Waddell & Reed Financial, Inc. Declares A Special Cash Dividend And A 12 Percent Increase In Regular Quarterly Dividend

The Board of Directors of Waddell & Reed Financial, Inc. (NYSE: WDR) approved a special cash dividend on its Class A common stock of $1.00 per share payable on December 6, 2012 to stockholders of record as of November 26, 2012.

“A strong balance sheet and healthy cash flow affords us the flexibility to pay a special cash dividend while retaining ample capital for continued growth,” said Hank Herrmann, Chairman and Chief Executive Officer of Waddell & Reed Financial, Inc. “There is no change in policy to annually repurchase shares to offset restricted stock grant dilution. Following the special dividend, our balance sheet remains strong. Given the free cash flow generating nature of our investment management business, extraordinary distributions may occur in the future.”

In addition to the special cash dividend, the Board has approved an increase in the quarterly dividend to $0.28 per share payable on February 1, 2013 to stockholders of record as of January 11, 2013. This new quarterly rate represents an increase of 12% over the previous $0.25 dividend per share rate.

About the Company

Waddell & Reed, Inc., founded in 1937, is one of the oldest mutual fund complexes in the United States, having introduced the Waddell & Reed Advisors Group of Mutual Funds in 1940. Today, we distribute our investment products through the Waddell & Reed Advisors channel (our network of financial advisors), our Wholesale channel (encompassing broker/dealer, retirement, registered investment advisors as well as the activities of our Legend subsidiary), and our Institutional channel (including defined benefit plans, pension plans and endowments, and our subadvisory partnership with Mackenzie in Canada).

Through its subsidiaries, Waddell & Reed Financial, Inc. provides investment management and financial planning services to clients throughout the United States. Waddell & Reed Investment Management Company serves as investment advisor to the Waddell & Reed Advisors Group of Mutual Funds, Ivy Funds Variable Insurance Portfolios and InvestEd Portfolios, while Ivy Investment Management Company serves as investment advisor to Ivy Funds. Waddell & Reed, Inc. serves as principal underwriter and distributor to the Waddell & Reed Advisors Group of Mutual Funds, Ivy Funds Variable Insurance Portfolios and InvestEd Portfolios, while Ivy Funds Distributor, Inc. serves as principal underwriter and distributor to Ivy Funds.

Copyright Business Wire 2010

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