DALLAS, April 21 /PRNewswire-FirstCall/ -- Westwood Holdings Group, Inc. (NYSE: WHG) today reported 2004 first quarter revenues of $5.0 million, net income of $1.1 million, and earnings per diluted share of $0.21. This compares to revenues of $5.0 million, net income of $1.3 million and earnings per diluted share of $0.23 in the first quarter of 2003. Total expenses for the 2004 first quarter were $3.2 million compared to $3.0 million for the 2003 first quarter.

Assets under management were $3.9 billion as of March 31, 2004, an increase of 1.6% compared to $3.8 billion on March 31, 2003. Average assets under management for the first quarter of 2004 were $3.9 billion, a decrease of 0.8% compared with the first quarter of 2003. The increase in period ending assets under management was principally attributable to the market appreciation of assets under management as well as inflows from new clients offset by the withdrawal of assets by certain clients.

Westwood also announced today that its Board of Directors has approved the payment of a quarterly cash dividend of $0.04 per common share, payable on July 1, 2004 to stockholders of record on June 15, 2004.

Susan M. Byrne, Westwood's founder and Chief Executive Officer commented, "We are on track to achieve our five-year goal of diversifying our business by product and by delivery channel. We have upgraded and added talent over the past few years to deliver established products to the managed account marketplace and to create new products for the institutional delivery channel. Westwood Trust continues to see nice growth, especially in the enhanced balanced product, which comprises ten different asset classes and is offered to small institutions, foundations and high net worth clients. Westwood Management manages the value and income-oriented asset classes for Westwood Trust, while outside subadvisors focus on the growth, international and high yield areas. The customer receives an institutional quality product from 'best of breed' managers at a cost that is extremely competitive and with the support of a talented client service team that is singularly focused on their needs."

About Westwood

Westwood Holdings Group, Inc. manages investment assets and provides services for its clients through two subsidiaries, Westwood Management Corp. and Westwood Trust. Westwood Management Corp. is a registered investment advisor and provides investment advisory services to corporate pension funds, public retirement plans, endowments and foundations, mutual funds and clients of Westwood Trust. Westwood Trust provides, to institutions and high net worth individuals, trust and custodial services and participation in common trust funds that it sponsors. Westwood Holdings Group, Inc. trades on the New York Stock Exchange under the symbol "WHG". For more information, please visit the Company's website at www.westwoodgroup.com .

Note on Forward-looking Statements

Statements that are not purely historical facts, including statements about anticipated or expected future revenue and earnings growth and profitability, as well as other statements including words such as "anticipate," "believe," "plan," "estimate," "expect," "intend," "should," "could," "goal," "target," "designed," "on track," "continue," "comfortable with," "optimistic," "look forward to" and other similar expressions, constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements are subject to known and unknown risks, uncertainties and other factors, which may cause actual results to be materially different from those contemplated by the forward-looking statements. Such factors include the risks and uncertainties referenced in our documents filed with, or furnished to, the Securities and Exchange Commission, including without limitation those identified under the caption "Forward-Looking Statements and Risk Factors" in the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Readers are cautioned not to place undue reliance on forward- looking statements.

                WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF INCOME
                   (in thousands, except per share amounts)
                                 (unaudited)

                                                  Three months ended March 31,
                                                        2004         2003
    REVENUES:
        Advisory fees                               $   3,420    $   3,620
        Trust fees                                      1,452        1,139
        Other revenues                                    171          253
            Total revenues                              5,043        5,012

    EXPENSES:
        Employee compensation and benefits              2,337        2,119
        Sales and marketing                               100          143
        Information technology                            172          175
        Professional services                             224          259
        General and administrative                        381          349
            Total expenses                              3,214        3,045
    Income before income taxes                          1,829        1,967
    Provision for income tax expense                      712          717
    Net income                                      $   1,117    $   1,250

    Earnings per share:
        Basic                                          $ 0.21       $ 0.23
        Diluted                                        $ 0.21       $ 0.23


                WESTWOOD HOLDINGS GROUP, INC. AND SUBSIDIARIES

                         CONSOLIDATED BALANCE SHEETS
                  As of March 31, 2004 and December 31, 2003
             (in thousands, except par values and share amounts)
                                 (unaudited)

                                                      March 31,  December 31,
                                                        2004         2003
                        ASSETS
    Current Assets:
        Cash and cash equivalents                   $   2,603    $   3,643
        Accounts receivable                             2,113        1,931
        Investments, at market value                   18,342       17,413
            Total current assets                       23,058       22,987
        Goodwill                                        2,302        2,302
        Other assets, net                               1,031          948
            Total assets                            $  26,391    $  26,237

       LIABILITIES AND STOCKHOLDERS' EQUITY
    Current Liabilities:
        Accounts payable and accrued liabilities    $   1,112    $     935
        Dividends payable                                 222          167
        Compensation and benefits payable                 738        2,776
        Income taxes payable                            1,281          472
            Total current liabilities                   3,353        4,350
        Other liabilities                                  25           34
            Total liabilities                           3,378        4,384
    Stockholders' Equity:
        Common stock, $0.01 par value,
         authorized 10,000,000 shares, issued
         5,549,472 and outstanding 5,549,119
         shares at March 31, 2004, issued
         5,550,472 and outstanding 5,550,119
         shares at December 31, 2003                       55           56
        Additional paid-in capital                     12,996       12,952
        Treasury stock, at cost - 353 shares
         at March 31, 2004 and December 31, 2003           (6)          (6)
        Unamortized stock compensation                 (2,387)      (2,609)
        Retained earnings                              12,355       11,460
            Total stockholders' equity                 23,013       21,853
    Total liabilities and stockholders' equity      $  26,391    $  26,237

     CONTACT:
     Investor Relations
     214-756-6900