Leucadia National Corporation Announces 2005 Results

Leucadia National Corporation (NYSE:LUK) today announcedits operating results for the year ended December 31, 2005. During2005, the Company recorded an adjustment that reduced the deferred taxasset valuation allowance and credited income tax expense by$1,135,100,000. Although this adjustment significantly increasesreported net income for the period and shareholders' equity as ofDecember 31, 2005, it is not a cash gain, and it does not representany immediate income tax savings. The adjustment results from theCompany's conclusion that it is more likely than not that it will havefuture taxable income sufficient to realize a portion of the netdeferred tax asset, and is required to be recorded under generallyaccepted accounting principles.

Net income was $1,636,041,000 (including the $1,135,100,000adjustment referred to above) or $14.27 per diluted common share forthe year ended December 31, 2005 compared to $145,500,000 or $1.34 perdiluted common share for the year ended December 31, 2004. Net incomefor 2005 included $411,929,000 of income from discontinued operationsor $3.56 per diluted common share, including gain on disposal, whilenet income for 2004 included $63,049,000 of losses from discontinuedoperations or $.56 per diluted common share, including gain ondisposal.

For more information on the adjustment described above and theCompany's results of operations for 2005, please see the Company'sAnnual Report on Form 10-K for the year ended December 31, 2005, whichwas 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,
------------------------- ------------------
2005 2004 2005 2004
---- ---- ---- ----
(Unaudited)

Revenues and other income $317,922 $138,217 $ 1,041,147 $637,962
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Net securities gains $ 76,084 $ 25,501 $ 208,816 $136,564
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Income (loss) from continuing
operations before income
taxes and equity in income
(losses) of associated
companies $ 36,044 $ (9,928) $ 138,163 $111,878

Income tax (benefit)
provision 637 (3,277) (1,131,082) (20,192)
--------- --------- ------------ ---------

Income (loss) from continuing
operations before equity in
income (losses) of
associated companies 35,407 (6,651) 1,269,245 132,070

Equity in income (losses) of
associated companies, net
of taxes (57,095) 52,266 (45,133) 76,479
--------- --------- ------------ ---------

Income (loss) from continuing
operations (21,688) 45,615 1,224,112 208,549

Income (loss) from
discontinued operations,
including gain on disposal,
net of taxes 279,891 3,298 411,929 (63,049)
--------- --------- ------------ ---------

Net income $258,203 $ 48,913 $ 1,636,041 $145,500
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Basic earnings (loss) per
common share:
Income (loss) from continuing
operations $ (.20) $ .43 $ 11.36 $ 1.95
Income (loss) from
discontinued operations,
including gain on disposal 2.59 .03 3.82 (.59)
--------- --------- ------------ ---------
Net income $ 2.39 $ .46 $ 15.18 $ 1.36
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Number of shares in
calculation 107,983 107,404 107,765 106,692
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Diluted earnings (loss) per
common share:
Income (loss) from continuing
operations $ (.20) $ .41 $ 10.71 $ 1.90
Income (loss) from
discontinued operations,
including gain on disposal 2.59 .03 3.56 (.56)
--------- --------- ------------ ---------
Net income $ 2.39 $ .44 $ 14.27 $ 1.34
========= ========= ============ =========

Number of shares in
calculation 107,983 115,560 115,637 112,746
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