“Lazard continues to generate strong revenues in a weak macroeconomic environment,” said Kenneth M. Jacobs, Chairman and Chief Executive Officer of Lazard. “The breadth of our global advisory franchise was evident as we advised on multiple large, complex, cross-border M&A transactions. Our Asset Management business achieved net inflows in the second quarter, despite volatile equity markets, reflecting our competitive positioning and strong pattern of performance.”“Uncertainty regarding Europe and the U.S. fiscal outlook continues to be a headwind for our industry, so we remain cautious. Even as we pursue revenue growth, we are equally focused on expense management,” said Mr. Jacobs. “The second-quarter net income comparison was impacted by legacy compensation costs and lower 2011 second-quarter accruals compared to full-year results,” said Matthieu Bucaille, Chief Financial Officer of Lazard. “We are committed to reaching an operating margin target of at least 25% by 2014, even at current activity levels,” said Mr. Bucaille. “We have several expense management initiatives currently underway, which we expect will generate cost savings that will have a positive impact starting with our 2013 results.” 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. Second Quarter Financial Advisory operating revenue was $243 million, 3% lower than the second quarter of 2011, with the decrease primarily due to lower restructuring revenues. Strategic Advisory operating revenue was $213 million, 6% higher than the second quarter of 2011. This was driven by a 15% increase in M&A revenue. Restructuring operating revenue was $30 million, 38% lower than the second quarter of 2011, reflecting the uneven timing of closings and consistent with the continuing industry-wide decline of corporate restructuring activity.