Fortress Reports First Quarter 2013 Results and Announces Dividend of $0.06 per Share

  Fortress Reports First Quarter 2013 Results and Announces Dividend of $0.06
  per Share

Business Wire

NEW YORK -- May 02, 2013

Fortress Investment Group LLC (NYSE: FIG) today reported its first quarter
2013 financial results.

FINANCIAL SUMMARY

  *Fortress declares a distribution of $0.06 per dividend paying share for
    the first quarter of 2013
  *Assets under management (“AUM”) of $55.6 billion as of March 31, 2013, an
    increase of 4% from the fourth quarter of 2012 and 20% from the first
    quarter of 2012
  *GAAP net income of $67 million for the first quarter of 2013; GAAP book
    value per share of $2.66 as of March 31, 2013
  *Pre-tax distributable earnings (“DE”) of $100 million, or $0.20 per
    dividend paying share, for the first quarter of 2013, compared to pre-tax
    DE of $57 million, or $0.11 per dividend paying share, for the first
    quarter of 2012
  *Net cash and investments of $2.95 per dividend paying share as of March
    31, 2013, up from $2.48 per dividend paying share as of December 31, 2012
  *$731 million of gross embedded incentive income across our funds as of
    March 31, 2013, that has not been recognized in DE
  *Total uncalled capital, or “dry powder,” of $6.7 billion as of March 31,
    2013, including approximately $5.3 billion available for general
    investment purposes

BUSINESS HIGHLIGHTS

  *Raised $1.7 billion of capital across alternatives businesses during the
    quarter
  *Recorded $1.2 billion of net client inflows for Logan Circle during the
    quarter
  *Delivered strong investment performance across all businesses:

       *Net first quarter 2013 returns of 4.0% in the Drawbridge Special
         Opportunities Fund LP, 3.8% in the Fortress Macro Funds and 2.8% in
         the Fortress Asia Macro Funds
       *Private Equity fund valuations increased 5.2% during the quarter
       *Net annualized inception-to-date IRRs through March 31, 2013 for the
         Credit Opportunities Fund and Credit Opportunities Fund II of 26.7%
         and 19.0%, respectively
       *All 15 Logan Circle strategies outperformed respective benchmarks in
         the first quarter and 14 of 15 strategies have outperformed
         respective benchmarks since inception

“Our first quarter results reflect continued broad-based strength across our
company,” said Randal Nardone, interim Chief Executive Officer. “Investment
performance, the most fundamental driver of our long-term success, has been
strong in each of our businesses, and has supported our success in both
deepening existing investor relationships and attracting new investors to
Fortress strategies. Six consecutive quarters with over $1 billion in new
commitments to our alternatives strategies and substantial net inflows at
Logan Circle have propelled our assets under management to an all-time high of
nearly $56 billion. With the key drivers of our business—investment
performance, capital raising and AUM growth—showing continued momentum going
into the second quarter, we feel optimistic about our prospects for earnings
growth and value creation in 2013 and beyond.”

SUMMARY FINANCIAL RESULTS

Fortress’s business model is highly diversified, and management believes that
this positions the company to capitalize on opportunities for investing,
capital formation and harvesting profits that can occur at different points in
any cycle for our individual businesses. Fortress’s business model generates
stable and predictable management fees, which is a function of the majority of
alternative assets under management residing in long-term investment
structures. Fortress’s alternatives businesses also generate variable
incentive income based on performance, and this incentive income can
contribute meaningfully to financial results. Balance sheet investments
represent a third component of Fortress’s business model, and the company has
built substantial value in these investments, which are made in Fortress funds
alongside the funds’ limited partners.

The table below summarizes Fortress’s operating results for the first quarter
ended March 31, 2013. The consolidated GAAP statement of operations and
balance sheet are presented at the end of this press release.

                           1Q        4Q        1Q          % Change    
                               2013      2012      2012      QoQ    YoY
(in millions, except
per share amount)
GAAP
Net income (loss)             $ 67       $ 222      $ (24    )   -70 %   N/M
Net income (loss)
attributable to Class A       $ 14       $ 102      $ (30    )   -86 %   N/M 
Shareholders
Per diluted share             $ 0.05     $ 0.24     $ (0.16  )   -86 %   N/M 
Weighted average Class
A shares outstanding,           496        525        516
diluted
                                                                         
Distributable Earnings
Fund management DE            $ 97       $ 105      $ 56         -8  %   73  %
Pre-tax DE                    $ 100      $ 107      $ 57        -7  %   75  %
Per dividend paying           $ 0.20     $ 0.20     $ 0.11      0   %   82  %
share/unit
Weighted average
dividend paying shares          490        530        533
and units outstanding
                                                                         
Assets Under Management
Private Equity                $ 15,495   $ 14,271   $ 13,239     9   %   17  %
Credit                        $ 12,661   $ 13,414     12,269     -6  %   3   %
Liquid Markets                $ 5,490    $ 5,060      4,840      8   %   13  %
Logan Circle                  $ 21,937   $ 20,685    16,084    6   %   36  %
Total Assets Under            $ 55,583   $ 53,430   $ 46,432    4   %   20  %
Management
                                                                         

CONSOLIDATED GAAP RESULTS

Fortress recorded GAAP net income of $67 million, or $0.05 per diluted share
for the first quarter of 2013, compared with a GAAP net loss of $24 million,
or $0.16 loss per diluted share, for the first quarter of 2012. Our diluted
earnings per share for all periods presented includes the income tax effects
to net income (loss) attributable to Class A Shareholders from the assumed
conversion of Fortress Operating Group Units and fully vested Restricted
Partnership Units to Class A shares.

The year-over-year improvement in Fortress’s GAAP results was primarily driven
by higher GAAP management fees and GAAP incentive income, which resulted in a
$73 million increase in GAAP revenues.

CONSOLIDATED SEGMENT RESULTS (NON-GAAP)

This section provides information about each of Fortress’s businesses: (i)
Credit, (ii) Private Equity, (iii) Liquid Hedge Funds, and (iv) Logan Circle.

Fortress uses “distributable earnings,” or DE, as a primary metric to manage
its businesses and gauge the company’s performance, and it uses DE exclusively
to report segment results. Consolidated segment results are non-GAAP
information and are not presented as a substitute for Fortress’s GAAP results.
Fortress urges you to read “Non-GAAP Information” below.

                                                                                     
                    As of March 31, 2013
                                Private Equity           Liquid      Credit Funds            Logan
                                                          Hedge                               Circle
(in millions)       Total        Funds        Castles     Funds       Hedge      PE Funds    Partners
                                                                      Funds
                                                                                              
Assets Under        $ 55,583     $ 11,126     $ 4,369     $ 5,490     $ 5,620     $ 7,041     $ 21,937
Management^1
Dry Powder          $ 6,721      $ 806          N/A         N/A         N/A       $ 5,915       N/A
Average
Management                         1.2    %     1.5   %     1.8   %     2.0   %     1.4   %     0.2    %
Fee Rate^2
                                                                                              
Incentive
Eligible NAV
Above               $ 16,398     $ 210        $ -         $ 3,759     $ 4,652     $ 7,777       N/A
Incentive
Income
Threshold^3
                                                                                              
Undistributed
Incentive           $ 731        $ 10         $ 69        $ 7         $ 100       $ 545         N/A
Income:
Unrecognized
Undistributed
Incentive            59         -          -         29        30        -         N/A    
Income:
Recognized
Undistributed
Incentive           $ 790       $ 10        $ 69       $ 36       $ 130      $ 545       N/A    
Income^4
                                                                                              
                    Three Months Ended March 31, 2013
                                 Private Equity           Liquid      Credit Funds            Logan
                                                          Hedge                               Circle
(in millions)       Total        Funds        Castles     Funds       Hedge      PE Funds    Partners
                                                                      Funds
                                                                                              
Third-Party
Capital             $ 1,727      $ 221        $ 764       $ 667       $ 75        $ -           N/A
Raised
                                                                                              
Segment
Revenues
Management          $ 132        $ 33         $ 18        $ 23        $ 25        $ 25        $ 8
fees
Incentive            116        3          -         32        33        48        -      
income
Total                 248          36           18          55          58          73          8
Segment
Expenses
Operating             (89    )     (13    )     (7    )     (18   )     (15   )     (27   )     (9     )
expenses
Profit
sharing              (54    )    (1     )    -         (10   )    (18   )    (25   )    -      
compensation
expenses
Total                (143   )    (14    )    (7    )    (28   )    (33   )    (52   )    (9     )
                                                                                              
Principal
Performance
Payments
                      (8     )     -            (1    )     (2    )     (4    )     (1    )     -
                                                                                        
Fund                $ 97        $ 22        $ 10       $ 25       $ 21       $ 20       $ (1     )
Management DE
                                                                                              
Pre-tax
Distributable       $ 100       $ 22        $ 10       $ 25       $ 21       $ 20       $ (1     )
Earnings
                                                                                              

Pre-tax DE was $100 million in the first quarter of 2013, up from $57 million
in the first quarter of 2012. The year-over-year increase was primarily due to
higher incentive income and management fees earned from our funds, partially
offset by higher compensation related expenses.

Management fees were $132 million in the first quarter of 2013, up from $118
million in the first quarter of 2012, primarily due to higher management fees
from the Private Equity Funds and Castles, Credit Private Equity Funds, Liquid
Hedge Funds, and Logan Circle, partially offset by lower management fees from
the Credit Hedge Funds. Notably, 84% of the alternative assets under
management at quarter end were in funds with long-term, locked-up structures,
which provides for a stable, predictable base of management fees.

____________________________________
^1 The Assets Under Management presented for the Credit Hedge Funds includes
$468 million related to the third-party originated Value Recovery Funds.
Fortress earns fees from the Value Recovery Funds based only on collections.
^2 The Average Management Fee Rate presented for the Credit Hedge Funds
excludes the third-party originated Value Recovery Funds. See footnote (1)
above.
^3 The Incentive Eligible NAV Above Threshold presented for hedge funds
excludes sidepocket investments. The Incentive Eligible NAV Above Threshold
presented for Private Equity Funds and Credit Private Equity Funds represent
total fund NAV.
^4 The Undistributed Incentive Income presented includes the impact of
sidepocket investments on hedge funds. Undistributed Incentive Income for
Private Equity Funds, Credit Private Equity Funds and hedge fund sidepocket
and redeeming capital account (RCA) investments has not been recognized in
Distributable Earnings and will be recognized when realized; Undistributed
Incentive Income for other hedge fund investments was recognized in
Distributable Earnings when earned. Undistributed Incentive Income for Private
Equity Funds includes incentive income amounts of which Fortress is entitled
to approximately 50%. Undistributed Incentive Income for Private Equity
Castles includes incentive income that would have been recorded in
Distributable Earnings if Fortress had exercised all of its in-the-money
Newcastle options and sold all of the resulting shares at their March 31, 2013
closing price.


Incentive income recorded in the first quarter of 2013 totaled $116 million,
compared to $52 million recorded in the first quarter of 2012. This
year-over-year increase was driven by higher incentive income generated by the
Credit Private Equity Funds, Liquid Hedge Funds and Credit Hedge Funds.
Additionally, Fortress had $731 million in gross undistributed, unrecognized
incentive income based on investment valuations at March 31, 2013. This
includes $662 million from our funds and $69 million from options in our
permanent capital vehicles.

The Company’s segment revenues and distributable earnings will fluctuate
materially depending upon the performance of its funds and the realization
events within its private equity businesses, as well as other factors.
Accordingly, the revenues and profits in any particular period should not be
expected to be indicative of future results.

ASSETS UNDER MANAGEMENT

As of March 31, 2013, assets under management (“AUM”) totaled $55.6 billion,
up 4% from $53.4 billion as of December 31, 2012 and up 20% from $46.4 billion
as of March 31, 2012. During the first quarter of 2013, Fortress raised $1.5
billion of capital that was directly added to AUM, recorded $1.2 billion of
net client inflows for Logan Circle, had a $0.8 billion increase in fund
valuations, and had a $0.6 billion increase in invested capital. These
increases to AUM were partially offset by (i) $1.1 billion of capital
distributions to investors, (ii) $0.4 billion of Hedge Fund redemptions and
(iii) $0.1 billion of payments to Credit Hedge Fund investors from redeeming
capital accounts. As of March 31, 2013, the Credit PE Funds and Private Equity
Funds had approximately $5.9 billion and $0.8 billion of uncalled capital,
respectively, that will become assets under management if deployed/called.
Uncalled capital in our Credit PE Funds includes $1.3 billion that is only
available for follow-on investments, management fees and other fund expenses.

BUSINESS SEGMENT RESULTS

Below is a discussion of first quarter 2013 segment results and business
highlights.

Credit:

  *Drawbridge Special Opportunities Fund LP and Drawbridge Special
    Opportunities Fund Ltd generated first quarter 2013 net returns of 4.0%
    and 3.4%, respectively
  *Credit Opportunities Fund and Credit Opportunities Fund II recorded net
    annualized inception-to-date IRRs of 26.7% and 19.0%, respectively,
    through March 31, 2013
  *Credit Private Equity Funds invested $0.5 billion of capital during the
    quarter and distributed $1.0 billion of capital back to limited partners

(See supplemental data on pages 17-18 for more detail on Credit results)

The Credit business, which includes our Credit Hedge Funds and Credit Private
Equity Funds, generated pre-tax DE of $41 million in the first quarter of
2013, up from $26 million in the first quarter of 2012. The year-over-year
improvement in DE was primarily driven by $81 million of incentive income
recorded during the first quarter, comprising $48 million from private-equity
style funds and $33 million from hedge funds.

The Drawbridge Special Opportunities Funds, our flagship Credit Hedge Funds,
continued to deliver strong investment performance in the first quarter. The
onshore fund recorded a net return of 4.0% in the first quarter and net
annualized inception-to-date returns of 11.2% through March 31, 2013. Positive
investment returns have contributed to an increase in unrealized,
undistributed incentive income to $100 million from $65 million at March 31,
2012. At quarter end, the Credit Hedge Funds had $4.7 billion of incentive
eligible NAV above performance thresholds and eligible to generate additional
incentive income.

Fortress’s Credit Private Equity Funds distributed $1.0 billion of capital to
investors during the quarter, compared to $0.4 billion of capital
distributions in the fourth quarter of 2012. Continued positive investment
returns in the quarter contributed to an increase in unrealized, undistributed
incentive income. The Credit Opportunities Fund and Credit Opportunities Fund
II had net annualized inception-to-date IRRs of 26.7% and 19.0%, respectively,
through March 31, 2013. Unrealized, undistributed incentive income increased
$36 million, or 7%, to $545 million in the first quarter of 2013 and has
increased $261 million, or 92%, since the first quarter of 2012.

The Credit Private Equity Funds deployed $0.4 billion of dry powder for
investments during the quarter. Total Credit Private Equity dry powder –
capital committed to the funds but not invested and generating management fees
– was $5.9 billion as of quarter end. Of that total, $1.3 billion is only
available for follow-on investments, management fees and other fund expenses.

“Most importantly, we continued to build on a record of strong returns for
investors across our Credit private equity and hedge fund strategies,” said
Pete Briger, Fortress co-Chairman and Credit business co-CIO. “We believe our
portfolios have assets that were underwritten in a disciplined way, and we
remain focused on managing those assets actively and effectively to maximize
returns for our investors. Looking at the environment for new investments, we
continue to believe that risk is underpriced in the market today. Our global
sourcing capabilities should continue to provide access to idiosyncratic
opportunities with the potential to meet our targeted returns, but we see few
if any thematically interesting opportunities. In this environment, we believe
the disciplined, patient and opportunistic approach that has always defined
our investment process will serve us well.”

Private Equity:

  *Fund portfolio investment valuations increased 5.2% in the first quarter
    of 2013
  *Raised $1.0 billion of alternative and permanent equity capital during the
    quarter
  *Newcastle announced plans to spin off all of its investments in mortgage
    servicing rights (“MSRs”) and other residential assets into a new publicly
    traded residential-focused mortgage REIT
  *Subsequent to quarter end, launched marketing efforts for two new
    sector-focused funds

(See supplemental data on page 16 for more detail on Private Equity results)

The Private Equity business, which includes Private Equity Funds and Castles,
had pre-tax DE of $32 million in the first quarter of 2013, up slightly from
$29 million in the first quarter of 2012. The increase in DE was primarily
attributable to higher management fees, partially offset by lower incentive
income.

Private Equity Fund investment performance in the first quarter was strong,
with valuations in underlying investments increasing by 5.2%. Valuation
appreciation in the quarter was driven by certain of our publicly traded
portfolio companies, including a 19% gain for Nationstar (NYSE: NSM), a 10%
gain for Brookdale (NYSE: BKD), an 8% gain for Penn National Gaming (NYSE:
PENN) and a 5% gain for GAGFAH (Xetra: GFJ). At quarter end, all of our main
PE funds were valued essentially at or above cost and in aggregate were valued
at a multiple of 1.4x invested capital.

The Private Equity business raised $1.0 billion of capital during the quarter,
including $764 million of permanent equity capital for Newcastle and $221
million for WWTAI. Subsequent to quarter end, we launched marketing efforts
for a second MSR fund and a second infrastructure-focused fund.

During the quarter, Newcastle (NYSE: NCT) announced plans to spin off all of
its investments in MSRs and certain other residential assets into a new
publicly traded real estate investment trust, New Residential Investment Corp.
(“New Residential”). New Residential will be externally managed by an
affiliate of Fortress with terms that are substantially similar to the terms
of Newcastle’s existing management agreement with Fortress. New Residential
will primarily target opportunistic investments in excess MSRs, non-agency
RMBS, non-performing loans and other real estate related assets. Newcastle
will remain focused on harvesting its existing commercial real estate
investments, while investing opportunistically in senior housing and other
real estate debt. Fortress believes the separation of Newcastle’s residential
and commercial businesses will create greater transparency and unlock
shareholder value for each standalone company. The spin-off has been approved
by Newcastle’s Board of Directors and is expected to be completed with the
distribution of shares of common stock of New Residential (NYSE: NRZ) on or
about May 15, 2013.

Subsequent to quarter end, Eurocastle (Euronext Amsterdam: ECT) announced a
recapitalization plan and the conversion of its outstanding convertible debt.
As part of the recapitalization, Fortress and Eurocastle entered into an
amended management agreement that reduced the AUM used to compute Eurocastle’s
management fees from €1.5 billion to €0.3 billion as of April 1, 2013. The
agreement also reduced the earnings thresholds required for Fortress to earn
incentive income from Eurocastle. In addition to simplifying the company’s
capital structure, these measures were taken by Eurocastle to reduce ongoing
operating costs, thus freeing up additional capital for new investment
opportunities.

“Fortress Private Equity has had an outstanding start to 2013, marked by
continued and substantial valuation gains in our existing funds and meaningful
strategic progress,” said Wes Edens, Fortress co-Chairman and Private Equity
CIO. “With gains of over 5% in the first quarter, our fund values reached an
all-time high of over $16 billion, and we believe the quality of our portfolio
companies points to significant potential for further upside. We have also
continued to build out a robust business for the future, with a group of
sector-specific funds and permanent equity vehicles focused on some of the
most compelling investment opportunities we see taking shape in the coming
years. We believe the spin-off of New Residential REIT, the introduction of
new sector funds, and the recapitalization of Eurocastle represent significant
new opportunities for investors and new avenues of growth for our business.”

Liquid Hedge Funds:

  *Fortress Macro Fund had a net return of 3.8% for the first quarter of 2013
    and 9.1% year-to-date through April 26, 2013
  *Fortress Asia Macro Fund had a net return of 2.8% for the first quarter of
    2013 and 7.0% year-to-date through April 26, 2013
  *Raised approximately $0.7 billion in new third-party capital during the
    quarter

(See supplemental data on page 19 for more detail on Liquid Hedge Funds
results)

The Liquid Hedge Funds generated pre-tax DE of $25 million in the first
quarter of 2013. Pre-tax DE was up $21 million from the first quarter of 2012,
primarily due to a substantial increase in incentive income.

Net returns for the first quarter of 2013 for the Fortress Macro Funds,
Fortress Asia Macro Funds, Fortress Partners Funds and Fortress Convex Asia
Funds were 3.8%, 2.8%, 2.2% and (0.9)%, respectively. Net returns year-to-date
through April 26, 2013 for the Fortress Macro Funds, Fortress Asia Macro Funds
and Fortress Convex Asia Funds were 9.1%, 7.0% and (1.2)%, respectively.

The Liquid Hedge Funds generated $32 million of incentive income during the
quarter as nearly all main Fortress Macro Fund and Fortress Asia Macro Fund
capital were above high water marks and thus eligible to generate incentive
income. In aggregate, approximately $3.8 billion of Liquid Hedge Fund capital
was above respective high water marks at quarter end, a $2.8 billion increase
from the end of the first quarter of 2012.

Liquid Hedge Funds ended the quarter with $5.5 billion of AUM, up 8% from the
previous quarter primarily due to $667 million of capital raised and $169
million of appreciation, partially offset by $341 million of redemptions. As
of March 31, 2013, there were $197 million Liquid Hedge Fund redemption
notices outstanding, of which $156 million will be paid primarily within one
quarter and $41 million will be paid in the first quarter of 2014 and
thereafter.

Subsequent to quarter end, the Liquid Hedge Funds raised over $400 million of
additional capital through May 1, which will be added to AUM in the second
quarter of 2013.

“In both our Fortress Macro Fund and Fortress Asia Macro Fund, we have built
on strong full year performance in 2012 with a truly exceptional start to
2013,” said Mike Novogratz, Fortress Principal and co-CIO of Fortress Macro
Funds. “Through April 26^th, net returns of over 9% in Macro and nearly 7% in
Asia Macro place us at the very top of our industry, and we see a similarly
constructive macro investing environment looking further into the year. With
investment performance supporting a substantial increase in new subscriptions,
and AUM over high water marks increasing from approximately $1 billion one
year ago to $4 billion today, we are optimistic about prospects for a strong
year of business results.”

Logan Circle:

  *All 15 Logan Circle investment strategies outperformed their respective
    benchmarks in the first quarter of 2013, and 14 of 15 strategies
    outperformed respective benchmarks since inception
  *Total traditional asset management AUM rose to $21.9 billion as of quarter
    end, an increase of 36% from the first quarter of 2012
  *Net client inflows totaled $1.2 billion in the first quarter of 2013
  *Subsequent to quarter end, launched a new growth equities investment
    business

(See supplemental data on page 20 for more detail on Logan Circle results)

Logan Circle, our traditional asset management business, recorded a pre-tax DE
loss of $1 million in the first quarter of 2013, compared to a pre-tax DE loss
of $3 million in the first quarter of 2012. The year-over-year improvement is
primarily due to an increase in management fees driven by a $5.9 billion
increase in assets under management.

Logan Circle’s strategies continued to deliver strong investment performance,
with all of Logan Circle’s 15 strategies outperforming their respective
benchmarks for the first quarter of 2013. 14 of 15 Logan Circle strategies
have outperformed their respective benchmarks since inception and seven are
ranked in the top quartile of performance for their competitor universe.

Logan Circle had $21.9 billion in AUM at the end of the quarter, a 6% increase
compared to the previous quarter and a 36% increase compared to the first
quarter of 2012. The quarter-over-quarter increase in AUM was driven by net
client inflows of $1.2 billion and performance appreciation of $0.1 billion.
Over the past five quarters Logan Circle has averaged quarterly net client
inflows of $1.4 billion.

In April 2013, Logan Circle launched a new growth equities investment business
that will focus on investing and managing concentrated portfolios of publicly
traded U.S. equities for institutional clients.

“Continuing to build on our record of strong investment performance is our
overriding objective, and one that we clearly achieved in the first quarter,
with all 15 Logan Circle strategies outperforming benchmarks,” said Jude
Driscoll, Logan Circle Partners Chief Executive Officer. “Capital formation in
the quarter was solid, with $1.2 billion of net inflows from a diverse and
growing institutional investor base. Our AUM has increased by over 90% since
joining Fortress in 2010 and we believe prospects for further growth in our
core fixed income strategies are substantial. With David Shell joining our
team to build out an institutional growth equities business, we took a
meaningful step to expand and diversify a strong and highly scalable Logan
Circle platform into a broader traditional asset management business. We are
pleased to bring our clients a best-in-class institutional equity offering,
and we remain confident that our growing traditional asset management business
will become a meaningful financial contributor to Fortress’s performance over
time.”

Principal Investments:

The Principal Investments segment, which is comprised of Fortress’s
investments in its own funds, generated pre-tax DE of $3 million in the first
quarter of 2013, compared to pre-tax DE of $1 million in the first quarter of
2012. This year-over-year improvement is largely a result of distributions
from the Credit Private Equity Funds and a decline in interest expense.

As of March 31, 2013, Principal Investments had segment assets (excluding cash
and cash equivalents) totaling $1.3 billion, up 5% from December 31, 2012. As
of March 31, 2013, Fortress had a total of $164 million of outstanding
commitments to its funds.

In addition, as of March 31, 2013, the net asset value of Fortress’s Principal
Investments exceeded its segment cost basis by $508 million, representing net
unrealized gains that have not yet been recognized for segment reporting
purposes.

LIQUIDITY & CAPITAL

As of March 31, 2013, Fortress had cash and cash equivalents of $246 million
and outstanding debt obligations of $109 million. Total debt was down $40
million from year end due to scheduled note payments to a former Principal
related to the exchange of his equity interests in Fortress in December 2012.
The note will be fully paid by February 2014.

In February 2013, Fortress terminated its existing $60 million revolving
credit facility and entered into a new $150 million facility with a $15
million letter of credit subfacility.

DIVIDEND

Fortress’s Board of Directors declared a first quarter 2013 dividend of $0.06
per dividend paying share. The dividend is payable on May 17, 2013 to Class A
shareholders of record as of the close of business on May 14, 2013.

The declaration and payment of any distributions are at the sole discretion of
the Board of Directors, which may decide to change its distribution policy at
any time. Please see below for information on the U.S. federal income tax
implications of the dividend.

NON-GAAP INFORMATION

Distributable earnings, or DE, is a primary metric used by management to
measure Fortress’s operating performance. Consistent with GAAP, DE is the sole
measure that management uses to manage, and thus report on, Fortress’s
segments, namely: Private Equity, Castles, Credit Hedge Funds, Credit Private
Equity Funds, Liquid Hedge Funds, Logan Circle and Principal Investments. DE
differs from GAAP net income in a number of material ways. For a detailed
description of the calculation of DE, see note 11 to the financial statements
included in the Company’s most recent annual report on Form 10-K, or note 10
to the financial statements included in the Company’s most recent quarterly
report on Form 10-Q.

Fortress aggregates its segment results to report consolidated segment
results, as shown in the table under “Summary Financial Results” and in the
“Total” column of the table under “Consolidated Segment Results (Non-GAAP).”
The consolidated segment results are non-GAAP financial information.
Management believes that consolidated segment results provide a meaningful
basis for comparison among present and future periods. However, consolidated
segment results should not be considered a substitute for Fortress’s
consolidated GAAP results. The exhibits to this release contain
reconciliations of the components of Fortress’s consolidated segment results
to the comparable GAAP measures, and Fortress urges you to review these
exhibits.

CONFERENCE CALL

Management will host a conference call today, Thursday, May 2, 2013 at 10:00
A.M. Eastern Time. A copy of the earnings release is posted to the Investor
Relations section of Fortress’s website, www.fortress.com.

All interested parties are welcome to participate on the live call. The
conference call may be accessed by dialing 1-888-243-2046 (from within the
U.S.) or 1-706-679-1533 (from outside of the U.S.) ten minutes prior to the
scheduled start of the call; please reference “Fortress First Quarter Earnings
Call.”

A simultaneous webcast of the conference call will be available to the public
on a listen-only basis at www.fortress.com. Please allow extra time prior to
the call to visit the site and download the necessary software required to
listen to the internet broadcast.

A telephonic replay of the conference call will also be available until 11:59
P.M. Eastern Time on Friday, May 9, 2013 by dialing 1-855-859-2056 (from
within the U.S.) or 1-404-537-3406 (from outside of the U.S.); please
reference access code “98939994.”

ABOUT FORTRESS

Fortress Investment Group LLC (NYSE: FIG) is a leading, highly diversified
global investment management firm with $55.6 billion in assets under
management as of March 31, 2013. Fortress applies its deep experience and
specialized expertise across a range of investment strategies - private
equity, credit, liquid hedge funds and traditional asset management - on
behalf of over 1,500 institutional clients and private investors worldwide.
For more information regarding Fortress Investment Group LLC or to be added to
its e-mail distribution list, please visit www.fortress.com.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this press release may constitute “forward-looking
statements” within the meaning of the Private Securities Litigation Reform Act
of 1995, including statements regarding Fortress’s sources of management fees,
incentive income and investment income (loss), estimated fund performance and
the amount and source of expected capital commitments.These statements are
not historical facts, but instead represent only the Company’s beliefs
regarding future events, many of which, by their nature, are inherently
uncertain and outside of the Company’s control. It is possible that the
sources and amounts of management fees, incentive income and investment
income, the amount and source of expected capital commitments for any new fund
or redemption amounts may differ, possibly materially, fromthese
forward-looking statements, and any such differences could cause the Company’s
actual results to differ materially from the results expressed or implied by
these forward-looking statements. For a discussion of some of the risks and
important factors that could affect such forward-looking statements, see the
sections entitled “Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” in the Company’sQuarterly
Report on Form 10-Q, which is, or will be, available on the Company’s website
(www.fortress.com). In addition, new risks and uncertainties emerge from time
to time, and it is not possible for the Company to predict or assess the
impact of every factor that may cause its actual results to differ from those
contained in any forward-looking statements. Accordingly, you should not place
undue reliance on any forward-looking statements contained in this press
release. The Company can give no assurance that the expectations of any
forward-looking statement will be obtained. Such forward-looking statements
speak only as of the date of this press release. The Company expressly
disclaims any obligation to release publicly any updates or revisions to any
forward-looking statements contained herein to reflect any change in the
Company’s expectations with regard thereto or any change in events, conditions
or circumstances on which any statement is based.

U.S. FEDERAL INCOME TAX IMPLICATIONS OF DIVIDEND

For U.S. federal income tax purposes, the dividend declared in May 2013 will
be treated as a partnership distribution. Based on the best information
currently available, when calculating withholding taxes, 2.75 cents of the per
share distribution will be treated as U.S. source interest income.
Accordingly, for non-U.S. holders of Class A shares, unless an exception to
withholding tax applies, the distribution will be subject to a U.S. federal
withholding tax of 0.825 cents per share. Non-U.S. holders of Class A shares
are generally subject to U.S. federal withholding tax at a rate of 30%
(subject to reduction by applicable treaty or other exception) on certain
types of U.S. source income realized by the Company. With respect to interest,
however, no withholding is generally required if proper certification (on an
IRS Form W-8) of a beneficial owner's foreign status has been filed with the
withholding agent. In addition, non-U.S. holders must generally provide the
withholding agent with a properly completed IRS Form W-8 to obtain any
reduction in withholding.



Fortress Investment Group LLC

Consolidated Statements of Operations (Unaudited)

(dollars in thousands, except share data)
                                         
                                             Three Months Ended March 31,
                                              2013           2012
Revenues
Management fees: affiliates                  $ 143,602         $ 106,295
Management fees: non-affiliates                14,815            11,389
Incentive income: affiliates                   31,357            8,802
Incentive income: non-affiliates               1,429             307
Expense reimbursements primarily from          50,568            43,602
affiliates
Other revenues                                2,584           1,263
                                              244,355         171,658
Expenses
Interest expense                               2,295             4,367
Compensation and benefits                      181,079           183,379
General, administrative and other              33,998            29,666
Depreciation and amortization                 3,239           3,478
(including impairment)
                                              220,611         220,890
Other Income (Loss)
Gains (losses)                                 41,275            24,622
Tax receivable agreement liability             (7,739      )     (6,935      )
adjustment
Earnings (losses) from equity method          36,302          35,240
investees
                                              69,838          52,927      
Income (Loss) Before Income Taxes              93,582            3,695
Income tax benefit (expense)                  (26,276     )    (27,842     )
Net Income (Loss)                            $ 67,306         $ (24,147     )
Principals' and Others' Interests in
Income (Loss) of Consolidated                $ 52,977         $ 5,393
Subsidiaries
Net Income (Loss) Attributable to            $ 14,329         $ (29,540     )
Class A Shareholders
Dividends Declared Per Class A Share         $ 0.06           $ 0.05
                                                               
                                                               
Earnings (Loss) Per Class A Share
Net income (loss) per Class A share,         $ 0.06           $ (0.15       )
basic
Net income (loss) per Class A share,         $ 0.05           $ (0.16       )
diluted
Weighted average number of Class A            227,287,102     200,009,820
shares outstanding, basic
Weighted average number of Class A            496,294,600     515,803,383
shares outstanding, diluted
                                                                             



Fortress Investment Group LLC

Consolidated Balance Sheets

(dollars in thousands)
                                                        
                                            March 31, 2013
                                                             December 31, 2012
                                            (Unaudited)
Assets
Cash and cash equivalents                   $ 245,957        $  104,242
Due from affiliates                           144,122           280,557
Investments                                   1,314,271         1,249,761
Deferred tax asset                            386,788           402,135
Other assets                                 119,651         124,798     
                                                             
                                            $ 2,210,789     $  2,161,493   
                                                             
Liabilities and Equity
                                                             
Liabilities
Accrued compensation and benefits           $ 134,858        $  146,911
Due to affiliates                             319,574           357,407
Deferred incentive income                     251,827           231,846
Debt obligations payable                      109,453           149,453
Other liabilities                            100,023         59,226      
                                                             
                                             915,735         944,843     
                                                             
Commitments and Contingencies
                                                             
Equity
Class A shares, no par value,
1,000,000,000 shares authorized,
236,681,342
and 218,286,342 shares issued and
outstanding at March 31, 2013 and
December 31, 2012, respectively               -                 -
Class B shares, no par value,
750,000,000 shares authorized,
249,534,372
and 249,534,372 shares issued and
outstanding at March 31, 2013 and
December 31, 2012, respectively               -                 -
Paid-in capital                               2,138,810         2,119,102
Retained earnings (accumulated                (1,472,249 )      (1,486,578  )
deficit)
Treasury Shares (2,082,684 Class A
shares held by subsidiary at December         -                 (3,419      )
31, 2012)
Accumulated other comprehensive              (1,993     )     (2,634      )
income (loss)
                                                             
Total Fortress shareholders' equity           664,568           626,471
Principals' and others' interests in         630,486         590,179     
equity of consolidated subsidiaries
Total Equity                                 1,295,054       1,216,650   
                                            $ 2,210,789     $  2,161,493   
                                                             



Fortress Investment Group LLC

Exhibit 1

Supplemental Data for the Three Months Ended March 31, 2013 and 2012
                                                                                                  
                      Three Months Ended March 31, 2013
                                   Private Equity           Liquid      Credit Funds            Logan        Principal
                                                            Hedge
(in millions)         Total        Funds        Castles     Funds       Hedge       PE Funds    Circle       Investments
                                                                        Funds
Assets Under
Management
AUM - January         $ 53,430     $ 10,611     $ 3,660     $ 5,060     $ 5,665     $ 7,749     $ 20,685     $    -
1, 2013
Capital raised          742          -            -           667         75          -           -               -
Equity raised           764          -            764         -           -           -           -               -
Increase in
invested                560          170          -           -           -           390         -               -
capital
Redemptions             (387   )     -            -           (341  )     (46   )     -           -               -
RCA                     (139   )     -            -           -           (139  )     -           -               -
distributions^5
Return of
capital                 (1,137 )     (173   )     -           -           -           (964  )     -               -
distributions
Adjustment for          -            -            -           -           -           -           -               -
reset date
Crystallized
incentive               (188   )     -            -           (65   )     (123  )     -           -               -
income
Equity buyback          -            -            -           -           -           -           -               -
Net Client              1,153        -            -           -           -           -           1,153           -
Flows
Income (loss)
and foreign            785        518        (55   )    169       188       (134  )    99            -   
exchange
AUM - Ending            55,583       11,126       4,369       5,490       5,620       7,041       21,937          -
Balance
                                                                                                             
Third-Party           $ 1,727      $ 221        $ 764       $ 667       $ 75        $ -         $ -          $    -
Capital Raised
                                                                                                             
Segment
Revenues
Management fee        $ 132        $ 33         $ 18        $ 23        $ 25        $ 25        $ 8          $    -
Incentive              116        3          -         32        33        48        -             -   
income
Total                   248          36           18          55          58          73          8               -
                                                                                                             
Segment
Expenses
Operating             $ (89    )   $ (13    )   $ (7    )   $ (18   )   $ (15   )   $ (27   )   $ (9     )   $    -
expenses
Profit sharing
compensation           (54    )    (1     )    -         (10   )    (18   )    (25   )    -             -   
expenses
Total                   (143   )     (14    )     (7    )     (28   )     (33   )     (52   )     (9     )        -
                                                                                                      
Fund Management        105        22         11        27        25        21        (1     )       -   
DE
                                                                                                             
Principal
Performance             (8     )     -            (1    )     (2    )     (4    )     (1    )     -               -
Payments
                                                                                                      
Fund Management
DE (after              97         22         10        25        21        20        (1     )       -   
Principals
Comp)
                                                                                                             
Investment              5                                                                                         5
Income
Interest                (2     )                                                                                  (2  )
Expense
                                                                                                      
Pre-tax
Distributable         $ 100       $ 22        $ 10       $ 25       $ 21       $ 20       $ (1     )   $    3   
Earnings
                                                                                                             
Pre-tax
Distributable
Earnings per          $ 0.20   
Dividend Paying
Share
                                                                                                             

                                                                                                      
                      Three Months Ended March 31, 2012
                                                                    
                                   Private Equity           Liquid      Credit Funds            Logan         Principal
                                                            Hedge
(in millions)         Total        Funds       Castles     Funds       Hedge       PE Funds   Circle        Investments
                                                                        Funds
Assets Under
Management
AUM - January         $ 43,713     $ 9,285      $ 3,181     $ 5,515     $ 5,976     $ 6,232     $ 13,524     $ -
1, 2012
Capital raised          259          -            -           99          67          93          -            -
Equity raised           -            -            -           -           -           -           -            -
Increase in
invested                416          4            -           -           20          392         -            -
capital
Redemptions             (997   )     -            -           (997  )     -           -           -            -
RCA                     (212   )     -            -           -           (212  )     -           -            -
distributions^5
Return of
capital                 (400   )     (3     )     -           -           (15   )     (382  )     -            -
distributions
Adjustment for          -            -            -           -           -           -           -            -
reset date
Crystallized
incentive               (71    )     -            -           (1    )     (70   )     -           -            -
income
Equity buyback          -            -            -           -           -           -           -            -
Net Client              2,296        40           -           -           -           -           2,256        -
Flows
Income (loss)
and foreign            1,428       703        29        224       245       (77   )    304        -      
exchange
AUM - Ending            46,432       10,029       3,210       4,840       6,011       6,258       16,084       -
Balance
                                                                                                               
Third-Party           $ 2,914      $ 29         $ -         $ 99        $ 67        $ 2,719     $ -          $ -
Capital Raised
                                                                                                               
Segment
Revenues
Management fee        $ 118        $ 30         $ 14        $ 20        $ 26        $ 22        $ 6          $ -
Incentive              52          5          -         6         30        11        -          -      
income
Total                   170          35           14          26          56          33          6            -
                                                                                                               
Segment
Expenses
Operating             $ (82    )   $ (11    )   $ (7    )   $ (17   )   $ (16   )   $ (22   )   $ (9     )   $ -
expenses
Profit sharing
compensation           (28    )    (2     )    -         (4    )    (14   )    (8    )    -          -      
expenses
Total                   (110   )     (13    )     (7    )     (21   )     (30   )     (30   )     (9     )     -
                                                                                                      
Fund Management        60          22         7         5         26        3         (3     )    -      
DE
                                                                                                               
Principal
Performance             (4     )     -            -           (1    )     (3    )     -           -            -
Payments
                                                                                                      
Fund Management
DE (after              56          22         7         4         23        3         (3     )    -      
Principals
Comp)
                                                                                                               
Investment              5                                                                                      5
Income
Interest               (4     )                                                                       (4     )
Expense
Pre-tax
Distributable         $ 57         $ 22        $ 7        $ 4        $ 23       $ 3        $ (3     )   $ 1      
Earnings
                                                                                                               
Pre-tax
Distributable
Earnings per          $ 0.11
Dividend Paying
Share

____________________________________
^5 Represents distributions from (i) assets held by redeeming capital accounts
in the Drawbridge Special Opportunities Funds, and (ii) the Value Recovery
Funds.



Fortress Investment Group LLC

Exhibit 2-a

Assets Under Management and Fund Management DE

(dollars in millions)
                                                                           
                   Three Months Ended                                               Three
                                                                                    Months
                   March 31,    June 30,     September    December     Full Year    Ended
Fortress                                     30,          31,                       March 31,
                   2012         2012                                   2012         2013
                                             2012         2012
Assets Under
Management
Private
Equity &           $ 13,239     $ 13,826     $ 14,718     $ 14,271     $ 14,271     $ 15,495
Castles
Liquid Hedge         4,840        4,398        4,378        5,060        5,060        5,490
Funds
Credit Hedge         6,011        5,859        5,663        5,665        5,665        5,620
Funds
Credit
Private              6,258        5,593        6,090        7,749        7,749        7,041
Equity Funds
Logan Circle        16,084     18,112     20,626     20,685     20,685     21,937 
AUM - Ending       $ 46,432    $ 47,788    $ 51,475    $ 53,430    $ 53,430    $ 55,583 
Balance
                                                                                    
Third-Party
Capital            $ 2,914     $ 1,103     $ 1,183     $ 1,485     $ 6,685     $ 1,727  
Raised
                                                                                    
Segment
Revenues
Management         $ 118        $ 114        $ 116        $ 131        $ 479        $ 132
fees
Incentive           52         47         65         114        278        116    
income
Total                170          161          181          245          757          248
                                                                                    
Segment
Expenses
Operating            (82    )     (81    )     (82    )     (91    )     (336   )     (89    )
expenses
Profit
sharing              (28    )     (24    )     (31    )     (42    )     (125   )     (54    )
compensation
expenses
Unallocated         -          -          -          1          1          -      
expenses
Total                (110   )     (105   )     (113   )     (132   )     (460   )     (143   )
                                                                               
Fund
Management
DE (before          60         56         68         113        297        105    
Principal
Performance
Payments)
                                                                                    
Principal
Performance         (4     )    (3     )    (5     )    (8     )    (20    )    (8     )
Payments
Fund
Management         $ 56        $ 53        $ 63        $ 105       $ 277       $ 97     
DE
                                                                                    



Fortress Investment Group LLC

Exhibit 2-b

Assets Under Management and Fund Management DE

(dollars in millions)
                                                                           
                   Three Months Ended                                               Three
                                                                                    Months
Private            March 31,    June 30,     September    December     Full Year    Ended
Equity Funds                                 30,          31,                       March 31,
& Castles          2012         2012                                   2012
                                             2012         2012                      2013
                                                                                    
Assets Under
Management
Private            $ 10,029     $ 10,436     $ 11,113     $ 10,611     $ 10,611     $ 11,126
Equity Funds
Castles             3,210      3,390      3,605      3,660      3,660      4,369  
AUM - Ending       $ 13,239    $ 13,826    $ 14,718    $ 14,271    $ 14,271    $ 15,495 
Balance
                                                                                    
Third-Party
Capital            $ 29        $ 267       $ 768       $ 77        $ 1,141     $ 985    
Raised
                                                                                    
Segment
Revenues
Management         $ 44         $ 42         $ 45         $ 45         $ 176        $ 51
fees
Incentive           5          3          1          2          11         3      
income
Total                49           45           46           47           187          54
                                                                                    
Segment
Expenses
Operating            (18    )     (17    )     (17    )     (15    )     (67    )     (20    )
expenses
Profit
sharing             (2     )    (1     )    -          (1     )    (4     )    (1     )
compensation
expenses
Total                (20    )     (18    )     (17    )     (16    )     (71    )     (21    )
                                                                               
Fund
Management
DE (before          29         27         29         31         116        33     
Principal
Performance
Payments)
                                                                                    
Principal
Performance         -          -          (1     )    -          (1     )    (1     )
Payments
Fund
Management         $ 29        $ 27        $ 28        $ 31        $ 115       $ 32     
DE
                                                                                    



Fortress Investment Group LLC

Exhibit 2-c

Assets Under Management and Fund Management DE

(dollars in millions)
                                                                       
                    Three Months Ended                                          Three
                                                                                Months
                    March 31,   June 30,    September   December    Full Year   Ended
Credit Hedge                                30,         31,                     March 31,
Funds               2012        2012                                2012
                                            2012        2012                    2013
                                                                                
Assets Under
Management
Drawbridge
Special             $ 5,209     $ 5,168     $ 5,152     $ 5,169     $ 5,169     $ 5,152
Opportunities
Funds^6
Value
Recovery             802       691       511       496       496       468   
Funds^7
AUM - Ending        $ 6,011    $ 5,859    $ 5,663    $ 5,665    $ 5,665    $ 5,620 
Balance
                                                                                
Third-Party
Capital             $ 67       $ 49       $ 100      $ 31       $ 247      $ 75    
Raised
                                                                                
Segment
Revenues
Management          $ 26        $ 26        $ 24        $ 25        $ 101       $ 25
fees
Incentive            30        26        36        38        130       33    
income
Total                 56          52          60          63          231         58
                                                                                
Segment
Expenses
Operating             (16   )     (16   )     (15   )     (16   )     (63   )     (15   )
expenses
Profit
sharing              (14   )    (12   )    (19   )    (18   )    (63   )    (18   )
compensation
expenses
Total                 (30   )     (28   )     (34   )     (34   )     (126  )     (33   )
                                                                           
Fund
Management DE
(before              26        24        26        29        105       25    
Principal
Performance
Payments)
                                                                                
Principal
Performance          (3    )    (3    )    (3    )    (4    )    (13   )    (4    )
Payments
Fund                $ 23       $ 21       $ 23       $ 25       $ 92       $ 21    
Management DE
                                                                                
                                                                                
Net Returns^8
Drawbridge
Special               4.2   %     3.3   %     5.1   %     4.2   %     17.9  %     4.0   %
Opportunities
Fund LP
Drawbridge
Special               4.8   %     3.0   %     4.0   %     3.9   %     16.6  %     3.4   %
Opportunities
Fund Ltd

____________________________________
^6 Combined AUM for Drawbridge Special Opportunities Fund LP, Drawbridge
Special Opportunities Fund Ltd, Drawbridge Special Opportunities Fund managed
accounts, Worden Fund LP and Worden Fund II LP.
^7 Fortress will receive management fees from these funds equal to 1% of cash
receipts and may receive limited incentive income if aggregate realizations
exceed an agreed threshold. Prior to October 1, 2012, Fortress also earned 1%
per annum of AUM of certain managed assets.
^8 The performance data contained herein reflects returns for a "new issue
eligible," single investor class as of the close of business on the last day
of the relevant period. Net returns reflect performance data after taking into
account management fees borne by the Fund and incentive allocations. Specific
performance may vary based on, among other things, whether fund investors are
invested in one or more special investments. The returns for the Drawbridge
Special Opportunities Funds reflect the performance of each fund excluding the
performance of the redeeming capital accounts which relate to December 31,
2008, December 31, 2009, December 31, 2010, December 31, 2011 and December 31,
2012 redemptions.



Fortress Investment Group LLC

Exhibit 2-d

Assets Under Management and Fund Management DE

(dollars in millions)
                                                                       
                                                                                Three
                    Three Months Ended                                          Months

                                                                                Ended
Credit              March 31,   June 30,    September   December    Full Year   March 31,
Private                                   30,        31,                  
Equity Funds        2012        2012                                2012        2013
                                            2012        2012
Assets Under
Management
Long Dated          $ 564       $ 555       $ 555       $ 483       $ 483       $ 459
Value Funds^9
Real Assets           102         92          97          88          88          90
Funds
Fortress
Credit                4,610       4,246       4,611       5,033       5,033       4,479
Opportunities
Funds^10
Japan
Opportunity          982       700       827       2,145     2,145     2,013 
Funds^11
AUM - Ending        $ 6,258    $ 5,593    $ 6,090    $ 7,749    $ 7,749    $ 7,041 
Balance
                                                                                
Third-Party
Capital             $ 2,719    $ 606      $ 148      $ 831      $ 4,304    $ -     
Raised
                                                                                
Segment
Revenues
Management          $ 22        $ 21        $ 21        $ 34        $ 98        $ 25
fees
Incentive            11        14        17        27        69        48    
income
Total                 33          35          38          61          167         73
                                                                                
Segment
Expenses
Operating             (22   )     (23   )     (24   )     (26   )     (95   )     (27   )
expenses
Profit
sharing              (8    )    (8    )    (8    )    (13   )    (37   )    (25   )
compensation
expenses
Total                 (30   )     (31   )     (32   )     (39   )     (132  )     (52   )
                                                                           
Fund
Management DE
(before              3         4         6         22        35        21    
Principal
Performance
Payments)
                                                                                
Principal
Performance          -         -         -         (1    )    (1    )    (1    )
Payments
Fund                $ 3        $ 4        $ 6        $ 21       $ 34       $ 20    
Management DE

____________________________________
^9 Combined AUM for Long Dated Value Fund I, Long Dated Value Fund II, Long
Dated Value Fund III and LDVF Patent Fund.
^10 Combined AUM for Credit Opportunities Fund, Credit Opportunities Fund II,
Credit Opportunities Fund III, FCO Managed Accounts, Net Lease Fund I, Global
Opportunities Fund, Life Settlements Fund, Life Settlements Fund MA, SIP
managed account, Real Estate Opportunities Fund and Real Estate Opportunities
REOC Fund.
^11 Combined AUM for Japan Opportunity Fund, Japan Opportunity Fund II
(Dollar) and Japan Opportunity Fund II (Yen).



Fortress Investment Group LLC

Exhibit 2-e

Assets Under Management and Fund Management DE

(dollars in millions)
                                                                        
                   Three Months Ended                                          Three
                                                                               Months
                   March 31,   June 30,    September   December    Full Year   Ended
Liquid Hedge                             30,         31,                     March 31,
Funds              2012        2012                                2012
                                           2012        2012                    2013
                                                                               
Assets Under
Management
Fortress
Macro              $ 2,429     $ 2,417     $ 2,250     $ 2,746     $ 2,746     $ 3,055
Funds^12
Fortress
Convex Asia          -           26          25          50          50          75
Funds^13
Drawbridge
Global Macro         398         410         417         356         356         342
Funds^14
Fortress
Commodities          473         -           -           -           -           -
Funds^15
Fortress
Asia Macro           211         235         316         511         511         792
Funds^16
Fortress
Partners            1,329     1,310     1,370     1,397     1,397     1,226 
Funds^17
AUM - Ending       $ 4,840    $ 4,398    $ 4,378    $ 5,060    $ 5,060    $ 5,490 
Balance
                                                                               
Third-Party
Capital            $ 99       $ 181      $ 167      $ 546      $ 993      $ 667   
Raised
                                                                               
Segment
Revenues
Management         $ 20        $ 19        $ 19        $ 19        $ 77        $ 23
fees
Incentive           6         4         11        47        68        32    
income
Total                26          23          30          66          145         55
                                                                               
Segment
Expenses
Operating            (17   )     (17   )     (17   )     (23   )     (74   )     (18   )
expenses
Profit
sharing             (4    )    (3    )    (4    )    (10   )    (21   )    (10   )
compensation
expenses
Total                (21   )     (20   )     (21   )     (33   )     (95   )     (28   )
                                                                          
Fund
Management
DE (before          5         3         9         33        50        27    
Principal
Performance
Payments)
                                                                               
Principal
Performance         (1    )    -         (1    )    (3    )    (5    )    (2    )
Payments
Fund
Management         $ 4        $ 3        $ 8        $ 30       $ 45       $ 25    
DE
                                                                               
                                                                               
Net
Returns^18
Fortress
Macro Fund           6.2   %     1.7   %     2.9   %     6.0   %     17.8  %     3.8   %
Ltd
Drawbridge
Global Macro         5.8   %     1.4   %     2.8   %     5.9   %     16.9  %     3.6   %
Fund Ltd
Fortress
Commodities          -8.7  %     -4.1  %     N/A         N/A         -12.5 %     N/A
Fund L.P.
Fortress
Asia Macro           5.8   %     0.9   %     3.6   %     9.5   %     21.2  %     2.8   %
Fund Ltd
Fortress
Convex Asia          N/A         -0.7  %     -2.5  %     -1.9  %     -5.0  %     -0.9  %
Fund Ltd^19
Fortress
Partners             3.1   %     -1.3  %     5.1   %     1.0   %     8.0   %     2.2   %
Fund LP^20
Fortress
Partners             2.4   %     -0.3  %     5.7   %     -0.2  %     7.7   %     3.1   %
Offshore
Fund L.P.^20
                                                                               

____________________________________
^12 Combined AUM for Fortress Macro Onshore Fund LP, Fortress Macro Fund Ltd,
Fortress Macro MA1 and Fortress Macro managed accounts.
^13 Combined AUM for Fortress Convex Asia Fund LP and Fortress Convex Asia
Fund Ltd.
^14 Combined AUM for Drawbridge Global Macro Fund LP and Drawbridge Global
Macro Intermediate Fund LP.
^15 Combined AUM for Fortress Commodities Fund LP, Fortress Commodities Fund
Ltd, Fortress Commodities MA1 LP and Fortress Commodities managed accounts.
The Fortress Commodities Funds were closed in May 2012.
^16 Combined AUM for Fortress Asia Macro Fund Ltd, Fortress Asia Macro Fund LP
and Fortress Asia Macro managed accounts.
^17 Combined AUM for Fortress Partners Offshore Fund LP and Fortress Partners
Fund LP.
^18 The performance data contained herein reflects returns for a "new issue
eligible," single investor class as of the close of business on the last day
of the relevant period. Net returns reflect performance data after taking into
account management fees borne by the Fund and incentive allocations.
^19 The Fortress Convex Asia Funds were launched on May 1, 2012. Accordingly,
the three months ended June 30, 2012 returns represent the two month period
from May 1, 2012 to June 30, 2012 and the full year 2012 returns represent the
eight month period from May 1, 2012 to December 31, 2012.
^20 The returns for the Fortress Partners Funds include gains and losses from
Special Investments. Investors' specific performance may vary dependent upon
their ownership in one or more Special Investments.



Fortress Investment Group LLC

Exhibit 2-f

Assets Under Management and Fund Management DE

(dollars in millions)
                                                                           
                   Three Months Ended                                               Three
                                                                                    Months
                   March 31,    June 30,     September    December     Full Year    Ended
Logan Circle                                 30,          31,                       March 31,
                   2012         2012                                   2012
                                             2012         2012                      2013
Assets Under
Management
AUM - Ending       $ 16,084    $ 18,112    $ 20,626    $ 20,685    $ 20,685    $ 21,937 
Balance
                                                                                    
Net Client         $ 2,256     $ 1,699     $ 1,980     $ (225   )   $ 5,710     $ 1,153  
Flows
                                                                                    
Segment
Revenues
Management         $ 6          $ 6          $ 7          $ 8          $ 27         $ 8
fees
Incentive           -          -          -          -          -          -      
income
Total                6            6            7            8            27           8
                                                                                    
Segment
Expenses
Operating            (9     )     (8     )     (9     )     (11    )     (37    )     (9     )
expenses
Profit
sharing             -          -          -          -          -          -      
compensation
expenses
Total                (9     )     (8     )     (9     )     (11    )     (37    )     (9     )
                                                                               
Fund
Management         $ (3     )   $ (2     )   $ (2     )   $ (3     )   $ (10    )   $ (1     )
DE
                                                                                    

<td class="bwpadl0 bwn*Story too large*


Fortress Investment Group LLC

Exhibit 3

Reconciliation of GAAP Net Income (Loss) to Pre-tax Distributable Earnings and
Fund Management DE,

Reconciliation of GAAP Revenues to Segment Revenues and Reconciliation of GAAP
Expenses to Segment Expenses

(dollars in millions)
                                                                  
                    Three Months Ended                                   
                                                                          Three
                    March     June      September   December   Full       Months
                    31,      30,       30,         31,        Year       Ended
                                                                          March
                    2012      2012      2012        2012       2012       31,
                                                                          2013
                                                                     
GAAP Net            $ (24 )   $ 14     $  7       $ 222     $ 219     $ 67  
Income (Loss)
Principals'
and Others'
Interests in
Income               (6  )    (9  )     (6   )    (120 )    (141 )    (53 )
(Losses) of
Consolidated
Subsidiaries
GAAP Net
Income (Loss)
Attributable        $ (30 )   $ 5      $  1       $ 102     $ 78      $ 14  
to Class A
Shareholders
Private
Equity                3         (7  )      14         (12  )     (2   )     22
incentive
income
Hedge Fund
incentive             36        26         46         (108 )     -          59
income
Reserve for           4         2          -          2          8          2
clawback
Distributions
of earnings
from equity           2         -          2          2          6          4
method
investees
Losses
(earnings)
from equity           (31 )     (21 )      (48  )     (42  )     (142 )     (35 )
method
investees
Losses
(gains) on            (4  )     -          6          (8   )     (6   )     (29 )
options
Losses
(gains) on            (20 )     (7  )      (4   )     (10  )     (41  )     (11 )
other
Investments
Impairment of         -         -          (1   )
investments

[TRUNCATED]