Press Release

The Corporate Executive Board Reports First Quarter Earnings of $0.22 Per Diluted Share

WASHINGTON, Apr 23, 2003 (BUSINESS WIRE) -- The Corporate Executive Board Company (CEB) (NASDAQ/NM:EXBD) today announced financial results for the first quarter ended March 31, 2003. Revenues for the first quarter increased 27.7% to $47,283,000 from $37,023,000 for the first quarter of 2002. Net income rose 40.5% to $8,336,000 from $5,931,000. Earnings per diluted share for the latest quarter were $0.22, up 37.5% from $0.16 for the comparable period in 2002. The Company has discontinued reporting pro forma financial results as of the first quarter of 2003 as the impact of stock option and related expenses on the financial results is no longer material.

Jay McGonigle, Chairman and CEO of the Corporate Executive Board commented, "We are very pleased with our first-quarter results and continued strong performance in a difficult economy. We achieved our stated target of 25%-plus revenue growth and experienced strong performance across our product range. All of our key growth metrics were on track in the quarter. The cross-sell ratio - the average number of subscriptions per member institution - rose to 2.74 from 2.50 at this time last year. New institution growth was also healthy, with Benjamin Moore & Co., CANAL+, Fisher-Price, J. Walter Thompson, the National Football League, Princeton University and Sealy Corporation all joining their first CEB programs. Continued success with our four new programs launched in 2002 -- for heads of Market Research, IT Infrastructure, Training and Benefits -- as well as the HR Measurement Lab launched in Q1 of 2003, also contributed to our strong revenue and contract value growth. The operating margin increased to 25.3% as a result of the operating leverage inherent in our business model.

"Our network of over 1,900 large companies, our focus on senior executives across multiple functions, and our ability to help them with their most urgent challenges, decisions 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'."

Share Repurchase

During the first quarter of 2003, the Company repurchased 405,052 shares of its common stock at a total cost of approximately $13,398,000. 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. At March 31, 2003 the Company had $245,787,000 in cash and marketable securities and no debt.

Outlook for 2003

The following statements summarize the Company's guidance for 2003.

The Company reiterated comfort with its target for annual growth in revenues of a minimum of 25% and continued modest expansion in the operating margin within its target annual range of 25 - 30%. As in the past, the operating margin may fluctuate on a quarterly basis. The Company expects a quarterly revenue distribution of approximately $49.7 million for the second quarter, $51.4 million for the third quarter and $55.2 million for the fourth quarter of 2003.

For 2003, the Company expects other income of approximately $7.5 million to $7.9 million, an effective income tax rate of approximately 39.4% and diluted weighted shares outstanding of approximately 38.3 million to 38.8 million.

The Company remains comfortable with earnings per diluted share of $0.24 for the second quarter, $0.25 for the third quarter, and $0.28 for the fourth quarter which, combined with the earnings per diluted share of $0.22 for the first quarter, will bring full year earnings per diluted share guidance to $0.99.

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 institutions industry, which may limit our business with such companies, fluctuations in operating results, our potential inability to protect our intellectual property rights, our potential exposure to litigation related to our content, 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, and possible volatility of our stock price. These factors are discussed more fully in the 2002 annual report on Form 10-K that we filed with the Securities and Exchange Commission on February 28, 2003. The forward-looking statements in this press release are made as of April 23, 2003, 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 1,900 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 225,000 corporate best practices.

                         Financial Highlights
                 (in thousands, except per share data)

                                                    Three Months Ended
                                                         March 31,
                                                       2003     2002
                                                     -------  -------
Revenues                                             $47,283  $37,023
Net income                                           $ 8,336  $ 5,931
Basic earnings per share                             $  0.22  $  0.17
Diluted earnings per share                           $  0.22  $  0.16
Weighted average shares outstanding:
Basic                                                 37,223   35,538
Diluted                                               37,878   37,130

             Operating Statistic and Financial Highlights
                 (in thousands, except per share data)

                                          Selected  Three Months Ended
                                           Growth        March 31,
                                            Rates    2003      2002
                                          -------- -------    -------
Operating Statistic

Contract Value (1) (at period end)          27.1%  $182,264  $143,424

Financial Highlights

Revenues                                    27.7%  $ 47,283  $ 37,023
Cost of services                                     16,118    13,517
                                                    -------   -------
     Gross profit                                    31,165    23,506

Member relations and marketing                       12,387     9,108
General and administrative                            5,330     4,221
Depreciation                                          1,356     1,204
Stock option and related expenses                       111       623
                                                    -------   -------
     Income from operations                 43.5%    11,981     8,350

Other income, net                                     1,775     1,217
                                                    -------   -------
Income before provision for income taxes             13,756     9,567

Provision for income taxes                            5,420     3,636
                                                    -------   -------
     Net income                             40.5%  $  8,336  $  5,931
                                                    =======   =======
EPS-basic                                          $   0.22  $   0.17
EPS-diluted                                 37.5%     $0.22  $   0.16

Weighted average shares outstanding
  Basic                                              37,223    35,538
  Diluted                                            37,878    37,130

Percentages of Revenues
Gross profit                                           65.9%     63.5%
Member relations and marketing                         26.2%     24.6%
General and administrative                             11.3%     11.4%
Income from operations                                 25.3%     22.6%
Net income                                             17.6%     16.0%

(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.

                       CONDENSED BALANCE SHEETS
                            (in thousands)

                                                  March 31,   Dec. 31,
                                                    2003        2002
                                                 ----------- ---------

Current assets:
   Cash and cash equivalents                       $ 96,232  $ 71,346
   Marketable securities                             10,816    17,030
   Membership fees receivable, net                   21,247    50,356
   Deferred income taxes, net                        28,250    28,806
   Deferred incentive compensation                    4,458     4,974
   Prepaid expenses and other current assets          6,521     3,668
                                                    -------   -------
      Total current assets                          167,524   176,180

Deferred income taxes, net                           30,548    30,920
Marketable securities                               138,739   137,565
Property and equipment, net                          15,042    14,916
                                                    -------   -------
      Total assets                                 $351,853  $359,581
                                                    =======   =======
Liabilities and stockholders' equity

Current liabilities:
   Accounts payable and accrued liabilities        $ 12,727  $ 12,549
   Accrued incentive compensation                     5,213     9,660
   Deferred revenues                                111,538   121,415
                                                    -------   -------
      Total current liabilities                     129,478   143,624

Other liabilities                                     2,713     2,600
                                                    -------   -------
      Total liabilities                             132,191   146,224

Stockholders' equity                                219,662   213,357
                                                    -------   -------
      Total liabilities and stockholders' equity   $351,853  $359,581

                       STATEMENTS OF CASH FLOWS
                            (in thousands)

                                                    Three Months Ended
                                                         March 31,
                                                       2003     2002
                                                      ------   ------
  Net income                                        $  8,336  $ 5,931
  Adjustments to reconcile net income to net
   cash flows from operating activities:
     Depreciation                                      1,356    1,204
     Deferred income taxes                             5,420    3,636
     Amortization of marketable securities
      premiums, net                                      422      251
     Changes in operating assets and liabilities:
         Membership fees receivable, net              29,109   22,914
         Deferred incentive compensation                 516      742
         Prepaid expenses and other current assets    (2,853)    (601)
         Accounts payable and accrued liabilities         63   (3,152)
         Accrued incentive compensation               (4,447)  (2,320)
         Deferred revenues                            (9,877)  (7,864)
         Other liabilities                               113      178
                                                     -------  -------
              Net cash flows provided by
               operating activities                   28,158   20,919
                                                     -------  -------
  Purchase of property and equipment, net             (1,482)  (1,105)
  Maturity (purchase) of marketable securities, net    4,001   (1,100)
                                                     -------  -------
              Net cash flows provided by (used in)
               investing activities                    2,519   (2,205)
                                                     -------  -------

     Proceeds from the exercise of common
      stock options                                    7,326   11,158
     Proceeds from the issuance of common stock
      under the employee stock purchase plan             166      157
     Purchase of treasury shares                     (13,398)      --
     Reimbursement of common stock offering costs        175      300
     Payment of common stock offering costs              (60)     (98)
                                                     -------  -------
              Net cash flows provided by (used in)
               financing activities                   (5,791)  11,517


Cash and cash equivalents, beginning of period        71,346   48,271
                                                     -------  -------

Cash and cash equivalents, end of period            $ 96,232  $78,502
                                                     =======  =======
The Corporate Executive Board Company
Timothy R. Yost, 202/777-5455
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