Calamos Asset Management (CLMS) 8-K Calamos Asset Management, Inc. Reports Fourth Quarter 2010 Results and Increases Dividend

Exhibit 99.1

2020 Calamos Court
Naperville, IL 60563-2787
www.calamos.com

News Release

FOR IMMEDIATE RELEASE

Contact:
Jennifer McGuffin
Calamos Asset Management, Inc.
Director of Investor Relations
630.245.1780
Cell 630.276.6236
jmcguffin@calamos.com

Calamos Asset Management, Inc. Reports Fourth Quarter 2010
Results and Increases Dividend

NAPERVILLE, Ill., February 3, 2011 — Calamos Asset Management, Inc. (NASDAQ: CLMS) today reported fourth quarter 2010 results, including revenues of $86.0 million and operating income of $35.7 million. Income before income taxes was $42.2 million for the current quarter. The company’s net income of $5.8 million and diluted earnings per share of $0.28 primarily reflects the public ownership interest of 21.7% of the investment management business. The remaining ownership interest of 78.3% is attributed to the Calamos principals. At December 31, 2010, assets under management totaled $35.4 billion.

     Additionally, the company declared a regular quarterly dividend of 9.5 cents per share, representing an increase of 2.0 cents per share, or 27% from last quarter’s dividend. The dividend is payable on March 4, 2011 to shareholders of record on February 18, 2011.

Management Commentary

     “In the fourth quarter of 2010, Calamos Asset Management continued to operate from a position of financial strength and also began to benefit from signs of recovery in the markets and in the overall economy. The company saw an increase in assets under management throughout the quarter and generated positive relative investment performance, particularly in growth equities in the global, international and emerging market areas. We continue to execute our active, risk-managed approach to investing, which we believe provides long-term value to our clients,” said John P. Calamos, Sr., chief executive officer and co-chief investment officer.

Market Capitalization

     “Our structure is not consistently understood within the financial community, including by investors and potential global clients. The market capitalization is only listed by reporting agents for common shares, which only reflects a percentage of the ownership of our business, therefore the total market capitalization of the company is often significantly understated. For this reason, Calamos Asset Management is evaluating ways to create a greater degree of clarity regarding our total market capitalization. Given the preliminary nature of our review, however, we are not able to offer additional details at this time,” said Calamos.

Distribution Efforts

     “The company demonstrated its commitment to distribution and marketing efforts in the fourth quarter in order to further increase brand awareness in the marketplace. The fall marketing campaign supporting our low-volatility equity strategies continued to resonate in the fourth quarter, as we saw increased interest in those strategies. We also feel the reorganization and enhancement to our marketing organization, which continued during the quarter, will add value to our sales and client service efforts,” said Calamos.

Investment Performance

     “During 2010, investment performance was strong relative to our peers in our core investment strategies. The company’s relative performance also remains solid across its diversified product mix in a variety of asset classes. There was particular strength in the performance of the global, international and emerging market strategies, demonstrating the opportunity our Investment Team is finding around the world,” said Calamos.

     “We believe the long-term performance of our investment strategies demonstrates the strength of our risk-managed approach to investing across all of our strategies, which aims to generate strong performance over full and multiple market cycles,” said Calamos.

     For complete information about investment performance please visitwww.calamos.com.

Assets Under Management and Flows

     Assets under management as of December 31, 2010 totaled $35.4 billion, representing an increase of $2.8 billion, or 9%, from the previous quarter end. The increase during the fourth quarter consisted of $2.6 billion in market appreciation and net purchases of approximately $300 million. Average assets under management were $33.9 billion during the fourth quarter of 2010, compared to $31.6 billion for the same period one year ago.

     Net purchases of approximately $300 million for the three months ended December 31, 2010 principally reflect net inflows into our mutual funds of $278 million and institutional separate accounts of $35 million. These inflows were consistent with recent industry trends and were comprised primarily within low-volatility equity, convertible and global strategies.

     For the year ended December 31, 2010, assets under management increased $2.7 billion, or 8%, from the previous year end. Over this same period, assets under management increased by $4.1 billion as a result of market appreciation partially offset by net redemptions of $1.4 billion. Average assets under management were $32.2 billion for 2010, compared to $27.4 billion for 2009.

¹ Data presented reflects past performance which is no guarantee of future results. Strong rankings are not indicative of positive performance. Absolute performance in some cases was negative. eVestment Alliance rankings are based on total return for the period ending December 31, 2010, and do not take into account any investment advisory and/or management fees that may be associated with these strategies. eVestment Alliance is an independent third party database that contains performance information for select investment advisors. Information contained in this database is supplied, on a voluntary basis, by investment advisors who choose to be included in the database.

     For the year ended December 31, 2010, institutional separate accounts generated net inflows of approximately $150 million. Net flows into the company’s mutual funds were basically flat.

Financial Results

Quarterly Results

     Fourth quarter revenues were $86.0 million, an increase of 6% from $81.3 million during the same period in 2009. For the three months ended December 31, 2010, operating expenses were $50.3 million, an increase of $5.1 million, or 11%, from the same period in 2009.

     Investment management fees for the fourth quarter of 2010 increased by $5.3 million, or 9%, to $63.7 million when compared to the same period last year. The year-over-year increase in investment management fees was principally driven by a 7% increase in average assets under management. Distribution and underwriting fees decreased by 3% compared to the same period in 2009, mostly due to reduced distribution fees and contingent deferred sales commissions. Though average mutual fund assets under management rose during the comparable periods, distribution fee revenue decreased due to a shift in Class I share mutual fund assets under management. The company does not earn distribution fees from Class I fund shares.

     Compensation expenses of $18.0 million increased by $3.7 million, or 26%, from the same quarter last year, mostly due to increases in performance-based incentive compensation. Compensation expenses for the fourth quarter of 2009 were unusually low, reflecting a significant one-time, voluntary reduction in incentive compensation by the Calamos principals. Marketing and sales promotion expenses were $4.3 million for the fourth quarter compared to $2.7 million in the same quarter a year ago. The increase in marketing and sales promotion is due not only to rising asset-based supplemental distribution payments, but also to newly designed campaigns to build awareness about the low-volatility equity and growth strategies. Amortization of deferred sales commissions continues to decrease as a result of discontinuing Class B share mutual fund sales during 2009.

     Operating income was $35.7 million for the current quarter versus $30.6 million in the previous quarter and $36.1 million in the fourth quarter of the prior year. Operating margin was 41.5% for the fourth quarter, up from 39.0% in the third quarter and down from 44.4% in the fourth quarter of the prior year. Diluted earnings per share for the fourth quarter of 2010 were $0.28 versus $0.23 for the third quarter and $0.23 for the same period a year ago.

Full Year Results

     Revenues for 2010 were $326.0 million, a 16% increase from $281.7 million in 2009. For the year, operating expenses were $199.5 million, a 9% increase from $183.7 million in the prior year.

     Investment management fees for 2010 were $238.3 million, an increase of $37.5 million, or 19%, compared to 2009. The year-over-year increase in investment management fees was principally driven by an 18% increase in average assets under management. Distribution and underwriting fees increased by 8% compared to the prior year, a reduced pace given the 24% increase in average open-end mutual fund assets under management. The differential between the growth in fees and assets is largely driven by the significant shift in the percentage of mutual fund assets invested within Class I shares, as previously noted.

     Compensation expense increased by $7.9 million, or 12%, over last year as a result of growing performance-based incentive compensation accruals. Distribution expense increased by $7.0 million, or 12%, in 2010 compared to the same period a year ago. This is a moderated pace given the shift of assets under management to Class I shares. Marketing and sales promotion expenses were $13.8 million in 2010 compared to $10.8 million in 2009, reflecting increased supplemental payments to broker-dealers and the increased use of marketing tools to communicate with and service clients.

     Operating income was $126.5 million in 2010 compared to $98.1 million for the same period in 2009. Operating margin was 38.8% versus 34.8% for the same period in 2009. Diluted earnings per share were $0.99 in the twelve months of 2010 compared to $0.62 for 2009.

Non-Operating Results and Other Items

     Non-operating income, net of non-controlling interest in partnerships, was $6.5 million during the fourth quarter of 2010 as presented in Table A, compared to a $1.3 million loss in the same period for 2009. For the year ended December 31, 2010, non-operating income, net of non-controlling interest in partnerships was $21.6 million compared to a $5.2 million loss in the same period 2009.

     The company’s financial condition remains strong with a high degree of liquidity. The investment portfolio was approximately $435.2 million at December 31, 2010 and principally reflects investments in products that the company manages. This portfolio consists primarily of diversified investments in the company’s family of funds and cash equivalents, and provides seed capital for the development of new products. To reduce downside risk and price volatility of the total portfolio value, the company continues to use exchange-traded equity option contracts as an economic hedge.

     For the three months and twelve months ended December 31, 2010, the net gains on the company’s investment portfolio (as presented in Table B) were $18.1 and $37.2 million, representing investment gains of 5.3% and 12.3%, respectively. Certain investment securities require differing financial accounting treatments; hence, not all changes in the portfolio’s value are reported in current earnings. Instead, only gains and losses from investment securities owned by the company’s broker-dealer and from the company’s derivatives positions are reported in the Consolidated Condensed Statements of Operations, while unrealized gains and losses on securities designated as “available-for-sale” are captured as a component of equity until realized. Therefore, in the most recently completed quarter, investment income of $8.3 million (as presented in both Table A and Table B) increased earnings, while the component of the company’s portfolio that directly impacts equity generated net unrealized gains of $9.7 million. The company continues to realize gains from a trading strategy that seeks to harvest capital gains to realize certain deferred tax assets.

Investor Conference Call

     Management will hold an investor conference call at 4 p.m. Central Time on Thursday, February 3, 2011. To access the live call and view management’s presentation, visit the Investor Relations section of our website at http://investors.calamos.com. Alternatively, participants may listen to the live call by dialing 800.378.6902 in the U.S. or Canada (913.312.1305 internationally), then entering conference ID #8028085. A replay of the call will be available until the end of the day on February 8, 2011 by dialing 888.203.1112 in the U.S. or Canada (719.457.0820 internationally), then entering conference ID #8028085 A webcast also

will be available on the Investor Relations section of our website at http://investors.calamos.com for at least 90 days following the date of the call.

     Calamos Asset Management, Inc. (NASDAQ: CLMS) is a globally diversified investment firm offering equity, convertible, defensive equity, fixed- income and alternative investment strategies, among others. The firm serves institutions and individuals via separately managed accounts and a family of open-end and closed-end funds, offering a risk-managed approach to capital appreciation and income-producing strategies. For more information, visit www.calamos.com.

From time to time, information or statements provided by us, including those within this news release, may contain certain forward-looking statements relating to future events, future financial performance, strategies, expectations, the competitive environment and regulations. Forward-looking statements are based on information available at the time those statements are made and/or management’s good faith belief as of that time with respect to future events, and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. For a discussion concerning some of these and other risks, uncertainties and other important factors that could affect future results, see “Forward-Looking Information” in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and, where applicable, “Risk Factors” in our annual and quarterly reports filed with the U.S. Securities and Exchange Commission.

Calamos Asset Management, Inc.
Consolidated Condensed Statements of Operations
(in thousands, except share data)
(Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2010			2009			2010			2009
Revenues:
Investment management fees	$	63,699		$	58,428		$	238,308		$	200,790
Distribution and underwriting fees		21,536			22,143			84,753			78,430
Other		789			721			2,978			2,518
Total revenues		86,024			81,292			326,039			281,738
Expenses:
Employee compensation and benefits		17,998			14,258			75,292			67,413
Distribution expenses		17,318			17,018			66,493			59,491
Amortization of deferred sales commissions		1,966			2,491			9,206			12,201
Marketing and sales promotion		4,292			2,673			13,775			10,762
General and administrative		8,733			8,742			34,772			33,813
Total operating expenses		50,307			45,182			199,538			183,680
Operating income		35,717			36,110			126,501			98,058
Non-operating income (loss)		6,474			(1,295	)		21,662			(4,910	)
Income before income tax provision		42,191			34,815			148,163			93,148
Income tax provision		3,535			2,783			12,375			7,879
Net income		38,656			32,032			135,788			85,269
Net income attributable to non-controlling interest in Calamos Holdings LLC		(32,893	)		(27,331	)		(115,788	)		(72,509	)
Net income attributable to non-controlling interest in partnerships		(9	)		(6	)		(72	)		(336	)
Net income attributable to Calamos Asset Management, Inc.	$	5,754		$	4,695		$	19,928		$	12,424
Earnings per share
Basic	$	0.29		$	0.24		$	1.00		$	0.63
Diluted	$	0.28		$	0.23		$	0.99		$	0.62
Weighted average shares outstanding
Basic		19,928,981			19,655,246			19,884,847			19,626,233
Diluted		20,428,635			20,080,566			20,187,992			19,954,124

Calamos Asset Management, Inc.
Assets Under Management
(in millions)

	Three Months Ended					Twelve Months Ended
	December 31,					December 31,
	2010			2009		2010			2009
Mutual Funds
Beginning assets under management	$	25,176		$	22,856	$	24,480		$	17,498
Net purchases (redemptions)		278			432		(23	)		527
Market appreciation		1,898			1,192		2,895			6,455
Ending assets under management		27,352			24,480		27,352			24,480
Average assets under management		26,219			23,678		24,739			20,248
Separate Accounts
Beginning assets under management		7,388			7,687		8,234			6,542
Net purchases (redemptions)		(20	)		72		(1,376	)		(638	)
Market appreciation		694			475		1,204			2,330
Ending assets under management		8,062			8,234		8,062			8,234
Average assets under management		7,656			7,885		7,510			7,111
Total Assets Under Management
Beginning assets under management		32,564			30,543		32,714			24,040
Net purchases (redemptions)		258			504		(1,399	)		(111	)
Market appreciation		2,592			1,667		4,099			8,785
Ending assets under management		35,414			32,714		35,414			32,714
Average assets under management	$	33,875		$	31,563	$	32,249		$	27,359

	At December 31,				Change
	2010		2009		Amount			Percent
Mutual Funds
Open-end funds	$	22,049	$	19,531	$	2,518			13	%
Closed-end funds		5,303		4,949		354			7
Total mutual funds		27,352		24,480		2,872			12
Separate Accounts
Institutional accounts		5,559		4,619		940			20
Managed accounts		2,503		3,615		(1,112	)		(31	)
Total separate accounts		8,062		8,234		(172	)		(2	)
Ending assets under management	$	35,414	$	32,714	$	2,700			8	%

	At December 31,				Change
	2010		2009		Amount		Percent
Assets by Strategy
Equity	$	12,846	$	11,940	$	906		8	%
Convertible		7,540		7,356		184		3
Defensive Equity		6,949		6,213		736		12
Enhanced Fixed Income		2,960		2,720		240		9
Total Return		2,343		2,229		114		5
Alternative		2,200		1,704		496		29
High Yield		358		352		6		2	��
Fixed Income		218		200		18		9
Ending assets under management	$	35,414	$	32,714	$	2,700		8	%

Table A
Calamos Asset Management, Inc
Non-operating Income, Net of Non-controlling Interest in Partnership Investments
(in thousands)
(Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2010			2009			2010			2009
Interest income	$	73		$	170		$	379		$	737
Interest expense		(1,951	)		(1,950	)		(7,801	)		(7,801	)
Net interest expense		(1,878	)		(1,780	)		(7,422	)		(7,064	)
Investment income		8,338			469			28,686			1,921
Miscellaneous other income		14			16			398			233
Investment and other income		8,352			485			29,084			2,154
Non-operating income (loss)		6,474			(1,295	)		21,662			(4,910	)
Net income attributable to non-controlling interest in partnerships		(9	)		(6	)		(72	)		(336	)
Non-operating income (loss), net of non-controlling interest in partnerships	$	6,465		$	(1,301	)	$	21,590		$	(5,246	)

Table B
Calamos Holdings LLC
Summary of Investment Portfolio Returns
(in thousands)
(Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2010			2009			2010			2009
Returns reflected in earnings:
Investment income	$	8,338		$	469		$	28,686		$	1,921
Net (income) loss attributable to non-controlling interest in partnership investments		(9	)		(6	)		(72	)		(336	)
Returns reflected in equity:
Net unrealized gain reported in accumulated other comprehensive income		9,736			4,140			8,581			34,778
Total investment portfolio returns	$	18,065		$	4,603		$	37,195		$	36,362
Average investment securities owned	$	343,326		$	236,233		$	302,477		$	222,276
Total portfolio return		5.3	%		1.9	%		12.3	%		16.4	%

Table C
Calamos Asset Management, Inc.
Effective Income Tax Rate
(in thousands)
(Unaudited)

	Three Months Ended						Twelve Months Ended
	December 31,						December 31,
	2010			2009			2010			2009
Income tax provision	$	3,535		$	2,783		$	12,375		$	7,879
Income tax (provision) benefit attributable to non-controlling interest in Calamos Holdings LLC		(121	)		25			(517	)		(331	)
Income tax provision attributable to CAM		3,414			2,808			11,858			7,548
Net income attributable to CAM		5,754			4,695			19,928			12,424
Income before taxes attributable to CAM	$	9,168		$	7,503		$	31,786		$	19,972
CAM’s effective income tax rate		37.2	%		37.4	%		37.3	%		37.8	%

# # # # #