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The Corporate Executive Board Reports Second-Quarter Diluted Earnings Per Share of $0.49 on Revenues of $141 Million

ARLINGTON, Va.--(BUSINESS WIRE)--July 23, 2008--The Corporate Executive Board Company ("CEB" or the "Company") (NASDAQ: EXBD) today announces financial results for the second quarter ended June 30, 2008. Revenues for the second quarter increased 8.8% to $141.2 million from $129.7 million for the second quarter of 2007. Net income decreased 4.2% to $16.6 million from $17.3 million. Diluted earnings per share for the second quarter of 2008 increased 6.5% to $0.49 from $0.46 for the second quarter of 2007.

For the first six months of 2008, revenues were $279.2 million, a 9.8% increase from $254.2 million for the first half of 2007. Net income for the first six months of 2008 decreased 11.5% to $32.5 million from $36.7 million for the first six months of 2007. Diluted earnings per share for the first six months of 2008 were $0.94, a 2.1% decrease from $0.96 for the first half of 2007.

Contract Value growth in the second quarter of 2008 was 4.8% as a result of new client acquisitions, continued cross-sales to existing clients, and new program launches. The average cross-sell ratio was 3.24, reflecting cross-sell ratios of 3.81 in the Company's large corporate market and 1.51 for middle market customers. Growth from new clients and growth from new programs are tracking toward annual expectations and growth from cross-sales is tracking below its target at this point in the year.

The Company also announces the third membership program launch of 2008, the China Human Resources Executive Board (CHREB). This program serves the senior executive responsible for hiring and development of personnel in the Chinese operations of both Chinese companies and multinationals. This launch brings the total number of membership-based programs to 51. Companies joining their first CEB program in the quarter included: Burberry Group plc; Dollar Thrifty Automotive Group, Inc.; Dr Pepper Snapple Group, Inc.; Hindustan Petroleum Corporation Limited; Husqvarna AB; Meridian Health, Inc.; and Porsche AG.

Tom Monahan, Chairman and Chief Executive Officer commented, "We saw mixed results on the quarter, and some drivers of our contract value growth moderated from Q1. To the positive, we are making good progress on most of our strategic priorities: Our sales pipelines are up 15%, initiatives to engage new members faster are showing early promise, and we continue to see solid momentum in new products and markets. Offsetting this were slow to materialize results from initiatives targeting large corporate cross-sell. Our progress has been further impeded by economic pressures that have slowed purchase decisions and dampened new spending. As a result, we are very focused on making sure that each of our members sees near-term payback from each investment they make with us. I am confident that with this focus on immediate ROI and our key operating priorities, we are setting CEB up well for success in 2008 and beyond."

SHARE REPURCHASE

During the six months ended June 30, 2008, the Company repurchased approximately 1,035,000 shares of its common stock at a total cost of $41.8 million. Repurchases will continue to be made in open market and privately negotiated transactions subject to market conditions. No minimum number of shares has been fixed. The Company is funding its share repurchases with cash on hand and cash generated from operations.

OUTLOOK FOR 2008

The following statements summarize the Company's guidance for 2008. The Company is maintaining its guidance for full year Contract Value growth of 10% to 15%, and annual revenue growth for 2008 of approximately 5%-10%, or $568-$586 million. On a quarterly basis, the Company expects a revenue distribution as follows: Approximately $139-$148 million for the third quarter and $150-$165 million for the fourth quarter of 2008.

The Company is updating its guidance range on annual diluted earnings per share for 2008 to $2.09 - $2.22. Reflecting a shift in expense timing for the balance of 2008, the Company expects diluted earnings per share of $0.51 to $0.61 for the third quarter and $0.64-$0.72 for the fourth quarter. Included in the guidance above is approximately $4.5 million of expense relating to share-based compensation for each remaining quarter of 2008.

The Company expects an EBITDA margin of approximately 24%.

For the full year 2008, the Company expects Depreciation and amortization expense of $22 to $23 million, Other income of approximately $4.0 million, an effective income tax rate of approximately 40.0%, and diluted weighted average shares outstanding of approximately 34.25 -34.75 million.

The diluted earnings per share, interest income, and weighted average shares outstanding guidance includes only share repurchases made as of June 30, 2008.

NON-GAAP FINANCIAL MEASURE

This press release and the accompanying tables include a discussion of EBITDA, which is a non-GAAP financial measure provided as a complement to the results provided in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The term "EBITDA" refers to a financial measure that we define as earnings before Other income, net (primarily comprised of interest income), Income taxes, and Depreciation and amortization. This non-GAAP measure may be considered in addition to results prepared in accordance with GAAP, but should not be considered a substitute for, or superior to, GAAP results. Furthermore, we intend to continue to provide this non-GAAP financial measure as part of our future earnings discussions and, therefore, the inclusion of this non-GAAP financial measure will provide consistency in our financial reporting. A reconciliation of this non-GAAP measure to GAAP is provided below.


                                 Three Months Ended  Six Months Ended
                                      June 30,           June 30,
                                 ------------------ ------------------
                                   2008      2007     2008     2007
                                 --------- -------- -------- ---------
 Net income                       $16,603  $17,323  $32,489  $ 36,693
 Other income, net                   (941)  (5,289)  (1,639)  (11,204)
 Depreciation and amortization      5,183    3,165   10,745     6,071
 Provision for income taxes        11,068   10,844   21,659    22,969
                                 --------- -------- -------- ---------
 EBITDA                           $31,913  $26,043  $63,254  $ 54,529
                                 ========= ======== ======== =========

We believe that EBITDA is relevant and useful information for our investors. We use this non-GAAP financial measure for internal budgeting and other managerial purposes, when publicly providing our business outlook and as a measurement for potential acquisitions. A limitation associated with EBITDA is that it does not reflect the periodic costs of certain capitalized tangible and intangible assets used in generating revenues in our business. Management evaluates the costs of such tangible and intangible assets through other financial measures such as capital expenditures. Management compensates for these limitations by also relying on the comparable GAAP financial measure of Income from operations, which includes Depreciation and amortization.

FORWARD-LOOKING STATEMENTS

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You are hereby cautioned that these statements may be affected by the important factors, among others, set forth below and in CEB's filings with the U.S. Securities and Exchange Commission, and consequently, actual operations and results may differ materially from the results discussed in the forward-looking statements. Factors that could cause actual results to differ materially from those indicated by forward-looking statements include, among others, our dependence on renewals of our membership-based services, the sale of additional programs to existing members and our ability to attract new members, our potential failure to adapt to member needs and demands and to anticipate or adapt to market trends, our potential inability to attract and retain a significant number of highly skilled employees, fluctuations in operating results, our potential inability to protect our intellectual property rights, our potential exposure to loss of revenue resulting from our unconditional service guarantee, various factors that could affect our estimated income tax rate or our ability to use our existing deferred tax assets, changes in estimates or assumptions under FAS No. 123(R), our potential inability to make, integrate and maintain acquisitions and investments, the amount and timing of the benefits expected from acquisitions and investments and possible volatility of our stock price. These and other factors are discussed more fully in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of CEB's filings with the U.S. Securities and Exchange Commission, including, but not limited to, its 2007 Annual Report on Form 10-K. The forward-looking statements in this press release are made as of July 23, 2008, and we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

The Corporate Executive Board Company is a leading provider of best practices research and analysis focusing on corporate strategy, operations and general management issues. CEB provides its integrated set of services currently to more than 4,700 of the world's largest and most prestigious corporations, including over 80% of the Fortune 500. These services are provided primarily on an annual subscription basis and include best practices research studies, executive education seminars, customized research briefs and Web-based access to a library of over 275,000 corporate best practices.

                THE CORPORATE EXECUTIVE BOARD COMPANY
                         Financial Highlights
                (In thousands, except per share data)
                             (Unaudited)


                         Three Months Ended          Six Months Ended
                Selected      June 30,      Selected     June 30,
                 Growth  ------------------  Growth  -----------------
                 Rates     2008      2007    Rates     2008     2007
                -------- --------- -------- -------- -------- --------
Financial
 Highlights
  (GAAP, as
   reported):
Revenues            8.8%  $141,173 $129,697     9.8% $279,196 $254,222
Net income        (4.2)%  $ 16,603 $ 17,323  (11.5)% $ 32,489 $ 36,693
Basic earnings
 per share          4.3%  $   0.49 $   0.47   (3.1)% $   0.94 $   0.97
Diluted
 earnings per
 share              6.5%  $   0.49 $   0.46   (2.1)% $   0.94 $   0.96
Weighted
 average shares
 outstanding:
     Basic                  34,046   37,051            34,383   37,732
     Diluted                34,170   37,517            34,516   38,311

                THE CORPORATE EXECUTIVE BOARD COMPANY
           Operating Statistic and Statements of Operations
                (In thousands, except per share data)
                             (Unaudited)


                                                  Three Months Ended
                                         Selected      June 30,
                                          Growth  --------------------
                                          Rates     2008      2007
                                         -------- --------- ----------

Operating Statistic
Contract Value (1) (at period end)           4.8% $528,951  $504,832

Financial Highlights
Revenues                                     8.8% $141,173  $129,697
Cost of services (2)                                45,612    47,264
                                                  --------- ----------
     Gross profit                                   95,561    82,433

Member relations and marketing (2)                  40,776    37,482
General and administrative (2)                      22,872    18,908
Depreciation and amortization                        5,183     3,165
                                                  --------- ----------
     Income from operations                 16.8%   26,730    22,878

Other income, net                                      941     5,289
                                                  --------- ----------

Income before provision for income taxes            27,671    28,167
Provision for income taxes                          11,068    10,844
                                                  --------- ----------
     Net income                            (4.2)% $ 16,603  $ 17,323
                                                  ========= ==========

Basic earnings per share                     4.3% $   0.49  $   0.47
Diluted earnings per share                   6.5% $   0.49  $   0.46

Weighted average shares outstanding
  Basic                                             34,046    37,051
  Diluted                                           34,170    37,517

Percentages of Revenues
Gross profit                                          67.7%     63.6%
Member relations and marketing                        28.9%     28.9%
General and administrative                            16.2%     14.6%
Depreciation and amortization                          3.7%      2.4%
Income from operations                                18.9%     17.6%
EBITDA (3)                                            22.6%     20.1%



                                                    Six Months Ended
                                          Selected      June 30,
                                           Growth  -------------------
                                           Rates     2008      2007
                                          -------- --------- ---------

Operating Statistic
Contract Value (1) (at period end)

Financial Highlights
Revenues                                      9.8% $279,196  $254,222
Cost of services (2)                                 90,667    91,940
                                                   --------- ---------
     Gross profit                                   188,529   162,282

Member relations and marketing (2)                   82,676    71,728
General and administrative (2)                       42,599    36,025
Depreciation and amortization                        10,745     6,071
                                                   --------- ---------
     Income from operations                   8.4%   52,509    48,458

Other income, net                                     1,639    11,204
                                                   --------- ---------

Income before provision for income
 taxes                                               54,148    59,662
Provision for income taxes                           21,659    22,969
                                                   --------- ---------
     Net income                            (11.5)% $ 32,489  $ 36,693
                                                   ========= =========

Basic earnings per share                    (3.1)% $   0.94  $   0.97
Diluted earnings per share                  (2.1)% $   0.94  $   0.96

Weighted average shares outstanding
  Basic                                              34,383    37,732
  Diluted                                            34,516    38,311

Percentages of Revenues
Gross profit                                           67.5%     63.8%
Member relations and marketing                         29.6%     28.2%
General and administrative                             15.3%     14.2%
Depreciation and amortization                           3.8%      2.4%
Income from operations                                 18.8%     19.1%
EBITDA (3)                                             22.7%     21.4%


(1)  We define "Contract Value" as of the quarter-end as the aggregate
 annualized revenue attributed to all agreements in effect on such
 date, without regard to the remaining duration of any such agreement.

(2)  The following amounts relating to share-based compensation are
 included in the Statements of Operations above for the three months
 ended June 30, 2008 and 2007, respectively (in millions):  Cost of
 services, $1.8 and $2.6, Member relations and marketing, $0.5 and
 $1.2 and General and administrative, $1.3 and $1.7.  The following
 amounts relating to share-based compensation are included in the
 Statements of Operations above for the six months ended June 30, 2008
 and 2007, respectively:  Cost of services, $2.7 and $5.9, Member
 relations and marketing, $0.2 and $2.5 and General and
 administrative, $3.2 and $3.7.

(3) See "NON-GAAP FINANCIAL MEASURE" for further explanation.


                THE CORPORATE EXECUTIVE BOARD COMPANY
                CONDENSED CONSOLIDATED BALANCE SHEETS
                            (In thousands)

                                       June 30, 2008 December 31, 2007
                                       ------------- -----------------
                                        (Unaudited)
Assets

Current assets:
   Cash and cash equivalents                $ 24,068          $ 47,585
   Marketable securities                      28,861            24,153
   Membership fees receivable, net            93,213           161,336
   Deferred income taxes, net                 13,024            12,710
   Deferred incentive compensation            13,434            15,544
   Prepaid expenses and other current
    assets                                    10,441            10,638
                                       ------------- -----------------
            Total current assets             183,041           271,966

Deferred income taxes, net                    24,915            24,307
Marketable securities                         59,821            72,618
Property and equipment, net                  109,229            91,904
Goodwill                                      42,626            42,626
Intangible assets, net                        19,239            22,143
Other non-current assets                      19,021            19,208
                                       ------------- -----------------
            Total assets                    $457,892          $544,772
                                       ============= =================

Liabilities and stockholders' equity

Current liabilities:
   Accounts payable and accrued
    liabilities                             $ 40,776          $ 62,681
   Accrued incentive compensation             23,657            31,355
   Deferred revenues                         295,594           323,395
                                       ------------- -----------------
            Total current liabilities        360,027           417,431

Other liabilities                             61,748            59,794
                                       ------------- -----------------
            Total liabilities                421,775           477,225

Total stockholders' equity                    36,117            67,547
                                       ------------- -----------------
            Total liabilities and
             stockholders' equity           $457,892          $544,772
                                       ============= =================

                THE CORPORATE EXECUTIVE BOARD COMPANY
                CONSOLIDATED STATEMENTS OF CASH FLOWS
                            (In thousands)
                             (Unaudited)

                                                    Six Months Ended
                                                        June 30,
                                                  --------------------
                                                    2008       2007
                                                  --------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
     Net income                                   $ 32,489  $  36,693
     Adjustments to reconcile net income to net
      cash flows provided by operating
      activities:
        Depreciation and amortization               10,745      6,071
        Deferred income taxes                         (134)       709
        Share-based compensation                     6,141     12,102
        Excess tax benefits from share-based
         compensation arrangements                     ---     (1,966)
        Amortization of marketable securities
         premiums (discounts), net                     363       (657)
        Changes in operating assets and
         liabilities:
            Membership fees receivable, net         68,123     64,074
            Deferred incentive compensation          2,110        (10)
            Prepaid expenses and other current
             assets                                    197        152
            Other non-current assets                   185     (4,895)
            Accounts payable and accrued
             liabilities                           (15,572)   (34,130)
            Accrued incentive compensation          (7,698)    (4,557)
            Deferred revenues                      (27,801)   (13,395)
            Other liabilities                        1,953      3,449
                                                  --------- ----------
                 Net cash flows provided by
                  operating activities              71,101     63,640
                                                  --------- ----------

CASH FLOWS FROM INVESTING ACTIVITIES:
     Purchases of property and equipment, net      (31,498)    (9,183)
     Cost method investment                            ---     (3,829)
     Sales and maturities of marketable
      securities, net                                7,810    108,141
                                                  --------- ----------
                Net cash flows (used in) provided
                 by investing activities           (23,688)    95,129
                                                  --------- ----------

CASH FLOWS FROM FINANCING ACTIVITIES:
     Proceeds from the exercise of common stock
      options                                          100        529
     Proceeds from the issuance of common stock
      under the employee stock purchase plan           778      1,125
     Excess tax benefits from share-based
      compensation arrangements                        ---      1,966
     Purchase of treasury shares                   (41,804)  (218,009)
     Payment of dividends                          (30,004)   (29,623)
                                                  --------- ----------
                 Net cash flows used in financing
                  activities                       (70,930)  (244,012)
                                                  --------- ----------

NET DECREASE IN CASH AND CASH EQUIVALENTS          (23,517)   (85,243)
Cash and cash equivalents, beginning of period      47,585    171,367
                                                  --------- ----------

Cash and cash equivalents, end of period          $ 24,068  $  86,124
                                                  ========= ==========

    CONTACT: Corporate Executive Board Company
             Timothy R. Yost, Chief Financial Officer, 571-303-4080
             heroldl@executiveboard.com
             www.executiveboard.com

    SOURCE: Corporate Executive Board Company