FRH.U Freedom Acquisition Holdings,

LONDON, October 24 /PRNewswire-FirstCall/ -- - Net Income of USD46 Million; Adjusted Net Income of USD29 Million, Up 160% From Q3 2006 - Net Assets Under Management of USD20.5 Billion, Up 49% From Q3 2006 - Total Inflows of USD1.8 Billion During Q3 2007, Including Managed Account Inflows and Gross Fund-Based Inflows GLG Partners (GLG), (Bloomberg: 493048Z LN) a leading alternative asset manager, today reported net income of USD46 million for the quarter ended September 30, 2007 and USD375 million for the first nine months of 2007. Adjusted net income (net income less limited partner profit share) was USD29 million, up 160% year-over-year, for the quarter ended September 30, 2007 and USD168 million, up 99% year-over-year, for the first nine months of 2007. GLG's net assets under management as of September 30, 2007 reached USD20.5 billion (net of assets invested from other GLG managed funds), up 10% from June 30, 2007 and 49% from September 30, 2006. GLG's gross assets under management (including assets invested from other GLG managed funds) were USD23.6 billion at September 30, 2007, up 10% from June 30, 2007 and 48% from September 30, 2006. A combination of performance and healthy inflows drove the growth in assets under management (AUM) as set forth below in Table 1. "Our diversified model continued to work in the volatile markets of the summer, showing particular strength in Emerging Markets, led by Greg Coffey, and in the European strategies, led by GLG Co-Founder, Pierre Lagrange, as well as substantial net inflows broadly in our alternative strategies", said Noam Gottesman, Co-Founder, Managing Director and Co-CEO of GLG. "We are looking forward to the upcoming completion of the reverse acquisition transaction with Freedom Acquisition Holdings (AMEX:FRH) (AMEX:FRH.U)(AMEX: FRH.WS) (Bloomberg: FRH/U US) ("Freedom") in the coming weeks and remain excited about the prospects for the future expansion and growth of our business." Table 1: Assets Under Management (USD in millions) As of September 30, __________________________ 2007 2006 Gross Fund-Based AUM USD 21,524 USD 14,519 Managed Accounts AUM 1,905 1,042 Cash and Other Securities 164 372 Gross AUM USD 23,593 USD 15,932 YoY % Change 48% Net AUM USD 20,466 USD 13,718 YoY % Change 49% Three Months Ended Nine Months Ended September 30, September 30, _______________________ ________________________ 2007 2006 2007 2006 Opening Gross Fund-Based AUM: USD 19,485 USD 14,351 USD 16,053 USD 11,484 Fund-based inflows (net of redemptions): 1,798 (72) 3,350 1,541 Fund-based net performance (gains net of losses): 241 240 2,121 1,494 _______ _______ _______ _______ Closing Gross Fund-Based AUM: USD 21,524 USD 14,519 USD 21,524 USD 14,519 _______ _______ _______ _______ % of Opening Gross Fund-Based AUM Gross Fund-based inflows (net of redemptions): 9.2% (0.5%) 20.9% 13.4% Gross Fund-based net performance (gains net of losses): 1.2% 1.7% 13.2% 13.0% Opening Managed Accounts AUM: USD 1,843 USD 937 USD 1,233 USD 335 Inflows (net of redemptions): 38 96 457 766 Net performance (gains net of losses): 24 8 215 (60) Closing Managed Accounts AUM: USD 1,905 USD 1,042 USD 1,905 USD 1,042 % of Opening Managed Accounts AUM Inflows (net of redemptions): 2.1% 10.3% 37.1% 228.8% Net Performance (gains net of losses): 1.3% 0.9% 17.5% (17.9%) Note: Net performance is based on both opening AUM and inflows during the period and can be influenced by heavy inflows and fluctuations in currencies. Financial Summary For Q3 2007, total net revenues and other income was up 79% to USD103 million compared to USD57 million in the same quarter last year, primarily due to increased management fees as a result of performance and strong inflows across the GLG managed funds. For the first nine months of 2007, total net revenues and other income increased 78% over the first nine months of 2006 to USD594 million. Performance fees were immaterial in Q3 2007 as it is our practice to recognize performance fees when they crystallize, generally on June 30 and December 31 of each year. Accordingly, when Q4's performance fees are reported they will reflect crystallized second half performance. Management and administration fees totalled USD95 million or 1.9% of average net AUM for Q3 2007, increases of 69% and 29 basis points (bps), respectively, from the same quarter in 2006. For the first nine months of 2007, management and administration fees totalled USD242 million, or 1.8% of average net AUM, increases of 56% and 16 bps, respectively, over the first nine months of 2006. Other income of USD7 million reflects primarily currency related gains on cash held on our balance sheet during Q3 2007. The total level of comprehensive limited partner profit share, compensation and benefits ("PSCB") rose by 60% for Q3 to USD46 million. This is down by 539 bps to 45% when expressed as a percentage of revenues, versus the same period last year. PSCB is a financial measure not prepared under U.S. generally accepted accounting principles, or GAAP, and includes limited partner profit share as described below under "Non-GAAP Financial Measures." Employee compensation and benefits for Q3 2007 increased USD25 million over the same quarter last year to USD29 million primarily due to the reversal in Q3 2006 of selected employee compensation and benefits accruals as certain key personnel ceased to be employees and became participants in the limited partner profit share arrangement. Please note that compensation expense and limited partner profit share tied to fund performance is only recognized when the related performance fees crystallize, generally on June 30 and December 31 of each year. When Q4 is ultimately reported, the portion of compensation expense and limited partner profit share tied to performance will reflect crystallized second half performance as well as any adjustments to amounts accrued in the first half. PSCB for the first nine months of 2007 increased by 63% to USD318 million but fell by roughly 471 bps to 54% when expressed as a percentage of revenues when compared with the same period a year ago. Employee compensation and benefits for the first nine months of 2007 fell by 6% year-over-year to USD111 million as a result of certain key personnel ceasing to be employees when GLG established its limited partner profit share arrangement in 2006. General, administrative, and other expenses for Q3 2007 increased 56% to USD26 million year-over-year, but fell 372 bps as a percentage of revenues to 25%. For the first nine months of 2007, these expenses rose 82% year-over-year to USD80 million or by 29 bps to 13% when expressed as a percentage of revenues, reflecting increases in operating costs due to significant growth in the business as well as certain one-time costs recognized in the first half of 2007. "Our risk management and controls infrastructure performed well in what proved to be a turbulent period for capital markets globally", said Emmanuel Roman, Co-CEO and Managing Director of GLG. "Furthermore, our operations continue to scale and we are encouraged by the initial momentum with our new strategic partners, Istithmar and Sal. Oppenheim." Investor/Analyst Conference Call and Webcast GLG will be hosting a conference call for investors and analysts today at 11:00 AM EDT (New York City) / 4:00 PM BST (Guernsey/London). The dial-in number for the live conference call is +1-866-238-1665 in the US or +44(0)207-15-32-010 in the UK. To access a webcast of the conference call, please register via GLG's website http://www.glgpartners.com/. The conference call replay can be accessed by dialling +1-888-266-2081 in the US or +1-703-925-2533 in the UK and entering access code #1156360. The webcast replay of the conference call will also be available on the Company's website at http://www.glgpartners.com/. Both the dial-in and webcast replay of the call will be available beginning on October 24, 2007 at 2pm EST or 7pm BST until November 7, 2007. About GLG GLG, the largest independent alternative asset manager in Europe and one of the largest in the world, offers its base of long-standing prestigious clients a diverse range of investment products and account management services. GLG's focus is on preserving client's capital and achieving consistent, superior absolute returns with low volatility and low correlations to both the equity and fixed income markets. Since its inception in 1995, GLG has built on the roots of its founders in the private wealth management industry to develop into one of the world's largest and most recognized alternative investment managers, while maintaining its tradition of client-focused product development and customer service. As of September 30, 2007, GLG managed gross AUM of over USD23 billion. Forward-looking Statements This press release contains statements relating to future results that are forward-looking statements. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to: market conditions for GLG managed investment funds; performance of GLG managed investment funds, the related performance fees and the associated impacts on revenues, net income, cash flows and fund inflows/outflows; the cost of retaining GLG's key investment and other personnel or the loss of such key personnel; risks associated with the expansion of GLG's business in size and geographically; operational risk; litigation and regulatory enforcement risks, including the diversion of management time and attention and the additional costs and demands on GLG's resources; risks related to the use of leverage, the use of derivatives, interest rates and currency fluctuations; costs related to the proposed acquisition; failure to obtain the required approvals of stockholders of Freedom Acquisition Holdings, Inc. for the proposed acquisition transaction; and risks that the closing of the transaction is substantially delayed or that the transaction does not close, as well as other risks and uncertainties, including those set forth in the definitive proxy statement filed by Freedom with the Securities and Exchange Commission on October 11, 2007. These forward-looking statements are made only as of the date hereof, and GLG undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. GLG Unaudited Combined Statement of Operations (USD in thousands) Three Months Ended September 30, 2007 2006 % Change Net revenues and other income Management fees $ 78,558 $ 47,010 67% Performance fees 803 1,102 NM Administration fees 16,306 9,128 79% Other 6,905 - NM Total net revenues and other 102,572 57,240 79% income Expenses Employee compensation and (28,959) (3,735) NM benefits General, administrative and (25,891) (16,576) 56% other (54,850) (20,311) 170% Income from operations 47,722 36,929 29% Interest income, net 3,048 1,029 196% Income before income taxes 50,770 37,958 34% Income taxes (4,735) (1,803) 163% GAAP Net income $ 46,035 $ 36,155 27% Nine Months Ended September 30, 2007 2006 % Change Net revenues and other income Management fees $ 198,892 $ 129,981 53% Performance fees 343,835 177,047 94% Administration fees 42,986 25,050 72% Other 7,875 1,883 318% Total net revenues and other 593,588 333,961 78% income Expenses Employee compensation and (110,526) (118,194) NM benefits General, administrative and (79,634) (43,721) 82% other (190,160) (161,915) NM Income from operations 403,428 172,046 134% Interest income, net 4,694 3,603 30% Income before income taxes 408,122 175,649 132% Income taxes (33,020) (14,803) 123% GAAP Net income $ 375,102 $ 160,846 133% GLG Combined Balance Sheet (USD in thousands) As of As of September December 30, 31, 2007 2006 (unaudited) Assets Cash and cash equivalents $ 391,732 $ 273,148 Investments 163 201 Fees receivable 40,687 251,963 Prepaid expenses and other assets 32,647 25,944 Property and equipment (net of accumulated depreciation and amortization of $11,669 and $10,117 respectively) 8,966 6,121 Total Assets $ 474,195 $ 557,377 Liabilities and Members' Equity Current Liabilities Rebates and sub-administration fees payable $ 19,473 $ 19,146 Accrued compensation and benefits 63,199 102,507 Income taxes payable 19,038 25,094 Distributions payable 71,311 9,310 Accounts payable and other accruals 14,753 19,716 Other liabilities 3,654 5,100 Total Current Liabilities 191,428 180,873 Non-Current Liabilities Loan payable 13,000 13,000 Minority Interest 2,031 1,552 Total Non-Current Liabilities 15,031 14,552 Commitments and Contingencies - - Total Liabilities 206,459 195,425 Members' Equity Members' equity 6,843 6,356 Retained Earnings 257,238 352,690 Accumulated other comprehensive income 3,655 2,906 Total Members' Equity 267,736 361,952 Total Liabilities and Members' Equity $ 474,195 $ 557,377 GLG Non-GAAP Adjusted Net Income for the Three and Nine Months Ended September 30, 2007 and September 30, 2006 (USD in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2007 2006 % 2007 2006 % Change Change Derivation of non-GAAP adjusted net income GAAP Net $ 46,035 $ 36,155 27% $ 375,102 $ 160,846 133% income Deduct: limited (17,000) (25,000) (32%) (207,500) (76,530) 171% partner profit share Non-GAAP $ 29,035 $ 11,155 160% $ 167,602 $ 84,316 99% adjusted net income GLG Non-GAAP Expenses for the Three and Nine Months Ended September 30, 2007 and September 30, 2006 (USD in thousands) Three Months Ended Nine Months Ended September 30, September 30, 2007 2006 % 2007 2006 % Change Change Non-GAAP expenses GAAP employee $ (28,959) $ (3,735) $ (110,526) $ (118,194) compensation and benefits Limited (17,000) (25,000) (207,500) (76,530) partner profit share Non-GAAP $ (45,959) $ (28,735) 60% $ (318,026) $ (194,724) 63% Comprehensive limited partner profit share, compensation and benefits GAAP General, (25,891) (16,576) 56% (79,634) (43,721) 82% administrative and other Non-GAAP $ (71,850) $ (45,311) 59% $ (397,660) $ (238,445) 67% total expenses Non-GAAP Financial Measures GLG presents certain financial measures that are not prepared in accordance with U.S. generally accepted accounting principals, or GAAP, in addition to financial results prepared in accordance with GAAP. Comprehensive Limited Partner Profit Share, Compensation and Benefits ("PSCB"): GLG's management assesses its personnel-related expenses based on the measure "non-GAAP comprehensive limited partner profit share, compensation and benefits", or non-GAAP PSCB. This non-GAAP financial measure reflects GAAP employee compensation and benefits, adjusted to include the limited partner profit shares. Beginning in mid-2006, GLG entered into partnerships with a number of its key personnel who ceased to be employees and instead became holders of direct or indirect limited partnership interests in certain GLG entities. These individuals continue to provide services to GLG, either directly or through two limited liability partnerships. Through their partnership interests, these key individuals are entitled to profit shares in the form of priority distributions paid as partnership draws. In addition they may be entitled to an additional discretionary limited partner profit share. The key personnel that are participants in the limited partner profit share arrangement described above do not receive salaries or discretionary bonuses from GLG. Under GAAP, limited partner profit share cannot be presented as employee compensation expense. However, management believes that it is more appropriate to treat limited partner profit share as expense when considering business performance because it reflects the cost of the services provided to GLG by these participants in the limited partner profit share arrangement. As a result, GLG presents the measure non-GAAP PSCB to show the total cost of the services provided to GLG by both participants in the limited partner profit share arrangement and employees. For purposes of this non-GAAP financial measure, GLG recognizes the limited partner profit share in the period in which the revenues related to the limited partner profit share are recognized, rather than the period in which the limited partner profit share distributions are made. Non-GAAP PSCB is not a measure of financial performance under GAAP and should not be considered as an alternative to GAAP employee compensation and benefits. Adjusted Net Income: GLG's management assesses the underlying performance of its business based on the measure "adjusted net income", which adjusts for the difference between GAAP employee compensation and benefits and non-GAAP PSCB as discussed above. Adjusted net income is not a measure of financial performance under GAAP and should not be considered as an alternative to GAAP net income as an indicator of GLG's operating performance or any other measures of performance derived in accordance with GAAP. GLG is providing these non-GAAP financial measures to enable investors, securities analysts and other interested parties to perform additional financial analysis of GLG's personnel-related costs and its earnings from operations and because it believes that they will be helpful to investors in understanding all components of the personnel-related costs of GLG's business. GLG's management believes that the non-GAAP financial measures also enhance comparisons of GLG's core results of operations with historical periods. In particular, GLG believes that the non-GAAP adjusted net income measure better represents profits available for distribution to stockholders than does GAAP net income. Investors should consider these non-GAAP financial measures in addition to, and not as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. The non-GAAP financial measures presented by GLG may be different from non-GAAP financial measures used by other companies. (USD in Q3 2007 Q2 2007 Q3 2006 LTM(1) YTD(2) millions) Gross AUM 23,593 21,522 15,932 23,593 23,593 Net AUM 20,466 18,585 13,718 20,466 20,466 Average 19,533 17,343 13,592 16,805 17,576 net AUM (USD in thousands) Management 78,558 62,991 47,010 255,184 198,892 fees Performance 803 340,512 1,102 561,527 343,835 fees(3) Administration 16,306 14,036 9,128 52,751 42,986 fees Other 6,905 472 - 10,891 7,875 Total net revenues 102,572 418,010 57,240 880,353 593,588 and other income Employee (28,959) (56,518) (3,735) (160,717) (110,526) compensation and benefits General, (25,891) (27,979) (16,576) (104,177) (79,634) adminstrative and other Net interest 3,048 171 1,029 5,749 4,694 income GAAP net income 50,770 333,685 37,958 621,208 408,122 before taxes Income tax (4,735) (25,031) (1,803) (47,443) (33,020) expense GAAP net income 46,035 308,654 36,155 573,765 375,102 after taxes Limited (17,000) (184,047) (25,000) (332,420) (207,500) partner profit share Non-GAAP adjusted net 29,035 124,607 11,155 241,345 167,602 income (4) Management fees and 1.9% 1.8% 1.7% 1.8% 1.8% Administration fees/ Avg. net AUM(5) Total net revenues 2.1% 9.6% 1.7% 5.2% 4.5% and other income /Avg. net AUM(5) Employee compensation 45% 58% 50% 56% 54% and benefits and limited partner profit share/ Total net revenues and other income General, administrative 25% 7% 29% 12% 13% and other expenses/ Total net revenues and other income Non-GAAP adjusted net 28% 30% 19% 27% 28% income/Total net revenues and other income Effective income tax 14% 17% 14% 16% 16% rate (1) LTM period is Oct 1, 2006 to Sept 30, 2007. (2) YTD period is Jan 1, 2007 to Sept 30, 2007. (3) Performance fees are recognised when they crystallize, generally on June 30 and December 31 each year. As a result, the performance fee revenues do not reflect revenues from uncrystallised performance fees during Q1 and Q3. (4) See "Non-GAAP Financial Measures" for further detail. (5) Ratios annualized for Q3 2006 as well as Q2 and Q3 2007. As of YOY As of YOY Qtr on Qtr June 30, % September 30, % % Change 2007 2006 Change 2007 2006 Change Q3 Q3 2007 2006 Alternative $ 12,826 $ 9,059 42% $ 14,713 $ 9,184 60% 15% 1% strategy Long-only 4,432 3,730 19% 4,561 3,735 22% 3% 0% Internal 1,627 1,086 50% 1,651 1,089 52% 1% 0% FoHF External 599 477 26% 598 511 17% 0% 7% FoHF Gross 19,485 14,351 36% 21,524 14,519 48% 10% 1% Fund-Based AUM Managed 1,843 937 97% 1,905 1,042 83% 3% 11% accounts Cash 194 339 (43%) 164 372 (56%)(16%) 10% Total Gross 21,522 15,627 38% 23,593 15,932 48% 10% 2% AUM Less: (1,642) (1,020) 61% (1,653) (1,091) 52% 1% 7% internal FoHF investments in GLG funds Less: (56) (13) 343% (55) (48) 15% (1%) 281% external FoHF investments in GLG funds Less: (1,239) (1,127) 10% (1,419) (1,075) 32% 14% (5%) alternatives fund-in-fund investments Net AUM $ 18,585 $ 13,467 38% $ 20,466 $ 13,718 49% 10% 2% Three Months Ended Three Months Ended Nine Months June 30, September 30, Ended September 30, 2007 2006 2007 2006 2007 2006 Opening $ 17,060 $ 12,934 $ 19,485 $ 14,351 $ 16,053 $ 11,484 Gross Fund-Based AUM Fund-based 1,393 1,407 1,798 (72) 3,350 1,541 inflows (net of redemptions) Fund-based 1,032 10 241 240 2,121 1,494 net performance (gains net of losses) Closing $ 19,485 $ 14,351 $ 21,524 $ 14,519 $ 21,524 $ 14,519 Gross Fund-Based AUM % of Opening Gross Fund-Based AUM Gross 8.2% 10.9% 9.2% (0.5%) 20.9% 13.4% Fund-based inflows (net of redemptions) Gross Fund-based 6.0% 0.1% 1.2% 1.7% 13.2% 13.0% net performance (gains net of losses) Opening $ 1,398 $ 505 $ 1,843 $ 937 $ 1,233 $ 335 Managed Accounts AUM Inflows (net 351 536 38 96 457 766 of redemptions) Net 94 (104) 24 8 215 (60) performance (gains net of losses) Closing $ 1,843 $ 937 $ 1,905 $ 1,042 $ 1,905 $ 1,042 Managed Accounts AUM % of Opening Managed Accounts AUM Inflows (net 25.1% 106.1% 2.1% 10.3% 37.1% 228.8% of redemptions) Net 6.7% (20.6%) 1.3% 0.9% 17.5% (17.9%) Performance (gains net of losses) Note: Net performance is based on both opening AUM and inflows during the period and can be influenced by heavy inflows and fluctuations in currencies. Contacts: Investors/analysts: GLG: Simon White, Chief Financial Officer, +44(0)20-7016-7000, ; Michael Hodes, Acting Director of Investor Relations, +1-212-224-7223, . Media: Finsbury: Rupert Younger/Amanda Lee, +44(0)20-7251-3801, , ; Andy Merrill, +1-212-303-7600, . DATASOURCE: GLG Partners (GLG) CONTACT: Contacts: Investors/analysts: GLG: Simon White, Chief Financial Officer, +44(0)20-7016-7000, ; Michael Hodes, Acting Director of Investor Relations, +1-212-224-7223, . Media: Finsbury: Rupert Younger/Amanda Lee, +44(0)20-7251-3801, , ; Andy Merrill, +1-212-303-7600, .

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