FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, Janus Capital Group Inc. (collectively, "Janus" or the "Company") may make other written and oral communications from time to time that contain such statements. Forward-looking statements include statements as to industry trends and future expectations of the Company and other matters that do not relate strictly to historical facts and are based on certain assumptions by management. These statements are often identified by the use of words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "should," "estimate" or "continue," and similar expressions or variations. These statements are based on the beliefs and assumptions of the Company management based on information currently available to management. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results to differ materially from future results expressed or implied by such forward-looking statements. Important factors that could cause actual results to differ materially from the forward-looking statements include, among others, the risks described in the Company's filings with the Securities and Exchange Commission, including those in Part I, Item 1A, Risk Factors, and elsewhere in Janus' Annual Report on Form 10-K for the year ended December 31, 2007. Janus cautions readers to carefully consider such factors. Furthermore, such forward-looking statements speak only as of the date on which such statements are made. Except as required by applicable law, Janus undertakes no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements.

AVAILABLE INFORMATION

Copies of Janus Capital Group Inc.'s (collectively, "Janus" or the "Company") filings with the Securities and Exchange Commission ("SEC") can be obtained from the SEC's Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549. Information can be obtained about the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC at http://www.sec.gov.

Janus makes available free of charge its annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K and amendments thereto as soon as reasonably practical after such filing has been made with the SEC. Reports may be obtained through the Investor Relations section of Janus' website (http://ir.janus.com) or by contacting Janus at (888) 834-2536. The contents of Janus' website are not incorporated herein for any purpose.

Janus' Officer Code of Ethics for Principal Executive Officer and Senior Financial Officers (including its chief executive officer, chief financial officer and controller) (the "Officer Code"); Corporate Code of Business Conduct and Ethics for all employees; corporate governance guidelines; and the charters of key committees of the Board of Directors (including the Audit, Compensation, Nominating and Corporate Governance, and Planning and Strategy committees) are available on its website (http://ir.janus.com/governance.cfm), and printed copies are available to any shareholder upon request by calling Janus at (888) 834-2536. Any future amendments to or waivers of the Officer Code will be posted to the Investor Relations section of Janus' website.

RESULTS OF OPERATIONS

Overview

Janus provides investment management and administrative services to mutual funds, separate accounts and institutional clients in both domestic and international markets through its primary subsidiaries, Janus Capital Management LLC ("Janus ex-INTECH") and Enhanced Investment Technologies, LLC ("INTECH").

Revenues are generally based upon a percentage of the market value of assets under management and are calculated as a percentage of the daily average asset balance in accordance with contractual agreements with the Company's mutual funds, separate accounts and subadvised relationships (collectively referred to herein as "investment products"). Certain investment products are also subject to performance fees that vary based on their relative performance as compared to a benchmark index and the level of assets subject to such fees. Assets under management primarily consist of domestic and international equity and debt securities. Accordingly, fluctuations in the financial markets, relative investment performance, sales and redemptions of investment products, and changes in the composition of assets under management are all factors that have a direct effect on Janus' operating results.

INVESTMENT MANAGEMENT OPERATIONS (CONTINUING OPERATIONS)

Highlights for the current quarter include:

† Long-term net inflows of $5.0 billion were the highest quarterly amount since the third quarter 2000.

† Relative investment performance remained strong despite challenging market conditions, with approximately 78%, 81% and 83% of Janus' mutual funds in the top half of their Lipper categories on a one-, three- and five-year total return basis, respectively, as of June 30, 2008.

† Net income from continuing operations was $65.6 million, or $0.40 per diluted share.

†          Operating margin totaled 34.5%.

†          Announced plans to acquire an additional 50% interest in Perkins,
Wolf, McDonnell and Company, LLC ("PWM").

†          Repurchased 2.6 million shares of Janus common stock at a total price
of $75.0 million.

Assets Under Management and Flows



                              Three months ended June 30,       Six months ended June 30,
                                 2008             2007             2008            2007
                                     (in billions)                    (in billions)

Beginning of period
assets                             $ 187.6          $ 176.2         $ 206.7         $ 167.7
Long-term sales
Janus ex-INTECH                       11.7              8.1            21.2            15.2
INTECH                                 2.5              4.5             4.3             9.5
Long-term redemptions
Janus ex-INTECH                       (6.9 )           (6.6 )         (16.8 )         (13.7 )
INTECH                                (2.3 )           (3.2 )          (5.2 )          (5.1 )
Long-term net flows*
Janus ex-INTECH                        4.8              1.5             4.4             1.5
INTECH                                 0.2              1.3            (0.9 )           4.4
Total long-term net flows              5.0              2.8             3.5             5.9
Net money market flows                (0.4 )            1.3            (1.0 )           2.8
Market / fund performance             (0.4 )           10.3           (17.4 )          14.2
End of period assets               $ 191.8          $ 190.6         $ 191.8         $ 190.6

Average assets under
management
Janus ex-INTECH                    $ 123.6          $ 108.0         $ 118.9         $ 103.7
INTECH                                64.8             69.9            63.9            67.1
Money Market                          11.7             10.3            12.0             9.4
Total                              $ 200.1          $ 188.2         $ 194.8         $ 180.2

Total average assets under management increased 6.3% and 8.1%, for the three- and six-month periods ended June 30, 2008, respectively, as compared to the same periods in 2007. The increase in average assets under management is a result of market appreciation during 2007 and continued positive long-term net flows, partially offset by challenging market conditions during 2008.

Janus ex-INTECH long-term net flows improved by $3.3 billion and $2.9 billion for the three- and six month periods ended June 30, 2008, respectively, from higher gross sales through the retail intermediary and international channels as a result of expansion efforts over the last several years and strong relative investment performance.

INTECH's sales and redemptions continue to be negatively impacted by clients reallocating assets from INTECH to other investment strategies and the relative underperformance of certain key investment strategies in early 2008 and most of 2007.

Results of Investment Management Operations

Three Months Ended June 30, 2008, Compared with Three Months Ended June 30, 2007

Revenues

Investment management fees increased $19.2 million, or 8.7%, primarily as a result of the 6.3% increase in average assets under management. Revenue increased at a slightly higher rate than average assets under management as a result of increased average assets in higher yielding Janus ex-INTECH products.

Performance fee revenue is derived from certain mutual funds and separate accounts. The $7.8 million increase in revenue was primarily due to a separate account reaching its one-year anniversary during the second quarter 2008 on which the first contractual performance fee was recognized for the previous twelve months. Future performance fees earned on this account will be recognized quarterly, consistent with a majority of Janus' separate account performance fee structures.

Shareowner servicing fees and other revenue improved $4.2 million over the comparable prior year period primarily as a result of an increase in transfer agent fees. Transfer agent fees are based on average assets under management in Janus' retail fund series (Janus Investment Fund), excluding money market assets, which increased 5.5% over the comparable prior period.

Expenses

Employee compensation and benefits increased due to an 11% growth in the average number of employees and higher investment team compensation from strong investment performance and higher revenue. The investment team compensation plan is linked to individual performance, but also ties the aggregate level of compensation to revenue.

Long-term incentive compensation decreased quarter-to-quarter primarily as a result of a decline in the performance-based acceleration of previous awards based on expected 2008 financial performance, partially offset by an increase related to the 2008 annual grant awarded in February. The second quarter 2007 includes a $2.5 million charge for departure-related accelerated vesting of long-term incentive awards.

Marketing and advertising expenses increased $3.7 million due to higher marketing expenses from expansion efforts in the retail intermediary and international sales channels.

Distribution expense increased $3.7 million, or 10.7%, from a similar increase in assets under management subject to third-party concessions. Distribution fees are calculated based on a contractual percentage of the market value of assets under management distributed through third-party intermediaries and are primarily related to Janus ex-INTECH investment products.

Depreciation and amortization expenses increased $2.0 million primarily as a result of the amortization of deferred commissions from higher sales of Janus Adviser Series C shares and the amortization of intangibles related to the March 2008 acquisition of an additional 3% interest in INTECH.

General, administrative and occupancy expense increased $10.8 million primarily from higher legal costs associated with ongoing litigation and rent related to international expansion. Second quarter 2007 included the release of $6.3 million of legal reserves.

Interest expense increased $7.3 million as a result of the issuance of additional debt in June 2007.

Net investment gains of $3.0 million for the three months ended June 30, 2008, were driven by mark-to-market adjustments on consolidated investment products and realized gains from the redemption of certain seed capital investments. Mutual funds and separate accounts in which Janus owns a majority interest are consolidated, with changes in market value reported in current period earnings. Future earnings will be impacted by fluctuations in the fair value measurements and amount of consolidated investments.

Minority interest in consolidated earnings consists primarily of INTECH earnings which declined as a result of lower performance fees earned on separate accounts and lower average assets under management in the relevant investment products.

The income tax provision for the second quarter 2008 includes a $10.8 million tax benefit as a result of applying a lower tax rate to deferred tax assets and liabilities expected to be realized or settled on or after January 1, 2009. Janus' tax rate will decrease by approximately 1% from the current rate effective January 1, 2009 as a result of a legislative change in Colorado state taxes enacted during the second quarter 2008.

Six Months Ended June 30, 2008, Compared with Six Months Ended June 30, 2007

Revenues

Investment management fees increased $43.8 million, or 10.4%, primarily as a result of the 8.1% increase in average assets under management. Revenue increased at a slightly higher rate than average assets under management as a result of increased average assets in higher yielding Janus ex-INTECH products.

Performance fee revenue increased primarily as a result of higher mutual fund fees and separate account fees driven by a separate account reaching its one-year anniversary.

Shareowner servicing fees and other revenue increased $9.8 million, or 10.5%, primarily as a result of higher transfer agent fees driven by a 7.2% growth in Janus Investment Fund average assets under management.

Expenses

Employee compensation and benefits increased due to a 12% growth in the average number of employees and higher investment team compensation as a result of strong investment performance and higher revenue.

Long-term incentive compensation decreased primarily as a result of a decline in the performance-based acceleration of previous awards based on expected 2008 financial performance, partially offset by an increase related to the 2008 annual grant awarded in February. Grants made during the six months ended June 30, 2008, totaled $82.8 million and will be recognized ratably over a three-year period.

In addition to these awards, retention awards were granted to certain Janus investment team members and INTECH employees to facilitate succession planning and incentivize key personnel to remain with the company. The Janus retention grant totaled $21.0 million and will be recognized ratably over a four-year period. The INTECH retention grant totaled $10.0 million and will be recognized ratably over a ten-year period. These awards are not subject to accelerated vesting.

Marketing and advertising expenses increased $6.4 million due to marketing expenses from expansion efforts in the retail intermediary and international sales channels, and higher print advertising expenses associated with the continued promotion of the Janus brand.

Distribution expense increased $9.4 million, or 14.4%, from a similar increase in assets under management subject to third-party concessions.

Depreciation and amortization expenses increased $4.8 million primarily as a result of the amortization of deferred commissions from higher sales of Janus Adviser Series C shares and the amortization of intangibles related to the March 2008 acquisition of an additional 3% interest in INTECH.

Interest expense increased $16.7 million as a result of the issuance of additional debt in June 2007.

Net investment losses of $6.5 million for the six months ended June 30, 2008, were driven primarily by mark-to-market adjustments on consolidated investment products, partially offset by realized gains from the sale of certain seed capital investments.

The decrease in minority interest is largely the result of a decline in INTECH earnings associated with lower performance fees earned on separate accounts and lower average assets under management in the relevant investment products.

DISCONTINUED OPERATIONS

During the second quarter 2008, Janus disposed of its Printing and Fulfillment operations. On April 9, 2008, the digital print operations were sold to Bowne & Co., Inc. for $14.5 million. The offset operations were also sold in the second quarter 2008 for an immaterial amount. The liquidation of the remaining assets is not expected to have a material impact on Janus' operating results in future periods.