The American Lawyer Reports New Record in Partner Profits as Wiley Rein Dethrones Wachtell; Nation's Largest Law Firms Continue to Grow at Torrid Pace

Business Wire, April 30, 2007

NEW YORK -- The American Lawyer([R]) magazine reported today a new leader in profits per partner for the first time in eight years, as massive contingency fees boosted Washington, D.C.-based Wiley Rein past Wachtell which has headed that list since 1998. The Am Law 100[R], the nation's 100 highest-grossing law firms, grew total gross revenue by 11.4 percent last year to $56.7 billion, while the average revenue per lawyer for the list reached almost $780,000, an astonishing increase of almost 40 percent since 2000. For the first time, the majority of firms on the list reported profits per equity partner of more than $1 million dollars, but attaining equity partner status has become more elusive than ever. Last year, only 25 percent of Am Law 100 lawyers were equity partners, the lowest level reported since the survey's inception. The 2007 Am Law 100 rankings, based on FY 2006 financial performance data, are featured in the May issue of the magazine, available beginning today. Selected Am Law 100 survey results are also available on the Web at www.americanlawyer.com and www.law.com.

"The remarkable financial record of these firms raises two questions about their futures. Can their trees really grow to the sky? And which partners will be around to enjoy the fruits?" said Aric Press, editor in chief of The American Lawyer. "The demand for high-priced legal services continues virtually unabated. So does the pruning of partners who can't keep pace with the constant push for more profits. These are enviable times for big-firm lawyers. They should enjoy them while they last."

Among the other highlights of this year's survey:

* Wiley Rein's equity partners took home an average of $4.4 million each last year, thanks to their role in the $612.5 million dollar settlement of the NTP/Blackberry case. The firm received $245 million in fees. Historical PPP leader Wachtell, the smallest Am Law 100 firm by headcount, placed second, with almost $4.0 million.

* Eleven firms reported more than $1 billion in revenues, led by Skadden, Arps at $1.9 billion. Skadden is on track to become the nation's first firm with more than $2 billion in annual gross revenues next year.

* Wachtell led the list again in average partner compensation ($4.0 million); revenue per lawyer ($2.5 million); and value per lawyer ($1.6 million).

* This year, 39 firms shrank or held steady the number of equity partners, while another 15 reported increases of three or less. Seventeen AM Law 100 firms now have more non-equity partners than equity partners.

* Head count in the Am Law 100 increased at a slightly higher pace last year, growing by 3.9 percent.

The American Lawyer's Am Law 100 has been recognized as the definitive public ranking of annual financial performance for the nation's largest law firms since its introduction in 1987. Am Law 100/200 metrics are primary benchmarks for law firms seeking to assess their competitive position in the marketplace.

This June, The American Lawyer will publish its rankings of the second hundred largest firms. Am Law 100 spreadsheet data is available for online purchase through the ALM Research Store at www.almresearchonline.com. To subscribe or request back copies of The American Lawyer, including copies of the Am Law 100 issue, please call (800) 755-2773 or (212) 545-5990 outside the U.S. An electronic edition of the magazine can also be purchased online at www.americanlawyer-digital.com/. The American Lawyer magazine is published monthly by ALM.

Headquartered in New York City, ALM is a leading integrated media company, focused on the legal and business communities. ALM currently owns and publishes 33 national and regional magazines and newspapers, including The American Lawyer, Corporate Counsel([R]), The National Law Journal([R]) and Real Estate Forum([R]). The company is one of North America's largest producers of conferences and trade shows for business leaders and the legal profession. ALM's Law.com([R]) is the Web's leading legal news and information network, while ALM's GlobeSt.com([R]) is the Web's leading information source for commercial real estate professionals. Other ALM businesses include book and newsletter publishing, court verdict and settlement reporting, production of professional educational seminars, market research and content distribution. ALM was formed by U.S. Equity Partners, L.P., a private equity fund sponsored by Wasserstein & Co., LP. More information on ALM's businesses and services is available on the Web at www.alm.com.