Och-Ziff Capital Management Group LLC Reports Fourth-Quarter and Full-Year 2007 Results

02/26/2008

NEW YORK, Feb. 26 /PRNewswire-FirstCall/ -- Och-Ziff Capital Management Group LLC (NYSE: OZM) (the "Company" or "Och-Ziff") today reported its results for the fourth-quarter and full-year 2007.

    2007 Highlights

    -- Distributable Earnings of $505.5 million or $1.27 per Adjusted Class A
       share for the 2007 fourth quarter, and $643.9 million or $1.61 per
       Adjusted Class A share for the 2007 full year
    -- 2007 fourth-quarter dividend of $1.20 per Class A share paid in
       February 2008 to holders of record on December 31, 2007
    -- Assets under management of $33.4 billion as of December 31, 2007, 48%
       higher than as of December 31, 2006
    -- 2007 full-year Och-Ziff Funds segment revenues of $1.1 billion, 17%
       higher than the 2006 full year
    -- Reinvestment of $1.6 billion in after-tax proceeds from initial public
       offering and share sale to Dubai International Capital, which positions
       Och-Ziff to capitalize on numerous opportunities globally

For the fourth-quarter and full-year ended December 31, 2007, Och-Ziff reported a GAAP net loss of $774.6 million and $915.0 million, respectively. For the period of November 14, 2007 (the date of the Company's initial public offering, or "IPO") through December 31, 2007, Och-Ziff reported a GAAP net loss of $826.6 million, or $11.15 per basic and diluted Class A share.

The fourth-quarter and full-year 2007 GAAP net losses resulted primarily from expenses of $3.3 billion associated with the Company's reorganization in connection with its IPO. These expenses are related to the amortization of Och-Ziff Operating Group A Units ("Group A Units"), which represent equity interests in the Company's principal operating subsidiaries that were granted to the Company's pre-IPO owners in exchange for their pre-IPO interests. These units vest annually over the next five years. Accordingly, the Company will reflect these charges in its GAAP statements of operations over a five- year period through 2012, which is expected to result in a GAAP net loss in each of these years. Once vested, these units may be exchanged on a one-to- one basis for the Company's publicly held Class A shares. In addition, all of the Company's employees received Class A restricted stock units in connection with the IPO, which will vest annually over the next four years. These equity grants are being expensed as they vest and are recorded as a non-cash amortization charge. The full-year 2007 GAAP net loss also resulted from cash distributions in the third quarter of 2007 by the Company to its pre-IPO owners using proceeds from its $750 million term loan.

"The completion of our IPO and concurrent investment from Dubai International Capital should enable us to capitalize on numerous growth opportunities worldwide while further aligning the interests of our partners and employees with our fund investors and our new public company shareholders," said Daniel Och, Chairman and Chief Executive Officer of Och- Ziff. "We now have increased financial flexibility and an enhanced international profile to build on our success of delivering new investment opportunities to our fund investors."

Och-Ziff's Distributable Earnings for the fourth-quarter and full-year ended December 31, 2007 was $505.5 million, or $1.27 per Adjusted Class A share, and $643.9 million, or $1.61 per Adjusted Class A share, respectively. Distributable Earnings is a supplemental non-GAAP financial measure used by the Company's management to determine the after-tax amount available to distribute as dividends to holders of the Company's Class A shares and to the Company's partners assuming all Group A Units and restricted stock units were converted on a one-to-one basis to Class A shares ("Adjusted Class A shares"). Distributable Earnings is equal to Economic Income of the Och-Ziff Funds segment less adjusted income taxes. These adjusted income taxes were calculated assuming all Group A Units and restricted stock units were converted on a one-to-one basis to Class A shares. Distributable Earnings per Share is equal to Distributable Earnings divided by the number of Adjusted Class A shares. For present and future periods, the Company's management believes that Distributable Earnings provides a meaningful basis for comparison of the after-tax operating performance of the Och-Ziff Funds segment, which represents substantially all of the Company's business. For a reconciliation of the Company's fourth-quarter and full-year 2007 Och-Ziff Funds segment Economic Income to Distributable Earnings for the corresponding periods, please see Exhibit 8 of the financial tables that accompany this release.

Och-Ziff's assets under management were $33.4 billion as of December 31, 2007, up 48% compared to December 31, 2006 assets under management of $22.6 billion. The $10.8 billion increase was driven by net inflows and appreciation as the Company's funds delivered strong absolute returns despite volatile market conditions in the third and fourth quarters of 2007. The increase included the fourth-quarter reinvestment by the Company's partners of the $1.6 billion in after-tax proceeds from the Company's IPO and share sale to Dubai International Capital, which were principally invested in the OZ Global Special Investments Master Fund.

    Assets under management by fund are as follows:

                                               As of December 31,
                                                                  2007 vs 2006
    (dollars in billions)                          2007    2006    % Change(4)

    OZ Master Fund                                 19.8    15.4        28%
    OZ Europe Master Fund                           6.4     3.5        84%
    OZ Asia Master Fund(1)                          3.9     2.3        65%
    OZ Global Special Investments Master Fund(2)    2.1     0.2         NM
    Other(3)                                        1.2     1.2         0%

    (1) Includes investment of $0.1 billion in after-tax proceeds from the
        Company's Class A share sales
    (2) Includes investment of $1.5 billion in after-tax proceeds from the
        Company's Class A share sales
    (3) Includes OZ Capital Structure Arbitrage and Real Estate Funds, and
        managed accounts
    (4) Rounding differences may occur

The net returns, volatility and Sharpe Ratios of the OZ Master Fund compared with the S&P 500 are detailed in the table below as of December 31, 2007. The OZ Master Fund includes every strategy and geography in which the Company's funds invest. Och-Ziff's ability to generate consistent returns with low levels of volatility relative to the capital markets, and also to preserve fund capital when markets decline, are hallmarks of Och-Ziff's investment approach and key points of competitive differentiation for the Company.

    Summary Performance Statistics (1)

                                         As of December 31, 2007

                                                                   Strategy
                                    1 Year    3 Years    5 Years   Inception
    Net Annualized Return
    OZ Master Fund, Ltd.             11.5%      11.7%      13.9%     16.5%
    S&P 500 Index                     5.5%       8.6%      12.8%     11.0%
    Correlation of OZ Master Fund
     to S&P 500 Index                0.60       0.60       0.57      0.45

    Volatility
    Master Fund Standard Deviation
     (Annualized)                     3.8        3.1        3.3       5.0
    S&P 500 Index Standard Deviation  9.7        7.8        8.6      14.0
     (Annualized)

    Sharpe Ratio
    Master Fund                      1.63       2.30       3.16      2.41
    S&P 500 Index                    0.01       0.50       1.09      0.47

    (1) Please see important disclosures on Exhibit 11 of the Financial
        Supplement accompanying this release.

"Our focus on delivering consistent, positive risk-adjusted returns throughout market cycles led to strong absolute net returns in our funds despite extremely volatile market conditions in 2007," said Mr. Och. "This, in turn, resulted in strong growth in our assets under management, as we benefited from fund investors being increasingly attracted to our investment approach during uncertain market conditions. Our results also reflect the benefits of the diversification of our strategy and well-established global presence, which we have been cultivating for a number of years. We believe that we can accelerate our growth through the continued expansion of our private investment platforms and private portfolio, which we expect to become meaningful contributors to our earnings power over time. We accomplished a number of initiatives in 2007 that we believe will benefit our business over the long term, and we are excited about our growth prospects in 2008 and beyond."

SUMMARY RESULTS OF THE OCH-ZIFF FUNDS SEGMENT

The Och-Ziff Funds segment is currently the Company's only reportable operating segment. This segment provides management and advisory services to the Company's funds and separately managed accounts, excluding the real estate funds.

The Company's other operations are currently comprised of its real estate business, which manages and provides advisory services to its real estate funds. This business is currently not a significant part of the Company's overall operations and is not included in the results of the Och-Ziff Funds segment or the performance measure for that segment.

The performance measure for the Och-Ziff Funds segment is Economic Income, which the Company's management uses to evaluate the overall performance of the Och-Ziff funds and make operating decisions for the segment. Management believes that investors should review the same performance measure that it uses to analyze the Company's segment performance. Economic income does not include income allocations and distributions paid to partners, profit-sharing allocations to the Ziffs, charges related to the Company's IPO, or partners' and others' interests in the Company's operating subsidiaries. For a reconciliation of fourth-quarter and full-year 2007 and 2006 Economic Income to the GAAP net income (loss) for the corresponding periods, please see Exhibits 3 through 6 of the financial tables that accompany this release.

Segment Revenues

Fourth-quarter segment revenues were $763.7 million, up 4% compared to 2006 fourth-quarter segment revenues of $733.5 million. Management fees were $135.1 million, up 53% from 2006 fourth-quarter management fees of $88.1

million. Incentive fees were $625.3 million, down 3% from 2006 fourth-quarter incentive fees of $642.3 million.

Full-year 2007 segment revenues were $1.1 billion, up 17% compared to 2006 full-year segment revenues of $960.1 million. Management fees were $476.9 million, up 57% from 2006 full-year management fees of $302.8 million. Incentive fees were $637.2 million, down 2% from the 2006 full-year incentive fees of $651.5 million.

In both periods, the increase in management fees was driven by the 48% year-over-year increase in assets under management. The slight decline in incentive fees occurred as the impact of a larger asset base was offset by lower performance of the Och-Ziff funds.

    Segment Expenses

    Compensation and Benefits

Fourth-quarter 2007 compensation and benefit expenses were $167.2 million, up 14% from 2006 fourth-quarter compensation and benefit expenses of $146.2 million. Full-year 2007 compensation and benefit expenses were $214.7 million, up 16% from 2006 full-year compensation and benefit expenses of $185.0 million.

The year-over-year increase for both the 2007 fourth quarter and full year were driven principally by increased headcount due to asset growth and the infrastructure needed to support becoming a public company.

Non-Compensation Expenses

Fourth-quarter 2007 non-compensation expenses were $30.9 million, up 129% from 2006 fourth-quarter non-compensation expenses of $13.5 million. The increase from the 2006 fourth quarter was driven primarily by interest expense on the Company's $750 million term loan, as well as higher business development, technology and insurance costs.

Full-year 2007 non-compensation expenses were $99.7 million, up 116% from 2006 full-year non-compensation expenses of $46.2 million. This increase was driven primarily by the interest expense on the Company's $750 million term loan, as well as higher professional services fees and technology costs.

Segment Economic Income

Fourth-quarter 2007 economic income totaled $565.6 million, essentially unchanged from 2006 fourth-quarter economic income of $573.8 million. The fourth-quarter 2007 margin, which is fourth-quarter segment economic income divided by fourth-quarter segment revenues, was 74%, four percentage points lower than the 78% margin in the 2006 fourth quarter. The margin decrease was primarily attributable to increased compensation expense due to headcount growth and interest expense on the Company's $750 million term loan.

Full-year 2007 segment economic income totaled $811.1 million, up 11% from full-year 2006 segment economic income of $729.0 million. The full-year 2007 margin, which is full-year segment economic income divided by full-year segment revenues, was 72%, down four percentage points from the 2006 margin of 76%. The margin decrease was primarily attributable to increased compensation expenses due to headcount growth, increased professional services costs and interest expense on the Company's $750 million term loan.

CAPITAL

As of December 31, 2007, Class A shares outstanding totaled 74.1 million. For purposes of calculating Distributable Earnings, all Group A Units and restricted stock units are assumed converted at the beginning of the year on a one-to-one basis to Class A shares, for total adjusted Class A shares outstanding of 399.2 million.

DIVIDENDS

On February 4, 2008, the Board of Directors of Och-Ziff declared a fourth- quarter dividend of $1.20 per Class A share, payable to holders of record at

the close of business on December 31, 2007. The dividend was paid on February 12, 2008.

                      *          *          *          *

Och-Ziff will host a conference call today, February 26, 2008, at 10:00 a.m. ET to discuss the Company's fourth-quarter and full-year 2007 results. The call will be open to the public and can be accessed by dialing 888-679-8035 (callers inside the U.S.) or 617-213-4848 (callers outside the U.S.). The number should be dialed at least ten minutes prior to the start of the call. The passcode for the call will be 10955828. A simultaneous webcast of the call will be available to the public on a listen-only basis on the Company's website at www.ozcap.com.

For those unable to listen to the live broadcast, a replay will be available by dialing 888-286-8010 (callers inside the U.S.) or 617-801-6888 (callers outside the U.S.), passcode 48657697, beginning approximately two hours after the event for two weeks. A webcast replay of the event will also be available on the Company's website.

                      *          *          *          *

    Forward-Looking Statements

The information contained in this press release may contain forward- looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that reflect the current views of Och-Ziff Capital Management Group LLC (the "Company") with respect to, among other things, the Company's future financial or business performance, events, strategies or expectations, including but not limited to its ability to generate returns and preserve capital and its ability to expand its investment platforms. Such forward-looking statements are generally identified by the use of words such as "outlook," "believe," "expect," "potential," "continue," "may," "will," "should," "could," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," "opportunity," "assume," "remain," "sustain," "achieve" or the negative version of those words or other comparable words.

Any forward-looking statements contained in this press release are based upon historical performance of the Company and its subsidiaries and on current plans, estimates and expectations of the Company and its subsidiaries. The inclusion of this forward-looking information should not be regarded as a representation by the Company or any other person that the future plans, estimates or expectations contemplated by the Company will be achieved. Such forward-looking statements are subject to various risks and uncertainties, including but not limited to global and domestic market and business conditions, the Company's ability to successfully compete for fund investors, talent and investment opportunities, successful execution of its business and growth strategies, the Company's ability to appropriately manage conflicts of interest, and tax and other regulatory factors relevant to the Company's structure and status as a public company, as well as assumptions relating to the Company's operations, financial results, financial condition, business prospects, growth strategy and liquidity.

If one or more of these or other risks or uncertainties materialize, or if the Company's assumptions prove to be incorrect, the Company's actual results may vary materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements and risks that are included in the Company's filings with the Securities and Exchange Commission, including but not limited to the Company's registration statement on Form S-1 (registration no. 333- 144256). Any forward-looking statements contained in this press release are made only as of the date hereof. The Company does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise.

    This press release does not constitute an offer of any Och-Ziff fund.

                      *          *          *          *

    About Och-Ziff Capital Management Group LLC

Och-Ziff Capital Management Group is one of the world's largest institutional alternative asset managers with offices in New York, London, Hong Kong, Tokyo, Bangalore and Beijing. Och-Ziff's funds seek to deliver consistent positive, risk-adjusted returns with a strong focus on risk management and capital preservation. Och-Ziff's multi-strategy approach combines global investment strategies, including merger arbitrage, convertible arbitrage, equity restructuring, credit and distressed credit investments, private equity and real estate. As of February 1, 2008, Och-Ziff had approximately $33.0 billion in assets under management for over 700 investor relationships. For more information, please visit www.ozcap.com.

                                  Exhibit 1
                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
        Consolidated and Combined Statements of Operations (Unaudited)
          (dollars in thousands, except share and per share amounts)

                                       Quarter Ended           Year Ended
                                        December 31,          December 31,
                                      2007       2006        2007       2006
    Revenues
      Management fees              $136,419     $3,452    $317,756    $13,739
      Incentive income              625,275     15,851     632,690     15,851
      Other revenues                  3,341      1,068      11,637      3,801
      Income of consolidated
       Och-Ziff funds                 5,156    323,965     539,892    972,442
      Total Revenues                770,191    344,336   1,501,975  1,005,833

    Expenses
      Compensation and benefits     176,825    119,187     238,331    168,961
      Allocations to non-equity
       partner interests             85,060    140,767     574,326    277,711
      Reorganization expenses     3,333,396          -   3,333,396          -
      Profit sharing                  2,232     71,205     106,644     97,977
      Interest expense               11,430        307      24,240      1,183
      General, administrative
       and other                     23,718     14,234      83,241     48,515
      Expenses of consolidated
       Och-Ziff funds                 1,201    124,370     343,135    495,621
      Total Expenses              3,633,862    470,070   4,703,313  1,089,968

    Other Income
      Earnings on investments in
       and deferred income
       receivable from Och-Ziff
       funds                         67,120          -     118,335          -
      Net gains of consolidated
       Och-Ziff funds                16,201  1,147,395   2,352,290  3,290,175
      Total Other Income             83,321  1,147,395   2,470,625  3,290,175

    Income (Loss) before Income
     Taxes and Partners' and
     Others' Interests in Income
     of Consolidated
     Subsidiaries                (2,780,350) 1,021,661    (730,713) 3,206,040
      Income taxes                   48,614     17,097      63,963     23,327
    Income (Loss) before
       Partners' and Others'
        Interests in Income of
        Consolidated
        Subsidiaries             (2,828,964) 1,004,564    (794,676) 3,182,713
    Partners' and others'
     interests in income of
     consolidated subsidiaries    2,054,412   (551,547)   (120,350)(2,594,706)

    Net Income (Loss)             $(774,552)  $453,017   $(915,026)  $588,007


                               November 14, 2007
                                   through
                               December 31, 2007

    Net Loss                      $(826,559)

    Net Loss per Class A Share
      Basic and Diluted             $(11.15)

    Weighted Average Class
     A Shares Outstanding
      Basic and Diluted          74,138,572



                                  Exhibit 2
                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
              Och-Ziff Funds Segment Economic Income (Unaudited)
                            (dollars in thousands)

                                         Quarter Ended December 31,   %Change
                                                                      4Q07 vs
                                             2007         2006         4Q06
    Segment Revenues
     Management fees                       $135,108      $88,105        53%
     Incentive income                       625,275      642,295        -3%
     Other revenues                           3,304        3,073         8%
     Total Segment Revenues                 763,687      733,473         4%

    Segment Expenses
     Compensation and benefits              167,186      146,219        14%
     Non-compensation expenses               30,890       13,476       129%
     Total Segment Expenses                 198,076      159,695        24%

    Segment Economic Income                $565,611     $573,778        -1%



                                           Year Ended December 31,    %Change
                                                                      2007 vs
                                             2007         2006         2006
    Segment Revenues
     Management fees                       $476,907     $302,835        57%
     Incentive income                       637,243      651,498        -2%
     Other revenues                          11,391        5,788        97%
     Total Segment Revenues               1,125,541      960,121        17%

    Segment Expenses
     Compensation and benefits              214,736      184,962        16%
     Non-compensation expenses               99,723       46,174       116%
     Total Segment Expenses                 314,459      231,136        36%
     Segment Economic Income               $811,082     $728,985        11%

See Exhibits 3 through 6 for reconciliations of Och-Ziff Funds Segment Economic Income to total Company GAAP Net Income (Loss).

                                  Exhibit 3
                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
         Reconciliation of Och-Ziff Funds Segment Economic Income to
                      GAAP Net Income (Loss) (Unaudited)
                            (dollars in thousands)

                                    Quarter Ended December 31, 2007

                                         Segment
                                         Economic         Other
                                          Income        Operations
    Revenues
       Management fees                   $135,108       $  1,311
       Incentive income                   625,275              -
       Other revenues                       3,304             37
       Income of consolidated
        Och-Ziff funds                          -          5,081
    Total Revenues                        763,687          6,429

    Expenses
       Compensation and benefits          167,186          2,598
       Allocations to non-equity
        partner interests                       -             69
       Reorganization expenses                  -              -
       Profit sharing                           -             23

       Interest expense                    11,430              -
       General, administrative
        and other                          19,460          3,191
       Expenses of consolidated
        Och-Ziff funds                          -          1,138
    Total Expenses                        198,076          7,019

    Other Income
       Earnings on investments in
        and deferred income
        receivable from Och-Ziff funds          -              -
       Net gains of consolidated
        Och-Ziff funds                          -         16,218
    Total Other Income                          -         16,218

    Income (Loss) Before
     Income Taxes and
     Partners' and
     Others' Interests in Income
      of Consolidated Subsidiaries        565,611         15,628
    Income taxes                                -              8

    Income (Loss) Before
     Partners' and Others'
     Interests in Income
     of Consolidated Subsidiaries         565,611         15,620
    Partners' and others'
     interests in income of
     consolidated subsidiaries                  -        (22,933)
       Net Income (Loss)                 $565,611       $ (7,313)



                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
         Reconciliation of Och-Ziff Funds Segment Economic Income to
                      GAAP Net Income (Loss) (Unaudited)
                            (dollars in thousands)

                                    Quarter Ended December 31, 2007

                                   Reconciling Adjustments(1)

                                      Funds           Other          Total
                                  Consolidation    Adjustments      Company
    Revenues
       Management fees             $       -     $         -      $  136,419
       Incentive income                    -               -         625,275
       Other revenues                      -               -           3,341
       Income of consolidated
        Och-Ziff funds                    75               -           5,156
    Total Revenues                        75               -         770,191

    Expenses
       Compensation and benefits           -           7,041(a)(b)   176,825
       Allocations to non-equity
        partner interests                  -          84,991(c)       85,060
       Reorganization expenses             -       3,333,396(d)    3,333,396
       Profit sharing                      -           2,209(e)        2,232
       Interest expense                    -               -          11,430
       General, administrative
        and other                          -           1,067(f)       23,718
       Expenses of consolidated
        Och-Ziff funds                    63               -           1,201
    Total Expenses                        63       3,428,704       3,633,862

    Other Income
    Earnings on investments in
     and deferred income
     receivable from Och-Ziff funds      135          66,985(g)       67,120
    Net gains of consolidated
     Och-Ziff funds                      (17)              -          16,201
    Total Other Income                   118          66,985          83,321

    Income (Loss) Before
     Income Taxes and
     Partners' and
     Others' Interests in
     Income of
     Consolidated
     Subsidiaries                        130      (3,361,719)     (2,780,350)
    Income taxes                           -          48,606(f)       48,614
    Income (Loss) Before
     Partners' and Others'
     Interests in Income of
     Consolidated Subsidiaries           130      (3,410,325)     (2,828,964)
    Partners' and others'
     interests in income
     of consolidated
     subsidiaries                       (130)      2,077,475(f)    2,054,412
    Net Income (Loss)              $       -     $(1,332,850)     $ (774,552)

    (1) See Exhibit 7 for a description of the adjustments made to arrive at
        total Company GAAP Net Income (Loss).



                                  Exhibit 4
                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
         Reconciliation of Och-Ziff Funds Segment Economic Income to
                      GAAP Net Income (Loss) (Unaudited)
                            (dollars in thousands)

                                     Quarter Ended December 31, 2006

                                         Segment
                                         Economic         Other
                                          Income        Operations
    Revenues
       Management fees                   $ 88,105       $  1,311
       Incentive income                   642,295              -
       Other revenues                       3,073             23
       Income of consolidated
        Och-Ziff funds                          -          2,791
    Total Revenues                        733,473          4,125

    Expenses
       Compensation and benefits          146,219          1,449
       Allocations to non-equity
        partner interests                       -             22
       Profit sharing                           -              7
       Interest expense                       307              -
       General, administrative
        and other                          13,169            107
       Expenses of consolidated
        Och-Ziff funds                          -          1,154
    Total Expenses                        159,695          2,739

    Other Income
       Earnings on investments in
        and deferred income
        receivable from Och-Ziff funds          -              -
       Net gains of consolidated
        Och-Ziff funds                          -         37,430
    Total Other Income                          -         37,430

    Income (Loss) Before Income
     Taxes and Partners' and
     Others' Interests in Income
     of Consolidated Subsidiaries         573,778         38,816
    Income taxes                                -             71
    Income (Loss) Before Partners' and
     Others' Interests in Income of
     Consolidated Subsidiaries            573,778         38,745
    Partners' and others' interests in
     income of consolidated subsidiaries        -        (38,670)
       Net Income (Loss)                 $573,778       $     75



                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
         Reconciliation of Och-Ziff Funds Segment Economic Income to
                      GAAP Net Income (Loss) (Unaudited)
                            (dollars in thousands)

                                     Quarter Ended December 31, 2006

                                   Reconciling Adjustments(1)

                                      Funds           Other          Total
                                  Consolidation    Adjustments      Company
    Revenues
       Management fees             $ (85,964)      $       -       $   3,452
       Incentive income             (626,444)              -          15,851
       Other revenues                 (2,028)              -           1,068
       Income of consolidated
        Och-Ziff funds               321,174               -         323,965
    Total Revenues                  (393,262)              -         344,336

    Expenses
       Compensation and benefits           -         (28,481)(a)(b)  119,187
       Allocations to non-equity
        partner interests                  -         140,745(c)      140,767
       Profit sharing                      -          71,198(e)       71,205
       Interest expense                    -               -             307
       General, administrative
        and other                          -             958(f)       14,234
       Expenses of consolidated
        Och-Ziff funds               123,216               -         124,370
    Total Expenses                   123,216         184,420         470,070

    Other Income
       Earnings on investments in
        and deferred income
        receivable from
        Och-Ziff funds               (80,610)         80,610(g)            -
       Net gains of consolidated
        Och-Ziff funds             1,109,965               -       1,147,395
    Total Other Income             1,029,355          80,610       1,147,395

    Income (Loss) Before Income
     Taxes and Partners' and
     Others' Interests in Income
     of Consolidated Subsidiaries    512,877        (103,810)      1,021,661
    Income taxes                           -          17,026(f)       17,097
    Income (Loss) Before
     Partners' and Others'
     Interests in Income of
     Consolidated Subsidiaries       512,877        (120,836)      1,004,564
    Partners' and others'
     interests in income of
     consolidated subsidiaries      (512,877)              -        (551,547)
       Net Income (Loss)           $       -       $(120,836)     $  453,017

    (1) See Exhibit 7 for a description of the adjustments made to arrive at
        total Company GAAP Net Income (Loss).



                                  Exhibit 5
                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
         Reconciliation of Och-Ziff Funds Segment Economic Income to
                      GAAP Net Income (Loss) (Unaudited)
                            (dollars in thousands)

                                       Year Ended December 31, 2007

                                         Segment
                                         Economic         Other
                                          Income        Operations
    Revenues
       Management fees                 $  476,907       $  5,245
       Incentive income                   637,243              -
       Other revenues                      11,391            246
       Income of consolidated
        Och-Ziff funds                          -         11,436
    Total Revenues                      1,125,541         16,927

    Expenses
       Compensation and benefits          214,736          3,513
       Allocations to non-equity
        partner interests                       -            734
       Reorganization expenses                  -              -
       Profit sharing                           -            227
       Interest expense                    24,240              -
       General, administrative
        and other                          75,483          3,678
       Expenses of consolidated
        Och-Ziff funds                          -          2,664
    Total Expenses                        314,459         10,816

    Other Income
       Earnings on investments in
        and deferred income
        receivable
        from Och-Ziff funds                     -              -
       Net gains of consolidated
        Och-Ziff funds                          -         14,929
    Total Other Income                          -         14,929

    Income (Loss) Before Income
     Taxes and Partners' and
     Others' Interests in Income
     of Consolidated Subsidiaries         811,082         21,040
    Income taxes                                -            111
    Income (Loss) Before Partners'
     and Others' Interests in Income
     of Consolidated Subsidiaries         811,082         20,929
    Partners' and others'
     interests in income of
     consolidated subsidiaries                  -        (27,873)
    Net Income (Loss)                  $  811,082       $ (6,944)



                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
         Reconciliation of Och-Ziff Funds Segment Economic Income to
                      GAAP Net Income (Loss) (Unaudited)
                            (dollars in thousands)

                                       Year Ended December 31, 2007

                                    Reconciling Adjustments(1)

                                      Funds           Other          Total
                                  Consolidation    Adjustments      Company
    Revenues
       Management fees           $  (164,396)    $         -       $ 317,756
       Incentive income               (4,553)              -         632,690
       Other revenues                      -               -          11,637
       Income of consolidated
        Och-Ziff funds               528,456               -         539,892
    Total Revenues                   359,507               -       1,501,975

    Expenses
       Compensation and benefits           -          20,082(a)(b)   238,331
       Allocations to non-equity
        partner interests                  -         573,592(c)      574,326
       Reorganization expenses             -       3,333,396(d)    3,333,396
       Profit sharing                      -         106,417(e)      106,644
       Interest expense                    -               -          24,240
       General, administrative
        and other                          -           4,080(f)       83,241
       Expenses of consolidated
        Och-Ziff funds               340,471               -         343,135
    Total Expenses                   340,471       4,037,567       4,703,313

    Other Income
       Earnings on investments in
        and deferred income
        receivable from
        Och-Ziff funds              (186,445)        304,780(g)      118,335
       Net gains of consolidated
        Och-Ziff funds             2,337,361               -       2,352,290
    Total Other Income             2,150,916         304,780       2,470,625

    Income (Loss) Before Income
     Taxes and Partners' and
     Others' Interests in Income
     of Consolidated Subsidiaries  2,169,952      (3,732,787)       (730,713)
    Income taxes                           -          63,852(f)       63,963
    Income (Loss) Before
     Partners' and Others'
     Interests in Income of
     Consolidated Subsidiaries     2,169,952      (3,796,639)       (794,676)
    Partners' and others'
     interests in income of
     consolidated subsidiaries    (2,169,952)      2,077,475(f)     (120,350)
        Net Income (Loss)        $         -     $(1,719,164)      $(915,026)

    (1) See Exhibit 7 for a description of the adjustments made to arrive at
        total Company GAAP Net Income (Loss).



                                  Exhibit 6
                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
         Reconciliation of Och-Ziff Funds Segment Economic Income to
                      GAAP Net Income (Loss) (Unaudited)
                            (dollars in thousands)

                                       Year Ended December 31, 2006

                                         Segment
                                         Economic         Other
                                          Income        Operations
    Revenues
       Management fees                   $302,835       $  5,245
       Incentive income                   651,498              -
       Other revenues                       5,788             41
       Income of consolidated
        Och-Ziff funds                          -          8,476
    Total Revenues                        960,121         13,762

    Expenses
       Compensation and benefits          184,962          4,129
       Allocations to non-equity
        partner interests                       -            212
       Profit sharing                           -             69
       Interest expense                     1,183              -
       General, administrative
        and other                          44,991            260
       Expenses of consolidated
        Och-Ziff funds                          -          1,587
    Total Expenses                        231,136          6,257

    Other Income
       Earnings on investments in
        and deferred income
        receivable from
        Och-Ziff funds                          -              -
       Net gains of consolidated
        Och-Ziff funds                          -         37,430
    Total Other Income                          -         37,430

    Income (Loss) Before Income
     Taxes and Partners' and
     Others' Interests in Income
     of Consolidated Subsidiaries         728,985         44,935
    Income taxes                                -            246
    Income (Loss) Before Partners'
     and Others' Interests in
     Income of Consolidated Subsidiaries  728,985         44,689
    Partners' and others' interests
     in income of
     consolidated subsidiaries                  -        (44,417)
       Net Income (Loss)                 $728,985       $    272


                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
         Reconciliation of Och-Ziff Funds Segment Economic Income to
                      GAAP Net Income (Loss) (Unaudited)
                            (dollars in thousands)

                                       Year Ended December 31, 2006

                                    Reconciling Adjustments(1)

                                      Funds           Other          Total
                                  Consolidation    Adjustments      Company
    Revenues
       Management fees             $(294,341)      $       -     $    13,739
       Incentive income             (635,647)              -          15,851
       Other revenues                 (2,028)              -           3,801
       Income of consolidated
        Och-Ziff funds               963,966               -         972,442
    Total Revenues                    31,950               -       1,005,833

    Expenses
       Compensation and benefits           -         (20,130)(a)(b)  168,961
       Allocations to non-equity
        partner interests                  -         277,499(c)      277,711
       Profit sharing                      -          97,908(e)       97,977
       Interest expense                    -               -           1,183
       General, administrative
        and other                          -           3,264(f)       48,515
       Expenses of consolidated
        Och-Ziff funds               494,034               -         495,621
    Total Expenses                   494,034         358,541       1,089,968

    Other Income
       Earnings on investments
        in and deferred income
        receivable from
        Och-Ziff funds              (240,372)        240,372(g)            -
       Net gains of consolidated
        Och-Ziff funds             3,252,745               -       3,290,175
    Total Other Income             3,012,373         240,372       3,290,175

    Income (Loss) Before Income
     Taxes and Partners' and
     Others' Interests in Income
     of Consolidated Subsidiaries  2,550,289        (118,169)      3,206,040
    Income taxes                           -          23,081(f)       23,327
    Income (Loss) Before
     Partners' and Others'
     Interests in Income of
     Consolidated Subsidiaries     2,550,289        (141,250)      3,182,713
    Partners' and others'
     interests in income of
     consolidated subsidiaries    (2,550,289)              -      (2,594,706)
       Net Income (Loss)         $         -       $(141,250)    $   588,007

    (1) See Exhibit 7 for a description of the adjustments made to arrive at
        total Company GAAP Net Income (Loss).



                                  Exhibit 7
                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
 Description of Adjustments Made to Reconcile Och-Ziff Funds Segment Economic
                       Income to GAAP Net Income (Loss)

    Funds Consolidation
    Economic Income reflects incentive income, management fees and other
    revenues earned from each of the Company's funds, excluding real estate,
    and from the managed accounts. The impacts of the consolidation and
    related eliminations of the Company's funds are not included in Economic
    Income. Incentive income and management fees not eliminated in
    consolidation prior to January 1, 2007 are related to the Company's
    managed accounts, which are not consolidated by the Company.  The Company
    deconsolidated substantially all of the Och-Ziff funds, excluding the real
    estate funds, throughout 2007.

    Other Adjustments
    (a) Economic Income recognizes deferred cash compensation expense in the
        period in which it is granted as the Company determines the total
        amount of the compensation based on the Company's performance in the
        year of the grant. Under GAAP, deferred cash compensation expense is
        recognized over the requisite service period.

    (b) Economic Income excludes non-cash equity compensation granted to
        employees at the time of the IPO and grants made to the Company's
        board of directors. Additionally, the fair value of bonuses paid in
        non-cash equity is recognized in the period in which they are granted.

    (c) Economic Income excludes allocations to non-equity partner interests
        as the Company reviews the performance of the Och-Ziff Funds segment
        before making any allocations to its non-equity partners for periods
        prior to the reorganization. For such periods, income allocations to
        the Company's partners, other than Mr. Och, were treated as expenses
        for GAAP purposes. Following the reorganization, only allocations of
        earnings on previously deferred income allocations to non-equity
        partner interests will be incurred.

    (d) Economic Income excludes reorganization expenses, which are non-cash
        expenses directly attributable to the reclassification of interests
        held by the Company's owners prior to the IPO into Och-Ziff Operating
        Group A Units.

    (e) Economic Income excludes the profit sharing expense related to the
        Ziffs' interest in the Company as the Company reviews the performance
        of the Och-Ziff Funds segment before allocating profit sharing expense
        for periods prior to the reorganization. Following the reorganization,
        only profit sharing expense related to earnings on previously deferred
        profit sharing allocations will be incurred.

    (f) Economic Income excludes depreciation, income taxes and partners' and
        others' interests in income of consolidated subsidiaries as the
        Company does not review these items in determining the performance of
        the Och-Ziff Funds segment.

    (g) Economic Income excludes the earnings on deferred income receivable
        from Och-Ziff funds and earnings on investments in the Och-Ziff funds
        as these amounts relate to earnings on amounts due to affiliates and
        employees that continue to be held in the Och-Ziff Funds.



                                  Exhibit 8
                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
         Reconciliation of Och-Ziff Funds Segment Economic Income to
                     Distributable Earnings  (Unaudited)
          (dollars in thousands, except share and per share amounts)

                                      Quarter Ended          Year Ended
                                    December 31, 2007     December 31, 2007

    Economic Income                      $565,611              $811,082
    Adjusted income taxes (1)             (60,100)             (167,148)
    Distributable Earnings               $505,511              $643,934

    Distributable earnings               $505,511              $643,934
    Adjusted Class A shares (1)       399,197,675           399,197,675
    Distributable Earnings Per Share        $1.27                 $1.61

    (1) Assumes the conversion of 311,099,524 Och-Ziff Operating Group A Units
        held by the Company's partners and the Ziffs and 13,959,579 Restricted
        Stock Units into Class A Shares on a one-to-one basis and that all of
        these shares were outstanding for each period presented.



                                  Exhibit 9
                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
                             Financial Supplement
                            (dollars in millions)

                                                   Year Ended December 31,
                                             2007      2006     2005     2004
    Total Assets Under Management (1)
     Beginning of Period Balance           $22,621   $15,627  $11,251   $5,748
     Net Inflows                             7,591     4,135    3,117    4,569
     Appreciation (2)                        3,175     2,859    1,259      934
     End of Period Balance                 $33,387   $22,621  $15,627  $11,251

    Total Assets Under Management by Fund
     OZ Master Fund                        $19,771   $15,449  $12,001   $9,292
     OZ Europe Master Fund                   6,416     3,481    1,887    1,149
     OZ Asia Master Fund                     3,852     2,332      605        -
     OZ Global Special Investments
      Master Fund                            2,082       195       43        -

    Och-Ziff Funds - Net Returns (3)
     OZ Master Fund                          11.5%     14.8%     8.8%    11.1%
     OZ Europe Master Fund                   14.8%     22.3%    15.7%     9.3%
     OZ Asia Master Fund                     12.2%     14.0%    14.2%        -
     OZ Global Special Investments
      Master Fund                            17.2%     13.9%     0.2%        -

    (1) Includes deferred incentive income receivable from the offshore funds
        and amounts invested by the Company, its partners and certain other
        affiliated parties for which the Company charged no management fees
        and received no incentive income for the periods presented. Amounts
        presented in this table are not the amounts used to calculate
        management fees and incentive income for the respective periods.

    (2) Appreciation reflects the aggregate capital appreciation for the
        entire period from January 1 to December 31 and is presented on a
        total return basis, net of all fees and expenses (except incentive
        compensation on certain unrealized private investments that could
        reduce returns on these investments at the time of realization), and
        includes the reinvestment of all dividends and income. Management and
        incentive fees vary by product. Past performance is no guarantee of
        future results.

    (3) Fund performance reflects a composite of the monthly return for the
        feeder funds comprising each master fund and is presented on a total
        return basis, net of all fees and expenses of the relevant fund
        (except incentive compensation on certain unrealized special
        investments that could reduce returns at the time of realization), and
        includes the reinvestment of all dividends and income. Performance
        includes realized and unrealized gains and losses attributable to
        certain private and initial public offering investments that are not
        allocated to all investors in the funds. Investors that do not
        participate in such investments or that pay different fees may
        experience materially different returns. Past performance is no
        guarantee of future results.



                                  Exhibit 10
                  Returns of OZ Master Fund During Negative
                           Return Months of S&P 500


                                  Total Return of      Total Return of
                  Number of          S&P 500            OZ Master Fund
             Months of Negative   During Negative       During Negative
    Year     Returns of S&P 500    Return Months    Return Months of S&P 500

    1994              3                -8.5%                  1.7%
    1995              1                -0.4%                  0.1%
    1996              2                -6.4%                  3.9%
    1997              3               -13.1%                  4.0%
    1998              3               -17.2%                 -2.7%
    1999              5               -11.8%                  6.2%
    2000              8               -27.1%                 12.0%
    2001              6               -33.2%                  0.4%
    2002              8               -41.9%                 -5.0%
    2003              3                -5.2%                  4.6%
    2004              3                -6.4%                  1.1%
    2005              5                -8.7%                  0.7%
    2006              1                -2.9%                  0.5%
    2007              5               -11.6%                  1.4%


    Distribution of Net Monthly Returns Since April 1, 1994

              Net Monthly Return        Number of
              of OZ Master Fund           Months
               less than -3%                 3
                  -2% to -3%                 0
                  -1% to -2%                 2
                   0% to -1%                13
                   0% to 1%                 58
                   1% to 2%                 42
                   2% to 3%                 29
                   3% to 4%                 10
                   4% to 5%                  5
            greater than 5%                  3


      Total net return for the OZ Master Fund, Ltd. (the "Fund") represents a
      composite of the average return of the feeder funds that comprise the
      Fund. Returns are presented on a total return basis, net of all fees and
      expenses paid by the Fund, and include the reinvestment of all dividends
      and income. Performance includes gains and losses attributable to
      Special Investments and "new issues," which are not available in all
      tranches. Tranches that do not participate in Special Investments or
      "new issues" or that have different management fees may experience
      materially different returns. Past performance is no guarantee of future
      results.

      For the period from 1994 through 1997, performance represents the
      performance of Och-Ziff Capital Management, L.P., a Delaware limited
      partnership that was managed by Daniel S. Och following an investment
      strategy that is substantially similar to that of the Fund. In addition,
      during this period performance was calculated by deducting management
      fees on a quarterly basis and incentive fees on a monthly basis.
      Beginning January 1998, performance has been calculated by deducting
      both management fees and incentive fees on a monthly basis from the
      composite returns of the Fund.

      Readers should not assume that there is any material overlap between
      those securities in the portfolio of the Fund and those that comprise
      the S&P 500 Index. It is not possible to invest directly in the S&P 500
      Index. Returns of the S&P 500 Index have not been reduced by fees and
      expenses associated with investing in securities and include the
      reinvestment of dividends. The S&P 500 Index is an equity index owned
      and maintained by Standard & Poor's, a division of McGraw-Hill, whose
      value is calculated as the free float-weighted average of the share
      prices of 500 large-cap corporations listed on the NYSE and Nasdaq. The
      comparison of S&P 500 Index performance relative to the Fund's
      performance during months in which the S&P 500 Index declined is for the
      limited purpose of illustrating how the Fund has performed during
      periods of declines in the broad equity market. It should not be
      considered an indication of how the Fund will perform relative to the
      S&P 500 Index in the future.

      Please note that the Fund's investment objective is not to beat the
      S&P 500 Index. Furthermore, the Fund performance has frequently trailed
      that of the S&P 500 Index in periods of positive performance.



                                  Exhibit 11
                    OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
                            2007 Fund Performance
                            (dollars in millions)

                                              2007 Monthly Returns (1)
                                   January   February   March   April    May
    Och-Ziff Funds - Net Returns

    OZ Master Fund                  1.97%      1.31%    1.38%   1.81%   2.40%
    OZ Europe Master Fund           1.57%      1.35%    1.84%   2.70%   2.85%
    OZ Asia Master Fund             2.69%      0.48%    0.37%   2.96%   2.67%
    OZ Global Special Investments
     Master Fund                    1.89%      1.42%    1.06%   2.93%   1.44%

    S&P 500 Index - Total Return    1.51%     -1.96%    1.12%   4.43%   3.49%


                                              2007 Monthly Returns (1)
                                    June    July   August   September  October
    Och-Ziff Funds - Net Returns

    OZ Master Fund                  0.19%  -0.49%  -0.96%     0.95%     2.07%
    OZ Europe Master Fund           0.83%   0.22%  -0.64%     1.25%     1.25%
    OZ Asia Master Fund             0.09%  -1.00%  -2.08%     0.43%     2.84%
    OZ Global Special Investments
     Master Fund                    0.83%  -0.40%  -0.54%     1.72%     3.11%

    S&P 500 Index - Total Return   -1.66%  -3.10%   1.50%     3.74%     1.59%


                                            2007 Monthly Returns (1)
                                      November     December     FY2007
    Och-Ziff Funds - Net Returns

    OZ Master Fund                     -0.32%        0.67%      11.48%
    OZ Europe Master Fund              -0.58%        1.32%      14.81%
    OZ Asia Master Fund                 0.12%        2.12%      12.17%
    OZ Global Special Investments
     Master Fund                        1.97%        0.61%      17.19%

    S&P 500 Index - Total Return       -4.18%       -0.69%       5.49%



    SUMMARY PERFORMANCE STATISTICS
    As of December 31, 2007
                                                                    Strategy
                                   1 Year     3 Years    5 Years    Inception
    Net Annualized Return
    OZ Master Fund, Ltd.            11.5%      11.7%      13.9%       16.5%
    S&P 500 Index                    5.5%       8.6%      12.8%       11.0%
    Correlation of OZ
    Master Fund to S&P 500 Index(2)  0.60       0.60       0.57        0.45

    Volatility(3)
    Master Fund Standard
    Deviation (Annualized)            3.8        3.1        3.3         5.0
    S&P 500 Index Standard
    Deviation (Annualized)            9.7        7.8        8.6        14.0

    Sharpe Ratio(4)
    Master Fund                      1.63       2.30       3.16        2.41
    S&P 500 Index                    0.01       0.50       1.09        0.47


    (1) Fund performance reflects a composite of the monthly return for the
        feeder funds comprising each master fund and is presented on a total
        return basis, net of all fees and expenses of the relevant fund
        (except incentive compensation on certain unrealized private
        investments that could reduce returns at the time of realization), and
        includes the reinvestment of all dividends and income. Performance
        includes realized and unrealized gains and losses attributable to
        certain private and initial public offering investments that are not
        allocated to all investors in the funds. Investors that do not
        participate in such investments or that pay different fees may
        experience materially different returns.

        Past performance is no guarantee of future results.

        You should not assume that there is any material overlap between those
        securities in the portfolio of the Fund and those that comprise the
        S&P 500 Index. It is not possible to invest directly in the S&P 500
        Index. Returns of the S&P 500 Index have not been reduced by fees and
        expenses associated with investing in securities and include the
        reinvestment of dividends. The S&P 500 Index is an equity index owned
        and maintained by Standard & Poor's, a division of McGraw-Hill, whose
        value is calculated as the free float-weighted average of the share
        prices of 500 large-cap corporations listed on the NYSE and Nasdaq.
        The comparison of S&P 500 performance relative to the Fund's
        performance should not be considered an indication of how the Fund
        will perform relative to the S&P 500 in the future.

        Please note that the Fund's investment objective is not to beat the
        S&P 500 Index.

    (2) Correlation to the returns of the S&P 500 Index represents a
        statistical measure of the degree to which the return of one portfolio
        is correlated to the return of another. It is expressed as a factor
        that ranges from -1.0 (perfectly inversely correlated) to +1.0
        (perfectly positively correlated).

    (3) Standard deviation is a statistical measure of the degree to which an
        individual value in a distribution tends to vary from the mean of the
        distribution.

    (4) Sharpe Ratio represents a measure of the investment returns as
        adjusted for risk.  The Sharpe Ratio is calculated by subtracting a
        "risk-free" rate from the composite returns, and dividing that amount
        by the standard deviation of the returns.  A higher Sharpe Ratio
        indicates a portfolio that generates a return that is higher than
        would be expected for the level of risk in the portfolio as compared
        to the risk-free rate.  The risk-free rate is three-month LIBOR.

SOURCE Och-Ziff Capital Management Group LLC

CONTACT: Investor Relations Contact, Tina Madon, Managing Director, Head of Investor Relations of Och-Ziff Capital Management Group LLC, +1-212-719-7381, tina.madon@ozcap.com; Media Relations Contact, Steve Bruce or, Chuck Dohrenwend both of The Abernathy MacGregor Group, for Och-Ziff Capital Management Group LLC, +1-212-371-5999