Nuveen Investments Reports 1st Quarter 2008 Earnings and Assets Under Management of $153 Billion

Business Wire, May 15, 2008

CHICAGO -- Nuveen Investments, Inc., a leading provider of diversified investment services, today reported first quarter adjusted EBITDA(1) of $106 million, down 9% from the prior year, and first quarter operating revenue of $197 million, which is consistent with the prior year.

First quarter gross sales were $4.3 billion, down 48% from the prior year. Gross sales in the period were comprised of $1.7 billion in retail managed accounts, $1.4 billion in mutual funds, and $1.2 billion in institutional separate accounts.

Net outflows for the quarter were $3.0 billion, largely due to $2.5 billion in outflows in retail managed accounts, which were primarily attributable to redemptions in previously closed strategies. Institutional net outflows were $0.6 billion in the quarter while mutual fund flows were positive $0.1 billion.

Total assets under management were $153.0 billion at March 31, 2008, compared to $166.1 billion a year ago and $164.3 billion at the end of the prior quarter. The 8% decrease in assets under management from the prior year was driven by $8.7 billion in market depreciation and $4.7 billion in net outflows, offset by $0.4 billion from the acquisition of HydePark Investment Strategies. From the prior quarter, assets under management decreased 7% due to $8.2 billion in market depreciation and $3.0 billion in net outflows.

Commenting on the Company's results, John Amboian, Chief Executive Officer of Nuveen Investments said, "The challenging market environment in the first quarter led to a difficult first quarter for Nuveen, with a 5% decline in assets under management due to market depreciation, increased redemptions in our retail managed accounts, and dampened institutional and mutual fund sales. Despite these short-term challenges, we are pleased with the high quality performance that our investment teams delivered in the first quarter with most of our strategies beating benchmarks by meaningful margins."

Operating revenue of $197 million in the first quarter was consistent with the prior year driven by a $3.0 million or 2% increase in advisory fees. This increase was the result of increased beginning of quarter assets under management, which determine the advisory fees for a significant portion of managed accounts, offset by a $2.9 million decline in performance fees and other revenue.

Operating revenue decreased 6% compared to the prior quarter as a result of an $8.7 million or 4% decrease in advisory fee revenue due to lower assets under management and a $3.7 million decrease in performance fees and other revenue. Adjusted EBITDA as a percentage of revenue was 54% in the quarter.

Adjusted EBITDA(1) was $106 million for the first quarter, down 9% compared to the prior year, primarily due to an 8% increase in compensation and benefits expense as a result of increased headcount and annual salary increases.

As of March 31, 2008, cash and cash equivalents were $91 million and gross debt was $3.65 billion. These balances exclude the impact of consolidated investment vehicles in which Nuveen has no economic interest.

As previously announced, Nuveen Investments will host a conference call to discuss its first quarter results today at 10:00 am central time. To access this call live or listen to an audio replay, visit the investor relations section of the Company's website at www.nuveen.com.

Nuveen Investments provides high-quality investment services designed to help secure the long-term goals of institutions and high-net-worth investors as well as the consultants and financial advisors who serve them. Nuveen Investments markets its growing range of specialized investment solutions under the high-quality brands of NWQ, Tradewinds, Symphony, Santa Barbara, Nuveen and Rittenhouse. In total, the Company managed $153 billion in assets as of March 31, 2008.

FORWARD-LOOKING STATEMENTS

Certain statements made by the Company in this release are forward-looking statements. The Company's actual future results may differ significantly from those anticipated in any forward-looking statements due to numerous factors. These include, but are not limited to, the effects of the substantial competition in the investment management business, including competition for access to brokerage firms' retail distribution systems, the Company's reliance on revenues from investment management contracts which renew annually, issues arising as a result of the continuing failure of auctions for the approximately $15 billion of auction rate preferred stock issued by closed-end funds sponsored by the Company, regulatory developments, accounting pronouncements, and other additional risks and uncertainties. The Company undertakes no responsibility to update publicly or revise any forward-looking statements.

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