Press Release

The Corporate Executive Board Reports First Quarter Pro Forma Earnings of $0.17 Per Diluted Share
WASHINGTON, Apr 24, 2002 (BUSINESS WIRE) -- The Corporate Executive Board Company (CEB) (Nasdaq:EXBD) today announced financial results for the first quarter ended March 31, 2002. Revenues increased 26.7% to $37,023,000 for the latest quarter from $29,215,000 for the first quarter of 2001. Net income was $5,931,000, up 45.8% from $4,067,000. Earnings per diluted share for the first quarter increased 45.5% to $0.16 from $0.11 for the first quarter of 2001. Pro forma net income, which excludes stock option and related expenses for both periods, was $6,318,000, up 33.1% from $4,748,000. Pro forma earnings per diluted share for the first quarter increased 30.8% to $0.17 from $0.13 for the first quarter of 2001.

Jay McGonigle, Chairman and CEO of the Corporate Executive Board commented, "We are very pleased with our first quarter performance and a fast-start to 2002. We achieved our stated target of 25%-plus revenue growth and experienced strong performance across our product range - all this in a still-challenging economic environment. Our network of over 1,800 large companies, our focus on senior executives across multiple functions, and our ability to align our agenda carefully with their most urgent issues and research needs continue to underpin this success. CEB remains the most cost-effective alternative for senior executives seeking the information they need to make better, faster decisions and avoid `reinventing the wheel."

McGonigle continued, "CEB's cross-selling efforts into our existing client base drove the cross-sell ratio - the average number of subscriptions per member institution - to 2.5 from 2.1 at this time last year. Growth also came from new institutions - with Bank of Tokyo-Mitsubishi, Circuit City, GMAC, Legal & General and Neiman Marcus all joining their first CEB programs. Continued success with our three new programs launched in 2001 -- for heads of Research & Development, Treasury and Procurement - also contributed to our revenue and contract value growth."

McGonigle concluded, "Finally, I am delighted today to announce the launch of our newest membership program, the Learning and Development Roundtable. This new program, a further extension of our strong HR franchise, targets senior HR executives in the Training and Leadership Development arenas, as well as the emerging class of Chief Learning Officers and heads of Corporate Universities. As always, the design and research agenda for this new program was directed by a stellar group of charter advisors; including senior executives from Bank of America, Coca-Cola, Dell Computer, Exxon Mobil, Medtronic, Motorola, Reuters and Texas Instruments. The Learning and Development Roundtable is the first of our planned 3 to 4 new product launches in 2002 -- and brings our total number of membership programs to 19 today."

    Outlook for Fiscal 2002
The following statements summarize the Company's guidance for fiscal 2002.

The Company reiterated comfort with its target for annual growth in revenues of a minimum of 25%, or approximately $160 million, and continued modest expansion in the pro forma operating margin to its target annual range of 25 - 30%. As in the past, the pro forma operating margin may fluctuate on a quarterly basis.

For 2002, the Company continues to expect other income of approximately $5.5 - $6.0 million, an effective income tax rate of approximately 38%, and diluted weighted shares outstanding of approximately 37.5 - 38.0 million.

The Company also remains comfortable with pro forma earnings per diluted share of $0.19 for the second quarter, $0.20 for the third quarter, and $0.21 for the fourth quarter of 2002.

    Mike Archer Joins CEB
CEB also today announced that it has hired Michael A. Archer as its General Manager, Sales and Marketing. Prior to joining CEB, Mr. Archer worked for 12 years with Dun & Bradstreet Inc., in various positions of increasing responsibility, including Senior Vice President North America - Major Markets. In this position, he was responsible for a sales, marketing, support and development organization of significant scale including all of Dun & Bradstreet, North America's most senior account executives and a sizeable customer portfolio including nearly all of the Fortune 1000.

McGonigle remarked, "We are pleased to announce the addition of Mike Archer to lead CEB's Sales and Marketing effort. Mike brings a unique skill set to CEB that is highly applicable to our needs, including managing a large business information sales force and direct experience with many of our member companies. Throughout his career, he has demonstrated his sales and sales management expertise, as well as a consistent capability to excel in very entrepreneurial environments. We are confident that Mike will contribute substantially to CEB's growth and performance, and we are delighted to welcome him to our senior leadership team."

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, our dependence on renewals of our membership-based services, our inability to know in advance if new products will be successful, difficulties we may experience in anticipating market trends, our need to attract and retain a significant number of highly skilled employees, restrictions on selling our products and services to the health care industry, continued consolidation in the financial institution industry which may adversely impact our business, fluctuations in operating results, our potential inability to protect our intellectual property rights, our potential exposure to litigation related content, our potential exposure to loss of revenue resulting from our unconditional service guarantee, various factors that could affect the estimated income tax rate, our ability to use our existing deferred tax assets, and possible volatility of stock price. These factors are discussed more fully in the 2001 annual report on Form 10-K that the Company filed with the Securities and Exchange Commission in February 2002. The forward-looking statements in this press release are made as of April 24, 2002 and the Company undertakes 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 1,800 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 180,000 corporate best practices.

                         Financial Highlights
                 (in thousands, except per share data)
                                                Three Months Ended
                                                     March 31,
                                                  2002          2001
                                              -----------    ---------
Revenues                                      $    37,023    $  29,215
Net income                                    $     5,931    $   4,067
Basic earnings per share                      $      0.17    $    0.13
Diluted earnings per share                    $      0.16    $    0.11
Weighted average shares
   Basic                                           35,538       31,796
   Diluted                                         37,130       35,408
Pro forma: (1)
   Net income                                 $     6,318    $   4,748
Diluted earnings per share                    $      0.17    $    0.13
(1) Excludes stock option and related expenses.
                         Financial Highlights
                 (in thousands, except per share data)
                                                Three Months Ended
                                   Selected          March 30,
                                   Growth     -----------------------
                                    Rates         2002        2001
                                  ---------   ----------- -----------
Contract Value (at period end)        27.5%   $   143,424 $   112,491
Statements of Income
Revenues                              26.7%   $    37,023 $    29,215
Cost of services                                   13,517      11,243
                                              ----------- -----------
     Gross profit                                  23,506      17,972
Member relations and marketing                      9,108       6,490
General and administrative                          4,221       3,881
Depreciation                                        1,204         921
Stock option and related expenses                     623       1,098
                                              ----------- -----------
     Income from operations                         8,350       5,582
Other income, net                                   1,217         978
                                              ----------- -----------
Income before provision for
  income taxes                                      9,567       6,560
Provision for income taxes                          3,636       2,493
                                              ----------- -----------
     Net income                       45.8%   $     5,931    $  4,067
                                              =========== ===========
EPS-basic                                     $      0.17     $  0.13
EPS-diluted                           45.5%   $      0.16     $  0.11
Pro forma income from
  operations (1)                      34.3%   $     8,973     $ 6,680
Pro forma net income (1)              33.1%   $     6,318     $ 4,748
Pro forma EPS-basic (1)                       $      0.18     $  0.15
Pro forma EPS-diluted (1)             30.8%   $      0.17     $  0.13
Weighted average shares
   Basic                                           35,538      31,796
   Diluted                                         37,130      35,408
Percentages of Revenues
Gross profit                                         63.5%       61.5%
Member relations and marketing                       24.6%       22.2%
General and administrative                           11.4%       13.3%
Pro forma income from
  operations (1)                                     24.2%       22.9%
Pro forma net income (1)                             17.1%       16.3%
(1) Excludes stock option and related expenses
                       CONDENSED BALANCE SHEETS
                            (in thousands)
                                       Mar. 31, 2002     Dec. 31, 2001
                                       -------------   ---------------
Current assets:
    Cash and cash equivalents           $    78,502       $     48,271
    Marketable securities                    44,998             35,735
    Membership fees receivable, net          19,097             42,011
    Deferred income taxes, net               20,485             19,881
    Deferred incentive compensation           3,474              4,216
    Prepaid expenses and other
      current assets                          3,643              3,042
                                     --------------    ---------------
        Total current assets                170,199            153,156
                                     --------------    ---------------
Deferred income taxes, net                   55,462             38,639
Marketable securities                        38,977             48,463
Property and equipment, net                  17,161             17,260
                                     --------------    ---------------
        Total assets                     $  281,799        $   257,518
                                     ==============    ===============
Liabilities and stockholders' equity
Current liabilities:
    Accounts payable and accrued
      liabilities                        $    7,890        $    10,683
    Accrued incentive compensation            4,067              6,387
    Deferred revenues                        86,819             94,683
                                     --------------    ---------------
          Total current liabilities          98,776            111,753
                                     --------------    ---------------
Other liabilities                             1,959              1,781
                                     --------------    ---------------
          Total liabilities                 100,735            113,534
                                     --------------    ---------------
          Total stockholders' equity        181,064            143,984
                                     --------------    ---------------
Total liabilities and stockholders'
   equity                                $  281,799        $   257,518
                                     ==============    ===============
                       STATEMENTS OF CASH FLOWS
                            (in thousands)
                                          Three Months Ended
                                               March 31,
                                         2002             2001
                                     -------------  --------------
  Net income                         $     5,931     $     4,067
  Adjustments to reconcile net
   income to net cash flows from
   operating activities:
     Depreciation                          1,204             921
     Deferred income taxes                 3,636           2,493
     Stock option repurchases                 --          (3,140)
     Stock option and related
       expenses                               --              93
     Amortization of marketable
       securities premiums
       (discounts), net                      251             198
     Changes in operating assets
       and liabilities:
       Membership fees receivable,
         net                              22,914          15,852
       Deferred incentive
         compensation                        742             218
       Prepaid expenses and other
         current assets                     (601)           (562)
       Accounts payable and
         accrued liabilities              (3,152)           (319)
       Accrued incentive
         compensation                     (2,320)           (624)
       Deferred revenues                  (7,864)         (3,731)
       Other liabilities                     178              54
                                      ----------    ------------
         Net cash flows provided by
           operating activities           20,919          15,520
                                      ----------    ------------
  Purchase of property and equipment      (1,105)         (2,640)
  Purchase of marketable
    securities, net                       (1,100)        (14,999)
                                      ----------    ------------
          Net cash flows used in
            investing activities          (2,205)        (17,639)
                                      ----------    ------------
  Proceeds from the exercise of
    common stock options                  11,158          10,849
  Proceeds from the issuance of
    common stock under the employee
    stock purchase plan                      157             189
  Withholding of selling shareholder
    income tax liabilities                    --           1,223
  Reimbursement of common stock
    offering costs                           300             375
  Payment of common stock offering
    costs                                    (98)           (205)
                                      ----------    -------------
             Net cash flows provided
              by financing activities     11,517          12,431
                                      ----------    ------------
  EQUIVALENTS                             30,231          10,312
Cash and cash equivalents, beginning
  of period                               48,271          19,493
                                      ------------- ------------
Cash and cash equivalents,
  end of period                       $   78,502      $   29,805
                                      ============= =============
CONTACT:          The Corporate Executive Board Company
                  Clay Whitson, 202/777-5455

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