Zurich, 23 July 2008

Presentation of 2008 half-year results for the Julius Baer Group

With net profit of CHF 510 million*, Julius Baer managed to achieve the sameresult as in the first half of 2007 despite weak markets and a strong Swissfranc – Achieved net new money of CHF 10 billion

• Despite the challenging market environment, the Julius Baer Groupachieved a net profit of CHF 510 million* in the first half of 2008, just 2%below the CHF 518 million of the first half of 2007. Earnings per share (EPS)rose by 5% to CHF 2.45.

• Due to the appreciation of the Swiss franc and the weak equity and debtmarkets, assets under management declined to CHF 364 billion, 10% lower than atthe end of 2007. Net new money contributed CHF 10 billion overall, withPrivate Banking attracting CHF 8 billion.

• The investment in future growth continued successfully, as reflected infurther key hirings and the opening of new locations.

• As a result of its exclusive focus on the wealth management business,Julius Baer did not experience any losses related to the credit and liquiditycrisis.

„The Julius Baer Group has managed to strike the right balance betweenstepping up its investment in the future, given the extraordinarily favourablecircumstances for growing Bank Julius Baer's global franchise, and protectingthe Group's profi­tability. Whilst the weak equity and debt markets as well asthe strong Swiss franc have reduced our asset base, with an impact on ourprofits, Bank Julius Baer has benefited from our pure-play wealth managementstrategy, as evidenced by the significant net new money inflows the Bank hasachieved,“ sums up Johannes A. de Gier, Group CEO.

Balancing growth and profitability in a challenging market environment

Assets under management of the Julius Baer Group amounted to CHF 364 billionon 30 June 2008, down 10% from CHF 405 billion at the end of 2007. Net newmoney totalling CHF 10 billion was more than offset by the negative marketperformance of CHF 32 billion and a negative currency impact of CHF19 billion. In addition, assets under custody increased by 9% to CHF75 billion.

Operating income was 2% lower at CHF 1,602 million compared to the firsthalf of 2007. As a result of the decreased asset levels and subdued clientactivity, net fee and commission income declined by 9% to CHF 1,195 million.Net interest income rose by CHF 53 million or 32% to CHF 221 million followingthe increased lending to private clients, higher deposits as well as highermargins. Net trading income increased by 28% to CHF 178 million, primarilydriven by foreign exchange trading.

Operating expenses at CHF 949 million were slightly lower than last year(CHF 960 million), aided by a positive currency impact and despite continuedinvestments in growth. Personnel expenses were down 2% at CHF 673 million asthe impact of the 10% year-on-year staff increase, from 3,869 to 4,272, wasoffset by lower performance-related compensation accruals and a positivecurrency impact. General expenses, including valuation adjustments, provisionsand losses, remained unchanged at CHF 254 million, even with the continuedbusiness expansion of Bank Julius Baer. All in all, the cost/income ratioincreased slightly to 58.5% after 57.5% in the first half of 2007.

*Excluding integration and restructuring expenses as well as amortization ofintangible assets. Including these positions, the net profit for the first halfof 2008 amounted to CHF 412 million, after CHF 424 million for the first halfof 2007.

Profit before taxes declined by 3% to CHF 653 million. After deduction oftaxes amounting to CHF 143 million, representing a tax rate of 22%, net profitreached CHF 510 million*, just 2% down from H1 2007. Following share buybackprograms, EPS increased by 5% to CHF 2.45. As part of the current share buybackprograms (2008–2010) of up to CHF 2 billion, 1,565,000 shares in the totalamount of CHF 112.4 million had been repurchased as of 22 July 2008.

Total assets were down by CHF 3.3 billion at CHF 43.6 billion at the end ofJune 2008, mainly driven by the lower level of client deposits and structuredproducts volume as compared to the end of 2007. Total equity rose by CHF160 million to CHF 6.6 billion, and the BIS Tier 1 capital by CHF313 million to CHF 2.3 billion. With a BIS Tier 1 ratio of 13.8% under BaselII (year-end 2007:12.9% under Basel I), the Julius Baer Group continues to enjoya very solid financial base. Return on equity was at 28.8% compared to 27.9% inthe first half of 2007.

Bank Julius Baer continues to attract significant net new money

Assets under management in the segment Bank Julius Baer (Private Banking andInvestment Products) declined by CHF 12 billion or 5% to CHF 222 billion inthe first half of 2008. Net new money contributed a healthy CHF 12 billion,representing an annualized growth rate of 10%, while market and currencyperformance had a negative impact of CHF 24 billion. Operating income increasedby 3% to CHF 977 million year on year, and operating expenses rose by 9% to CHF587 million as a result of continued investments in front-related areas. As aconsequence, profit before taxes for Bank Julius Baer declined by 4% to CHF390 million. Assets under management of the Private Banking division were 5%lower at CHF 148 billion despite significant net new money of CHF 8 billion towhich all regions contributed, again with a major share from growth markets,Asia in particular. Assets under management in the Investment Products divisionfell by 5% to CHF 74 billion, with net new money amounting to CHF3 billion.

Assets under management in the segment Asset Management (GAM and ArtioGlobal) declined by CHF 29 billion or 17% to CHF 142 billion in the first halfof 2008, mainly as a result of negative market performance and the currencyimpact on assets under management as reported in Swiss francs, which had acombined negative impact of CHF 28 billion. At the end of June 2008, GAM hadCHF 68 billion of assets under management, and Artio Global, the US assetmanagement business to be IPO-ed when market conditions allow, CHF 74 billion,with the latter continuing to attract substantial net new money. During thishighly challenging period for leveraged hedge fund style investments, GAMexperienced net outflows but was able to improve its margins from H1 2007levels. The segment’s operating income fell by 8% to CHF 594 million, andoperating expenses dropped by 13% to CHF 316 million. As a consequence, profitbefore taxes was down 3% to CHF 278 million.

The documents accompanying the results conference (presentation, BusinessReview First Half 2008, Half-year Report 2008 and press release) are availableat www.juliusbaer.com.

Contact Media: Tel. +41 (0) 58 888 5777 Investors: Tel. +41 (0)58 888 5256

The periodic Interim Management Statement will be released on 11 November2008, and the 2008 annual results of the Julius Baer Group on6 February 2009.

About Julius Baer

Julius Baer is the leading dedicated wealth manager in Switzerland. TheGroup, which has roots dating to the nineteenth century, concentratesexclusively on private banking and asset management for sophisticated privateand institutional clients. With more than 4,200 employees worldwide, the Groupmanaged assets in excess of CHF 360 billion at the end of June 2008. TheJulius Baer Group's global presence comprises more than 30 locations inEurope, North America, Latin America and Asia, including Zurich (head office),Buenos Aires, Dubai, Frankfurt, Geneva, Hong Kong, London, Lugano, Milan,Moscow, New York, Singapore and Tokyo. Bank Julius Baer and GAM, a global assetmanager focused on active and alternative wealth management, are the keycompanies of the Group. The registered shares of Julius Baer Holding Ltd. arelisted on the SWX Swiss Exchange and form part of the Swiss Market Index (SMI)which comprises the 20 largest and most liquid stocks. For moreinformation: www.juliusbaer.com