Leucadia National Corporation Announces 2007 Results

Leucadia National Corporation (LUK – NYSE) today announced its operating results for the year ended December 31, 2007. During 2007, the Company recorded an adjustment that reduced the deferred tax valuation allowance and credited income tax expense by $542,700,000. The adjustment results from the Company’s conclusion that it is more likely than not that it will have future taxable income sufficient to realize that portion of the net deferred tax asset. Net income was $484,294,000 (including the $542,700,000 adjustment referred to above) or $2.10 per diluted common share for the year ended December 31, 2007 compared to net income of $189,399,000 or $.85 per diluted common share for the year ended December 31, 2006. Net income also included income of $3,486,000 or $.01 per diluted common share for 2007 and $59,630,000 or $.25 per diluted common share for 2006 related to discontinued operations, including gain on disposal. For more information on the adjustment described above and the Company’s results of operations for 2007, please see the Company’s Annual Report on Form 10-K for the year ended December 31, 2007, which was filed with the Securities and Exchange Commission today. SUMMARY FOR LEUCADIA NATIONAL CORPORATION AND SUBSIDIARIES (In thousands, except earnings per share amounts)     For the Three Month   For the Year Period Ended December 31, Ended December 31, 2007   2006 2007   2006 (Unaudited)   Revenues and other income $ 282,557   $ 176,395   $ 1,154,895   $ 862,672   Net securities gains $ 5,854   $ 17,768   $ 95,641   $ 117,159   Income (loss) from continuing operations before income taxes and equity in income (losses) of associated companies $ (74,035 ) $ (13,419 ) $ (57,088 ) $ 133,820 Income tax (benefit) provision   (566,712 )   (7,100 )   (559,771 )   41,771   Income (loss) from continuing operations before equity in income (losses) of associated companies 492,677 (6,319 ) 502,683 92,049     Equity in income (losses) of associated companies, net of taxes   (48,132 )   13,384     (21,875 )   37,720   Income from continuing operations 444,545 7,065 480,808 129,769     Income from discontinued operations, including gain on disposal, net of taxes   1,188     4,144     3,486     59,630   Net income $ 445,733   $ 11,209   $ 484,294   $ 189,399   Basic earnings per common share: Income from continuing operations $ 2.00 $ .03 $ 2.20 $ .60   Income from discontinued operations, including gain on disposal   –     .02     .02     .28 Net income $ 2.00   $ .05   $ 2.22   $ .88   Number of shares in calculation   222,494     216,334     218,361     216,233   Diluted earnings per common share: Income from continuing operations $ 1.87 $ .03 $ 2.09 $ .60 Income from discontinued operations, including gain on disposal   –     .02     .01     .25 Net income $ 1.87   $ .05   $ 2.10   $ .85   Number of shares in calculation   239,483     216,707     234,653     231,885