still in the midst of implementing our Gateway Initiative, the largest technology-infrastructure effort in our firm's history.

"We also remain committed to the current efforts of our long-term strategy to increase investors' recognition of our brand and the special qualities of our client-first business model."

RESULTS OF OPERATIONS

Commissions - Commission revenues for the third quarter decreased 8 percent ($21 million) versus last year's third quarter, primarily reflecting a broad-based decline in transaction-based investment activity. When comparing the first nine months of fiscal 2005 versus the same period last year, commission revenues decreased 1 percent ($9 million) resulting in part from decreased investor interest in insurance products partially offset by greater interest in managed futures.

Asset management and service fees - Asset-management and service-fee revenues for the third quarter increased 25 percent ($46 million) versus the third quarter last year. For the first nine months of fiscal 2005, revenues in this category increased 30 percent ($152 million) versus last year's first nine months. Results in both periods reflect greater client interest in fee-based programs and services as well as increased client-asset values. Additionally, the third-quarter and nine-month results reflect increased revenue from money fund distribution fees after the removal in November 2003 of expense caps previously imposed by certain money funds.

Principal transactions - Revenues from principal transactions decreased 23 percent ($16 million) compared to the year-ago quarter. Versus the first nine months of last fiscal year, principal-transaction revenues decreased 13 percent ($29 million). The decreases in both periods reflect lower overall demand for fixed-income products.

Investment banking - Investment-banking revenues for the third quarter decreased 24 percent ($19 million) versus the same three-month period last year. For the first nine months of fiscal 2005, investment-banking revenues decreased 27 percent ($64 million) compared to the same period last year. Both periods reflect lower volume in fixed-income securities and closed-end funds.

Net interest revenue - Interest revenue net of interest expense in the third quarter increased 45 percent ($10 million) from the year-ago quarter. For the first nine months, net interest revenue increased 31 percent ($21 million) over last year's first nine months. Both the third-quarter and nine-month results reflect a change by A.G. Edwards effective January 2004 in the base rates charged on client-margin balances along with a higher interest-rate environment. Additionally, both periods reflect slightly higher average client-margin balances.

Other revenue - Other revenue increased $9 million in the third quarter and increased $22 million for the first nine months of fiscal 2005 versus the like periods last year. Both periods reflect increases in private-equity valuations. Both periods also include gains on the sale of shares in the Chicago Mercantile Exchange and the mark-to-market on other shares in this exchange the firm currently holds. The nine-month results additionally reflect a Sept. 11, 2001 business-interruption settlement.

Non-interest expenses - During the third quarter, non-interest expenses decreased 1 percent ($8 million) compared to last year's third quarter. For the first nine months of fiscal 2005, non-interest expenses increased 2 percent ($39 million) compared to the same period last fiscal year.

Compensation and benefits in the third quarter increased 3 percent ($11 million) from the same quarter last year. Comparing the first nine months of fiscal 2005 to the same period last year, compensation and benefits increased 5 percent ($54 million). Increases in both time periods are mainly a result of increased accruals for incentive-related compensation as well as general salary and benefit increases. The nine-month time period additionally reflects increases in commissionable revenue.

Non-compensation-related expenses for the third quarter this year decreased 11 percent ($19 million) from the same quarter last year. For this fiscal year's first nine months, non-compensation-related expenses decreased 3 percent ($14 million) versus last year's first nine months. Decreases in both time periods are due largely to a decline in communication and technology expenses along with lower accruals for contingent liabilities, which were partially offset by increased expenses related to the firm's branding initiative.

ADDITIONAL STOCKHOLDER INFORMATION

Total client assets at the end of the third quarter were $311 billion, a 10 percent increase when compared to the end of the third quarter last year. As of Nov. 30, 2004, stockholders' equity was $1.71 billion, for a book value per share of $22.53. Diluted per share earnings for the third quarter were based on 77.8 million average common and common equivalent shares outstanding compared to 81.4 million in the prior year. Diluted per share earnings for the current nine-month period were based on 79.3 million average common and common equivalent shares outstanding compared to 80.9 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 117 years, individuals and businesses have turned to A.G. Edwards to develop strong personal relationships with financial consultants dedicated to a client-first philosophy of providing financial strategies tailored to their clients' individual needs. A.G. Edwards and its affiliates encompass 6,898 financial consultants in 715 offices nationwide and two European locations in London, England and Geneva, Switzerland. For more information on A.G. Edwards, please visit www.agedwards.com.

This material may contain forward-looking statements within the meaning of federal securities laws. Actual results are subject to risks and uncertainties, including both those specific to A.G. Edwards and those to the industry, which could cause results to differ materially from those contemplated. The risks and uncertainties include, but are not limited to, general economic conditions, government monetary and fiscal policy, the actions of competitors, changes in and effects of outsourcing agreements and of marketing strategies, regulatory changes and actions, changes in legislation, risk management, legal claims, technology changes, compensation changes, and implementation and effects of expense-reduction strategies. Undue reliance should not be placed on the forward-looking statements, which speak only as of the date of this release. A.G. Edwards does not undertake any obligation to publicly update any forward-looking statements.

A. G. EDWARDS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share amounts)
(Unaudited)
	For the Three Months Ended
	November 30,		November 30,		Increase/		%
	2004		2003		(Decrease)		Chg.
REVENUES:
Commissions	$	252,091	$	272,704	$	(20,613)		(7.6)
Asset management and service fees *		227,195		181,409		45,786		25.2
Principal transactions		55,969		72,418		(16,449)		(22.7)
Investment banking		57,809		76,377		(18,568)		(24.3)
Interest		32,642		22,051		10,591		48.0
Other		13,510		4,765		8,745		183.5
TOTAL REVENUES		639,216		629,724		9,492		1.5
Interest expense		1,227		403		824		204.5
NET REVENUES		637,989		629,321		8,668		1.4
NON-INTEREST EXPENSES:
Compensation and benefits		411,574		400,878		10,696		2.7
Communication and technology		59,429		69,892		(10,463)		(15.0)
Occupancy and equipment		35,476		37,391		(1,915)		(5.1)
Marketing and business development		14,271		13,604		667		4.9
Floor brokerage and clearance		5,307		5,720		(413)		(7.2)
Other *		34,075		40,988		(6,913)		(16.9)
TOTAL NON-INTEREST EXPENSES		560,132		568,473		(8,341)		(1.5)
EARNINGS BEFORE INCOME TAXES		77,857		60,848		17,009		28.0
INCOME TAXES		28,684		21,131		7,553		35.7
NET EARNINGS	$	49,173	$	39,717	$	9,456		23.8
EARNINGS PER SHARE:
Diluted	$	0.63	$	0.49	$	0.14		28.6
Basic	$	0.64	$	0.49	$	0.15		30.6
AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING:
Diluted		77,844		81,401
Basic		76,781		80,047
STOCKHOLDERS' EQUITY	$	1,712,738	$	1,734,603
BOOK VALUE PER SHARE	$	22.53	$	21.58
TOTAL SHARES OUTSTANDING (end of period)		76,034		80,379
* Prior years' financial information has been reclassified to conform to current year presentation.
A. G. EDWARDS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share amounts)
(Unaudited)
	For the Nine Months Ended
	November 30,		November 30,		Increase/		%
	2004		2003		(Decrease)		Chg.
REVENUES:
Commissions	$	774,083	$	782,897	$	(8,814)		(1.1)
Asset management and service fees *		655,477		503,772		151,705		30.1
Principal transactions		196,369		224,992		(28,623)		(12.7)
Investment banking		176,122		240,618		(64,496)		(26.8)
Interest		91,336		70,223		21,113		30.1
Other		27,189		5,661		21,528		380.3
TOTAL REVENUES		1,920,576		1,828,163		92,413		5.1
Interest expense		2,428		2,137		291		13.6
NET REVENUES		1,918,148		1,826,026		92,122		5.0
NON-INTEREST EXPENSES:
Compensation and benefits		1,246,529		1,192,827		53,702		4.5
Communication and technology		184,474		203,206		(18,732)		(9.2)
Occupancy and equipment		105,520		105,902		(382)		(0.4)
Marketing and business development		47,810		34,495		13,315		38.6
Floor brokerage and clearance		16,230		16,369		(139)		(0.8)
Other *		103,278		111,649		(8,371)		(7.5)
TOTAL NON-INTEREST EXPENSES		1,703,841		1,664,448		39,393		2.4
EARNINGS BEFORE INCOME TAXES		214,307		161,578		52,729		32.6
INCOME TAXES		78,242		56,497		21,745		38.5
NET EARNINGS	$	136,065	$	105,081	$	30,984		29.5
EARNINGS PER SHARE:
Diluted	$	1.72	$	1.30	$	0.42		32.3
Basic	$	1.74	$	1.31	$	0.43		32.8
AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING:
Diluted		79,252		80,869
Basic		78,423		79,926
STOCKHOLDERS' EQUITY	$	1,712,738	$	1,734,603
BOOK VALUE PER SHARE	$	22.53	$	21.58
TOTAL SHARES OUTSTANDING (end of period)		76,034		80,379
* Prior years' financial information has been reclassified to conform to current year presentation.
A. G. EDWARDS, INC.
QUARTERLY CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share amounts)
(Unaudited)
	For the Three Months Ended
	November 30,		August 31,		May 31,		February 29,		November 30,
	2004		2004		2004		2004		2003
REVENUES:
Commissions	$	252,091	$	237,119	$	284,873	$	310,325	$	272,704
Asset management and service fees *		227,195		214,223		214,059		207,419		181,409
Principal transactions		55,969		70,999		69,401		71,894		72,418
Investment banking		57,809		57,872		60,441		81,243		76,377
Interest		32,642		29,921		28,773		25,569		22,051
Other		13,510		4,753		8,926		723		4,765
TOTAL REVENUES		639,216		614,887		666,473		697,173		629,724
Interest expense		1,227		618		583		382		403
NET REVENUES		637,989		614,269		665,890		696,791		629,321
NON-INTEREST EXPENSES:
Compensation and benefits		411,574		401,764		433,191		456,581		400,878
Communication and technology		59,429		58,914		66,131		68,841		69,892
Occupancy and equipment		35,476		35,268		34,776		31,715		37,391
Marketing and business development		14,271		12,676		20,863		12,358		13,604
Floor brokerage and clearance		5,307		5,723		5,200		6,126		5,720
Other *		34,075		36,800		32,403		37,474		40,988
TOTAL NON-INTEREST EXPENSES		560,132		551,145		592,564		613,095		568,473
EARNINGS BEFORE INCOME TAXES		77,857		63,124		73,326		83,696		60,848
INCOME TAXES		28,684		22,496		27,062		29,292		21,131
NET EARNINGS	$	49,173	$	40,628	$	46,264	$	54,404	$	39,717
EARNINGS PER SHARE:
Diluted	$	0.63	$	0.52	$	0.57	$	0.67	$	0.49
Basic	$	0.64	$	0.52	$	0.58	$	0.68	$	0.49
AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING:
Diluted		77,844		79,156		80,951		81,329		81,401
Basic		76,781		78,305		80,183		80,385		80,047
STOCKHOLDERS' EQUITY	$	1,712,738	$	1,720,332	$	1,782,281	$	1,778,319	$	1,734,603
BOOK VALUE PER SHARE	$	22.53	$	22.37	$	22.38	$	22.08	$	21.58
* Prior years' financial information has been reclassified to conform to current year presentation.
A.G. EDWARDS, INC.
QUARTERLY STATISTICAL INFORMATION
(Dollars in thousands, except per share amounts)
(Unaudited)
	3Q FY05		2Q FY05		1Q FY05		4Q FY04		3Q FY04
Net Revenues *	$	637,989	$	614,269	$	665,890	$	696,791	$	629,321
Earnings Before Income Taxes	$	77,857	$	63,124	$	73,326	$	83,696	$	60,848
Net Earnings	$	49,173	$	40,628	$	46,264	$	54,404	$	39,717
Net Earnings as a
Percent of Net Revenues		7.7%		6.6%		6.9%		7.8%		6.3%
Average Diluted Shares-
(000's Omitted)		77,844		79,156		80,951		81,329		81,401
Earnings Per Share (Diluted)	$	0.63	$	0.52	$	0.57	$	0.67	$	0.49
Dividends Per Share	$	0.16	$	0.16	$	0.16	$	0.16	$	0.16
Stockholders' Equity	$	1,712,738	$	1,720,332	$	1,782,281	$	1,778,319	$	1,734,603
Book Value Per Share	$	22.53	$	22.37	$	22.38	$	22.08	$	21.58
Return On Average Equity-
(Quarter Results Annualized)		11.5%		9.3%		10.4%		12.4%		9.3%
Total Assets	$	4,105,297	$	4,001,300	$	4,110,942	$	4,435,059	$	4,180,205
Financial Consultants		6,898		6,872		6,899		6,980		6,956
Full-time Employees		15,412		15,413		15,392		15,931		15,887
Locations		717		717		713		710		708
Total Client Assets *	$	311,000,000	$	296,000,000	$	294,000,000	$	300,000,000	$	283,000,000
Assets In Fee-based Accounts	$	29,235,000	$	27,420,000	$	27,164,000	$	27,275,000	$	24,732,000
* Prior years' financial information has been reclassified to conform to current year presentation.