Legg Mason, Inc. Reports Record Revenues, NetEarnings, and Earnings per Share.

BALTIMORE--(BUSINESS WIRE)--July 19, 1999--

Legg Mason, Inc. (NYSE: LM) today announced record revenues, net earnings and earnings per share for its first fiscal quarter ended June 30, 1999, as well as record assets under management.

In the quarter, revenues increased to a record

$314,606,000, up 26% from revenues of $248,743,000 in the corresponding quarter of the prior year. Net earnings were a record $32,818,000, up 35% from net earnings of $24,364,000 in the prior year's quarter. Basic earnings per share increased by 34% to $.59 from $.44. Diluted earnings per share increased 32% to $.54 from $.41. Assets under management grew for the 32nd consecutive quarter to $93 billion, up from $89 billion last quarter, and a 26% increase from $74 billion a year ago.

Revenues from investment advisory activities grew for the 37th consecutive quarter to a record $123,033,000, up 36% from a year ago. Commission revenues for the quarter remained strong and grew 27% to a record $82,452,000.

Commenting on Legg Mason's operating results, Raymond A. Mason, Chairman and Chief Executive Officer, said:

"I am pleased to report that revenues, net

earnings and earnings per share reached record

levels in the first quarter of fiscal year 2000, and

were substantially higher than any previous quarter.

Our strong results were attributable to significant

growth in revenues in our investment advisory and

securities brokerage businesses.

Investment advisory revenues for the

quarter grew to a record $123 million, a 36%

increase from the corresponding quarter of the prior

fiscal year, and now represent 39% of the Company's

total revenues. The increase is attributable in

large part to the growth in assets of the Legg Mason

Funds, the Company's proprietary family of mutual

funds; net inflows into the Legg Mason Funds

aggregated $1.15 billion during the quarter, up 70%

over the June 1998 quarter. Revenues from securities

brokerage activities, fueled by a robust investment

climate, and net interest profit were also important

contributors to the Company's outstanding results.

One of our objectives is to improve our

pre-tax profit margin, which increased to 17.6% in

the June quarter. Legg Mason continues to maintain a

strong financial condition with equity capital now

standing at approximately $623 million."

Legg Mason, Inc., headquartered in Baltimore, is a holding company that provides investment advisory, securities brokerage, investment banking and related financial services through its wholly owned subsidiaries. The Company's common stock is listed on the New York Stock Exchange (symbol: LM). -0-

                   LEGG MASON, INC. AND SUBSIDIARIES
                  CONSOLIDATED STATEMENTS OF EARNINGS
             For the Quarters Ended June 30, 1999 and 1998

                             ($ in 000's, except per share amounts)

                                         % of                   % of
                              1999     Revenues      1998     Revenues
                              ----     --------      ----     --------
Revenues:
  Investment advisory and
   related fees            $123,033      39.1     $ 90,403      36.3
  Commissions                82,452      26.2       64,961      26.1
  Principal transactions     28,470       9.1       22,410       9.0
  Investment banking         22,096       7.0       20,935       8.4
  Interest                   46,686      14.8       40,185      16.2
  Other                      11,869       3.8        9,849       4.0
                           --------  --------     --------  --------

                            314,606     100.0      248,743     100.0
                           --------  --------     --------  --------

Expenses:
  Compensation and
   benefits                 176,134      56.0      137,149     55.1
  Occupancy and equipment
   rental                    18,960       6.0       15,836      6.4
  Communications             12,568       4.0       12,004      4.8
  Floor brokerage and
   clearing fees              2,001       0.6        1,504      0.6
  Interest                   27,663       8.8       24,228      9.7
  Other                      21,904       7.0       17,083      6.9
                           --------  --------     --------  --------

                            259,230      82.4      207,804     83.5
                           --------  --------     --------  --------

Earnings Before Income
 Taxes                       55,376      17.6       40,939     16.5

  Income taxes               22,558       7.2       16,575      6.7
                           --------  --------     --------  --------

Net Earnings               $ 32,818      10.4     $ 24,364      9.8
                           ========  ========     ========  ========

Earnings per common share:
  Basic                      $ 0.59                 $ 0.44
  Diluted                    $ 0.54                 $ 0.41

Average number of common
 shares outstanding:
  Basic                      55,422                 55,155
  Diluted                    60,060                 58,896