Bellevue Group profitable despite financial crisis

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- Group net profit 2008 of CHF 24.5 million
- Strategic development towards specialized boutique in Asset
Management
- Cost-income ratio of 50% achieved through tight cost control
- Proposed dividend of CHF 4.00 per registered share results in a
dividend yield of 11.8%

Bellevue Group AG closed the 2008 financial year with a net profit of
CHF 24.5 million. This compares to the CHF 160.4 million reported for
the previous year, which, however, included non-recurring income of
CHF 88.4 million, primarily from the sale of the Private Banking
activities. The profit from operating activities amounted to CHF 26.9
million, a decline of 62.6% from the comparable figure of CHF 72.0
million reported for 2007. Tight cost management led to a 41%
reduction in operating expenses to CHF 40.5 million (previous year
CHF 68.7 million), achieved largely by cutting the variable,
profit-based compensation paid to employees. In the Asset Management
segment a team of 7 was recruited to create new investment products
that will be launched in 2009.

Shareholders' equity of Bellevue Group amounted to CHF 455 million
(CHF 43.30 per share) and total consolidated assets amounted to CHF
983 million. In view of the company's stable financial situation,
the Board of Directors will propose a dividend of CHF 4.00 per
registered share at the Annual General Meeting on March 30, 2009.
This corresponds to a dividend yield of 11.8% based on the current
share price of CHF 34 (as of 3.3.2009). The return on equity for 2008
based on consolidated recurring profit (CHF 24.5 million) was 5.9%
(2007: 16.5%). The Tier 1 capital ratio is 82%.

Bellevue Group reported operating income of CHF 80.9 million for 2008
(previous year CHF 159.4 million), which represents a decline of
49.2%. The market-induced absence of performance fees (2007: CHF 46
million) at the BB-investment companies contributed to the 50.4%
decline in fee and commission income from CHF 143.0 million to CHF
71.0 million.

Bank am Bellevue

Bank am Bellevue reported operating income of CHF 60.6 million in
2008 (previous year: CHF 90.5 million, -33.0%). Fee and commission
income amounted to CHF 53.6 million (previous year: CHF 77.4 million,
-30.4%) and thus remained the major source of income. Operating
profit {Net profit??} amounted to CHF 33.7 million (previous year:
CHF 47.5 million, -29.1%). Personnel expenses were 53.3% lower at CHF
10.2 million, (previous year: CHF 21.9 million), while other
operating expenses amounted to CHF 9.5 million (previous year: CHF
10.6 million,
-10.2%).

Asset Management

The Asset Management segment reported lower operating income of CHF
19.0 million in 2008 (previous year: CHF 66.8 million, -71.6%). Fee
and commission income amounted to CHF 17.4 million (previous year:
CHF 65.6 million, -73.6%), and consisted exclusively of management
fees. In 2007, in contrast, substantial performance fees were
generated (CHF 46 million). Despite the likewise significant
reduction in total operating expenses to CHF 15.0 million (previous
year: CHF 25.5 million, -41.8%), a loss of CHF 6.1 million was
reported at the bottom line (previous year: profit of CHF 40.3
million), due to a one-off writedown of seed capital in the amount of
CHF 8.8 million. Personnel expenses were reduced to CHF 9.2 million
(previous year: CHF 19.0 million, -50.3%), the other operating
expenses from CHF 6.6 million to CHF 5.8 million (-12.5%)

Assets under Management - Key ratios

Bellevue Group AG reported assets under management of CHF 4 382
million as of December 31, 2008. Assets under management at the end
of 2007 amounted to CHF 6 491 million, which corresponds to a decline
of 32.5%. At Bellevue Asset Management there was a net inflow of CHF
253 million in new money thanks to the placement of new hedge fund
products. The decline in assets under management to CHF 2 627 million
is attributable to the repurchase of CHF 380 million in BB MEDTECH
and BB BIOTECH shares as well as the withdrawal from unprofitable
asset management mandates involving CHF 240 million.

Bellevue Group employed 93.4 employees at the end of the 2008,
calculated as full-time equivalents (31.12.07: 86.8, +7.6%).

Strategy

The strategy of steadily expanding Bellevue Group's Asset Management
segment by adding new products and teams was steadfastly pursued amid
last year's prevailing difficult market conditions. Our product range
will be expanded in 2009 by adding specialized investment products in
the areas of "Healthcare" and "New Markets" managed by André Rüegg
and a team of 7 employees. Bellevue Asset Management is thus
maintaining its focus on its core competency of offering
theme-specific, equity-based products and is positioning itself as a
specialized asset management boutique.

Thanks to its sound financial structure and stable client base
Bellevue Group is well positioned in the current competitive
environment to take advantage of future opportunities and it will
continue to pursue its growth strategy.

Investor calendar:
Annual General Meeting
2009
March 30, 2009
Interim results
2009
July 24, 2009

For further information:
Bellevue Asset Management AG, Seestrasse 16, CH-8700 Küsnacht/Zurich
Anja Stubenrauch, Tel. +41 (0)44 267 67 00, as@bellevue.ch

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Bellevue Group AG
Seestrasse 16, Postfach Küsnacht/Zürich
Switzerland

WKN: A0LG3Z; ISIN: CH0028422100; Index: SPI, SPIEX, SMCI;
Listed:
Main Market in SIX Swiss Exchange;
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