NOVATO, Calif., Jan 28 /PRNewswire-FirstCall/ -- Hennessy Advisors, Inc. (OTC Bulletin Board: HNNA) today announced fully diluted earnings per share of $0.04 for the first quarter of 2010, which ended December 31, 2009. Earnings increased 500% versus the prior comparable period, which were a loss of $(0.01) per share. The increase in earnings is primarily attributable to increased mutual fund assets under management. Assets under management grew from $641 million at December 31, 2008 to $945 million at December 31, 2009, an increase of over 47%.

"We are extremely pleased to once again be reporting earnings to our shareholders, after reporting a small loss in the prior comparable period and for our prior fiscal year," said Neil Hennessy, President and CEO of Hennessy Advisors, Inc. "Last March the markets, our assets under management, as well as our earnings per share hit low points, but have since seen steady improvement. I believe the market lows of last year are behind us and that the financial markets are in the midst of a sustainable, long-term recovery," added Mr. Hennessy.

"We continue to pursue acquisitions and have strengthened and broadened our product offering, which now includes both domestic and international funds, as well as a new series of sub-advised funds. We have also built a strong distribution platform for these funds, and while the majority of assets are currently being invested in fixed income vehicles, I believe that once assets begin flowing back to equity mutual funds that Hennessy will be in a strong competitive position," said Mr. Hennessy.


                              Hennessy Advisors, Inc.

                               Financial Highlights

                                 Period to Period
                                             
                                Three Months Ended          
    First Quarter         Dec. 31, 2009   Dec. 31, 2008    $Change  % Change
    ------------------------------------------------------------------------ 
    Total Revenue           $1,998,643      $1,397,864      $600,779   43.0%
    Net Income (Loss)         $203,467        $(73,855)     $277,322  375.5%
    Earnings(loss) per
      share (diluted)            $0.04          $(0.01)        $0.05  500.0%
    Weighted Average number
     of shares outstanding   5,692,790       5,666,452        26,338    0.5%
                                              
    At Period Ending Date  Dec. 31, 2009  Dec. 31, 2008   $Change    % Change
    -------------------------------------------------------------------------
    Mutual Fund Assets
     Under Management     $944,915,487    $641,343,758  $303,571,729   47.3%

About Hennessy Advisors, Inc.

Hennessy Advisors, Inc. is a publicly traded investment manager of a wide range of both domestic and international equity products. Hennessy Advisors, Inc. is committed to a consistent and repeatable investment process, combining time-tested stock selection strategies with a highly disciplined, team-managed approach, and to superior service to shareholders.

Supplemental Information

Nothing in this section shall be considered a solicitation to buy or an offer to sell a security to any person in any jurisdiction where such offer, solicitation, purchase or sale would be unlawful under the securities laws of such jurisdiction.

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Neil J. Hennessy

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SOURCE Hennessy Advisors, Inc.