Lazard Ltd Reports First-Quarter 2012 Results

  Lazard Ltd Reports First-Quarter 2012 Results

                                  Highlights

  *Net income per share, as adjusted^1, was $0.33 (diluted), for the quarter
    ended March 31, 2012.
  *Record first-quarter operating revenue^1 of $499 million was 9% higher
    than the first quarter of 2011.
  *Financial Advisory operating revenue achieved a first-quarter record of
    $277 million, 21% higher than the first quarter of 2011.

  *Asset Management operating revenue of $210 million decreased 6% from the
    strong first quarter of 2011 but grew 3% versus the fourth quarter of
    2011. Management fees grew 5% sequentially.
  *Assets under management increased 11% from December 31, 2011, to $157
    billion as of March 31, 2012, driven by market appreciation, and are now
    at a higher level than the average AUM of $152 billion for the full year
    of 2011.
  *As announced previously, we increased the quarterly dividend by 25% to
    $0.20 per share.

Business Wire

NEW YORK -- April 27, 2012

Lazard Ltd (NYSE: LAZ):

                                                    
                                                     
($ in millions,
except                    Quarter Ended                      Quarter Ended

per share data            March 31,                          December 31,
and AUM)
                          2012    2011    %’12-’11       2011      %
                                                                         1Q-4Q
As Adjusted^1
Operating revenue         $499      $457      9%             $469        6%
Financial                 $277      $229      21%            $260        6%
Advisory
Asset Management          $210      $224      (6)%           $204        3%
Net income                $45       $59       (23)%          $1
Diluted net               $0.33     $0.43                    $0.01
income per share
                                                                         
U.S. GAAP
Net income (loss)         $26       $55                      $(5)
Diluted net
income (loss) per         $0.20     $0.43                    $(0.04)
share
                                                                         
Supplemental Data
Quarter-end AUM($         $157      $160      (2)%           $141        11%
in billions)
Average AUM($ in          $150      $158      (5)%           $140        7%
billions)
                                                       
                                                                         

Lazard Ltd (NYSE: LAZ) today reported operating revenue^1 of $499 million for
the quarter ended March 31, 2012. Net income, as adjusted^1, was $45 million,
or $0.33 per share (diluted). These results exclude the pre-tax charge of $25
million related to previously disclosed staff reductions.

Net income on a U.S. GAAP basis, which includes the costs related to staff
reductions, was $26 million, or $0.20 per share (diluted), for the quarter
ended March 31, 2012. A reconciliation of our U.S. GAAP results to the
adjusted results is presented on page 14 of this press release.

“Our first quarter revenues show the breadth and strength of Lazard’s model,”
said Kenneth M. Jacobs, Chairman and Chief Executive of Lazard. “Our balanced
mix of businesses continues to provide multiple sources of income contributing
to our growth.”

“The macroeconomic environment has improved since last summer but remains
uncertain. If this improvement continues, strategic advisory activity will
likely increase,” said Mr. Jacobs. “Asset Management continued its strong
pattern of growth in the first quarter, with assets under management rising
above the full-year average for 2011. Our investment platforms continue to
produce strong relative performance. Lazard and our shareholders are in
excellent position to benefit from these positive trends in both our
businesses.”

“Our revenues were strong in the first quarter, but, as previously reported,
earnings are being impacted by the high level of amortization expense from
previous years' deferred compensation, primarily related to the 2008 grant,”
said Matthieu Bucaille, Chief Financial Officer of Lazard. “However,
consistent with our objectives, and our view regarding current market
conditions, our compensation and benefits expense for the first quarter
assumes an awarded compensation ratio of approximately 60%, a decrease from
the full-year 2011 ratio of 62%.”

We encourage you to visit our Lazard.com investor relations website to read
our shareholder letter, answers to our shareholders’ frequently asked
questions, and supporting documents, which provide a comprehensive discussion
regarding our strategy, financial targets and business model.

OPERATING REVENUE

Financial Advisory

In the text portion of this press release, we present our Financial Advisory
results as Strategic Advisory and Restructuring. Strategic Advisory includes
M&A, Sovereign and Government Advisory, Capital Markets, Lazard Middle Market,
Private Funds and Other Advisory businesses.

Financial Advisory operating revenue was a first-quarter record of $277
million, 21% higher than the first quarter of 2011, and the fourth quarter of
consecutive quarterly growth.

Strategic Advisory operating revenue was $207 million in the first quarter of
2012, 7% higher than the first quarter of 2011. This was driven by M&A, which
increased 18% compared to the first quarter of 2011, due in part to the strong
performance of Lazard Middle Market, as well as Sovereign and Government
Advisory.

Restructuring operating revenue of $70 million was 97% higher than the first
quarter of 2011, reflecting the closing of several large assignments during
the quarter. The increase in restructuring revenue for the 2012 first quarter
does not represent an expectation of restructuring revenue in future periods.

During the quarter, we remained engaged in highly visible, complex M&A
transactions and other advisory assignments, including cross-border
transactions, spin-offs, distressed asset sales, and government advisory in
the Americas, Europe and Asia.

Among the major M&A transactions or assignments that were completed during the
first quarter of 2012 were the following (clients are in italics): Skandia
Liv’s SEK 22.5 billion acquisition of Skandia AB from Old Mutual; European
Goldfields’ C$2.5 billion sale to Eldorado Gold; Simon Property’s $2billion
acquisition of a 28.7% stake in Klépierre; and, the Special Committee of the
Board of Directors of 99 Cents Only Stores in the $1.6 billion sale to Ares
Management, Canada Pension Plan Investment Board and Gold/Schiffer Family.

Lazard is advising on three of the ten largest M&A transactions announced in
the first quarter of 2012, including: GDF Suez/Electrabel in the $12.6 billion
acquisition of the 30% stake it did not already own in International Power;
Tyco’s combination of its Flow Control business with Pentair in a $10 billion
all-stock merger; and, the Supervisory Board ofTNT Express in the€5.2 billion
sale to United Parcel Service.

Our Sovereign and Government Advisory business was active with assignments
that included advising the government of Greece on the completion of its
successful bond exchange, the largest in history. We also advised the
Commonwealth of Australia on the $11 billion definitive agreement between
National Broadband Network and Telstra, which came into force in the first
quarter of 2012.

We have been involved in many of the most notable recent restructurings, such
as A&P, Eastman Kodak, Lehman Brothers and Spanish Broadcasting Systems.

Please see a more complete list of Strategic Advisory transactions that were
completed in the first quarter of 2012, as well as Restructuring assignments,
on pages 7 - 9 of this release.

Asset Management

Assets under management (AUM) were $157 billion as of March 31, 2012, an 11%
increase compared to $141 billion as of December 31, 2011, and 3% above the
full-year 2011 average AUM of $152 billion. Asset Management experienced net
outflows of $0.2 billion in the first quarter of 2012.

Asset Management operating revenue was $210 million in the first quarter of
2012, 6% lower than the first quarter of 2011, and 3% higher than the fourth
quarter of 2011.

Management fees were $200 million in the first quarter of 2012, 3% lower than
the first quarter of 2011, 5% higher than the fourth quarter of 2011 and
directionally consistent with the change in the quarterly average AUM. Average
AUM for the quarter was $150 billion, 5% lower than the first quarter of 2011
and 7% higher than the fourth quarter of 2011. Incentive fees were $2.6
million in the first quarter of 2012, 50% lower than the first quarter of
2011, primarily due to a change in one mandate from a quarterly to an annual
performance fee basis.

Our client mix remained broadly diversified by investment strategy and
geography. We continued to win new mandates and to provide superior investment
solutions to our clients around the world.

OPERATING EXPENSES

Compensation and Benefits

In managing compensation and benefits expense, we focus on annual awarded
compensation (cash compensation and benefits plus deferred incentive
compensation with respect to the applicable year, net of estimated future
forfeitures). We believe annual awarded compensation reflects the actual
annual compensation cost more accurately than the GAAP measure of compensation
cost, which measures applicable-year cash compensation and the amortization of
deferred incentive compensation principally attributable to previous years’
deferrals. We believe that by managing our business using awarded compensation
with a consistent deferral policy, we can better manage our compensation
costs, increase our flexibility in the future and build shareholder value over
time.

Adjusted compensation and benefits expense^1, including related accruals, was
$313 million for the first quarter of 2012, when excluding the effects of the
previously disclosed 2012 expense relating to staff reductions. The
corresponding adjusted GAAP compensation ratio was 62.7%, compared to 58.9%
for the same period in 2011, but lower than the full-year 2011 ratio of 62%,
which reflected the actual operating revenue and the adjusted GAAP
compensation expense for the year.

The first-quarter 2012adjusted GAAP compensation ratio includes, among other
items, amortization expense related to the 2008 deferred compensation. Our
amortization expense is higher in 2012, compared to 2011, primarily because of
the overlapping vesting periods. For the full year of 2012, we estimate, as of
today, amortization expense of approximately $341 million vs. $289 million in
2011.

The first-quarter 2012 adjusted GAAP compensation ratio assumes, based on
current market conditions, an awarded compensation ratio of approximately 60%,
compared to approximately 62% awarded for the full year of 2011.

Our goal remains to grow annual awarded compensation expense at a slower rate
than revenue growth, and to achieve a compensation-to-revenue ratio over the
cycle in the mid- to high-50s percentage range on both an awarded and adjusted
GAAP basis^1 with discipline on deferrals.

Non-Compensation Expense

Non-compensation expense, on an adjusted basis^1, of $105 million represented
21.1% of operating revenue compared to 20.3% in the first quarter of 2011 and
21.2% for the full year 2011. Non-compensation expense in the 2012 first
quarter was negatively impacted by a high level of deal-related third party
fees, and increases in occupancy costs and business activity levels. This
excluded non-compensation costs related to staff reductions in 2012.

TAXES

The provision for taxes, on an adjusted basis^1, was $15 million for the first
quarter of 2012, compared to $14 million for the first quarter of 2011. The
effective tax rate on the same basis for the first quarter of 2012 was 25.7%,
compared to the relatively low level of 18.9% for the first quarter of 2011.

CAPITAL MANAGEMENT AND BALANCE SHEET

Our primary capital management goals include reducing excess cash, managing
debt, and increasing returns to shareholders through dividends and share
repurchases.

On April 24, 2012, our Board of Directors voted to increase the quarterly
dividend on Lazard’s outstanding Class A common stock by 25%, to $0.20 per
share. This planned dividend increase was previously announced in Lazard’s
fourth-quarter 2011 earnings release. Since the fourth quarter of 2010, the
dividend has increased by 60%.

During the 2012 first quarter, we continued our share repurchase program with
the goal of, at minimum, offsetting potential dilution from equity-based
awards granted at year end. We bought back approximately 2.4 million shares of
our Class A common stock and exchangeable interests, for approximately $71
million during the quarter. As of March 31, 2012, our remaining share
repurchase authorization was $142 million. On April 24, 2012, the Lazard Board
of Directors authorized additional share repurchases of up to $125 million,
which expires on December 31, 2013.

Lazard’s financial position remains strong and low risk with approximately
$766 million in cash and cash equivalents at March 31, 2012, the majority of
which is invested in U.S. Government and agency money market funds. Total
stockholders’ equity related to Lazard’s interests is $738 million.

ABOUT LAZARD

Lazard, one of the world's preeminent financial advisory and asset management
firms, operates from 42 cities across 27 countries in North America, Europe,
Asia, Australia, Central and South America. With origins dating back to 1848,
the firm provides advice on mergers and acquisitions, strategic matters,
restructuring and capital structure, capital raising and corporate finance, as
well as asset management services to corporations, partnerships, institutions,
governments and individuals. For more information on Lazard, please visit
www.lazard.com.

Cautionary Note Regarding Forward-Looking Statements

This press release contains “forward-looking statements.” In some cases, you
can identify these statements by forward-looking words such as “may”, “might”,
“will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”,
“predict”, “potential” or “continue”, and the negative of these terms and
other comparable terminology. These forward-looking statements are not
historical facts but instead represent only our belief regarding future
results, many of which, by their nature, are inherently uncertain and outside
of our control. Although we believe the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee the accuracy of
our estimated targets, future results, level of activity, performance or
achievements. There are important factors that could cause our actual results,
level of activity, performance or achievements to differ materially from the
results, level of activity, performance or achievements expressed or implied
by these forward-looking statements.

These factors include, but are not limited to, those discussed in our Annual
Report on Form 10-K under Item 1A “Risk Factors,” and also disclosed from time
to time in our reports on Forms 10-Q and 8-K including the following:

  *A decline in general economic conditions or the global financial markets;
  *Losses caused by financial or other problems experienced by third parties;
  *Losses due to unidentified or unanticipated risks;
  *A lack of liquidity, i.e., ready access to funds, for use in our
    businesses; and
  *Competitive pressure.

Lazard Ltd is committed to providing timely and accurate information to the
investing public, consistent with our legal and regulatory obligations. To
that end, Lazard and its operating companies use their websites to convey
information about their businesses, including the anticipated release of
quarterly financial results, quarterly financial, statistical and
business-related information, and the posting of updates of assets under
management in various hedge funds and mutual funds and other investment
products managed by Lazard Asset Management LLC and its subsidiaries. Monthly
updates of these funds will be posted to the Lazard Asset Management website
(www.lazardnet.com) on the third business day following the end of each month.
Investors can link to Lazard and its operating company websites through
www.lazard.com.

                   LlSTS OF STRATEGIC ADVISORY ASSIGNMENTS

Mergers and Acquisitions (Completed in the first quarter of 2012)

Among the large, publicly announced M&A Advisory transactions or assignments
completed during the first quarter of 2012 on which Lazard advised were the
following:

  *Skandia Liv’s SEK 22.5 billion acquisition of Skandia AB from Old Mutual
  *European Goldfields’ C$2.5 billion sale to Eldorado Gold
  *Simon Property’s $2.0billion acquisition of a 28.7% stake in Klépierre
  *France Telecom-Orange’s €1.6 billion sale of Orange Switzerland to Apax
    Partners
  *Special Committee of the Board of Directors of 99 Cents Only Stores in the
    $1.6 billion sale to Ares Management, Canada Pension Plan Investment Board
    and Gold/Schiffer Family
  *Wind Telecom’s $1.5 billion demerger of OTMT
  *Deutsche Kreditbank’s €1 billion sale of DKB Immobilien to TAG Immobilien
  *Sberbank’s $1 billion acquisition of Troika Dialog
  *Azur Pharma’s merger with Jazz Pharmaceuticals

Mergers and Acquisitions (Announced)

Among the ongoing, large, publicly announced M&A transactions and assignments
on which Lazard advised in the 2012 first quarter, continued to advise, or
completed since March 31, 2012, are the following:

  *Medco Health Solutions in its $29 billion merger with Express Scripts
  *Progress Energy’s $26 billion merger with Duke Energy
  *Northeast Utilities’ $17.5 billion merger with NSTAR
  *GDF Suez/Electrabel in the $12.6 billion acquisition of the 30% stake it
    does not already own in International Power
  *Google's $12.5 billion acquisition of Motorola Mobility
  *Tyco’s combination of its Flow Control business with Pentair in a $10
    billion all-stock merger
  *The Supervisory Board of TNT Express in the €5.2 billion sale to United
    Parcel Service
  *Caisse des Depots’ €2.6 billion acquisition of Silic from Groupama
  *France Telecom-Orange’s €2.4 billion acquisition of a 58.7% stake in
    MobiNil/ECMS
  *The Special Committee of Independent Directors of the Board of Delphi
    FinancialGroup in the $2.7 billion sale to Tokio Marine
  *CH Energy Group’s $1.5 billion sale to Fortis
  *Gloucester Coal in theA$2.1 billion merger proposal made by Yanzhou Coal
    and Yancoal Australia
  *AmBev’s $1.2 billion acquisition of a 51% stake in Cerveceria Nacional
    Dominicana
  *Areva’s €776 million disposal of its 26% stake in Eramet to FSI
  *Central Vermont Public Service’s $702 million sale to Gaz Métro
  *Tyco's plan to separate into three independent, publicly traded companies
  *Caisse des Depots on the reorganization of Dexia
  *Edison in its negotiations with EDF and A2A regarding the disposal of
    Edipower and the restructuring of its shareholdings
  *The Managing Director Committee of AlixPartners in the sale of a majority
    stake to CVC Capital Partners
  *Audi’s acquisition of Ducati
  *BNP Paribas’ sale of its North American reserve-based lending business
    ($3.9 billion of loans outstanding) to Wells Fargo

Sovereign and Government Advisory

  *Government of Greece on its successful bond exchange, the largest in
    history
  *Commonwealth of Australia on the $11 billion definitive agreement between
    National Broadband Network and Telstra
  *Kazakhstan Sovereign Wealth Fund-owned BTA Bank JSC on its restructuring
    and recapitalization plan

Restructuring and Debt Advisory Assignments

Restructuring and debt advisory assignments completed during the first quarter
of 2012 on which Lazard advised include: Lehman Brothers and The Great
Atlantic & Pacific Tea Co. (A&P) in connection with their Chapter 11
bankruptcies; the Creditors Committee of Desmet Ballestra and the senior
secured noteholders of AfriSam on the companies’ debt restructurings;
manroland on the sale of its sheet-fed printing equipment division in
insolvency; Spanish Broadcasting on the refinancing of its debt; and, the bank
lenders of Quiznos in its out-of-court restructuring.

Notable Chapter 11 bankruptcies, on which Lazard advised debtors or creditors,
or related parties, during or since the first quarter of 2012, are:

  *Airlines: Allied Pilots Association with respect to American Airlines
  *Consumer/Food: Hostess Brands, Cagles
  *Gaming, Entertainment and Hospitality: Indianapolis Downs, MSR Resorts,
    the Los Angeles Dodgers
  *Shipping: General Maritime
  *Paper and Packaging: New Page Corporation,White Birch Paper Company
  *Power & Energy: Dynegy,LSP Energy
  *Professional/Financial Services: Ambac
  *Technology/Media/Telecom: Eastman Kodak, Nortel Networks, Tribune Company

Among other publicly announced restructuring and debt advisory assignments on
which Lazard has advised debtors or creditors during or since the first
quarter of 2012, are:

  *Belvédère – advising the FRN noteholder committee
  *Dubai International Capital in the restructuring of its liabilities
  *Eagle Holdings on the restructuring of its Gemini real estate assets
  *Empresas La Polar on its debt restructuring activities
  *National Association of Letter Carriers in connection with the USPS’s
    restructuring efforts
  *NH Hoteles on its debt refinancing
  *Seat Pagine Gialle – advising the committee of junior noteholders on the
    company’s restructuring
  *TBS International on its debt restructuring activities
  *Torm – advising lenders on the company’s debt restructuring

ENDNOTES

^1 A non-U.S. GAAP measure. See attached financial schedules and related notes
for a detailed explanation of adjustments to comparable U.S. GAAP results. We
believe that presenting our results on an adjusted basis, in addition to the
U.S. GAAP results, is the most meaningful and useful way to compare our
operating results across periods. These results exclude the pre-tax charge of
$25 million related to previously disclosed staff reductions.

LAZ-G


LAZARD LTD

ADJUSTED STATEMENT OF OPERATIONS (a)

(Non-GAAP - unaudited)

                    Three Months Ended                                        % Change From
                       March 31,         December 31,      March 31,           December   March
                                                                                   31,          31,
($ in thousands,
except per share       2012                2011                2011                2011         2011
data)
                                                                                                
Financial
Advisory
M&A and
strategic              $192,611            $167,099            $163,752            15   %       18  %
advisory
Capital markets         14,370            17,691            29,549           (19  %)      (51 %)
& other advisory
Strategic               206,981            184,790            193,301           12   %       7   %
advisory
Restructuring           70,215            75,704            35,557           (7   %)      97  %
Total                    277,196             260,494             228,858           6    %       21  %
                                                                                                
Asset Management
Management fees          199,860             190,073             206,768           5    %       (3  %)
Incentive fees           2,596               5,373               5,146             (52  %)      (50 %)
Other revenue           7,636             8,960             12,098           (15  %)      (37 %)
Total                   210,092           204,406           224,012          3    %       (6  %)
                                                                                                
Corporate                11,461              3,807               3,981             NM           188 %
                                                                                
Operating            498,749         468,707         456,851        6    %     9   %
revenue (b)
                                                                                                
Less:
Compensation and
benefits expense         312,716             337,007             268,921           (7   %)      16  %
(c)
Non-compensation         105,235             108,674             92,770            (3   %)      13  %
expense (d)
                                                                                
Earnings from        80,798          23,026          95,160         251  %     (15 %)
operations (e)
                                                                                                
Earnings
attributable to          2,718               791                 2,014
noncontrolling
interests (f)
Amortization of          (1,118      )       (7,019      )       (1,474      )
intangibles
Interest expense        (19,916     )      (20,217     )      (22,254     )
                                                                                                
Pre-tax income           62,482              (3,419      )       73,446            NM           (15 %)
(loss)
                                                                                                
Less:
Provision
(benefit) for            15,491              (1,511      )       13,665
income taxes
Net income
(loss)
attributable to      2,179           (3,339      )    1,242                    
noncontrolling
interests
Net income (g)      $44,812          $1,431           $58,539          NM        (23 %)
                                                                                                
Diluted weighted         136,594,178         135,721,618         138,590,593       1    %       (1  %)
average shares
                                                                                
Diluted net         $0.33            $0.01            $0.43            NM        (23 %)
income per share
                                                                                                
Ratio of
compensation to          62.7        %       71.9        %       58.9        %
operating
revenue
Ratio of
non-compensation         21.1        %       23.2        %       20.3        %
to operating
revenue
Margin from              16.2        %       4.9         %       20.8        %
operations (h)
Effective tax            25.7        %       NM                  18.9        %
rate (i)
                                                                                                

This presentation includes non-U.S. GAAP ("non-GAAP") measures. Our non-GAAP
measures are not meant to be considered in isolation or as a substitute for
comparable U.S. GAAP measures, and should be read only in conjunction with our
consolidated financial statements prepared in accordance with U.S. GAAP. For a
detailed explanation of the adjustments made to comparable U.S. GAAP measures,
see Reconciliation of U.S. GAAP to Adjusted Statement of Operations and Notes
to Financial Schedules.


LAZARD LTD

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(U.S. GAAP)

                              Three Months Ended
                                  March 31,       March 31,      
($ in thousands, except           2012              2011              % Change
per share data)
                                                                      
Total revenue                     $506,461          $461,341          10   %
Interest expense                  (20,422     )     (23,318     )
Net revenue                       486,039           438,023           11   %
Operating expenses:
Compensation and benefits         338,317           269,999           25   %
                                                                      
Occupancy and equipment           26,282            22,708
Marketing and business            28,267            18,111
development
Technology and                    20,393            19,567
information services
Professional services             9,311             9,841
Fund administration and           13,451            13,251
outsourced services
Amortization of
intangible assets related         1,118             1,474
to acquisitions
Other                             11,077           9,626       
Subtotal                          109,899          94,578           16   %
Operating expenses                448,216          364,577          23   %
                                                                      
Operating income                  37,823            73,446            (49  %)
                                                                      
Provision for income              8,767            13,463           (35  %)
taxes
Net income                        29,056            59,983            (52  %)
Net income attributable
to noncontrolling                 3,504            4,976       
interests
Net income attributable           $25,552          $55,007          (54  %)
to Lazard Ltd
                                                                      
Attributable to Lazard
Ltd Common Stockholders:
Weighted average shares
outstanding:
Basic                             119,229,541       115,334,754       3    %
Diluted                           136,594,178       138,590,593       (1   %)
                                                                      
Net income per share:
Basic                             $0.21             $0.48             (56  %)
Diluted                           $0.20             $0.43             (53  %)
                                                                      

                                          
LAZARD LTD

UNAUDITED CONDENSED CONSOLIDATED

STATEMENT OF FINANCIAL CONDITION

(U.S. GAAP)
                                                              
                                               March 31,          December 31,
($ in thousands)                               2012               2011
                                                                  
ASSETS
                                                                  
Cash and cash equivalents                      $765,686           $1,003,791
Deposits with banks                            257,685            286,037
Cash deposited with clearing
organizations and other segregated             74,502             75,506
cash
Receivables                                    522,585            504,455
Investments                                    378,273            378,521
Goodwill and other intangible assets           395,962            393,099
Other assets                                   513,305           440,527    
                                                                  
Total Assets                                   $2,907,998        $3,081,936 
                                                                  
LIABILITIES & STOCKHOLDERS' EQUITY
                                                                  
Liabilities
Deposits and other customer payables           $274,690           $288,427
Accrued compensation and benefits              210,439            383,513
Senior debt                                    1,076,850          1,076,850
Other liabilities                              485,241           466,290    
Total liabilities                              2,047,220          2,215,080
                                                                  
Commitments and contingencies
                                                                  
Stockholders' equity
Preferred stock, par value $.01 per            -                  -
share
Common stock, par value $.01 per share         1,231              1,230
Additional paid-in capital                     638,868            659,013
Retained earnings                              262,100            258,646
Accumulated other comprehensive loss,          (71,903    )       (88,364    )
net of tax
                                               830,296            830,525
Class A common stock held by                   (91,962    )       (104,382   )
subsidiaries, at cost
Total Lazard Ltd stockholders' equity          738,334            726,143
Noncontrolling interests                       122,444           140,713    
Total stockholders' equity                     860,778           866,856    
                                                                  
Total liabilities and stockholders'            $2,907,998        $3,081,936 
equity
                                                                  


LAZARD LTD

ASSETS UNDER MANAGEMENT ("AUM")
                                                                    
                       As of                                     Variance
                       March 31,       December     March                        1Q 2012
                                       31,          31,                          vs.
                       2012            2011         2011         Qtr to Qtr      1Q 2011
                                                                                 
Equities               $130,653        $116,362     $135,749     12.3     %      (3.8  %)
Fixed Income           19,249          17,750       17,255       8.4      %      11.6  %
Alternative            5,296           5,349        6,041        (1.0     %)     (12.3 %)
Investments
Private Equity         1,424           1,486        1,333        (4.2     %)     6.8   %
Cash                   86             92           73           (6.5     %)     17.8  %
Total AUM              $156,708       $141,039     $160,451     11.1     %      (2.3  %)
                                                                                 
                                                                                 
                                                                 Year Ended
                       Three Months Ended March                  December
                       31,                                       31,
                       2012            2011                      2011
                       ($ in millions)
AUM -
Beginning of           $141,039        $155,337                  $155,337
Period
                                                                                 
Net Flows              (162     )      695                       (1,048   )
Market and
foreign
exchange
appreciation           15,831         4,419                     (13,250  )
(depreciation)
                                                                                 
AUM - End of           $156,708       $160,451                  $141,039 
Period
                                                                                 
Average AUM            $150,315       $157,894                  $152,072 
                                                                                 
% Change in            (4.8     %)
average AUM
                                                                                 

Note: Average AUM is generally based on an average of quarterly ending
balances for the respective periods.


LAZARD LTD
RECONCILIATION OF U.S. GAAP TO ADJUSTED STATEMENT OF OPERATIONS (a)
(unaudited)
                                                 Three Months Ended
                                                     March 31,    March 31,
                                                     2012           2011
                                                                    
Operating Revenue
                                                                    
Net revenue - U.S. GAAP Basis                        $486,039       $438,023
                                                                    
Adjustments:
Revenue related to noncontrolling interests          (4,439   )     (3,426   )
Gain related to Lazard Fund Interests and            (2,767   )     -
other similar arrangements
Other interest expense                               19,916        22,254   
                                                                    
Operating revenue, as adjusted                       $498,749      $456,851 
                                                                    
Compensation & Benefits Expense
                                                                    
Compensation & benefits expense - U.S. GAAP          $338,317       $269,999
Basis
                                                                    
Adjustments:
Charges pertaining to staff reductions               (21,754  )     -
Charges pertaining to Lazard Fund Interests
and other similar arrangements derivative            (2,767   )     -
liability
Compensation related to noncontrolling               (1,080   )     (1,078   )
interests
                                                                    
Compensation & benefits expense, as adjusted         $312,716      $268,921 
                                                                    
Non-Compensation Expense
                                                                    
Operating expenses - Subtotal - U.S. GAAP            $109,899       $94,578
Basis
                                                                    
Adjustments:
Charges pertaining to staff reductions               (2,905   )     -
Amortization of intangible assets related to         (1,118   )     (1,474   )
acquisitions
Non-comp related to noncontrolling interests         (641     )     (334     )
                                                                    
Non-compensation expense, as adjusted                $105,235      $92,770  
                                                                    
Pre-Tax Income
                                                                    
Operating income - U.S. GAAP Basis                   $37,823        $73,446
                                                                    
Adjustments:
Charges pertaining to staff reductions               24,659        -        
                                                                    
Pre-tax income, as adjusted                          $62,482       $73,446  
                                                                    
Net Income attributable to Lazard Ltd
                                                                    
Net income attributable to Lazard Ltd - U.S.         $25,552        $55,007
GAAP Basis
Adjustments:
Charges pertaining to staff reductions               24,659         -
Tax benefits allocated to adjustments                (6,249   )     -
Amount attributable to LAZ-MD Holdings               (1,045   )     -
                                                                    
Adjustment for full exchange of exchangeable
interests (j):
Tax adjustment for full exchange                     (475     )     (202     )
Amount attributable to LAZ-MD Holdings               2,370         3,734    
                                                                    
Net income, as adjusted                              $44,812       $58,539  
                                                                    
Diluted net income per share:
U.S. GAAP Basis - Net income attributable to         $0.20          $0.43
Lazard Ltd
                                                                             
Net income, as adjusted                              $0.33          $0.43
                                                                             

This presentation includes non-U.S. GAAP ("non-GAAP") measures. Our non-GAAP
measures are not meant to be considered in isolation or as a substitute for
comparable U.S. GAAP measures, and should be read only in conjunction with our
consolidated financial statements prepared in accordance with U.S. GAAP. For a
detailed explanation of the adjustments made to comparable U.S. GAAP measures,
see Notes to Financial Schedules.


LAZARD LTD

Notes to Financial Schedules

      Adjusted Statement of Operations begins with information that is
      prepared in accordance with U.S. GAAP, (i) adjusted to reflect the full
      conversion of outstanding exchangeable interests held by members of
      LAZ-MD Holdings; (ii) adjusted to exclude certain items in 2012
(a)  described more thoroughly in (g) below, and (iii) is presented in a
      non-U.S. GAAP ("non-GAAP") format including non-GAAP measures. Lazard
      believes that presenting results and measures on an adjusted basis in
      conjunction with U.S. GAAP measures provides the most meaningful basis
      for comparison of its operating results across periods. (See
      Reconciliation of U.S. GAAP to Adjusted Statement of Operations.)
      
      Excludes (i) gains/losses related to the changes in the fair value of
      investments held in connection with Lazard Fund Interests and other
      similar deferred compensation arrangements for which a corresponding
(b)   equal amount is excluded from compensation & benefits expense, (ii)
      revenues related to non-controlling interests (see (f) below), and (iii)
      interest expense related to other financing activities, which is
      included in "Interest expense," and is a non-GAAP measure. (See
      Reconciliation of U.S. GAAP to Adjusted Statement of Operations.)
      
      Excludes (i) charges/credits related to the changes in the fair value of
      the derivative liability recorded in connection with Lazard Fund
      Interests and other similar deferred compensation arrangements, (ii)
(c)   noncontrolling interests, which are included in "Earnings attributable
      to noncontrolling interests" (see (f) below) and (iii) for the three
      month period ended March 31, 2012 charges pertaining to staff reductions
      (see (g) below,) and is a non-GAAP measure. (See Reconciliation of U.S.
      GAAP to Adjusted Statement of Operations.)
      
      Excludes (i) amortization of intangible assets related to acquisitions,
      (ii) expenses related to noncontrolling interests, which are included in
      "Earnings attributable to noncontrolling interests" (see (f) below) and
(d)   (iii) for the three month period ended March 31, 2012 charges pertaining
      to staff reductions (see (g) below,) and is a non-GAAP measure. (See
      adjustments in the Reconciliation of U.S. GAAP to Adjusted Statement of
      Operations.)
      
      Excludes (i) amortization of intangible assets related to acquisitions,
      (ii) interest expense primarily related to corporate financing
      activities, which is included in "Interest expense," (iii) revenues and
(e)   expenses related to noncontrolling interests (see (f) below), and for
      the three month period ended March 31, 2012 charges pertaining to staff
      reductions (see (g) below), and is a non-GAAP measure. (See
      Reconciliation of U.S. GAAP to Adjusted Statement of Operations.)
      
      Includes the noncontrolling interests share of revenue, net of related
(f)   compensation and benefits and non-compensation expenses principally
      related to Edgewater, and is a non-GAAP measure.
      
      The three month period of 2012 is adjusted to exclude certain charges
      pertaining to staff reductions including severance, benefit payments and
(g)   acceleration of unrecognized amortization of deferred incentive
      compensation previously granted to individuals being terminated, net of
      applicable tax benefits. (See adjustments in the Reconciliation of U.S.
      GAAP to Adjusted Statement of Operations.)
      
      Represents earnings from operations as a percentage of operating
(h)   revenues, and is a non-GAAP measure. (See Reconciliation of U.S. GAAP to
      Adjusted Statement of Operations.)
      
      Effective tax rate is computed based on a numerator of which is the
(i)   provision for income taxes and the denominator of which is pre-tax
      income exclusive of net income attributable to noncontrolling interests.
      
      Represents a reversal of noncontrolling interests related to LAZ-MD
      Holdings’ ownership of Lazard Group common membership interests and an
(j)   adjustment for Lazard Ltd entity-level taxes to affect a full exchange
      of interests and excluding the 2012 charges pertaining to staff
      reductions noted in (g) above.
      
NM    Not meaningful
      

Contact:

Lazard Ltd
Media:
Judi Frost Mackey, +1-212-632-1428
judi.mackey@lazard.com
or
Investor:
Kathryn Harmon, +1-212-632-6637
kathryn.harmon@lazard.com
 
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