Asia PR News

HAMILTON, Bermuda, April 27 /PRNewswire-AsiaNet/–

Diluted Earnings Per Share of $0.28 for the First Quarter

W.P. Stewart & Co., Ltd. today reported net income of $12.7 million, or
$0.28 per share (diluted) and $0.28 per share (basic), for the first quarter
ended 31 March 2006. This compares with net income in the first quarter of the
prior year of $12.8 million or $0.28 per share (diluted) and $0.28 per share
(basic).

Net income for the quarter ended 31 March 2006 of $12.7 million, adjusted
for the add-back of $1.8 million, representing non-cash expenses of
depreciation, amortization and other non-cash charges on a tax-effected basis
("cash earnings"), was $14.5 million, or $0.32 per share (diluted). In the
same quarter of the prior year, cash earnings were $15.3 million (net income
of $12.8 million adjusted for the add-back of $2.5 million representing non-
cash expenses of depreciation, amortization and other non-cash charges on a
tax-effected basis), or $0.33 per share (diluted).

For the first quarter of 2006 there were 45,941,269 common shares
outstanding on a weighted average diluted basis compared to 45,861,264 common
shares outstanding for the first quarter of 2005 on the same weighted average
diluted basis.

Performance
Performance in the W.P. Stewart & Co., Ltd. U.S. Equity Composite (the
"Composite") for the first quarter of 2006 was +1.5% pre-fee and +1.2% post-
fee. This compares with +4.2% for the S&P 500.

For the twelve month period ending 31 March 2006, performance in the
Composite was +14%, pre-fee and +12.8%, post-fee. This compares with +11.7%
for the S&P 500.

In each of the one, three, five and ten-year periods ended 31 March 2006,
performance of the W.P. Stewart U.S. Equity Composite has exceeded the
performance of the S&P 500 on a pre-fee basis and for the one, five and ten
year periods on a post-fee basis.

Assets Under Management
Assets under management (AUM) at quarter-end were approximately $9.4
billion, compared with approximately $9.5 billion at 31 December 2005, and
approximately $8.9 billion at 31 March 2005.

Total net flows of AUM for the quarter ended 31 March 2006 were
approximately -$237 million, compared with total net flows of approximately
-$232 million and approximately -$43 million in the fourth quarter and in the
first quarter of 2005, respectively.

In the quarter, net cash flows of existing accounts were approximately
-$31 million, compared with approximately +$17 million and approximately +$31
million in the fourth quarter and in the first quarter of 2005, respectively.

Net new flows (net contributions to our publicly-available funds and flows
from new accounts minus closed accounts) were approximately -$206 million for
the quarter compared to approximately -$249 million and approximately -$74
million in the fourth quarter and in the first quarter of 2005, respectively.

Look-Through Earning Power
W.P. Stewart & Co., Ltd. concentrates its investments in large, generally
less cyclical, growing businesses. Throughout most of the Company’s 30-year
history, the growth in earning power behind clients’ portfolios, as measured
by earnings per share, has ranged from approximately 10% to 20%, annually.

Currently the "look-through" earnings power behind our clients’ portfolios
remains solidly positive with portfolio earnings per share growth on a
trailing four quarter basis having advanced at the high end of the historical
range. The Company’s research analysts expect "look-through" portfolio
earnings growth to be within the 12-15% range over the next few years.

Revenues and Profitability
Revenues were $36.2 million for the quarter ended 31 March 2006, compared
to $34.8 million for the same quarter 2005.

The average gross management fee was 1.14%, annualized, for the quarter
ended 31 March 2006, compared to 1.17%, annualized, for the same quarter of
the prior year. Excluding performance fee based accounts, the average gross
management fee was 1.27% for the quarter ended 31 March 2006, compared to
1.28%, annualized, for the same quarter of the prior year.

Total operating expenses increased approximately $600,000 to $21.2
million, for the first quarter 2006, from $20.6 million in the same quarter of
the prior year.

During 2004, 2005 and through the first quarter of 2006, the Company
issued restricted shares to various employees. The non-cash compensation
expense related to these restricted share grants for the first quarter of
2006, which is included in "employee compensation and benefits", was
approximately $280,000 after adjusting for a reversal of approximately
$500,000 related to the forfeiture of previously issued restricted shares. We
expect non-cash compensation expense related to these restricted share grants
to be at least $6.7 million for 2006.

Pre-tax income of $15.0 million was 41.4% of gross revenues for the
quarter ended 31 March 2006 compared to $14.2 million or 40.9% of gross
revenues in the comparable quarter of the prior year.

The Company’s provision for taxes for the quarter ended 31 March 2006 was
$2.3 million versus $1.4 million in the comparable quarter of the prior year.
The tax rate was 15.6% of income before taxes for the quarter ended 31 March
2006 compared to 10% in the quarter ended 31 March 2005. The increase in our
tax rate relates to changes in the allocation of our portfolio management
activities among various jurisdictions reflecting recent portfolio manager
departures and other management changes. The proportion of our various
activities based in high-tax jurisdictions has increased somewhat relative to
the activity based in lower-tax jurisdictions. We are currently taking steps
to restore our historical geographical mix.

Other Events
The Company paid a dividend of $0.30 per common share on 27 January 2006
to shareholders of record as of 13 January 2006, and will pay a dividend of
$0.30 per common share on 28 April 2006 to shareholders of record as of 13
April 2006.

Conference Call
In conjunction with this first quarter 2006 earnings release, W.P. Stewart
& Co., Ltd. will host a conference call on Thursday, 27 April 2006. The
conference call will commence promptly at 9:15am (EDT). Those who are
interested in participating in the teleconference should dial 1-800-370-0898
(within the United States) or +973-409-9260 (outside the United States). The
conference ID is "W.P. Stewart". To listen to the live broadcast of the
conference over the Internet, simply visit our website at www.wpstewart.com
and click on the Investor Relations tab for a link to the webcast.

The teleconference will be available for replay from Thursday, 27 April
2006 at 12:00 noon (EDT) through Friday, 28 April 2006 at 5:00 p.m. (EDT). To
access the replay, please dial 1-877-519-4471 (within the United States) or
+973-341-3080 (outside the United States). The PIN number for accessing this
replay is 7280245.

You will be able to access a replay of the Internet broadcast through
Thursday, 4 May 2006, on the Company’s website at http://www.wpstewart.com.
The Company will respond to questions submitted by e-mail, following the
conference.

W.P. Stewart & Co., Ltd. is an asset management company that has provided
research-intensive equity management services to clients throughout the world
since 1975. The Company is headquartered in Hamilton, Bermuda and has
additional operations or affiliates in the United States, Europe and Asia.

The Company’s shares are listed for trading on the New York Stock Exchange
(NYSE: WPL) and on the Bermuda Stock Exchange (BSX: WPS).

For more information, please visit the Company’s website at
http://www.wpstewart.com, or call W.P. Stewart Investor Relations (Fred M.
Ryan) at 1-888-695-4092 (toll-free within the United States) or + 441-295-8585
(outside the United States) or e-mail to IRINFO@wpstewart.com.

Statements made in this release concerning our assumptions, expectations,
beliefs, intentions, plans or strategies are forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. Such
statements involve risks and uncertainties that may cause actual results to
differ from those expressed or implied in these statements. Such risks and
uncertainties include, without limitation, the adverse effect from a decline
or volatility in the securities markets, a general downturn in the economy,
the effects of economic, financial or political events, a loss of client
accounts, inability of the Company to attract or retain qualified personnel, a
challenge to our U.S. tax status, competition from other companies, changes in
government policy or regulation, a decline in the Company’s products’
performance, inability of the Company to implement its operating strategy,
inability of the Company to manage unforeseen costs and other effects related
to legal proceedings or investigations of governmental and self-regulatory
organizations, industry capacity and trends, changes in demand for the
Company’s services, changes in the Company’s business strategy or development
plans and contingent liabilities. The information in this release is as of the
date of this release, and will not be updated as a result of new information
or future events or developments.

W.P. Stewart & Co., Ltd.
Unaudited Condensed Consolidated Statements of Operations

For the Three Months Ended
Mar. 31, 2006 Dec. 31, 2005 Mar. 31, 2005

Revenue:
Fees $27,187,308 $34,339,458 $27,235,901
Commissions 8,260,794 10,087,334 7,189,398
Interest and other 798,077 1,035,520 408,497

36,246,179 45,462,312 34,833,796

Expenses:
Employee compensation and
benefits 7,738,837 12,575,819 7,227,596
Fees paid out 2,174,908 2,973,947 1,887,350
Commissions, clearance and
trading 1,642,079 2,103,729 1,486,802
Research and
administration 3,629,544 3,517,898 3,736,034
Marketing 1,711,094 1,600,230 1,539,959
Depreciation and
amortization 1,575,794 2,051,310 2,043,389
Impairment of intangible
asset - 12,452,978 -
Other operating 2,762,137 2,545,850 2,678,969
21,234,393 39,821,761 20,600,099

Income before taxes 15,011,786 5,640,551 14,233,697

Provision for taxes 2,347,675 2,868,987 1,423,370

Net income $12,664,111 $2,771,564 $12,810,327

Earnings per share:

Basic earnings per share $0.28 $0.06 $0.28

Diluted earnings per share $0.28 $0.06 $0.28

W.P. Stewart & Co., Ltd.
Unaudited Condensed Consolidated Statements of Operations

% Change From
Dec. 31, 2005 Mar. 31, 2005

Revenue:
Fees -20.83% -0.18%
Commissions -18.11% 14.90%
Interest and other -22.93% 95.37%

-20.27% 4.05%

Expenses:
Employee compensation and benefits -38.46% 7.07%
Fees paid out -26.87% 15.24%
Commissions, clearance and trading -21.94% 10.44%
Research and administration 3.17% -2.85%
Marketing 6.93% 11.11%
Depreciation and amortization -23.18% -22.88%
Impairment of intangible asset -100.00% 0.00%
Other operating 8.50% 3.10%
-46.68% 3.08%

Income before taxes 166.14% 5.47%

Provision for taxes -18.17% 64.94%

Net income 356.93% -1.14%

Earnings per share:

Basic earnings per share 366.67% 0.00%

Diluted earnings per share 366.67% 0.00%

W.P. Stewart & Co., Ltd.
Net Flows of Assets Under Management*
(in millions)

For the Three Months Ended
Mar. 31, Dec. 31, Mar. 31,
2006 2005 2005

Existing Accounts:
Contributions $329 $260 $312
Withdrawals (360) (243) (281)
Net Flows of Existing Accounts (31) 17 31
Publicly Available Funds:
Contributions 34 85 54
Withdrawals (69) (38) (75)
Direct Accounts Opened 57 114 71
Direct Accounts Closed (228) (410) (124)
Net New Flows (206) (249) (74)

Net Flows of Assets Under
Management $(237) $(232) $(43)

* The table above sets forth the total net flows of assets under
management for the three months ended March 31, 2006, December 31,
2005 and March 31, 2005, respectively, which include changes in net
flows of existing accounts and net new flows (net contributions to our
publicly available funds and flows from new accounts minus closed
accounts). The table excludes total capital appreciation or
depreciation in assets under management with the exception of the
amount attributable to withdrawals and closed accounts.

SOURCE W.P. Stewart & Co., Ltd.

CONTACT:
Fred M. Ryan of W.P. Stewart & Co., Ltd.
+1-441-295-8585

Web site: http://www.wpstewart.com
(WPL)