351903--9/9/2010--EPOCH_HOLDING

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{customer, product, revenue}

{stock, price, share}

{tax, income, asset}

{system, service, information}

{financial, litigation, operation}

{personnel, key, retain}

{condition, economic, financial}

{regulation, government, change}

{product, market, service}

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{regulation, change, law}

{operation, international, foreign}

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Risks Related to Our Business Our results of operations and financial condition could be adversely affected by negative performance of the securities markets. Because of market fluctuations, there may not be a consistent pattern in our financial results from period to period. This may make it difficult for us to achieve steady earnings growth on a quarterly basis and may cause the price of our common stock to decline. Investment performance affects our AUM related to existing clients and is one of the most important factors in retaining clients and competing for new asset management business. Poor investment performance could impair our revenue and growth because: Our investment style in the asset management business may underperform other investment approaches, which may result in significant client or asset departures or a reduction in AUM. The significant growth we have experienced since inception may not be indicative of future growth. Because our clients can remove the assets we manage on short notice, we may experience unexpected declines in revenue and profitability. Fluctuations in foreign currency exchange rates could lower our net income or negatively impact the portfolios of our clients and may affect the levels of our AUM. Access to clients through intermediaries is important to our asset management business, and reductions in referrals from such intermediaries or poor reviews of our products or our organization by such intermediaries could materially reduce our revenue and impair our ability to attract new clients. Some members of management are critical to our success, and the inability to attract and retain key employees could compromise our future success. Our reputation is critical to our success. We derive more than 10% of its operating revenue from one client. Changes in fee levels or asset mix could reduce revenues and margins. Other operational risks may disrupt our business, result in regulatory action against us, or limit our growth. We may be exposed to data security risks. Sales of a substantial number of shares of our common stock may adversely affect the market price of our common stock. Various factors may prevent the declaration and payment of common stock dividends. We may pursue acquisitions or joint ventures that could present unforeseen integration obstacles or costs and could dilute the stock ownership of our stockholders. Certain changes in accounting and/or financial reporting standards issued by the Financial Accounting Standards Board ("FASB"), the SEC or other standard-setting bodies could have a material impact on our financial position or results of operations. Risks Related to Our Industry We face strong competition from financial services firms, many of whom have the ability to offer clients a wider range of products and services than we can offer, which could lead to pricing pressures that could materially adversely affect our revenue and profitability. Any event that negatively affects the asset management industry could have a material adverse impact on us. Extensive regulation of our business limits our activities and results in ongoing exposure to the potential for significant penalties, including fines or limitations on our ability to conduct its business. The financial services industry faces substantial litigation and regulatory risks.

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351903--9/9/2010--EPOCH_HOLDING_CORP