Greenhill & Co. Reports Record Annual Revenue and Earnings; Dividend Increased to $0.25

- Record annual total revenue, up 31% over 2005

NEW YORK, Feb. 1 /PRNewswire-FirstCall/ -- Greenhill & Co., Inc. (NYSE: GHL) today reported record revenues of $290.6 million and record net income of $75.7 million for the year ended December 31, 2006. Diluted earnings per share were $2.55 per share for the year ended December 31, 2006.

The Firm's 2006 revenues compare with revenues of $221.2 million for 2005, which represents an increase of $69.4 million or 31%. The Firm's 2006 net income and diluted earnings per share compare with $55.5 million of net income and $1.81 of diluted earnings per share, respectively, for the year ended December 31, 2005, representing increases of 36% and 41%, respectively.

The Firm's fourth quarter revenues were $72.7 million, which compare with revenues of $81.7 million for the fourth quarter of 2005, representing a decrease of $9.0 million or 11%. The Firm's fourth quarter net income was $20.0 million, which compares with net income of $20.7 million in the fourth quarter of 2005, representing a decrease of $0.7 million or 3%. Diluted EPS for the fourth quarter of 2006 was $0.68, which compares against $0.69 for the fourth quarter of 2005, representing a decrease of $0.01 per share or 1%.

The Firm's quarterly revenues and net income can fluctuate materially depending on the number and size of completed transactions on which it advised, the number and size of merchant banking gains (or losses) and other factors. Accordingly, the revenues and net income in any particular quarter may not be indicative of future results.

"In 2006, we once again achieved record financial results. At the same time, the Firm invested significantly in its future growth by expanding the scope of our geographic and industry client coverage. M&A activity remains strong, and the Greenhill brand as an independent advisor on major transactions around the world continues to grow," Robert F. Greenhill, Chairman and CEO, said.

Revenues