NOVATO, Calif., May 2 /PRNewswire-FirstCall/ -- Hennessy Advisors, Inc. (OTC:HNNA) (BULLETIN BOARD: HNNA) President and Chief Executive Officer, Neil Hennessy, today announced fully diluted earnings for Hennessy Advisors, Inc. of $0.28 per share for the quarter ended March 31, 2006, up from $0.21 per share in the prior comparable period, an increase of 33%. Diluted earnings for the six months ended March 31, 2006 were $0.51 per share, up from $0.42 per share in the prior comparable period, an increase of 21%. Growth in earnings is primarily attributable to increased mutual fund assets under management, which increased by 67%, growing from $1.35 billion on March 31, 2005 to $2.25 billion on March 31, 2006. Positive performance of the Hennessy Funds accounts for 50% of the growth in assets, while net new purchases into the mutual funds account for 17%. The acquisition of The Henlopen Fund, which occurred on July 1, 2005, accounts for the remaining 33% of the growth in assets under management. "Our primary business objective remains growing our assets under management for the benefit of our shareholders," said Mr. Hennessy. "We are quite pleased with our growth in assets, which has come from market appreciation, in-flows to our funds and selective acquisitions. We are also pleased with the associated increases in revenue, net income and earnings per share," he added. Hennessy Advisors, Inc. Financial Highlights Period to Period Three Months Ended March 31, March 31, Second Quarter 2006 2005 Change % Change Total Revenue $4,180,941 $2,811,674 $1,369,267 48.7% Net Income $1,091,078 $829,049 $262,029 31.6% Earnings per share (diluted) $0.28 $0.21 $0.07 33.3% Weighted Average number of shares outstanding 3,951,449 3,842,051 109,398 2.8% Six Months Ended March 31, March 31, Year-to-Date 2006 2005 Change % Change Total Revenue $7,864,041 $5,511,938 $2,352,103 42.7% Net Income $1,986,105 $1,607,049 $379,056 23.6% Earnings per share (diluted) $0.51 $0.42 $0.09 21.4% Weighted Average number of shares outstanding 3,909,710 3,835,251 74,459 1.9% At Period Ending: March 31, March 31, Change % Change Mutual Fund Assets 2006 2005 Under Management $2,249,995,431 $1,347,880,953 $902,114,478 66.9% Hennessy Advisors, Inc., located in Novato, CA, is a publicly traded investment advisor to six no-load mutual funds. Each of the Hennessy Funds employs a superb, time-tested stock selection formula and is managed with unwavering discipline and consistency. Hennessy Advisors serves clients with integrity, honesty and candor, and fully discloses their strategies and performance. 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. The distributor for the Hennessy Funds is Quasar Distributors, LLC. The funds' investment objectives, risks, charges and expenses must be considered carefully before investing. The prospectus contains this and other important information about the investment company, and it may be obtained by calling 800-966-4354 or by visiting http://www.hennessyfunds.com/. Please read it carefully before investing. 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/ http://www.hennessyfunds.com/

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