ABOUT SEI

Corporate Contacts

Mark Samuels
SEI, SVP
+1 610 676-2024
msamuels@seic.com

Murray Louis
SEI, VP
+1 610 676-1932
mlouis@seic.com

Dana Grosser
SEI
+1 610 676-2459
dgrosser@seic.com

Press

Jan
31
2008

SEI Reports 2007 Results

Revenues Up 16%, Net Income Up 10%

OAKS, Pa., Jan. 31 /PRNewswire-FirstCall/ -- SEI Investments Company (Nasdaq: SEIC) today announced financial results for 2007, reporting increases in revenues, net income and earnings per share compared to 2006. Net income during the fourth-quarter was negatively affected by a $25.1 million non-cash charge (approximately $.08 per share) related to previously-disclosed support agreements covering holdings of structured investment products by SEI-sponsored money market funds.

Consolidated Overview
(In thousands, except earnings per share)
For the Three Months
Ended December 31, 2007
For the Twelve Months
Ended December 31, 2007
   2007  2006  %  2007  2006  %
 Revenues  $353,409  $315,514  12%  $1,369,028  $1,175,749 16% 
 Net Income Before Taxes  84,792  98,054  (14%)  409,540  358,756  14%
 Net Income  53,632  63,624  (16%)  259,809  236,990 10%
 Diluted Earnings Per Share   $.27  $.31  (13%)  $1.28  $1.17 9% 

"We continue to be satisfied with the progress we are making, even in the face of difficulties created by the capital and credit markets," said Alfred P. West, Jr., SEI Chairman and CEO.

"During the fourth-quarter, SEI realized increased contributions from all of our core businesses, saw continued success in the first installation of our Global Wealth Platform, and made good progress on our other key investments. In the long run, we remain firm in our belief that what we are doing will provide our clients with increased opportunities for success and allow us to grow our future revenues and profits more rapidly."

 Summary of Fourth-Quarter and Year to Date Results by Business Segment (in thousands)
   For the Three Month Period Ended December 31,  For the Twelve Month Period Ended December 31,
   2007  2006  %  2007  2006  %
 Private Banks
 Revenues  $111,814  $94,273  19%  $413,922  $367,449  13%
 Expenses  89,255  74,423  20%  330,923  279,089  19%
 Operating Profit  $22,559  $19,850  14%  $82,999  $88,360  (6%)
 Operating Margin  20%  21%    20%  24%  
 Investment Advisors
 Revenues  66,564  60,070  11%  259,288  225,716  15%
 Expenses  33,392  29,162  15%  124,942  111,907  12%
 Operating Profit  33,172  30,908  7%  134,346  113,809  18%
 Operating Margin  50%  51%    52%  50%  
 Institutional Investors
 Revenues  52,778  45,796  15%  199,593  164,962  21%
 Expenses  32,031  28,563  12%  121,365  106,377  14%
 Operating Profit  20,747  17,233  20%  78,228  58,585  34%
 Operating Margin  39%  38%    39%  36%  
 Investment Managers
Revenues  38,244  32,826  17%  143,375  118,964 21%
 Expenses  26,752  23,641  13%  101,401  90,799  12%
 Operating Profit  11,492  9,185  25%  41,974  28,165  49%
 Operating Margin  30%  28%    29%  24%  
Investments in
New Businesses
 Revenues  1,858  2,191  (15%)  7,205  7,537  (4%)
 Expenses  5,073  6,048  (16%)  19,670  22,891  (14%)
 Operating Loss  (3,215)  (3,857)  17%  (12,465)  (15,354)  19%
 Operating Margin  N/A  N/A    N/A  N/A  
 LSV
 Revenues  82,151  80,358  2%  345,645  291,121  19%
 Expenses (1)  51,515  48,959  5%  213,926  178,727  20%
 Operating Profit  30,636  31,399  (2%)  131,719  112,394  17%
 Operating Margin  37%  39%    38%  39%  
Consolidated
Segment Totals
 Revenues  $353,409  $315,514  12%  $1,369,028  $1,175,749  16%
 Expenses  238,018  210,796  13%  912,227  789,790  16%
 Operating Profit  $115,391  $104,718  10%  $456,801  $385,959  18%
 Operating Margin  33%  33%    33%  33%  

(1) Includes $42,387 and $42,862 for the three month period ended December 31, 2007 and 2006, respectively, and $181,591 and $153,381 for the twelve month period ended December 31, 2007 and 2006, respectively, of minority interest to the other partners of LSV.

A reconciliation of the totals reported for the business segments to the applicable line items in the Consolidated Statements of Income for the three and twelve month periods ended December 31, 2007 and 2006 are as follows:

   Three months ended
December 31,
 Twelve months ended
December 31,
2007  2006  2007 2006
 Total operating profit from business segments   $115,391  $104,718  $456,801  $385,959
 Corporate overhead expenses  (11,586)  (10,221)  (42,045)  (38,842)
 Minority interest reflected in segments  43,859  44,051  186,500  158,615
 LSV Employee Group Expenses (1)  (1,821)  (1,864)  (7,281)  (7,281)
 Income from operations  $145,843  $136,684  $593,975  $498,451

(1) Includes $1,806 for the three month period ending December 31, 2007 and 2006, and $7,222 for the twelve month period ending December 31, 2007 and 2006 of amortization expense related to intangible assets owned by LSV Employees Group LLC. The amortization is offset through Minority interest since SEI does not have any ownership in LSV Employee Group LLC.

Fourth-Quarter Business Commentary

  • All four core business segments (Private Banks, Investment Advisors, Institutional Investors and Investment Managers) reported double-digit percentage revenue gains versus fourth-quarter, 2006.
  • The Private Banks, Institutional Investors and Investment Managers segments all reported double-digit percentage gains in operating profit versus fourth-quarter, 2006 levels.
  • The Global Wealth Platform was placed into service during the third- quarter, 2007. Fourth-quarter expenses reflect an increase of approximately $3.4 million for amortization versus fourth-quarter, 2006 levels. The amortization is primarily recognized in the Private Banks and Investment Advisors segments.
  • The company's percentage ownership in LSV remained at approximately 43 percent. In the fourth-quarter, 2007, the company recognized $30.6 million as its portion of the earnings from LSV versus $31.4 million in the fourth-quarter, 2006.
  • Assets under management declined by $4.9 billion during fourth-quarter, 2007 to $196.8 billion, due to market depreciation.
  • In the fourth-quarter 2007, SEI purchased 706,000 shares of its common stock for $21.2 million. Stock repurchases totaled 7.2 million shares for approximately $205 million for the 2007 calendar year.
  • The fourth-quarter results include a $25.1 million non-cash charge related to money market funds support agreements. Additional information about the capital support agreements is contained in SEI's third-quarter, 2007 Form 10-Q filed November 9, 2007.

Earnings Conference Call

A conference call to review earnings is scheduled for 2:00 PM ET on January 31, 2008. Investors may listen to the call at http://www.earnings.com, a service of Thomson Streetevents. The call may also be accessed at numerous financial services web sites including AOL and Yahoo. Investors may also listen to replays at these web sites, or by telephone at (USA) 1-800-475-6701; (International) 320-365-3844, access code 889135.

About SEI

SEI (Nasdaq: SEIC) is a leading global provider of outsourced asset management, investment processing and investment operations solutions. The company's innovative solutions help corporations, financial institutions, financial advisors, and affluent families create and manage wealth. As of December 31, 2007, through its subsidiaries and partnerships in which the company has a significant interest, SEI administers $426 billion in mutual fund and pooled assets and manages $197 billion in assets. SEI serves clients, conducts or is registered to conduct business and/or operations from more than 20 offices in over a dozen countries. For more information, visit http://www.seic.com/.

Many of our responses may be considered "forward looking statements" and include discussions about future operations, strategies and financial results. Forward-looking statements are based upon estimates and assumptions that involve risks and uncertainties, many of which are beyond our control or are subject to change. Although we believe our assumptions are reasonable, they could be inaccurate. Our actual future revenues and income could differ materially from our expected results. We have no obligation to publicly update or revise any forward-looking statements.

 SEI Investments Company
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

   Three Months Ended December 31,
   2007  2006
 Asset management, admin. and distribution fees  $278,086  $249,810
 Information processing and software servicing fees  62,170  53,693
 Transaction-based and trade execution fees  13,153  12,011
 Total revenues  353,409  315,514
 
 Commissions and fees  46,666  39,937
 Compensation, benefits and other personnel  88,857  84, 128
 Consulting, outsourcing and professional fees  27,443  20,827
 Data processing and computer related  10,785  10,319
 Facilities, supplies and other costs  22,546  16,321
 Depreciation and amortization  11,269  7,298
 Total expenses  207,566  178,830
 
 Income from operations  145,843  136,684
 
 Minority interest  (41,440)  (41,104)
 Net loss on investments (1)  (23,880)  (512)
 Interest and dividend income  5,282  4,372
 Interest expense  (1,013)  (1,386)
 
 Income before taxes  84,792  98,054
 
 Income taxes  31,160  34,430
 
 Net income  $53,632  $63,624
 
 Diluted earnings per common share  $.27  $.31
 Shares used to calculate diluted earnings per common share  200,297  204,660
 Basic earnings per common share  $.28  $.32
 Shares used to calculate basic earnings per common share  194,321  197,808
 Dividends declared per common share  .07  .06

(1) Includes $25,122 non-cash charge related to money market funds support agreements.

 SEI Investments Company
Consolidated Statements of Income
(In thousands, except per share data)
(Unaudited)

   Twelve Months Ended December 31,
   2007 (unaudited)  2006
 Asset management, admin. and distribution fees  $1,091,424  $918,142
 Information processing and software servicing fees  230,301  213,066
 Transaction-based and trade execution fees 47,303 44,541
 Total revenues  1,369,028 1,175,749
 
 Commissions and fees  176,523  147,835
 Compensation, benefits and other personnel 350,150  315,502
 Consulting, outsourcing and professional fees  94,642  77,753
 Data processing and computer related  42,189  37,755
 Facilities, supplies and other costs  74,413  69,306
 Depreciation and amortization  37,136  29,147
 Total expenses  775,053 677,298
 
 Income from operations 593,975 498,451
 
 Minority interest  (175,879)  (146,962)
 Net loss on investments (1)  (25,395)  (2,378)
 Interest and dividend income  18,596 13,521
 Interest expense  (4,709)  (5,464)
 Other income 2,952 1,588
 Income before taxes  409,540  358,756
 Income taxes  149,731 121,766
 
 Net income  $259,809  $236,990
     
 Diluted earnings per common share  $1.28  $1.17
 Shares used to calculate diluted earnings per common share  202,231  203,266
 Basic earnings per common share  $1.32  $1.20
 Shares used to calculate basic earnings per common share  196,120  197,364
 Dividends declared per common share  $.14  $.12

(1) Includes $25,122 non-cash charge related to money market funds support agreements.

 SEI Investments Company
Condensed Balance Sheets
(In thousands)
   (Unaudited)
December 31, 2007
 December 31, 2006
 Assets
 Cash and short-term investments  $360,921  $286,948
 Restricted cash  10,250  10,250
 Cash and short-term investments  $360,921  $286,948
 Receivables  275,109  244,599
 Securities owned  16,777  16,431
 Other current assets  31,877  28,245
 Total current assets  694,934  586,473
 
 Property and equipment, net  143,516  130,732
 Investments available for sale  77,169  71,690
 Capitalized software, net  231,684  180,014
 Goodwill  22,842  22,842
 Intangible assets  60,177  67,836
 Other assets, net  22,043  20,118
 Total assets  $1,252,365  $1,079,705
     
 Liabilities
 Current liabilities (1)  $230,367  $196,127
 Long-term debt  43,971  67,538
 Deferred income taxes  73,600  76,148
 Long-term liabilities  11,895  --
 Minority interest  136,149  109,380
     
 Shareholders' Equity  756,383  630,12
     
 Total liabilities and shareholders' equity  $1,252,365  $1,079,705

(1) Includes $25,122 accrual related to money market funds support agreements.

 SEI Investments Company
Asset Balances
(In millions)
(Unaudited)
   Dec. 31, 2006  Mar. 31, 2007  Jun. 30, 2007  Sep. 30, 2007  Dec. 31, 2007
 Private Banks
 Equity/Fixed Income prgms  $16,806  $18,196  $20,666  $21,816  $21,160
 Collective Trust Fun prgm.  1,251  1,148  1,078  1,056  1,007
 Liquidity funds  8,513  8,241  8,224  8,836  8,886
 Total assets under mgmt.  $26,570  $27,585  $29,968  $31,708  $31,053
 Client assets under admin.  14,378  14,864  15,019  15,655  14,235
 Total assets  $41,308  $42,449  $44,987  $47,363  $45,288
 Investment Advisors
 Equity/Fixed Income prgms.  $34,096  $35,225  $36,923  $37,751  $36,378
 Collective Trust Fund prgm.  2,480  2,491  2,334  2,325  2,295
 Liquidity funds  1,421  1,404  1,400  1,619  2,079
 Total assets under mgmt.  $37,997  $39,120  $40,657  $41,695  $40,752
 Institutional Investors
 Equity/Fixed Income prgms.  $37,720  $39,504  $40,771  $43,504  $44,833
 Collective Trust Fund prgm.  1,081  1,078  895  907  897
 Liquidity funds  3,371  5,072  4,128  4,342  3,629
 Total assets under mgmt.  $42,172  $45,654  $45,794  $48,753  $49,359
 Investment Managers
Equity/Fixed Income prgms.   $30  $29  $32  $24  $24
Collective Trust Fund prgm.  8,675  8,300  7,990  6,814  6,651
 Liquidity funds  215  178  271  360  325
 Total assets under mgmt.  $8,920  $8,507  $8,293  $7,198 $7,000 
 Client assets under admin.  170,344  180,745  192,931  205,251  215,124
 Total assets  $179,264  $189,252  $201,224  $212,449 $222,124 
 Investments in New Businesses
Equity/Fixed Income prgms.   $805  $843  $887  $907  $929
 Liquidity funds  53  43  43  40  74
 Total assets under mgmt.  $858  $886  $930 $947  $1,003
 LSV Asset Management
Equity/Fixed Income prgms.  $64,970  $68,225  $73,100  $71,349  $67,599
 Consolidated
Equity/Fixed Income prgms (A)   $154,427  $162,022  $172,379  $175,351  $170,923
 Collective Trust Fund prgm.  13,487  13,017  12,297  11,102  10,850
 Liquidity funds  13,573 14,938  14,066  15,197  14,993
 Total assets under mgmt.  $181,487  $189,977  $198,742  $201,650  $196,766
 Client assets under admin. (B)  185,082  195,609  207,950  220,906  229,359
 Total assets  $366,569  $385,586  $406,692  $422,556  $426,125

(A) Equity/Fixed Income programs include $3,717 of assets invested in SEI's Asset Allocation Funds at December 31, 2007.

(B) In addition to the numbers presented, SEI also administers an additional $6,326 in Funds of Funds assets (as of December 31, 2007) on which SEI does not earn an administration fee.