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The Corporate Executive Board Reports First Quarter Pro Forma Earnings Of $0.20 Per Share On 32.4% Growth In Revenues
WASHINGTON, D.C. (May 2, 2000) -- The Corporate Executive Board Company (CEB) (Nasdaq/NM:EXBD) today announced financial results for the first quarter ended March 31, 2000. Revenues for the quarter increased 32.4% to $20,784,000 from $15,703,000 for the first quarter of 1999. Pro forma net income increased 59.4% to $3,320,000 for the quarter from $2,083,000 for the comparable period last year, and pro forma diluted earnings per share were $0.20, up 53.8% from $0.13. Pro forma adjustments exclude stock option and related expenses for both periods and include income taxes at 41.5% for the three months ended March 31, 1999. As expected, the income tax rate for the first quarter of 2000 was 39%.

Jay McGonigle, CEO of the Corporate Executive Board, remarked, “Our first quarter results again reflected the predictable, scalable nature of our business model. Our strong close to 1999 together with a fast start to the year 2000 contributed to another quarter of better than 30% revenue growth. As expected, this growth was accompanied by margin expansion: pro forma operating margins increased to 23.3% in the first quarter of this year from 21.1% in the first quarter of 1999. This expansion was powered by the underlying scalability of our business model, as we leveraged a fixed-cost research investment over a growing subscriber base.

“Revenue growth for the quarter was attributable to cross-selling, new customer acquisition, new programs and price increases. In the first quarter, our cross-sell ratio climbed to 1.93, from 1.72 in the comparable 1999 period. New customers, such as Honeywell International Inc., LSI Logic Corporation, Level 3 Communications, Inc. and the Federal Reserve System, joined our established programs as well as our newer program offerings. The two programs launched in 1999, the General Counsel and Marketing programs, both continued to perform very well.

“In the first quarter, I am also pleased to announce the launch of our brand new program on Employee Retention. This program, the first of our three planned for the year 2000, targets HR executives managing one of the hottest issues in today’s challenging labor markets. This launch brings our total number of program offerings to 13 as of the quarter’s close.”

McGonigle concluded, “With a strong pipeline of new product ideas, high degree of revenue visibility, and ample room to cross-sell and add new subscribers in our target Global 3000 universe, we believe that the CEB is well positioned to continue our record of consistent, profitable growth.”

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 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, the dependence on renewal of membership based services, dependence on key personnel, the need to attract and retain qualified personnel, management of growth, new product development, competition, risks associated with anticipating market trends, industry consolidation, variability of quarterly operating results, various factors that could affect the estimated tax rate and possible volatility of stock price. The Company undertakes no obligation to update publicly 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 1,500 of the world’s largest and most prestigious corporations, including over 70% 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 120,000 corporate best practices.

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

                                       Three Months Ended
                                            March 31,
                                      2000             1999
                                  -----------       -----------
Revenues                          $    20,784       $    15,703
Net income                        $     2,688       $     4,867
Basic earnings per share          $      0.19       $      0.38
Diluted earnings per
 share                            $      0.16       $      0.31
Weighted average common
 shares outstanding:
Basic                                  14,225            12,786
Diluted                                16,737            15,472

Pro forma: (1)(2)
Net income                        $     3,320       $     2,083
Diluted earnings per
 share                            $      0.20       $      0.13

   (1) Excludes stock option and related expenses

   (2) Includes income taxes of 41.5% for the three months ended
March 31, 1999

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


                               Selected      Three Months Ended

                                Growth            March 31,
                                 Rates       2000           1999
                                         -------------  -------------

Contract value                    30.7%  $      84,862  $      64,916


Statements of Income
Revenues                          32.4%  $      20,784  $      15,703
Cost of services                                 8,477          6,753
                                         -------------  -------------
Gross profit                                    12,307          8,950

Member relations and
 marketing                                       4,273          3,403
General and
 administrative                                  2,729          2,015
Depreciation                                       452            217
Stock option and
 related                                         1,036             96

                                         -------------  -------------
Income from operations                           3,817          3,219

Other income                                       589            245

                                         -------------  -------------
Income before provision
 (benefit) for income
 taxes                                           4,406          3,464
Provision (benefit) for
 income taxes                                    1,718         (1,403)
                                         -------------  -------------
Net income                               $       2,688  $       4,867
                                         =============  =============

EPS - basic                              $        0.19  $        0.38
EPS - diluted                            $        0.16  $        0.31

Pro forma net income(1) (2)     59.4%    $       3,320  $       2,083

Pro forma EPS - basic (1) (2)            $        0.23  $        0.16
Pro forma EPS - diluted (1) (2) 53.8%    $        0.20  $        0.13

Weighted average shares
 outstanding
Basic                                           14,225         12,786
Diluted                          8.2%           16,737         15,472

Percentages of Revenues
Gross profit                                      59.2%          57.0%
Member relations and
 marketing                                        20.6%          21.7%
General and
 administrative                                   13.1%          12.8%
Pro forma income from
 operations (1)                                   23.3%          21.1%
Pro forma net income (1) (2)                      16.0%          13.3%

   (1) Excludes stock option and related expenses.

   (2) Includes income taxes of 41.5% for the three months ended
March 31, 1999.

                 THE CORPORATE EXECUTIVE BOARD COMPANY
                       CONDENSED BALANCE SHEETS
                 (In thousands, except share amounts)

                                  Mar. 31, 2000      Dec. 31, 1999
                                  -------------   ----------------
Assets

Current assets:
Cash and marketable
 securities                   $     29,721         $    19,726
Membership fees
 receivable, net                    11,165              26,603
Deferred income taxes,
 net                                11,989               8,047
Deferred incentive
 compensation                        2,497               2,801
Prepaid expenses and
 other current assets                1,615               1,318
                                  ----------------    ---------------
Total current assets                56,987              58,495
                                  ----------------    ---------------

Deferred income taxes,
 net                                22,345                  --
Marketable securities               17,468              13,348
Property and equipment,
 net                                11,372               9,921
                                  ----------------    ---------------

Total assets                  $    108,172         $    81,764
                                  ================    ===============

Liabilities and
 stockholders' equity

Current liabilities:
Accounts payable,
 accrued liabilities
 and other liabilities        $      4,581         $     6,082
Accrued incentive
 compensation                        2,452               3,877
Stock option
 repurchase liability                3,140               4,710
Deferred revenues                   50,142              55,436
                                  ----------------    ---------------
Total current
 liabilities                        60,315              70,105
                                  ----------------    ---------------

Other liabilities                      868                 813
                                  ----------------    ---------------

Total liabilities                   61,183              70,918

Total stockholders'
 equity                             46,989              10,846
                                ----------------    ---------------
Total liabilities and
 stockholders' equity         $    108,172         $    81,764
                                  ================    ===============
Contact:

Clay Whitson
Chief Financial Officer
(202) 777-5455
heroldl@executiveboard.com