Cowen Group, Inc. Announces 2008 First Quart...(at our results will improvewhen the new ...),Health

Highlights

-- Strategic advisory revenue increased 39% year-over-year. During the

quarter, Cowen completed six transactions with an aggregate value of

$1.2 billion. Among these, Cowen acted as exclusive financial advisor

to Boston Scientific in the sale of its fluid management/venous

access business to Avista Capital Partners and exclusive financial

advisor to Arbor Networks in their acquisition of Ellacoya Networks.

-- Core brokerage revenue (see "Financial Measures" below for a

discussion of core brokerage revenue) increased 8% sequentially and

was relatively flat year-over-year.

-- Cowen Healthcare Royalty Partners ("CHRP") completed their first

investment. CHRP provided Artes Medical, a company that Cowen took

public, $22.5 million of financing demonstrating the synergies with

Cowen's existing healthcare franchise.

-- Cowen announced the signing of a definitive agreement to purchase

Latitude Capital Group, a boutique investment bank with offices in

Hong Kong, Shanghai and Beijing. The proposed business combination

will significantly enhance Cowen's activities in Asia and provide

a platform for future growth across the region. We expect the

transaction to close in the second quarter.

Results of Operations

Investment Banking The first quarter's results reflected a decrease in revenue from capital raising activities, offset partially by an increase in strategic advisory revenue. Investment banking revenue was $13.9 million in the first quarter of 2008, down 45% from $25.4 million in the first quarter of 2007.

-- Equity underwriting revenue was $1.5 million, down 88% from $13.3

million in the prior year period. The decrease was primarily a result

of decreased t
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