[R]9:00AM New York - Goldman Sachs fourth quarter revenue rose 14% and earnings increased 2% from a year ago.[/R]

Goldman Sachs reported fourth quarter revenue increase of 14% to $10.74 billion and net income increase of 2% to $3.22 billion.

Diluted earnings per share in the quarter increased to $7.01 compared to $6.59 a year ago and $6.14 in the third quarter of 2007.

For the fiscal year revenue rose to $45.99 billion and earnings increased to $11.60 billion. Earnings per share increased 26% to $24.73 from $19.69.

Return on average tangible common equity was reported at 38.2% and average common shareholder equity was 32.7% for the year.

In the quarter the company repurchased 4.12 million shares at a total cost of $8.96 billion.

For the year, investment banking net revenue rose 34% to $7.56 billion, fixed income, currency, and commodities (FICC) net revenue rose 13% to $16.17 billion, and equities net revenue increased 33% to $11.3 billion.

For the year, assets management reported 28% increase in assets under management to $868 billion and generated net revenue of $4.49 billion.

In the quarter, Net revenues in FICC were $3.30 billion, 6% higher than the fourth quarter of 2006, reflecting significantly higher net revenues in currencies and commodities. The increase in commodities reflected a gain of approximately $800 million from the sale of a majority interest in 14 power generation facilities held by Cogentrix Energy, Inc. In addition, net revenues in mortgages and interest rate products were higher. Net revenues in credit products declined significantly, reflecting lower results from equity investments, partially offset by a gain of approximately $500 million, net of hedges, related to non-investment-grade credit origination activities. Results from equity investments declined in part due to a gain of approximately $500 million on Accordia Golf Co., Ltd. during the fourth quarter of 2006.

Asset Management net revenues were $1.17 billion, 25% higher than the fourth quarter of 2006, reflecting higher management and other fees. During the quarter, assets under management increased $72 billion, or 9%, to $868 billion, reflecting non-money market net inflows of $16 billion, primarily in fixed income assets, money market net inflows of $42 billion and market appreciation of $14 billion in fixed income and equity assets.

As of November 30, 2007, total capital was $206.97 billion, consisting of $42.80 billion in total shareholders’ equity (common shareholders’ equity of $39.70 billion and preferred stock of $3.10 billion) and $164.17 billion in unsecured long-term borrowings. Book value per common share was $90.43, an increase of 25% compared with the end of 2006 and an increase of 7% compared with the end of the third quarter of 2007.

The Board declared a dividend of $0.35 per common share to be paid on February 28, 2008 to common shareholders of record on January 29, 2008. The Board also declared dividends of $351.84, $387.50, $351.84 and $346.84 per share of Series A Preferred Stock, Series B Preferred Stock, Series C Preferred Stock and Series D Preferred Stock, respectively (represented by depositary shares, each representing a 1/1,000th interest in a share of preferred stock), to be paid on February 11, 2008 to preferred shareholders of record on January 27, 2008.