Alliancebernstein 8-K Results of Operations and Financial Condition

Third Quarter 2006 Review

Gerald M. Lieberman

President & Chief Operating Officer

Lewis A. Sanders

Chairman & Chief Executive Officer

Any forecasts in this material may not be realized. Information or opinions should not be construed as investment advice.

October 25, 2006

Forward-Looking Statements

 Certain statements in this presentation are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.  These forward-looking statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements.  The most significant of these factors include, but are not limited to, the following: the performance of financial markets, the investment performance we achieve for our clients, general economic conditions, future acquisitions, competitive conditions, and government regulations, including changes in tax rates.  We caution readers to carefully consider our forward-looking statements in light of these factors.  Further, these forward-looking statements speak only as of the date on which such statements are made; we undertake no obligation to update any forward-looking statements to reflect subsequent events or circumstances.  For further information regarding these forward-looking statements and the factors that could cause actual results to differ, see “Risk Factors” in Item 1 of Form 10-K for the year ended December 31, 2005.  Any or all of the forward-looking statements that we make in Form 10-K, this presentation, or any other public statements we issue may turn out to be wrong.  Please remember that factors other than those listed in “Risk Factors” and other than those listed below could also adversely affect our business, operating results, or financial condition.

 The forward-looking statements referred to in the preceding paragraph include statements regarding substantial investment  opportunity in growth stocks, the encouragement we take from the backlog of unfunded institutional mandates and our optimism that growth will resume in institutional research services.  The actual performance of the capital markets and other factors beyond our control will affect our investment success and asset inflows.  Declines in rates charged for brokerage transactions and fluctuations in transaction volume and market share will affect the growth of our institutional research services.

In light of Regulation FD, management will be limited in responding to inquiries from investors or analysts in a non-public forum.

Introduction

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Equity and Fixed Income markets strong

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Relative performance mixed

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Value generally outperformed

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Fixed Income close to benchmarks

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Growth generally underperformed

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Positive net AUM flows came in as expected

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Financial performance vs. September 2005

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AllianceBernstein (Operating)

Ø

Net Revenues up 17.5%

Ø

Operating Income up 23.5%

Ø

Net Income up 19.4%

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AllianceBernstein Holding

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Net Income per Unit up 17.6% to $0.87

Ø

Distribution of $0.87 per Unit up 17.6%

AllianceBernstein – Third Quarter Highlights

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*12 months ending September 30, 2006.

Source: Frank Russell Company, Standard & Poor’s, and Lehman Brothers.

Market Performance - U.S.

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*12 months ending September 30, 2006.

Source: MSCI (Morgan Stanley Capital International).

Market Performance - Non-U.S.

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Relative investment performance for the quarter

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Value Equities generally outperformed

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Fixed Income results were close to benchmarks

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Growth Equities generally underperformed

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Competitive or better longer-term performance vs. benchmarks

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Global and International Value Equities

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Fixed Income

Relative Performance Summary

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The information in this table is provided solely for use in connection with this presentation and is not directed towards existing or potential investment advisory clients of  AllianceBernstein. Past performance is no guarantee of future results. Source: Nomura, Russell Investment Group, Scotia Capital, S&P, TOPIX, and AllianceBernstein.

Net-of-Fee Annualized Relative Performance Premiums

Investment Performance: Delivering Results for Clients

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Three Months Ended September 30, 2006

In $ Millions

Changes in Assets Under Management

By Channel

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Twelve Months Ended September 30, 2006

In $ Millions

Changes In Assets Under Management

By Channel

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Three Months Ended September 30, 2006

In $ Millions

Changes in Assets Under Management

By Investment Service

10

Twelve Months Ended September 30, 2006

In $ Millions

Changes In Assets Under Management

By Investment Service

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(1)   Acquisition of Hong Kong joint venture interest; disposition of South African joint venture interest.

(2)   Transfers of certain client accounts were made among distribution channels resulting from changes in how these accounts are serviced by the firm.  AUM as of September 30, 2006 reflect these transfers.

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Global/International services

comprised approximately
80% of funded mandates

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Net inflows remain strong in

Value and Blend Strategies
services

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Pipeline of won but unfunded

new mandates increased

Institutional Investments—

Third Quarter Highlights

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(1)   Transfers of certain client accounts were made among distribution channels resulting from changes in how these accounts are serviced by the firm. AUM as of September 30, 2006 reflect these transfers.

(2)   Mainly Retail; includes some Private Client and Institutional Investments assets.

(3)   As provided by savingforcollege.com

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Positive net flows for fifth

consecutive quarter

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Wealth Strategies services up

>18% to nearly $7.7 billion in AUM ⁽²⁾

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Marked three-year anniversary of

Wealth Strategies

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5 out of 6 funds awarded four

or five stars from Morningstar

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CollegeBoundfund ranked #1

savings plan based on three-year
performance ⁽³⁾

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over $7.0 billion in assets ⁽²⁾

Retail—

Third Quarter Highlights

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(1)   Transfers of certain client accounts were made among distribution channels resulting from changes in how these accounts are serviced by the firm.  AUM as of September 30, 2006 reflect these transfers.

Private Client—

Third Quarter Highlights

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Positive net flows for the

quarter

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Financial Advisors up 37

(15%) from 3Q05 to 291

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<

Revenues down 3.6% from prior year quarter but up 7.8% year-to-date

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Higher market share and volume, partially offset by industry-wide pricing declines

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Client use of our algorithmic trading platform in the U.S. continues to grow; on schedule for early 2007 launch in Europe

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Spectacular results in Institutional Investor’s latest poll:

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Nine analysts were voted #1 in their sector, beating 2005’s best ever six

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Voted top three in 18 sectors, surpassing last year’s best ever 15

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As a firm, we placed in the Top Ten in Institutional Investor’s league table for the third consecutive year

Institutional Research Services—

Third Quarter Highlights

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By Client Domicile

By Investment Service

In $ Billions

$659 Billion +19%

at Sept. 30, 2006

$555 Billion

at Sept. 30, 2005

Growth in Global Assets

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Assets Under Management

by Investment Service

$659 Billion

Blend Strategies AUM

$116 Billion ⁽¹⁾

(1) Includes $4 billion of Blend Fixed Income AUM.

Growth in Blend Strategies Assets

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(1) Includes $4 million reclassified from advisory fees.

(2) Includes Shareholder Servicing, Investment Gains (Losses) and Other Revenues.

NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand.

AllianceBernstein Third Quarter Revenues

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NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand.

AllianceBernstein Third Quarter Advisory Fees

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NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand.

In $ Millions

AllianceBernstein Third Quarter Expenses

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NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand.

In $ Millions

AllianceBernstein Third Quarter Compensation & Benefits

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NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand.

In $ Millions

AllianceBernstein Third Quarter Expenses

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(1) Operating Income as a percentage of net revenues 

NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand.

In $ Millions

AllianceBernstein Third Quarter Net Income

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NOTE: Percentages are calculated using revenues and expenses rounded to the nearest thousand.

In $ Millions (except per unit amounts)

AllianceBernstein Holding Financial Results

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Portfolio Construction

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Superior Performance

=

Long and short equities

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Long and short fixed income

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Currencies

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Commodities

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Asset allocation

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Risk management

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Cross-asset-class optimization

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Tax minimization

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High information ratios

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Alpha/beta flexibility

Hedge Funds: Leveraging the Firm’s Core Competencies

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Alpha Sources

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Premium returns are based on the past performance of the AllianceBernstein Hedge Funds, the results of AllianceBernstein’s proprietary models and simulations, the AllianceBernstein Hedge Fund’s expected volatility and investment guidelines regarding factors such as leverage, net market exposure, and diversification. Of course, actual returns may differ from premium returns, and there can be no guarantee that the AllianceBernstein Hedge Funds will achieve their investment and premium objectives. In an attempt to achieve these objectives, the AllianceBernstein Hedge Funds will utilize several investment techniques, including—but not limited to—long and short investments, the use of leverage, and investment in derivatives. These investment techniques involve risks different from and, in certain cases, greater than the risks presented by traditional investments. These risks are fully described in each AllianceBernstein Hedge Fund's Confidential Memorandum. Investors should read it carefully before they decide to invest.

Broad Array of Services

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Expected Long-Term Contributions to Premium

(Simulated)

NOTE: Expected Long-Term Contributions to Premium are based on a research simulation and reflect the return premium in excess of cash; there is no assurance that premiums will occur in the patterns depicted here, or that each of the components will always generate a premium.
Source: Lehman Brothers, MSCI, and AllianceBernstein estimates

Newest Hedge Fund Offerings Utilize Five Distinct Alpha Sources

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Correlations of Alpha Sources

  (Simulated)

NOTE: Correlations of Alpha Sources are based on a research simulation and reflect the return premium in excess of cash; there is no assurance that premiums will occur in the patterns depicted here, or that each of the components will always generate a premium.
Source: Lehman Brothers, MSCI, and AllianceBernstein estimates

Low Correlation of Alpha Sources Expected to Produce High Information Ratios

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Source: Lehman Brothers, MSCI, and AllianceBernstein estimates

No Correlation  0.0

Perfect Correlation  1.0

Bond Market

Global Stock Market

Expected Correlations

(Simulated)

Multi-Strategy Portfolios Expected to Have Low Correlation to Capital Market Returns

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Asset Under Management

in $ Billions 

(1) Nine months annualized

Hedge Fund AUM Growing Rapidly

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Q&A

Appendix

Market Environment

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Relative Performance: Institutional Growth Equity (After Fees) ⁽¹⁾

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Relative Performance: Institutional Value Equity (After Fees) ⁽¹⁾

35

Relative Performance: Blend Strategies Services (After Fees) ⁽¹⁾

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Relative Performance: Institutional Fixed Income (After Fees) ⁽¹⁾

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Absolute Performance:  Private Client  (After Fees) ⁽¹⁾

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Relative Performance: Retail Growth Equity (After Fees) ⁽¹⁾

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Relative Performance: Retail Value Equity (After Fees) ⁽¹⁾

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Relative Performance: Retail Fixed Income (After Fees) ⁽¹⁾

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Relative Performance: Wealth Strategies (After Fees) ⁽¹⁾

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In $ Millions

AllianceBernstein Transaction Fees

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In $ Thousands, Unaudited

AllianceBernstein

Consolidated Balance Sheet

44

In $ Thousands, Unaudited

AllianceBernstein

Consolidated Cash Flow

45

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