FOR IMMEDIATE RELEASE

February 27, 2004

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Hennessy Advisors Acquires Assets Under Management of Lindner Asset Management

Novato, CA - February 27, 2004 - Hennessy Advisors, Inc. (OTCB:HNNA) Shareholders of four mutual funds of Lindner Asset Management, Inc., based in Deerfield, Illinois, voted to approve the mergers between the Lindner Funds and the Hennessy Funds. The Lindner Funds Board of Directors had unanimously recommended approval of the mergers. Hennessy Advisors, Inc. acquired the assets under management of the Lindner Small-Cap Growth, Lindner Communications, Lindner Growth & Income and Lindner Large-Cap Growth Funds. Today the assets of those funds were transferred into existing Hennessy mutual funds. Shareholder approval to acquire the Lindner Market Neutral Fund is still pending.

The four acquired Lindner Funds have approximately 25,000 shareholders and net assets of $291 million. Including assets from this acquisition, Hennessy Advisors, Inc. manages assets totaling $1.34 billion. "We want to welcome the Lindner shareholders to the Hennessy family of funds and thank them for their strong vote of confidence in us," said Neil J. Hennessy, president, chairman and CEO of Hennessy Advisors, Inc. Hennessy attributes the overwhelmingly positive vote to strong fund performance and a highly disciplined management style that puts shareholders first. "Our funds are built on solid, strategic investment formulas and have produced strong results for our clients," he added. "We believe in serving shareholders with honesty and integrity, and we are committed to managing our funds in the sole interest of our long-term investors."

Hennessy Funds is able to offer lower expense ratios than Lindner on three funds, while maintaining the same expense ratio as Lindner on one fund. Lindner shareholders will not be subject to any sales charges as a result of this transaction and should not experience any adverse tax consequences.

"This agreement, like any that we pursue, had to benefit existing shareholders of Hennessy Funds and Hennessy Advisors, as well as Lindner shareholders," Hennessy commented. Many existing Hennessy Funds shareholders will see a reduction in expenses. The expense ratio will decrease an estimated 17% for the Cornerstone Value Fund and an estimated 35% for the Hennessy Total Return Fund due to the increased asset size of these two funds after the Lindner acquisition. "We are happy to pass on savings and roll back expenses for existing Hennessy shareholders as a result of the Lindner acquisition," he added.

About Hennessy Advisors
Hennessy Advisors manages the Hennessy Funds, a family of five no-load mutual funds, satisfying a variety of investment objectives and risk tolerance levels. Each of the Hennessy Funds employs a unique mutual fund money management approach combining superb, time-tested stock selection formulas with unwavering discipline and consistency. The company manages the Hennessy Cornerstone Growth Fund (HFCGX), the Hennessy Cornerstone Value Fund (HFCVX), the Hennessy Total Return Fund (HDOGX), the Hennessy Balanced Fund (HBFBX) and the Hennessy Focus 30 Fund (HFTFX).

Supplemental Information
Nothing in this press release 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.

Forward-Looking Statements
Statements in this press release regarding Hennessy Advisors, Inc.'s business that are not historical facts, are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve a number of risks, uncertainties and other important factors that could cause the actual results and outcomes to differ materially from any future results or outcomes expressed or implied by such forward-looking statements. These risks, uncertainties and other important factors are described in more detail in the "Risk Factors" section of the company's annual report on Form 10-KSB for the fiscal year ended September 30, 2003, filed with the U.S. Securities and Exchange Commission, including, without limitation, the "Risk Factors" section of Management's Discussion and Analysis and Results of Operations. The following factors could affect the actual results of the company:

  • Lindner shareholders may increase redemptions as a result of the change in investment advisors.
  • Continuing volatility in the equity markets may cause the levels of assets under management to fluctuate significantly.
  • Weak market conditions may lower assets under management and reduce the company's revenues and income.


Past performance is not a guarantee of future returns.


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