Och-Ziff Capital Management Group LLC Reports Second Quarter 2008 Results

08/06/2008

Second Quarter 2008 Dividend of $0.11 per Class A Share

NEW YORK, Aug. 6 /PRNewswire-FirstCall/ -- Och-Ziff Capital Management Group LLC (NYSE: OZM) (the "Company" or "Och-Ziff") today reported its results and the declaration of a cash dividend on its Class A Shares for the second quarter ended June 30, 2008.

Second Quarter Highlights

-- Distributable Earnings for the Och-Ziff Funds segment of $53.8 million, or $0.13 per Adjusted Class A Share

-- Dividend of $0.11 per Class A Share to be paid on August 12, 2008 to holders of record as of the close of business on July 1, 2008

-- Assets under management of $33.6 billion as of June 30, 2008, essentially unchanged from March 31, 2008, and 16% higher than June 30, 2007

-- Economic Income Revenues for the Och-Ziff Funds segment of $147.1 million, 23% higher than the 2007 second quarter

For the second quarter and first half ended June 30, 2008, Och-Ziff reported a GAAP net loss of $60.8 million or $0.82 per basic and $1.05 per diluted Class A Share, and $328.9 million or $4.44 per basic and diluted Class A Share, respectively. The GAAP net loss in both periods resulted primarily from second quarter and first half non-cash expenses of $425.6 million and $851.2 million, respectively, associated with the Company's reorganization in connection with its initial public offering ("IPO") in November 2007. 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 awarded to the Company's pre-IPO owners in exchange for their pre-IPO interests in those subsidiaries. The Group A Units vest annually over five years from the date of the IPO. Accordingly, amortization of these expenses is expected to result in a GAAP net loss each quarter through 2012. Once vested, the Group A Units may be exchanged on a one-to-one basis for Class A Shares.

Also contributing to the GAAP net loss in the second quarter and first half of 2008 were non-cash expenses of $24.2 million and $50.2 million, respectively, for the amortization of equity-based compensation, primarily related to Class A restricted share units ("RSUs") awarded to all of the Company's employees in connection with the IPO. These RSUs vest annually over four years from the date of the IPO. Once vested, Class A Shares will be issued on a one-to-one basis.

Distributable Earnings for the Och-Ziff Funds segment for the second quarter and first half ended June 30, 2008 was $53.8 million or $0.13 per Adjusted Class A Share, and $104.9 million or $0.26 per Adjusted Class A Share, respectively. Distributable Earnings is a supplemental non-GAAP financial measure that management believes provides a meaningful basis for comparison of the after-tax operating performance of the Och-Ziff Funds segment, which includes substantially all of the Company's business. Additionally, management uses Distributable Earnings, among other financial data, to determine the earnings available to distribute as dividends to holders of the Company's Class A Shares and to the Company's partners and Ziff Brothers Investments (the "Ziffs") with respect to their Group A Units.

Distributable Earnings is equal to the Economic Income of the Och-Ziff Funds segment less adjusted income taxes. These adjusted income taxes are estimated assuming all Group A Units and RSUs were converted on a one-to-one basis into Class A Shares ("Adjusted Class A Shares"). Distributable Earnings per Share is equal to Distributable Earnings divided by the number of Adjusted Class A Shares. Distributable Earnings should not be considered as an alternative to GAAP net income or cash flow, and is not necessarily indicative of liquidity or the cash available to fund operations. For a reconciliation of the Company's second quarter and first half 2008 Economic Income to Distributable Earnings, please see Exhibit 8 of the financial tables that accompany this press release.

Och-Ziff's assets under management were $33.6 billion as of June 30, 2008, $357 million higher than the $33.3 billion in assets under management as of March 31, 2008, and up 16% from $29.1 billion in assets under management as of June 30, 2007. The $4.5 billion year-over-year increase was driven by net inflows and appreciation, primarily in each of the Company's most significant master funds. The increase also included the fourth-quarter 2007 reinvestment by the Company's partners and the Ziffs of approximately $1.6 billion in after-tax proceeds from the Company's IPO and concurrent Class A Share sale to Dubai International Capital. These proceeds were principally invested in the OZ Global Special Investments Master Fund. During the 2008 second quarter, performance-related appreciation of $389 million was partially offset by net outflows of $32 million. During the first half of 2008, net inflows were approximately $232 million while the performance-related change to assets under management was not significant.

    Assets under management by fund were as follows:

                                                             % Change (4)
                                                          Jun.2008   Jun.2008
                            June 30,  March 31,  June 30,    vs.        vs.
    (dollars in billions)     2008      2008       2007   Mar.2008   Jun.2007



    OZ Master Fund            20.0      19.9       18.6      0%         7%
    OZ Europe Master Fund      6.4       6.2        5.5      3%        16%
    OZ Asia Master Fund (1)    3.8       3.8        3.1      0%        21%
    OZ Global Special
     Investments Master
      Fund (2)                 2.1       2.1        0.4     -1%       460%
    Other (3)(4)               1.3       1.3        1.5      NM        NM

(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 Real Estate Funds, managed accounts and other funds not significant to the Company's results.

(4) Rounding differences may occur.

The 2008 second quarter and first-half net returns of the Company's most significant master funds are detailed in the table below. These returns were generated with less than half the volatility of the S&P 500 and essentially no leverage.

    Summary Performance Statistics (1)

                                                       2008
                                     April     May     June      2Q      1H

    OZ Master Fund                   0.96%    1.11%   -0.45%    1.62%   0.77%
    OZ Europe Master Fund            0.31%    1.69%    0.20%    2.21%   0.43%
    OZ Asia Master Fund             -0.18%   -0.16%   -2.19%   -2.52%  -5.07%
    OZ Global Special Investments
     Master Fund                     0.64%    0.43%   -0.34%    0.73%   0.12%

(1) Please see important disclosures on Exhibit 9 of the Financial Supplement accompanying this press release.

"Against the backdrop of very challenging market conditions, the value of our investment process was again readily apparent," said Daniel Och, Chairman and Chief Executive Officer of Och-Ziff. "Our absolute returns were strong and stable, and we successfully preserved fund investors' capital. Our performance reflects a model that demonstrates the benefits of an active risk management process and a diversified product offering. The current environment is also creating investment opportunities globally that we are taking advantage of in our core business, and we continue to be focused on generating positive investment returns. We remain confident that we are well positioned to grow assets under management as we extend our performance track record and make consistent progress in building our private investment platforms."

SUMMARY RESULTS OF THE OCH-ZIFF FUNDS SEGMENT

The Company conducts substantially all of its business through the Och-Ziff Funds segment, which is currently the Company's only reportable operating segment. This segment provides management and advisory services to the Company's hedge funds and separately managed accounts, excluding substantially all of its real estate funds.

The Company's other operations are currently comprised of its real estate business, which manages and provides advisory services to substantially all of its real estate funds, and investments in new businesses established to expand certain of the Company's private investment platforms. These other operations, which currently are in early growth stages and are not material to the overall financial performance of the Company, are not included in the Och-Ziff Funds segment and therefore not included in the calculations of Economic Income, Distributable Earnings and Distributable Earnings per Share.

The performance measure for the Och-Ziff Funds segment is Economic Income, which management uses to evaluate the financial performance of 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 core business performance. Economic Income is a pre-tax measure that does not include allocations to the Company's partners and the Ziffs which solely relate to their pre-IPO interests, reorganization expenses related to the Company's IPO, equity-based compensation expenses, taxes, or partners' and others' interests in the Company's consolidated subsidiaries, among other adjustments. For further information regarding these adjustments, please see Exhibit 7 of the financial tables that accompany this press release.

Prior to the 2008 second quarter, for those awards of RSUs made to employees after the IPO, the grant-date fair value of the RSUs awarded was recognized in full as bonus expense on the grant date in Economic Income. In the same period, the corresponding number of RSUs awarded was excluded from the calculation of Adjusted Class A Shares. This reduced Economic Income by including the grant-date fair value of these RSUs as an operating expense. Beginning in the second quarter, this expense is no longer included in Economic Income; instead, the corresponding number of RSUs is included in Adjusted Class A Shares in the period awarded for purposes of calculating Distributable Earnings per Share. By capturing RSUs in Adjusted Class A Shares, the dilutive effect of the RSU awards is fully reflected in the calculation of Distributable Earnings per Share.

For reconciliations of Economic Income to total Company GAAP net income (loss) for the periods discussed below, please see Exhibits 3 through 6 of the financial tables that accompany this press release.

Economic Income

Economic Income Revenues

Second-quarter 2008 Economic Income Revenues were $147.1 million, up 23% compared to second-quarter 2007 Economic Income Revenues of $119.5 million. Management Fees were $145.3 million, up 28% from second-quarter 2007 management fees of $113.8 million.

First-half 2008 Economic Income Revenues were $293.6 million, up 34% compared to first-half 2007 Economic Income Revenues of $219.4 million. Management Fees were $290.3 million, up 37% from first-half 2007 management fees of $211.8 million.

The increase in Management Fees in both periods was driven by the year-over-year increase in assets under management.

Economic Income Expenses

Compensation and Benefits

Second-quarter 2008 Compensation and Benefit expenses were $24.5 million, up 55% from second-quarter 2007 Compensation and Benefit expenses of $15.8 million. Second-quarter 2008 Compensation and Benefits also included $7.4 million of bonus expense, primarily related to accruals for guarantees to new employees hired in the first half of 2008, which will be paid at year end.

First-half 2008 Compensation and Benefit expenses were $48.2 million, up 61% from first-half 2007 Compensation and Benefit expenses of $30.0 million. First-half 2008 Compensation and Benefits also included $15.4 million of bonus expense, primarily related to accruals for guarantees to new employees hired in the first half of 2008, which will be paid at year end, and to non-recurring payments to certain existing personnel and new employees. As a result of the adjustment made to the calculation of Economic Income in the second quarter, bonus expense of $1.8 million related to the fair value of RSUs awarded in the 2008 first quarter has been excluded from first-half 2008 Compensation and Benefits expense.

The increase in Compensation and Benefits in both periods was driven by increased headcount, primarily during the second half of 2007, related to the infrastructure needed to become a public company and to support the growth in the Company's business.

Non-Compensation Expenses

Second-quarter 2008 non-compensation expenses were $29.4 million, a 29% increase from second-quarter 2007 non-compensation expenses of $22.7 million. The increase was driven primarily by interest expense on the Company's $750 million term loan, which was entered into during the third quarter of 2007. The remainder of the increase was primarily driven by higher insurance, business development and occupancy costs related to the infrastructure needed to become a public company and to support the growth in the Company's business. These increases were partially offset by a reduction in professional services which were higher in the 2007 second quarter due to audit and consulting costs in connection with the Company's IPO. On a comparative basis, the 2007 annual audit and consulting costs were primarily incurred in the first quarter of this year.

First-half 2008 non-compensation expenses were $64.5 million, a 91% increase from first-half 2007 non-compensation expenses of $33.7 million. The increase was driven primarily by interest expense on the Company's $750 million term loan. The remainder of the increase was primarily driven by higher professional services incurred in the first quarter of 2008, insurance, business development and technology costs related to the infrastructure needed to become a public company and to support the growth in the Company's business.

Economic Income

Second-quarter 2008 Economic Income totaled $93.3 million, a 15% increase from second-quarter 2007 Economic Income of $80.9 million. First-half 2008 Economic Income totaled $180.9 million, a 16% increase from first-half 2007 Economic Income of $155.7 million.

The Economic Income margin is Economic Income divided by Economic Income Revenues for the relevant period. The second-quarter 2008 margin was 63%, which was five percentage points lower than the second-quarter 2007 margin of 68%. The first-half 2008 margin was 62%, which was nine percentage points lower than the first-half 2007 margin of 71%.

The margin decrease in both periods was attributable to interest expense on the Company's $750 million term loan, higher compensation expenses due to significant year-over-year headcount growth related to the infrastructure needed to become a public company and to support the growth in the Company's business, higher insurance costs, and for the first-half 2008, higher professional services fees. These increases were partially offset by the increase in Management Fees in both periods.

CAPITAL

As of June 30, 2008, Class A Shares outstanding totaled 74,138,572. For purposes of calculating Distributable Earnings per Share, the Company assumes that all Group A Units and RSUs have been converted on a one-to-one basis into Class A Shares. For the second quarter and first half ended June 30, 2008, the total weighted-average Adjusted Class A Shares outstanding were 399,983,913 and 399,852,742 respectively.

The increase in Adjusted Class A Shares during the 2008 second quarter was driven by two factors. The first factor, and the most significant component of the change, relates to dividend equivalents which were awarded to employees in the form of RSUs for the dividends paid on the Company's Class A shares in the first half of 2008. These dividend equivalents related to the RSUs awarded to employees at the time of the Company's IPO.

The second factor relates to the change in how RSUs are treated for purposes of calculating Economic Income, Distributable Earnings, Adjusted Class A Shares and Distributable Earnings per Share, as discussed above. Beginning in the second quarter, the number of RSUs was included in Adjusted Class A Shares in the period awarded for purposes of determining the number of Adjusted Class A Shares.

DIVIDEND

The Board of Directors of Och-Ziff declared a second-quarter 2008 dividend of $0.11 per Class A Share, to be paid on August 12, 2008 to holders of record at the close of business on July 1, 2008.

For U.S. federal income tax purposes, the dividend will be treated as a partnership distribution. Based on the best information currently available, the Company estimates that when calculating withholding taxes, the entire amount of the second-quarter 2008 dividend will be treated as U.S. source dividend income.

Non-U.S. holders of Class A Shares are generally subject to U.S. federal withholding tax at a rate of 30% (subject to reduction by applicable treaty or other exception) on their share of U.S. source dividends and certain other types of U.S. source income realized by the Company. With respect to interest, however, no withholding is generally required if proper certification (on an IRS Form W-8) of a beneficial owner's foreign status has been filed with the withholding agent. In addition, non-U.S. holders must generally provide the withholding agent with a properly completed IRS Form W-8 to obtain any reduction in withholding.

                      *          *          *          *

Och-Ziff will host a conference call today, August 6, 2008, at 10:00 a.m. Eastern Time to discuss the Company's second-quarter 2008 results. The call will be open to the public and can be accessed by dialing 888-713-4216 (callers inside the U.S.) or 617-213-4868 (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 97905169. A simultaneous webcast of the call will be available to the public on a listen-only basis on the For Shareholders page of 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 12211369, 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 the Company with respect to, among other things, its 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 formulation and 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 Annual Report on Form 10-K for the year ended December 31, 2007. 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 LLC 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 throughout market cycles, with a strong focus on capital preservation. Och-Ziff's multi-strategy approach combines global investment strategies, including merger arbitrage, convertible and derivative arbitrage, equity restructuring, credit and distressed investments, private investments and real estate. As of August 1, 2008, Och-Ziff had approximately $33.3 billion in estimated assets under management with 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 per share amounts)


                        Three Months Ended June 30,  Six Months Ended June 30,
                                2008         2007         2008         2007

    Revenues
     Management fees             $146,519     $26,564    $292,794    $50,014
     Incentive income               1,078       1,320       1,110      1,387
     Other revenues                   735         908       2,254      1,830
     Income of consolidated
      Och-Ziff funds                4,885     271,660       4,886    531,587
     Total Revenues               153,217     300,452     301,044    584,818

    Expenses
     Compensation and benefits     52,056      16,746     105,011     37,987
     Allocations to non-equity
      partner interests             4,024      78,763       2,174    145,323
     Reorganization expenses      425,584           -     851,168          -
     Profit sharing                  (597)     10,830      (1,431)    24,374
     Interest expense               6,856         296      17,673        625
     General, administrative
      and other                    33,264      23,618      59,039     35,412
     Expenses of consolidated
      Och-Ziff funds                  997     190,919       1,357    340,979
     Total Expenses               522,184     321,172   1,034,991    584,700

    Other Income (Loss)
     Net earnings (losses) on
      investments in and deferred
      income receivable from
      Och-Ziff funds and other
      entities                        994      21,763      (4,170)    41,646
     Net gains (losses) of
      consolidated Och-Ziff funds     410   1,327,985        (503) 2,338,269
     Total Other Income (Loss)      1,404   1,349,748      (4,673) 2,379,915

    Income (Loss) before Income
     Taxes and Partners' and Others'
     Interests in Income of
     Consolidated Subsidiaries   (367,563)  1,329,028    (738,620)  2,380,033
    Income taxes                    4,735       3,643       7,961       7,283
    Income (Loss) before Partners'
     and Others' Interests in
     Income of Consolidated
     Subsidiaries                (372,298)  1,325,385    (746,581)  2,372,750
    Partners' and others' interests
     in income of consolidated
     subsidiaries                 311,497  (1,211,133)    417,662  (2,173,310)
    Net Income (Loss)            $(60,801)   $114,252   $(328,919)   $199,440


    Net Loss per Class A Share
      Basic                        $(0.82)                 $(4.44)

      Diluted                      $(1.05)                 $(4.44)

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

      Diluted                 385,238,096              74,138,572



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



                                      Three Months Ended June 30,
                                           2008        2007       % Change

    Economic Income Revenues
     Management fees                   $ 145,323     $ 113,823       28%
     Incentive income                      1,078         4,859      -78%
     Other revenues                          727           796       -9%
     Total Economic Income Revenues      147,128       119,478       23%


    Economic Income Expenses
     Compensation and benefits            24,481        15,838       55%
     Non-compensation expenses            29,397        22,728       29%
     Total Economic Income Expenses       53,878        38,566       40%
    Och-Ziff Funds Economic Income     $  93,250     $  80,912       15%



                                       Six Months Ended June 30,
                                           2008        2007       % Change

    Economic Income Revenues
     Management fees                   $ 290,287     $ 211,788       37%
     Incentive income                      1,110         5,940      -81%
     Other revenues                        2,230         1,700       31%
     Total Economic Income Revenues      293,627       219,428       34%


    Economic Income Expenses
     Compensation and benefits            48,176        29,961       61%
     Non-compensation expenses            64,504        33,739       91%
     Total Economic Income Expenses      112,680        63,700       77%
    Och-Ziff Funds Economic Income     $ 180,947     $ 155,728       16%



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




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

                                              Three Months Ended June 30, 2008

                                                Och-Ziff Funds
                                                    Economic         Other
                                                     Income        Operations
    Revenues
      Management fees                              $145,323            $1,311
      Incentive income                                1,078                 -
      Other revenues                                    727                 8
      Income of consolidated Och-Ziff funds               -             4,852
      Total Revenues                                147,128             6,171

    Expenses
      Compensation and benefits                      24,481               752
      Allocations to non-equity partner interests         -                 -
      Reorganization expenses                             -                 -
      Profit sharing                                      -                 -
      Interest expense                                6,856                 -
      General, administrative and other              22,541               388
      Expenses of consolidated Och-Ziff funds             -               634
      Total Expenses                                 53,878             1,774

    Other Income (Loss)
      Net earnings (losses) investments in
       and deferred income receivable from
       Och-Ziff funds and other entities                  -              (531)
      Net gains (losses) of consolidated
       Och-Ziff funds                                     -             1,808
      Total Other Income (Loss)                           -             1,277

    Income (Loss) Before Income Taxes
     and Partners' and Others' Interests in
     Income of Consolidated Subsidiaries             93,250             5,674
    Income taxes                                          -                74
    Income (Loss) Before Partners' and
     Others' Interests in Income of
     Consolidated Subsidiaries                       93,250             5,600
    Partners' and others' interests in
     income of consolidated subsidiaries                  -            (6,583)
    Net Income (Loss)                               $93,250             $(983)



                                           Three Months Ended June 30, 2008

                                      Reconciling Adjustments (1)

                                         Funds         Other           Total
                                     Consolidation   Adjustments      Company
    Revenues
      Management fees                     $(115)        $-           $146,519
      Incentive income                        -          -              1,078
      Other revenues                          -          -                735
      Income of consolidated
       Och-Ziff funds                        33          -              4,885
      Total Revenues                        (82)         -            153,217

    Expenses
      Compensation and benefits               -     26,823  (a) (b)    52,056
      Allocations to non-equity partner
       interests                              -      4,024  (c)         4,024
      Reorganization expenses                 -    425,584  (d)       425,584
      Profit sharing                          -       (597) (e)          (597)
      Interest expense                        -          -              6,856
      General, administrative and other       -     10,335  (f)        33,264
      Expenses of consolidated
       Och-Ziff funds                       363          -                997
      Total Expenses                        363    466,169            522,184

    Other Income (Loss)
      Net earnings (losses) investments
       in and deferred income receivable
       from Och-Ziff funds and other
       entities                               -      1,525  (g)           994
      Net gains (losses) of consolidated
       Och-Ziff funds                    (1,398)         -                410
      Total Other Income (Loss)          (1,398)     1,525              1,404

    Income (Loss) Before Income Taxes
     and Partners' and Others'
     Interests in Income of
     Consolidated Subsidiaries           (1,843)  (464,644)          (367,563)
    Income taxes                              -      4,661  (f)         4,735
    Income (Loss) Before Partners' and
     Others' Interests in Income of
     Consolidated Subsidiaries           (1,843)  (469,305)          (372,298)
    Partners' and others' interests in
     income of consolidated subsidiaries  1,843    316,237  (f)       311,497
    Net Income (Loss)                        $-  $(153,068)          $(60,801)

    (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 Economic Income to GAAP Net Income (Loss)
                                 (Unaudited)
                            (dollars in thousands)

                                           Three Months Ended June 30, 2007

                                               Och-Ziff Funds
                                                  Economic            Other
                                                   Income           Operations
    Revenues
      Management fees                              $113,823            $1,311
      Incentive income                                4,859                 -
      Other revenues                                    796               112
      Income of consolidated Och-Ziff funds               -             3,318
      Total Revenues                                119,478             4,741

    Expenses
      Compensation and benefits                      15,838               304
      Allocations to non-equity partner interests         -               391
      Profit sharing                                      -               127
      Interest expense                                  296                 -
      General, administrative and other              22,432               169
      Expenses of consolidated Och-Ziff funds             -               407
      Total Expenses                                 38,566             1,398

    Other Income
      Net earnings (losses) on investments
       in and deferred income receivable from
       Och-Ziff funds and other entities                  -                 -
      Net gains of consolidated Och-Ziff funds            -               600
      Total Other Income                                  -               600

    Income Before Income Taxes and
     Partners' and Others' Interests in
     Income of Consolidated Subsidiaries             80,912             3,943
    Income taxes                                          -                 -
    Income Before Partners' and Others'
     Interests in Income of
     Consolidated Subsidiaries                       80,912             3,943
    Partners' and others' interests in
     income of consolidated subsidiaries                  -            (3,537)
    Net Income                                      $80,912              $406



                                           Three Months Ended June 30, 2007

                                      Reconciling Adjustments (1)

                                         Funds         Other           Total
                                     Consolidation   Adjustments      Company
    Revenues
      Management fees                   $(88,570)      $-             $26,564
      Incentive income                    (3,539)       -               1,320
      Other revenues                           -        -                 908
      Income of consolidated
       Och-Ziff funds                    268,342        -             271,660
      Total Revenues                     176,233        -             300,452

    Expenses
      Compensation and benefits                -      604  (a) (b)     16,746
      Allocations to non-equity partner
       interests                               -   78,372  (c)         78,763
      Profit sharing                           -   10,703  (e)         10,830
      Interest expense                         -        -                 296
      General, administrative and other        -    1,017  (f)         23,618
      Expenses of consolidated
       Och-Ziff funds                    190,512        -             190,919
      Total Expenses                     190,512   90,696             321,172

    Other Income
      Net earnings (losses) on
       investments in and deferred
       income receivable from
       Och-Ziff funds and
       other entities                   (105,510) 127,273 (g)          21,763
      Net gains of consolidated
       Och-Ziff funds                  1,327,385        -           1,327,985
      Total Other Income               1,221,875  127,273           1,349,748

    Income Before Income Taxes and
     Partners' and Others' Interests
     in Income of Consolidated
     Subsidiaries                      1,207,596   36,577           1,329,028
    Income taxes                               -    3,643  (f)          3,643
    Income Before Partners' and Others'

     Interests in Income of
     Consolidated Subsidiaries         1,207,596   32,934           1,325,385
    Partners' and others' interests in
     income of consolidated
     subsidiaries                     (1,207,596)       -          (1,211,133)
    Net Income                                $-  $32,934            $114,252

    (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 Economic Income to GAAP Net Income (Loss)
                                 (Unaudited)
                            (dollars in thousands)

                                              Six Months Ended June 30, 2008

                                               Och-Ziff Funds
                                                  Economic            Other
                                                   Income          Operations

    Revenues
      Management fees                             $290,287            $2,622
      Incentive income                               1,110                 -
      Other revenues                                 2,230                24
      Income of consolidated Och-Ziff funds              -             4,852
      Total Revenues                               293,627             7,498

    Expenses
      Compensation and benefits                     48,176             1,091
      Allocations to non-equity partner
       interests                                         -                 -
      Reorganization expenses                            -                 -
      Profit sharing                                     -                 -
      Interest expense                              17,673                 -
      General, administrative and other             46,831               722
      Expenses of consolidated Och-Ziff funds            -               994
      Total Expenses                               112,680             2,807

    Other Income (Loss)
      Net earnings (losses) on investments
       in and deferred income receivable from
       Och-Ziff funds and other entities                 -            (4,600)
      Net gains (losses) of consolidated
       Och-Ziff funds                                    -               902
      Total Other Income (Loss)                          -            (3,698)

    Income (Loss) Before Income Taxes
     and Partners' and Others' Interests
     in Income of Consolidated Subsidiaries        180,947               993
    Income taxes                                         -               207
    Income (Loss) Before Partners' and
     Others' Interests in Income of
     Consolidated Subsidiaries                     180,947               786
    Partners' and others' interests in
     income of consolidated subsidiaries                 -            (5,579)
    Net Income (Loss)                             $180,947           $(4,793)



                                             Six Months Ended June 30, 2008

                                       Reconciling Adjustments (1)

                                         Funds         Other           Total
                                     Consolidation   Adjustments      Company
    Revenues
      Management fees                    $(115)         $-           $292,794
      Incentive income                       -           -              1,110
      Other revenues                         -           -              2,254
      Income of consolidated
       Och-Ziff funds                       34           -              4,886
      Total Revenues                       (81)          -            301,044

    Expenses
      Compensation and benefits              -      55,744  (a) (b)   105,011
      Allocations to non-equity partner
       interests                             -       2,174  (c)         2,174
      Reorganization expenses                -     851,168  (d)       851,168
      Profit sharing                         -      (1,431) (e)        (1,431)
      Interest expense                       -           -             17,673
      General, administrative and other      -      11,486  (f)        59,039
      Expenses of consolidated
       Och-Ziff funds                      363           -              1,357
      Total Expenses                       363     919,141          1,034,991

    Other Income (Loss)
      Net earnings (losses) on
       investments in and deferred
       income receivable from
       Och-Ziff funds and other
       entities                              -         430  (g)        (4,170)
      Net gains (losses) of consolidated
       Och-Ziff funds                   (1,405)          -               (503)
      Total Other Income (Loss)         (1,405)        430             (4,673)

    Income (Loss) Before Income
     Taxes and Partners' and
     Others' Interests in Income
     of Consolidated Subsidiaries       (1,849)   (918,711)          (738,620)
    Income taxes                             -       7,754  (f)         7,961
    Income (Loss) Before Partners'
     and Others' Interests in
     Income of Consolidated
     Subsidiaries                       (1,849)   (926,465)          (746,581)
    Partners' and others' interests
     in income of consolidated
     subsidiaries                        1,849     421,392  (f)       417,662
    Net Income (Loss)                       $-   $(505,073)         $(328,919)

    (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 Economic Income to GAAP Net Income (Loss)
                                 (Unaudited)
                            (dollars in thousands)

                                            Six Months Ended June 30, 2007

                                               Och-Ziff Funds
                                                  Economic            Other
                                                   Income           Operations
    Revenues
      Management fees                              $211,788            $2,622
      Incentive income                                5,940                 -
      Other revenues                                  1,700               130
      Income of consolidated Och-Ziff funds               -             3,318
      Total Revenues                                219,428             6,070

    Expenses
      Compensation and benefits                      29,961             1,625
      Allocations to non-equity partner interests         -               361
      Profit sharing                                      -               117
      Interest expense                                  625                 -
      General, administrative and other              33,114               310
      Expenses of consolidated Och-Ziff funds             -               631
      Total Expenses                                 63,700             3,044

    Other Income
      Net earnings (losses) on investments
       in and deferred income receivable from
       Och-Ziff funds and other entities                  -                 -
      Net gains of consolidated Och-Ziff funds            -               600
      Total Other Income                                  -               600

    Income Before Income Taxes and
     Partners' and Others' Interests in
     Income of Consolidated Subsidiaries            155,728             3,626
    Income taxes                                          -                35
    Income Before Partners' and Others'
     Interests in Income of
     Consolidated Subsidiaries                      155,728             3,591
    Partners' and others' interests in
     income of consolidated subsidiaries                  -            (3,225)
    Net Income                                     $155,728              $366



                                            Six Months Ended June 30, 2007

                                     Reconciling Adjustments (1)

                                         Funds         Other           Total
                                     Consolidation   Adjustments      Company
    Revenues
      Management fees                   $(164,396)       $-           $50,014
      Incentive income                     (4,553)        -             1,387
      Other revenues                            -         -             1,830
      Income of consolidated
       Och-Ziff funds                     528,269         -           531,587
      Total Revenues                      359,320         -           584,818

    Expenses
      Compensation and benefits                 -     6,401  (a) (b)   37,987
      Allocations to non-equity partner
       interests                                -   144,962  (c)      145,323
      Profit sharing                            -    24,257  (e)       24,374
      Interest expense                          -         -               625
      General, administrative and other         -     1,988  (f)       35,412
      Expenses of consolidated
       Och-Ziff funds                     340,348         -           340,979
      Total Expenses                      340,348   177,608           584,700

    Other Income
      Net earnings (losses) on
       investments in and deferred
       income receivable from
       Och-Ziff funds
       and other entities                (186,556)  228,202  (g)       41,646
      Net gains of consolidated
       Och-Ziff funds                   2,337,669         -         2,338,269
      Total Other Income                2,151,113   228,202         2,379,915

    Income Before Income Taxes
     and Partners' and Others'
     Interests in Income of
     Consolidated Subsidiaries          2,170,085    50,594         2,380,033
    Income taxes                                -     7,248  (f)        7,283
    Income Before Partners' and
     Others' Interests in Income
     of Consolidated Subsidiaries       2,170,085    43,346         2,372,750
    Partners' and others' interests
     in income of consolidated
     subsidiaries                      (2,170,085)        -        (2,173,310)
    Net Income                                 $-   $43,346          $199,440

    (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 Economic Income to GAAP Net Income (Loss)

Funds Consolidation

Economic Income reflects Management Fees and Incentive Income earned from each of the Och-Ziff funds and managed accounts, excluding substantially all of the real estate funds and investments in new businesses, which are included within the Company's other operations. The impacts of consolidation and the related eliminations of the Och-Ziff funds are not included in Economic Income. Management Fees and Incentive Income earned by the Och-Ziff Funds segment not eliminated in consolidation prior to June 30, 2007, are related to the domestic Och-Ziff funds and separately managed accounts. The Company deconsolidated all of the offshore Och-Ziff funds on June 30, 2007.

Other Adjustments

(a) Economic Income recognizes deferred cash compensation expense in the period in which it is awarded, as management determines the total amount of compensation based on the Company's performance in the year of the award. Under GAAP, deferred cash compensation expense is recognized over the vesting period.

(b) Economic Income excludes non-cash equity compensation expense, as management does not consider this expense when evaluating the performance of the Och-Ziff Funds segment. Prior to the second quarter of 2008, the grant- date fair value of restricted share units awarded to employees, excluding awards made at the time of the Company's IPO, was recognized as an expense in full on the date of the award within Economic Income. Prior period amounts have been recalculated to conform to the new methodology.

(c) Economic Income excludes allocations to non-equity partner interests. Management reviewed the performance of the Och-Ziff Funds segment before it made any allocations to the Company's non-equity partners for periods prior to the Reorganization. For these periods, allocations to the partners, other than Mr. Och, were treated as expenses for GAAP purposes. Following the Reorganization, only allocations related to earnings on previously deferred incentive income allocations to non-equity partner interests are incurred and these allocations are excluded from Economic Income.

(d) Economic Income excludes Reorganization expenses, which are non-cash expenses directly attributable to the reclassification of interests held by the partners and the Ziffs prior to the Reorganization into Group A Units.

(e) Economic Income excludes the profit sharing expense related to the Ziffs' interest in the Company. Management reviewed the performance of the Och-Ziff Funds segment before it made any allocations to the Ziffs for periods prior to the Reorganization. Following the Reorganization, only profit sharing expense related to the allocation of earnings on previously deferred incentive income allocations to the Ziffs are incurred and these allocations are excluded from Economic Income.

(f) Economic Income excludes depreciation, changes in the tax receivable agreement liability, income taxes and partners' and others' interests in income of consolidated subsidiaries, as management does not consider these items when evaluating the performance of the Och-Ziff Funds segment.

(g) Economic Income excludes the net earnings (losses) on the deferred income receivable from Och-Ziff funds and net earnings (losses) on investments in Och-Ziff funds and other entities, as these amounts relate to earnings (losses) on amounts due to affiliates for deferred or reinvested incentive income previously allocated to the partners and the Ziffs, and earnings (losses) on amounts due to employees under deferred cash compensation arrangements.

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

                                           Three Months Ended Six Months Ended
                                               June 30, 2008    June 30, 2008

    Och-Ziff Funds Economic Income                 $93,250          $180,947
    Adjusted income taxes (1)                      (39,441)          (76,082)
    Distributable Earnings                         $53,809          $104,865

    Distributable earnings                         $53,809          $104,865
    Weighted-Average Adjusted
     Class A Shares (1) (2)                    399,983,913       399,852,742
    Distributable Earnings Per Share                 $0.13             $0.26

    (1) Assumes (a) the conversion of 311,099,524 Group A Units held by the
        Company's partners and the Ziffs for the second quarter and first half
        ended June 30, 2008, and (b) the vesting of the weighted average of
        14,745,817 and 14,614,646 RSUs for the second quarter and first half
        ended June 30, 2008, respectively, into Class A Shares on a one-to-one
        basis.
    (2) Prior to the second quarter of 2008, the grant-date fair value of
        RSUs awarded to employees, excluding awards made at the time of the
        Company's IPO, was recognized as an expense in full on the date of the
        award within Economic Income and Distributable Earnings; therefore,
        RSUs awarded in the period were excluded from Adjusted Class A shares.
        Management no longer includes this expense when calculating Economic
        Income, Distributable Earnings and Distributable Earnings per Share.
        Therefore, RSUs awarded during the period are now included in Adjusted
        Class A Shares. The first-quarter 2008 amounts included within the six
        months ended June 30, 2008, have been recalculated to conform to the
        new methodology.



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

                                          Three Months Ended  Six Months Ended
                                                  June 30,           June 30,
                                                    2008               2008

    Total Assets Under Management (1)
      Beginning of Period Balance                  $33,261           $33,387
      Net Flows                                        (32)              232
      Appreciation (Depreciation) (2)                  389                (1)
      End of Period Balance                        $33,618           $33,618

    Total Assets Under Management by Fund
      OZ Master Fund                                                 $19,987
      OZ Europe Master Fund                                            6,403
      OZ Asia Master Fund                                              3,789
      OZ Global Special Investments Master Fund                        2,067

    Och-Ziff Funds - Net Returns (3)
      OZ Master Fund                                  1.6%              0.8%
      OZ Europe Master Fund                           2.2%              0.4%
      OZ Asia Master Fund                            -2.5%             -5.1%
      OZ Global Special Investments Master Fund       0.7%              0.1%



                                                 Year Ended December 31,
                                              2007        2006        2005

    Total Assets Under Management (1)
      Beginning of Period Balance            $22,621     $15,627     $11,251
      Net Flows                                7,591       4,135       3,117
      Appreciation (Depreciation) (2)          3,175       2,859       1,259
      End of Period Balance                  $33,387     $22,621     $15,627

    Total Assets Under Management by Fund
      OZ Master Fund                         $19,771     $15,449     $12,001
      OZ Europe Master Fund                    6,416       3,481       1,887
      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%
      OZ Europe Master Fund                    14.8%       22.3%       15.7%
      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 net capital appreciation for the
        entire period and is presented on a total return basis, net of all
        fees and expenses (except incentive income 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 Fees and Incentive Income 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 of the Company's most significant master
        funds and is presented on a total return basis, net of all fees and
        expenses of the relevant fund (except incentive income 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
                      OCH-ZIFF CAPITAL MANAGEMENT GROUP LLC
                    Returns of OZ Master Fund During Negative
                          Return Months of S&P 500 Index
                                   (Unaudited)

                                                                 Total Return
                                                                 of OZ Master
                             Number of         Total Return          Fund
                             Months of          of S&P 500          During
                              Negative            During           Negative
                              Returns            Negative        Return Months
    Year                    of S&P 500         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%
    1Q08                         3                 -9.7%              -0.8%
    2Q08                         1                 -8.4%              -0.5%



    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%                      3
                          0% to -1%                      15
                           0% to 1%                      59
                           1% to 2%                      44
                           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 (except incentive income on certain unrealized private investments that could reduce returns on these investments at the time of realization), and include 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 Fund. 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.

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 income on a monthly basis. Beginning January 1998, performance has been calculated by deducting both management fees and incentive income 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
                           Fund Performance (Unaudited)

                                                       2007
                                     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
                                       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
                                     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%


                                                   2008
                                     January February March    1Q08

    Och-Ziff Funds - Net Returns
    OZ Master Fund                    -1.12%   1.02%  -0.73%  -0.84%
    OZ Europe Master Fund             -2.00%   0.81%  -0.54%  -1.74%
    OZ Asia Master Fund               -1.95%   1.78%  -2.41%  -2.61%
    OZ Global Special Investments
     Master Fund                      -0.72%   0.57%  -0.45%  -0.60%

    S&P 500 Index - Total Return      -6.00%  -3.25%  -0.43%  -9.45%

                                                       2008
                                      April    May     June    2Q08      1H

    Och-Ziff Funds - Net Returns
    OZ Master Fund                     0.96%   1.11%  -0.45%   1.62%    0.77%
    OZ Europe Master Fund              0.31%   1.69%   0.20%   2.21%    0.43%
    OZ Asia Master Fund               -0.18%  -0.16%  -2.19%  -2.52%   -5.07%
    OZ Global Special Investments
     Master Fund                       0.64%   0.43%  -0.34%   0.73%    0.12%

    S&P 500 Index - Total Return       4.87%   1.30%  -8.43%  -2.73%  -11.91%



Fund performance reflects a composite of the return for the feeder funds comprising each of the Company's most significant master funds and is presented on a total return basis, net of all fees and expenses of the relevant fund (except incentive income 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. 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.

Readers should not assume that there is any material overlap between those securities in the portfolio of the funds 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 funds' 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 funds' investment objective is not to beat the S&P 500 Index. Furthermore, the funds performance has frequently trailed that of the S&P 500 Index in periods of positive performance.

SOURCE Och-Ziff Capital Management Group LLC

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