For further information contact:

Media Relations: Investor Relations:

Margaret Welch • 314/955-5912 Justin Gioia • 314/955-2379

welchmg@agedwards.com jjgioia@agedwards.com

FOR IMMEDIATE RELEASE

A.G. Edwards, Inc. Announces

Fourth-Quarter and Full-Year Results for Fiscal 2007

Achieves Annual and Quarterly Records in Net Revenues, Earnings Per Share;

47% Increase in Full-Year Net Earnings

ST. LOUIS, March 29, 2007 – A.G. Edwards, Inc. (NYSE: AGE) today announced results for the fiscal year and fourth quarter ended February 28, 2007.

Net earnings for fiscal 2007 were $331 million, or $4.34 per diluted share, on net revenues of $3.1 billion. For the prior fiscal year, net earnings were $226 million, or $2.93 per diluted share, on net revenues of $2.7 billion.

For the fourth quarter of fiscal 2007, net earnings were $109 million, or $1.44 per diluted share, on net revenues of $865 million. Net earnings for the fourth quarter last year were $75 million, or $0.99 per diluted share, on net revenues of $741 million.

Results for the prior periods have been adjusted to reflect a change in accounting method for stock awards to retirement-eligible employees under Statement of Financial Accounting Standards No. 123 (Revised 2004) “Share Based Payment.”

“We were pleased to end fiscal 2007 on a strong note, with every revenue category posting increases for the full year,” said Robert L. Bagby, chairman and chief executive officer. “The continued client migration to our fund-advisory and other fee-based programs helped our asset-management and service-fee revenues set new records throughout the year and account for 41 percent of our fiscal 2007 net revenues. We also received an excellent performance from our investment-banking area, particularly in the latter part of the year, to help bolster revenue growth. These were some of the many efforts that show how we can keep our clients’ interests first while delivering greater value to our shareholders, as we posted our fifth consecutive year of increased net earnings, earnings per share, pre-tax profit margin and return on average equity.

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March 29, 2007

“I continue to appreciate all of our employees whose hard work is the reason for our clients’ and our firm’s success.”

Results for the fourth quarter include $13.6 million in other revenue, or $0.08 per diluted share, for gains on the sale of shares in the Intercontinental Exchange (ICE) and Chicago Mercantile Exchange (CME) and the mark-to-market on ICE, CME, New York Mercantile Exchange (NYMEX) and NYSE Group shares the firm currently holds.

RESULTS OF OPERATIONS

Asset Management and Service Fees – Asset-management and service-fee revenues reached a new annual record of $1.3 billion in fiscal 2007, increasing 19 percent ($203 million) versus fiscal 2006. These revenues for the fourth quarter increased 18 percent ($51 million) over last year’s fourth quarter. Both the full-year and fourth-quarter results largely reflect greater client interest in the firm’s fund-advisory programs and other fee-based programs and services, as well as increased client-asset values in mutual funds and other individual investments.

Commissions – Commission revenues increased 1 percent ($14 million) in fiscal 2007 mainly resulting from increased activity in individual equities and insurance products. For the fourth quarter of fiscal 2007, commission revenues decreased 1 percent ($3 million) compared to the same quarter last year. The decline was largely due to decreased activity in individual equities compared to last year’s fourth quarter, partially offset by increased activity in individual mutual funds. The results in both periods reflect decreased client activity in futures and options.

Principal Transactions – Revenues from principal transactions in fiscal 2007 increased 2 percent ($5 million) versus fiscal 2006 largely due to increased client activity in over-the-counter equity markets. For the fourth quarter this year, principal-transaction revenues decreased 5 percent ($3 million) compared to the fourth quarter last year. The results in both periods reflect lower overall volume in fixed-income transactions.

Investment Banking – Investment banking posted its second-best-ever annual revenue performance, increasing 24 percent ($55 million) to $290 million in fiscal 2007. For the fourth quarter, these revenues reached an all-time quarterly record of $112 million, an increase of 126 percent ($63 million) versus the year-ago quarter. Both the full-year and fourth-quarter results primarily reflected greater underwriting revenue and related management and advisory fees from closed-end fund offerings.

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March 29, 2007

Net Interest Revenue – Interest revenue net of interest expense increased 26 percent ($45 million) in fiscal 2007 and increased 21 percent ($10 million) in the fourth quarter compared to the same periods in fiscal 2006. Both the full-year and fourth-quarter results reflect an increased prime rate resulting in higher interest rates charged on margin balances, higher interest rates earned on the fixed-income inventory held for sale to clients and higher balances and rates earned on short-term investments. The results in both periods were partially offset by lower average client margin balances.

Other revenue –Other revenue increased 107 percent ($47 million) in fiscal 2007 and increased 24 percent ($7 million) for the fourth quarter versus the same periods last year. The full-year and fourth-quarter results reflect the previously described gains on the sales of ICE and CME shares and the mark-to-market on ICE, CME and NYMEX shares the firm currently holds. Both periods also reflect a dividend from a private-equity investment and increases in private-equity valuations. The full-year results additionally reflect $23 million in gains on the sale of NYSE Group shares and the mark-to-market on other NYSE Group shares the firm currently holds. Last year’s fourth quarter included $12 million in gains on the sale of shares in CME and the Chicago Board of Trade and the mark-to-market on other CME shares the firm held.

Non-Interest Expenses – Non-interest expenses increased 8 percent ($191 million) during fiscal 2007 compared to fiscal 2006. For the fourth quarter, non-interest expenses increased 11 percent

($70 million) compared to the same quarter last year.

As previously disclosed in the firm’s latest Annual Report on Form 10-K, the firm changed its accounting method for stock awards to retirement-eligible employees effective March 1, 2006. As a result, compensation and benefits expenses in the prior periods have been adjusted to reflect this change. Compensation and benefits increased 10 percent ($171 million) in fiscal 2007 and increased 13 percent ($62 million) in the fourth quarter compared to the same periods last year. The results in both periods mainly reflect higher commissionable revenue as well as higher incentive-compensation accruals due to increased firm profitability.

Non-compensation-related expenses increased 3 percent ($20 million) in fiscal 2007 and increased 5 percent ($8 million) in the fourth quarter versus the same time periods last year. Both periods reflect higher technology consulting expenses and general rent increases for branch offices,

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March 29, 2007

partially offset by lower expenses for branding efforts and for addressing various regulatory changes and legal matters. The full-year results additionally reflect increased securities-processing expenses as well as higher training and business-development expenses.

EVENT AFFECTING FUTURE PERIODS – AGE BANK DEPOSIT PROGRAM

In mid-February 2007, the firm introduced its FDIC-insured bank deposit program (“AGE Bank Deposit Program”) to certain clients as part of a multi-stage rollout to all eligible clients. The AGE Bank Deposit Program offers up to $1 million in FDIC insurance, competitive interest rates and the opportunity to earn higher interest rates based on household asset values and account type. Additionally, in December 2006 A.G. Edwards Trust Company FSB (“Trust Company”) received approval from the Office of Thrift Supervision to expand its powers to be able to accept deposits so it can participate, along with several other FDIC-insured banks, in the AGE Bank Deposit Program. The Trust Company is expected to begin accepting client deposits in the second quarter of fiscal 2008.

Given the timing of the AGE Bank Deposit Program’s start, the amount of client assets deposited in this program as of February 28, 2007 did not have a material impact on fiscal 2007’s results of operations. As of March 28, 2007, approximately $2 billion in client assets had been deposited into this program.

The revenue impact of this program in fiscal 2008 cannot be determined with certainty and will depend, among other things, on the amount of assets clients move into the AGE Bank Deposit Program, the amount of assets deposited in the Trust Company, the amount of new assets brought to the firm as a result of this program, and competitive and economic factors.

ADDITIONAL SHAREHOLDER INFORMATION

Total client assets at the end of fiscal 2007 were $374 billion, a 9 percent increase when compared to the end of fiscal 2006. Client assets in fee-based accounts at the end of fiscal 2007 were $44 billion, an 18 percent increase when compared to the end of fiscal 2006.

As of February 28, 2007, stockholders’ equity was $2.1 billion, for a book value per share of $27.91. Diluted earnings per share for fiscal 2007 were based on 76.4 million average common and common equivalent shares outstanding compared to 77.2 million in fiscal 2006. Diluted earnings per share for the fourth quarter were based on 76.0 million average common and common equivalent shares outstanding compared to 76.6 million in the year-ago quarter.

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March 29, 2007

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 6,618 financial consultants in 742 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, the completion of all contractual, technological, legal and other requirements for the introduction of new products or services, regulatory changes and actions, changes in legislation, risk management, the results of the AGE Bank Deposit Program and the expansion of powers of A.G. Edwards Trust Company FSB, legal claims, technology changes, compensation changes, the impact of outsourcing agreements, the impact 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
		February 28,		February 28,		Increase/			%
		2007		2006		(Decrease)			Chg.
				(As Adjusted)
Revenues
Asset management and service fees:
Distribution fees		$	181,395	$	152,390	$	29,005		19.0
Fee-based accounts			127,383		104,745		22,638		21.6
Service fees			26,927		27,779		(852	)	(3.1	)
Total			335,705		284,914		50,791		17.8
Commissions:
Equities			136,456		139,921		(3,465	)	(2.5	)
Mutual funds			69,527		66,926		2,601		3.9
Insurance			53,110		52,415		695		1.3
Futures and options			10,968		14,097		(3,129	)	(22.2	)
Other			247		182		65		35.7
Total			270,308		273,541		(3,233	)	(1.2	)
Principal transactions:
Debt securities			30,161		33,368		(3,207	)	(9.6	)
Equities			23,005		22,649		356		1.6
Total			53,166		56,017		(2,851	)	(5.1	)
Investment banking:
Underwriting fees and selling concessions			70,974		36,733		34,241		93.2
Management fees			41,495		13,108		28,387		216.6
Total			112,469		49,841		62,628		125.7
Interest:
Margin account balances			33,671		36,204		(2,533	)	(7.0	)
Securities owned and deposits			26,936		14,041		12,895		91.8
Total			60,607		50,245		10,362		20.6
Other			35,954		28,893		7,061		24.4
Total Revenues			868,209		743,451		124,758		16.8
Interest expense			3,199		2,898		301		10.4
Net Revenues			865,010		740,553		124,457		16.8
Non-Interest Expenses
Compensation and benefits			523,368		461,492		61,876		13.4
Communication and technology			69,866		63,591		6,275		9.9
Occupancy and equipment			39,019		36,305		2,714		7.5
Marketing and business development			15,862		15,985		(123	)	(0.8	)
Floor brokerage and clearance			5,106		6,049		(943	)	(15.6	)
Other			42,026		42,176		(150	)	(0.4	)
Total Non-Interest Expenses			695,247		625,598		69,649		11.1
Earnings Before Income Taxes			169,763		114,955		54,808		47.7
Income Taxes			60,586		39,517		21,069		53.3
Net Earnings		$	109,177	$	75,438	$	33,739		44.7
Earnings per diluted share		$	1.44	$	0.99	$	0.45		45.5
Average Common and Common
Equivalent Shares Outstanding (Diluted)			76,024		76,562
Stockholders’ Equity		$	2,102,039	$	1,887,012
Book Value per share		$	27.91	$	24.96
Total Shares Outstanding (end of period)			75,316		75,590
Note: Results for the prior period have been adjusted to reflect a change in accounting method for stock awards
to retirement-eligible employees under Statement of Financial Accounting Standards No. 123 (Revised 2004) “Share Based Payment”.

A. G. EDWARDS, INC.
CONSOLIDATED STATEMENTS OF EARNINGS
(In thousands, except per share amounts)
(Unaudited)
	For the Twelve Months Ended
	February 28,		February 28,		Increase/			%
	2007		2006		(Decrease)			Chg.
			(As Adjusted)
Revenues
Asset management and service fees:
Distribution fees	$	684,290	$	571,573	$	112,717		19.7
Fee-based accounts		474,532		386,585		87,947		22.7
Service fees		107,240		104,714		2,526		2.4
Total		1,266,062		1,062,872		203,190		19.1
Commissions:
Equities		539,208		530,052		9,156		1.7
Mutual funds		244,031		242,883		1,148		0.5
Insurance		200,956		195,476		5,480		2.8
Futures and options		46,689		48,411		(1,722	)	(3.6	)
Other		1,073		894		179		20.0
Total		1,031,957		1,017,716		14,241		1.4
Principal transactions:
Debt securities		127,720		131,284		(3,564	)	(2.7	)
Equities		87,410		78,826		8,584		10.9
Total		215,130		210,110		5,020		2.4
Investment banking:
Underwriting fees and selling concessions		196,593		168,963		27,630		16.4
Management fees		93,295		65,434		27,861		42.6
Total		289,888		234,397		55,491		23.7
Interest:
Margin account balances		146,194		138,466		7,728		5.6
Securities owned and deposits		85,103		42,871		42,232		98.5
Total		231,297		181,337		49,960		27.6
Other		91,743		44,334		47,409		106.9
Total Revenues		3,126,077		2,750,766		375,311		13.6
Interest expense		15,617		10,653		4,964		46.6
Net Revenues		3,110,460		2,740,113		370,347		13.5
Non-Interest Expenses
Compensation and benefits		1,931,870		1,761,199		170,671		9.7
Communication and technology		257,838		236,379		21,459		9.1
Occupancy and equipment		150,464		144,114		6,350		4.4
Marketing and business development		76,950		71,635		5,315		7.4
Floor brokerage and clearance		19,101		21,073		(1,972	)	(9.4	)
Other		153,644		164,705		(11,061	)	(6.7	)
Total Non-Interest Expenses		2,589,867		2,399,105		190,762		8.0
Earnings Before Income Taxes		520,593		341,008		179,585		52.7
Income Taxes		189,240		117,684		71,556		60.8
Earnings Before Cumulative Effect
of Accounting Change		331,353		223,324		108,029		48.4
Cumulative Effect of Accounting
Change, Net				2,768		(2,768	)	(100.0	)
Net Earnings	$	331,353	$	226,092	$	105,261		46.6
Earnings per diluted share:
Earnings before cumulative effect of accounting
change	$	4.34	$	2.89	$	1.45		50.2
Cumulative effect of accounting change, net				0.04		(0.04	)
	$	4.34	$	2.93	$	1.41		48.1
Average Common and Common
Equivalent Shares Outstanding (Diluted)		76,431		77,204
Stockholders’ Equity	$	2,102,039	$	1,887,012
Book Value per share	$	27.91	$	24.96
Total Shares Outstanding (end of period)		75,316		75,590
Note: Results for the prior period have been adjusted to reflect a change in accounting method for stock awards
to retirement-eligible employees under Statement of Financial Accounting Standards No. 123 (Revised 2004) “Share Based Payment”.

A.G. EDWARDS, INC.
CONSOLIDATED FIVE-QUARTER SUMMARY
(In thousands, except per share amounts)
(Unaudited)
	For the Three Months Ended
	February 28,		November 30,		August 31,		May 31,		February 28,
	2007		2006		2006		2006		2006
									(As Adjusted)
Revenues
Asset management and service fees:
Distribution fees	$	181,395	$	172,326	$	164,131	$	166,438	$	152,390
Fee-based accounts		127,383		119,886		115,203		112,060		104,745
Service fees		26,927		25,982		25,750		28,581		27,779
Total		335,705		318,194		305,084		307,079		284,914
Commissions:
Equities		136,456		132,314		126,399		144,039		139,921
Mutual funds		69,527		56,343		51,046		67,115		66,926
Insurance		53,110		48,050		48,529		51,267		52,415
Futures and options		10,968		10,696		11,386		13,639		14,097
Other		247		218		342		266		182
Total		270,308		247,621		237,702		276,326		273,541
Principal transactions:
Debt securities		30,161		31,694		35,871		29,994		33,368
Equities		23,005		21,966		19,285		23,154		22,649
Total		53,166		53,660		55,156		53,148		56,017
Investment banking:
Underwriting fees and selling concessions		70,974		52,818		40,003		32,798		36,733
Management fees		41,495		19,802		16,709		15,289		13,108
Total		112,469		72,620		56,712		48,087		49,841
Interest:
Margin account balances		33,671		35,546		39,020		37,957		36,204
Securities owned and deposits		26,936		22,453		20,030		15,684		14,041
Total		60,607		57,999		59,050		53,641		50,245
Other		35,954		21,390		4,206		30,193		28,893
Total Revenues		868,209		771,484		717,910		768,474		743,451
Interest expense		3,199		3,955		4,682		3,781		2,898
Net Revenues		865,010		767,529		713,228		764,693		740,553
Non-Interest Expenses
Compensation and benefits		523,368		476,208		451,366		480,928		461,492
Communication and technology		69,866		64,736		63,347		59,889		63,591
Occupancy and equipment		39,019		37,584		37,845		36,016		36,305
Marketing and business development		15,862		17,669		17,870		25,549		15,985
Floor brokerage and clearance		5,106		4,895		5,548		3,552		6,049
Other		42,026		42,391		32,890		36,337		42,176
Total Non-Interest Expenses		695,247		643,483		608,866		642,271		625,598
Earnings Before Income Taxes		169,763		124,046		104,362		122,422		114,955
Income Taxes		60,586		45,719		38,136		44,799		39,517
Net Earnings	$	109,177	$	78,327	$	66,226	$	77,623	$	75,438
Earnings per diluted share	$	1.44	$	1.03	$	0.86	$	1.01	$	0.99
Average Common and Common
Equivalent Shares Outstanding (Diluted)		76,024		76,411		76,691		76,690		76,562
Stockholders’ Equity	$	2,102,039	$	2,039,141	$	2,009,699	$	1,971,895	$	1,887,012
Book Value per share	$	27.91	$	27.02	$	26.40	$	25.81	$	24.96
Note: Results for the prior periods have been adjusted to reflect a change in accounting method for stock awards
to retirement-eligible employees under Statement of Financial Accounting Standards No. 123 (Revised 2004) “Share Based Payment”.

A.G. EDWARDS, INC.
QUARTERLY STATISTICAL INFORMATION
(Dollars in thousands, except per share amounts)
(Unaudited)
	4Q FY07			3Q FY07			2Q FY07			1Q FY07			4Q FY06
													(As Adjusted)
Net Revenues	$	865,010		$	767,529		$	713,228		$	764,693		$	740,553
Earnings Before Income Taxes	$	169,763		$	124,046		$	104,362		$	122,422		$	114,955
Net Earnings	$	109,177		$	78,327		$	66,226		$	77,623		$	75,438
Pre-tax Net Earnings as a
Percent of Net Revenues		19.6	%		16.2	%		14.6	%		16.0	%		15.5	%
Average Diluted Shares-
(000’s Omitted)		76,024			76,411			76,691			76,690			76,562
Earnings Per Diluted Share	$	1.44		$	1.03		$	0.86		$	1.01		$	0.99
Dividends Per Share	$	0.20		$	0.20		$	0.20		$	0.20		$	0.20
Total Assets	$	5,312,118		$	5,076,078		$	4,708,961		$	4,413,379		$	4,671,643
Stockholders’ Equity	$	2,102,039		$	2,039,141		$	2,009,699		$	1,971,895		$	1,887,012
Book Value Per Share	$	27.91		$	27.02		$	26.40		$	25.81		$	24.96
Return On Average Equity-
(Quarter Results Annualized)		21.1	%		15.5	%		13.3	%		16.1	%		16.1	%
Financial Consultants		6,618			6,628			6,666			6,745			6,824
Full-time Employees		15,338			15,364			15,323			15,420			15,480
Locations		744			746			744			745			738
Total Client Assets (in millions)	$	374,000		$	370,000		$	354,000		$	345,000		$	343,000
Assets In Fee-based Accounts (in millions)	$	44,000		$	42,000		$	40,000		$	38,000		$	37,000
Note: Results for the prior periods have been adjusted to reflect a change in accounting method for stock awards
to retirement-eligible employees under Statement of Financial Accounting Standards No. 123 (Revised 2004) “Share Based Payment”.