NOVATO, Calif., Aug. 2 /PRNewswire-FirstCall/ -- Hennessy Advisors, Inc. (OTC:HNNA) (BULLETIN BOARD: HNNA) Chief Executive Officer and President, Neil Hennessy, today announced fully diluted earnings per share for Hennessy Advisors, Inc. of $.31 for the third quarter ended June 30, 2005. While earnings for this quarter were equal to earnings in the prior comparable quarter, the diluted earnings per share for the nine months ended June 30, 2005, were $.93, up from $.78 in the prior comparable period, an increase of 19.2%. "The financial markets have been quite volatile since January so we are very pleased that we have been able to produce these strong quarterly and year-to-date earnings for our shareholders," said Mr. Hennessy. Hennessy Advisors, Inc. Financial Highlights Period to Period Three Months Ended Second Quarter June 30, 2005 June 30, 2004 $ Change % Change Total Revenue $2,806,085 $2,601,735 $204,350 7.9% Net Income $800,895 $777,344 $23,551 3.0% Earnings per share (diluted) $0.31 $0.31 $-- --% Weighted Average number of shares outstanding 2,596,361 2,517,993 78,368 3.1% Nine Months Ended Year-to-Date June 30, 2005 June 30, 2004 $ Change % Change Total Revenue $8,318,023 $7,003,986 $1,314,037 18.8% Net Income $2,407,944 $1,977,623 $430,321 21.8% Earnings per share (diluted) $0.93 $0.78 $0.15 19.2% Weighted Average number of shares outstanding 2,592,422 2,542,568 49,854 2.0% At Period Ending Date June 30, 2005 June 30, 2004 $ Change % Change Mutual Fund Assets Under Management $1,373,165,918 $1,284,719,759 $88,446,159 6.9% Hennessy Advisors, Inc., located in Novato, CA, is a publicly traded investment firm, whose principal business activity is managing, servicing and marketing mutual funds. The Hennessy Funds are no-load and utilize quantitative stock selection strategies. 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. Mutual fund investing involves risk; loss of principal is possible. While the Hennessy Funds are no load, management and distribution fees and other expenses apply. For more complete information about the Hennessy Funds, including fees and expenses, call 800-966-4354 to obtain a free prospectus. Read it carefully before you invest or send money. The distributor for the Hennessy Funds is Quasar Distributors, LLC. Available Topic Expert(s): For information on the listed expert(s), click appropriate link. Neil J. Hennessy http://profnet.prnewswire.com/ud_public.jsp?userid=496838 DATASOURCE: Hennessy Advisors, Inc. CONTACT: Terry Nilsen of Hennessy Advisors, Inc., +1-415-899-1555, or fax, +1-415-899-1559 Web site: http://www.hennessyadvisors.com/

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