FOR IMMEDIATE RELEASE

A.G. Edwards Announces Results

for the Third Quarter and First Nine Months of Fiscal 2006

Year-to-Date Net Earnings 17% Higher Than Same Period Last Year

ST. LOUIS, Dec. 22, 2005 -- A.G. Edwards, Inc. (NYSE: AGE) today announced results for the third quarter and first nine months of fiscal 2006, which ended November 30, 2005.

Net earnings for the quarter were $54 million, or $0.71 per diluted share, on net revenues of $674 million. For the same quarter last year, net earnings were $49 million, or $0.63 per diluted share, on net revenues of $638 million.

For the first nine months of fiscal 2006, net earnings were $159 million, or $2.06 per diluted share, on net revenues of $2.0 billion. For the same period last year, net earnings were $136 million, or $1.72 per diluted share, on net revenues of $1.9 billion.

Results for the third quarter of fiscal 2006 included an $11 million increase in non-compensation expenses, or $0.07 per diluted share, for reserves and settlements for various legal and regulatory matters when compared to the same quarter last year. Additionally, the third-quarter results reflected a $3.5 million benefit, or $0.05 per diluted share, resulting from the resolution of certain tax matters related to technology research and development tax credits.

“Our third-quarter results maintained the trend of growing client interest in our fee-based programs and services, which have enhanced the value our financial consultants bring to their client relationships and have contributed to our improved performance,” said Robert L. Bagby, chairman and chief executive officer. “We continue to focus on our technology expenses and achieving the benefits of our Gateway Initiative.

“During the quarter, we saw a meaningful increase in our financial consultant workforce. The recent changes in our industry and the appeal of our client-first culture have created opportunities for us to attract both experienced financial consultants and trainees to A.G. Edwards for the benefit of our clients and our firm.

“We were pleased with the positive feedback we received regarding our recent dividend increase. We believe it is important for our shareholders to participate in our improved financial results.”

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A.G. Edwards, Inc.

December 22, 2005

RESULTS OF OPERATIONS

Commissions – Commission revenues for the third quarter increased 1 percent ($2 million) compared to last year’s third quarter, primarily due to increased investor interest in annuities. For this year’s first nine months versus the same period last year, commission revenues decreased 2 percent ($13 million), mainly reflecting a shift in investor interest from individual mutual funds to fee-based, fund-advisory programs.

Asset management and service fees – Reaching another new quarterly record, asset-management and service-fee revenues for the third quarter increased 15 percent ($36 million) versus the third quarter last year. For fiscal 2006’s first nine months, these revenues increased 16 percent ($105 million) versus last year’s first nine months. Results in both periods continued to reflect greater client interest in fee-based programs and services, particularly the firm’s fund-advisory programs, as well as increased client-asset values in mutual funds.

Principal transactions – Revenues from principal transactions in the third quarter fell 10 percent ($6 million) compared to the same quarter last year. Compared to the first nine months of fiscal 2005, principal-transaction revenues in this year’s first nine months decreased 22 percent ($42 million). The decreases in both periods continued to reflect a lower volume of fixed-income transactions, with more transactions in shorter-term securities given the current interest-rate environment. The third-quarter decline was partially offset by increased investor activity in over-the-counter equity markets.

Investment banking – Investment-banking revenues for the third quarter of fiscal 2006 were essentially flat compared to the same quarter last year, as greater revenues from management fees and municipal underwritings were offset by lower revenues from corporate and government debt issues. For the first nine months, investment-banking revenues increased 5 percent ($8 million) versus the same period last year. This period reflects higher revenues from equity underwritings in a number of sectors, along with higher revenues from municipal underwritings of new issues and refinancings.

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A.G. Edwards, Inc.

December 22, 2005

Net interest revenue – Interest revenue net of interest expense in the third quarter increased

43 percent ($13 million) from the year-ago quarter. For the first nine months, net interest revenue increased 39 percent ($34 million) over last year’s first nine months. Both the third-quarter and nine-month results reflect an increased prime rate resulting in higher interest rates charged on margin balances. The third-quarter results additionally reflect an increase in average inventory of securities held for sale to clients.

Other revenue – Other revenue decreased 71 percent ($10 million) in the third quarter and decreased 43 percent ($12 million) for the first nine months compared to the same periods last year. Last year’s third-quarter and nine-month results included gains of $8 million and $10 million, respectively, on the sale of shares in the Chicago Mercantile Exchange and the mark-to-market on other shares in this exchange the firm held at that time. Additionally, the decrease in the nine-month period reflects a $6 million Sept. 11, 2001 business-interruption settlement received in the first half of last year, partially offset by increases in private-equity investment valuations.

Non-interest expenses – During the third quarter, non-interest expenses increased 6 percent

($34 million) compared to last year’s third quarter. For the first nine months of fiscal 2006, non-interest expenses increased 3 percent ($57 million) compared to the same period last fiscal year.

Compensation and benefits increased 5 percent ($20 million) in the third quarter and increased 4 percent ($45 million) in the first nine months of fiscal 2006 versus the respective periods last year. The results in both periods mainly reflect higher commissionable revenue as well as higher incentive compensation due to increased firm profitability. The nine-month results also reflect increases in administrative salaries and related benefits. Additionally, as a result of its early adoption of Statement of Financial Accounting Standards No. 123 (Revised 2004), “Share-Based Payment,” the firm did not recognize an expense for stock awards in either period for fiscal 2006. Last year’s third quarter and first nine months respectively included restricted stock-award expense of approximately $6.6 million, or $0.04 per diluted share, and $22.3 million, or $0.13 per diluted share.

Non-compensation-related expenses increased 9 percent ($14 million) in the third quarter and increased 2 percent ($11 million) in the first nine months compared to the respective time periods last year. The increases in both periods predominately reflect increases in reserves and settlements for various legal and regulatory matters. These increases were partially offset in both

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A.G. Edwards, Inc.

December 22, 2005

periods by lower technology consulting expenses associated with the completion of various projects under the firm’s Gateway Initiative.

ADDITIONAL STOCKHOLDER INFORMATION

Total client assets at the end of the third quarter were $331 billion, a 6 percent increase when compared to the end of the third quarter last year. As of November 30, 2005, stockholders’ equity was $1.86 billion, for a book value per share of $24.51. Diluted per share earnings for the third quarter were based on 76.9 million average common and common equivalent shares outstanding compared to 77.8 million in the prior year. Diluted per share earnings for the current nine-month period were based on 77.2 million average common and common equivalent shares outstanding compared to 79.3 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. Drawn to the firm’s client-first philosophy, individuals and businesses have turned to A.G. Edwards for sound advice and access to a wide array of investment products and services that can help them meet their financial goals and objectives. Founded in 1887, A.G. Edwards and its affiliates employ 6,844 financial consultants in 732 offices nationwide and two European locations in London and Geneva. More information can be found on agedwards.com.

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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 marketing strategies, client interest in specific products and services, regulatory changes and actions, changes in legislation, risk management, legal claims, technology changes, compensation changes, the impact of outsourcing agreements, the adoption of Statement of Financial Accounting Standards No. 123 (Revised 2004) “Share-Based Payment,” 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.

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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/		%
	2005		2004		(Decrease)		Chg.
REVENUES:
Commissions		$ 247,209		$ 245,002		$ 2,207		0.9
Asset management and service fees		269,789		234,284		35,505		15.2
Principal transactions		50,264		55,969		(5,705)		(10.2)
Investment banking		57,974		57,809		165		0.3
Interest		48,164		32,858		15,306		46.6
Other		3,966		13,510		(9,544)		(70.6)
TOTAL REVENUES		677,366		639,432		37,934		5.9
Interest expense		3,281		1,443		1,838		127.4
NET REVENUES		674,085		637,989		36,096		5.7

NON-INTEREST EXPENSES:
Compensation and benefits		430,125		410,421		19,704		4.8
Communication and technology		56,938		59,429		(2,491)		(4.2)
Occupancy and equipment		36,423		35,476		947		2.7
Marketing and business development		16,554		15,424		1,130		7.3
Floor brokerage and clearance		5,095		5,307		(212)		(4.0)
Other		48,795		34,075		14,720		43.2
TOTAL NON-INTEREST EXPENSES		593,930		560,132		33,798		6.0
EARNINGS BEFORE INCOME TAXES		80,155		77,857		2,298		3.0
INCOME TAXES		25,798		28,684		(2,886)		(10.1)
NET EARNINGS		$ 54,357		$ 49,173		$ 5,184		10.5

EARNINGS PER SHARE:
Diluted		$ 0.71		$ 0.63		$ 0.08		12.7
Basic		$ 0.71		$ 0.64		$ 0.07		10.9

AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING:
Diluted		76,917		77,844
Basic		76,635		76,781

STOCKHOLDERS' EQUITY		$ 1,863,828		$ 1,712,738
BOOK VALUE PER SHARE		$ 24.51		$ 22.53

TOTAL SHARES OUTSTANDING (end of period)		76,048		76,034

Note: Where appropriate, prior periods' 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/		%
	2005		2004		(Decrease)		Chg.
REVENUES:
Commissions		$ 744,175		$ 757,049		$ (12,874)		(1.7)
Asset management and service fees		777,958		672,511		105,447		15.7
Principal transactions		154,093		196,369		(42,276)		(21.5)
Investment banking		184,556		176,122		8,434		4.8
Interest		131,092		91,714		39,378		42.9
Other		15,441		27,189		(11,748)		(43.2)
TOTAL REVENUES		2,007,315		1,920,954		86,361		4.5
Interest expense		7,755		2,806		4,949		176.4
NET REVENUES		1,999,560		1,918,148		81,412		4.2

NON-INTEREST EXPENSES:
Compensation and benefits		1,286,623		1,241,442		45,181		3.6
Communication and technology		172,788		184,474		(11,686)		(6.3)
Occupancy and equipment		107,809		105,520		2,289		2.2
Marketing and business development		55,650		52,897		2,753		5.2
Floor brokerage and clearance		15,024		16,230		(1,206)		(7.4)
Other		122,529		103,278		19,251		18.6
TOTAL NON-INTEREST EXPENSES		1,760,423		1,703,841		56,582		3.3
EARNINGS BEFORE INCOME TAXES		239,137		214,307		24,830		11.6
INCOME TAXES		83,087		78,242		4,845		6.2
EARNINGS BEFORE CUMULATIVE EFFECT
OF ACCOUNTING CHANGE		156,050		136,065		19,985		14.7
CUMULATIVE EFFECT OF ACCOUNTING
CHANGE, NET		2,768				2,768		n.m.
NET EARNINGS		$ 158,818		$ 136,065		$ 22,753		16.7

EARNINGS PER SHARE:
Diluted:
Earnings before cumulative effect of accounting change		$ 2.02		$ 1.72		$ 0.30		17.4
Cumulative effect of accounting change, net		0.04				0.04
		$ 2.06		$ 1.72		$ 0.34		19.8

Basic:
Earnings before cumulative effect of accounting change		$ 2.02		$ 1.74		$ 0.28		16.1
Cumulative effect of accounting change, net		0.04				0.04
		$ 2.06		$ 1.74		$ 0.32		18.4

AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING:
Diluted		77,248		79,252
Basic		76,967		78,423

STOCKHOLDERS' EQUITY		$ 1,863,828		$ 1,712,738
BOOK VALUE PER SHARE		$ 24.51		$ 22.53
TOTAL SHARES OUTSTANDING (end of period)		76,048		76,034
Note: Where appropriate, prior periods' 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 28,		November 30,
		2005	2005		2005		2005		2004
REVENUES:
Commissions		$ 247,209		$ 249,840		$ 247,126		$ 277,117		$ 245,002
Asset management and service fees		269,789		257,874		250,295		246,566		234,284
Principal transactions		50,264		52,319		51,510		57,530		55,969
Investment banking		57,974		67,821		58,761		69,500		57,809
Interest		48,164		42,184		40,744		37,029		32,858
Other		3,966		4,759		6,716		3,099		13,510
TOTAL REVENUES		677,366		674,797		655,152		690,841		639,432
Interest expense		3,281		2,261		2,213		1,308		1,443
NET REVENUES		674,085		672,536		652,939		689,533		637,989

NON-INTEREST EXPENSES:
Compensation and benefits		430,125		437,060		419,438		457,714		410,421
Communication and technology		56,938		60,493		55,357		57,356		59,429
Occupancy and equipment		36,423		37,281		34,105		45,906		35,476
Marketing and business development		16,554		18,072		21,024		12,785		15,424
Floor brokerage and clearance		5,095		4,673		5,256		5,111		5,307
Other		48,795		36,410		37,324		30,561		34,075
TOTAL NON-INTEREST EXPENSES		593,930		593,989		572,504		609,433		560,132
EARNINGS BEFORE INCOME TAXES		80,155		78,547		80,435		80,100		77,857
INCOME TAXES		25,798		28,709		28,580		29,691		28,684
EARNINGS BEFORE CUMULATIVE
EFFECT OF ACCOUNTING CHANGE		54,357		49,838		51,855		50,409		49,173
CUMULATIVE EFFECT OF
ACCOUNTING CHANGE, NET						2,768
NET EARNINGS		$ 54,357		$ 49,838		$ 54,623		$ 50,409		$ 49,173

EARNINGS PER SHARE:
Diluted:
Earnings before cumulative effect of
accounting change		$ 0.71		$ 0.64		$ 0.67		$ 0.65		$ 0.63
Cumulative effect of accounting change, net						0.04
		$ 0.71		$ 0.64		$ 0.71		$ 0.65		$ 0.63
Basic:
Earnings before cumulative effect of
accounting change		$ 0.71		$ 0.65		$ 0.67		$ 0.66		$ 0.64
Cumulative effect of accounting change, net						0.04
		$ 0.71		$ 0.65		$ 0.71		$ 0.66		$ 0.64
AVERAGE COMMON AND COMMON
EQUIVALENT SHARES OUTSTANDING:
Diluted		76,917		77,358		77,471		77,306		77,844
Basic		76,635		77,052		77,214		76,362		76,781

STOCKHOLDERS' EQUITY		$ 1,863,828		$ 1,855,271		$ 1,823,376		$ 1,787,691		$ 1,712,738
BOOK VALUE PER SHARE		$ 24.51		$ 24.17		$ 23.71		$ 23.21		$ 22.53

Note: Where appropriate, prior periods' 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 FY06		2Q FY06		1Q FY06		4Q FY05		3Q FY05

Net Revenues		$ 674,085		$ 672,536		$ 652,939		$ 689,533		$ 637,989

Earnings Before Income Taxes		$ 80,155		$ 78,547		$ 80,435		$ 80,100		$ 77,857

Net Earnings		$ 54,357		$ 49,838		$ 54,623		$ 50,409		$ 49,173

Net Earnings as a
Percent of Net Revenues		8.1%		7.4%		8.4%		7.3%		7.7%

Average Diluted Shares-
(000’s Omitted)		76,917		77,358		77,471		77,306		77,844

Earnings Per Share (Diluted)		$ 0.71		$ 0.64		$ 0.71		$ 0.65		$ 0.63

Dividends Per Share		$ 0.20		$ 0.16		$ 0.16		$ 0.16		$ 0.16

Stockholders’ Equity		$1,863,828		$1,855,271		$1,823,376		$1,787,691		$1,712,738

Book Value Per Share		$ 24.51		$ 24.17		$ 23.71		$ 23.21		$ 22.53

Return On Average Equity-
(Quarter Results Annualized)		11.7%		10.8%		12.1%		11.5%		11.5%

Financial Consultants		6,844		6,796		6,791		6,890		6,898

Full-time Employees		15,472		15,357		15,295		15,390		15,412

Locations		734		727		723		721		717

Total Client Assets (in millions)		$ 331,000		$ 325,000		$ 316,000		$ 319,000		$ 311,000

Assets In Fee-based Accounts (in millions)		$ 34,382		$ 32,637		$ 30,647		$ 30,752		$ 29,235


Note: Where appropriate, prior periods' financial information has been reclassified to conform to current year presentation.

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Delaware	001-08527	43-1288229
(State or Other	(Commission File Number)	(IRS Employer
Jurisdiction)		Identification Number)

One North Jefferson
St. Louis, Missouri	63103
(Address of Principal Executive Offices)	(Zip Code)

		A.G. Edwards, Inc.
		Registrant


Date: December 22, 2005	By:	/s/Douglas L. Kelly
		Douglas L. Kelly
		Chief Financial Officer