Cowen Group, Inc. Announces 2008 First Quart...(erest ...),Health

Other 5,122 6,197

Total expenses 52,725 70,917

Operating income 2,265 2,624

Gain on exchange memberships - 1,775

Income before income taxes 2,265 4,399

Provision for income taxes 1,611 1,928

Net income $654 $2,471

Earnings per share:

Basic $0.06 $ 0.19

Diluted $0.05 $ 0.18

Weighted average shares used in per share data:

Basic 11,253 12,910

Diluted 11,895 13,417

Other Metrics at March 31, 2008 and 2007

Stockholders' equity $203,451 $225,128

Common shares outstanding 14,429 15,900

Book value per share $14.10 $14.16

Tangible book value per share* $10.63 $11.01

* Tangible book value per share is calculated as follows: Shareholders'

equity, less $50 million of goodwill, divided by common shares

outstanding.

Cowen Group, Inc.

Non-GAAP Financial Measures

Q1:08 Q1:07

(dollars in millions)

Reconciliation of Operating

Income to Adjusted Net Operating

(Loss) Income

Operating income $2.3 $2.6

Exclusion of compensation

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