Cowen Group, Inc. Announces 2008 First Quart...(sal) expense related to IPO award...),Health

to IPO awards (4.2) 2.5

Adjusted operating (loss) income (1.9) 5.1

(Benefit) provision for income taxes (1.3) 2.2

Adjusted net operating (loss)

income $(0.6) $2.9

Q1:08 Q1:07 Q4:07

(dollars in millions)

Reconciliation of Brokerage Revenue

to Core Brokerage Revenue

Brokerage revenue $38.1 $45.2 $35.1

Exclusion of the loss (income)

from warrants, asset management

seed funds, restricted

stock received in connection

with the demutualization of

certain exchanges and mutual

fund investments held as a hedge

against legacy deferred compensation

obligations 1.6 (5.0) 1.6

Core brokerage revenue $39.7 $40.2 $36.7

Non-GAAP Financial Measures

We have reported in this press release our adjusted net operating loss for the quarters ended March 31, 2008 and 2007 on a non-GAAP basis by:

-- excluding the non-cash compensation (reversal) expense associated with

equity awards granted in connection with our IPO; and

-- calculating the (benefit) provision for income taxes using the

effective tax rate for the period.

Management believes that the grant of equity awards in connection with our IPO was an extraordinary, non-recurring event. We expect that additional equity will be granted in connection with our compensation, hiring and retention practices, and therefore will be included in our compensation and benefits expense to revenue ratio. Historically, the expense associated with all equity awards, other that the IPO awards, have been included in
'/>"/>