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Press Release

The Corporate Executive Board Reports Second Quarter Earnings of $0.15 Per Share

WASHINGTON--(BUSINESS WIRE)--July 25, 2001--The Corporate Executive Board Company (CEB) (Nasdaq/NM: EXBD) today announced financial results for the second quarter and six months ended June 30, 2001. Revenues increased 37.6% to $31,124,000 for the quarter from $22,612,000 for the second quarter of 2000. Pro forma net income increased 48.9% to $5,512,000 from $3,701,000. Pro forma diluted earnings per share for the second quarter were $0.15, up 36.4% from $0.11 for the same period last year. Pro forma adjustments exclude stock option and related expenses for both periods.

For the first six months of 2001, revenues rose 39.0% to $60,339,000 from $43,396,000 for the first half of 2000. Pro forma net income increased 46.1% to $10,260,000 from $7,021,000. Pro forma diluted earnings per share for the latest six months increased 33.3% to $0.28 from $0.21 for the first six months of 2000. Pro forma adjustments exclude stock option and related expenses for both periods.

Jay McGonigle, Chairman and CEO of the Corporate Executive Board, commented, "We are obviously very pleased with our second-quarter performance, and with the way that the CEB franchise has performed in a challenging macro-economic environment across the first half of 2001. Our key growth metrics are on track, with the cross-sell ratio climbing to 2.14 at quarter end, price increases in-line with expectations, and companies like Agere Systems, Canon, Coca-Cola Bottling, Deutsche Telekom and Seagram joining our membership ranks. Our network of over 1,700 large companies around the world, our focus on the needs of senior executives across multiple functions, and the CEB shared-cost research approach all work together to underpin this success.

Today, we are also delighted to announce the launch of our newest research program: the Treasury Leadership Council. This program will serve the research and decision-support needs of the Treasurer and his or her direct reports. As always, the program design and inaugural research agenda reflect the guidance of a stellar group of charter advisors; including the heads of Treasury from Alcoa, Capital One, Dupont, Fidelity, GE Capital, McDonald's, Nestle, Pfizer and Royal Dutch/Shell. Treasury is the second of the three new program launches we have planned for 2001, and brings our total number of research programs to seventeen." Outlook for Fiscal 2001

The following statements summarize the Company's guidance for fiscal 2001 and the third quarter ending September 30, 2001:

For fiscal 2001, the Company reiterates its target for annual growth in revenues of a minimum of 30% and continued modest expansion in the pro forma operating margin to its target annual range of 25% - 30%.

For the third quarter ending September 30, 2001, the Company remains comfortable with the existing range of analysts' estimates as follows:

Revenues $31.2 million - $31.8 million

Pro forma income from operations $7.9 million - $8.1 million

Pro forma diluted EPS $0.15

This news release contains forward-looking statements. 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. These factors are discussed more fully in a registration statement on Form S-3 that the Company filed with the Securities and Exchange Commission on February 20, 2001. 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 1,700 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 140,000 corporate best practices.

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

                                       Three Months Ended
                                             June 30,
                                       -----------------
                                        2001       2000
                                       -------   -------
Revenues                               $31,124   $22,612
Net income                             $ 5,413   $ 3,620
Basic earnings per share               $  0.16   $  0.12
Diluted earnings per share             $  0.15   $  0.10
Weighted average shares outstanding:
   Basic                                34,557    30,845
   Diluted                              36,720    34,699

Pro forma: (1)
   Net income                          $ 5,512   $ 3,701
Diluted earnings per share             $  0.15   $  0.11

                                       Six Months Ended
                                            June 30,
                                       -----------------
                                         2001     2000
                                       -------   -------
Revenues                               $60,339   $43,396
Net income                             $ 9,480   $ 6,308
Basic earnings per share               $  0.29   $  0.21
Diluted earnings per share             $  0.26   $  0.19
Weighted average shares outstanding:
   Basic                                33,200    29,631
   Diluted                              36,081    34,064

Pro forma: (1)
   Net income                          $10,260   $ 7,021
Diluted earnings per share             $  0.28   $  0.21

(1)  Excludes stock option and related expenses.


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

                                              Three Months Ended
                                     Selected      June 30,
                                      Growth  ----------------------
                                       Rates      2001       2000
                                    --------  ----------  ----------
Contract Value (at period end)         31.1%  $  119,171  $   90,893

Statements of Income
Revenues                               37.6%  $   31,124  $   22,612
Cost of services                                  10,909       8,372
                                              ----------  ----------
     Gross profit                                 20,215      14,240

Member relations and marketing                     7,432       5,236
General and administrative                         4,015       2,919
Depreciation                                       1,002         463
Stock option and related expenses                    160         132
                                              ----------  ----------
     Income from operations                        7,606       5,490
Other income, net                                  1,124         446
                                              ----------  ----------
Income before provision for
  income taxes                                     8,730       5,936
Provision for income taxes                         3,317       2,316
                                              ----------  ----------
     Net income                               $    5,413  $    3,620
                                              ==========  ==========
EPS-basic                                     $     0.16  $     0.12
EPS-diluted                                   $     0.15  $     0.10

Pro forma income from operations(1)           $    7,766  $    5,622

Pro forma net income (1)               48.9%  $    5,512  $    3,701

Pro forma EPS-basic (1)                       $     0.16  $     0.12
Pro forma EPS-diluted (1)              36.4%  $     0.15  $     0.11

Weighted average shares outstanding
   Basic                                          34,557      30,845
   Diluted                                        36,720      34,699

Percentages of Revenues
Gross profit                                        64.9%       63.0%
Member relations and marketing                      23.9%       23.2%
General and administrative                          12.9%       12.9%
Pro forma income from operations (1)                25.0%       24.9%
Pro forma net income (1)                            17.7%       16.4%

                                                 Six Months Ended
                                    Selected           June 30,
                                     Growth   -----------------------
                                     Rates        2001        2000
                                    --------  ----------- -----------

Contract Value (at period end)

Statements of Income
Revenues                               39.0%  $   60,339  $   43,396
Cost of services                                  22,152      16,849
                                              ----------  ----------
     Gross profit                                 38,187      26,547

Member relations and marketing                    13,922       9,509
General and administrative                         7,896       5,648
Depreciation                                       1,923         915
Stock option and related expenses                  1,258       1,168
                                              ----------  ----------
     Income from operations                       13,188       9,307
Other income, net                                  2,102       1,035
                                              ----------  ----------
Income before provision for
  income taxes                                    15,290      10,342
Provision for income taxes                         5,810       4,034
                                              ----------  ----------
     Net income                               $    9,480  $    6,308
                                              ==========  ==========
EPS-basic                                     $     0.29  $     0.21
EPS-diluted                                   $     0.26  $     0.19

Pro forma income from operations(1)           $   14,446  $   10,475

Pro forma net income (1)               46.1%  $   10,260  $    7,021

Pro forma EPS-basic (1)                       $     0.31  $     0.24
Pro forma EPS-diluted (1)              33.3%  $     0.28  $     0.21

Weighted average shares outstanding
   Basic                                          33,200      29,631
   Diluted                                        36,081      34,064

Percentages of Revenues
Gross profit                                        63.3%       61.2%
Member relations and marketing                      23.1%       21.9%
General and administrative                          13.1%       13.0%
Pro forma income from operations (1)                23.9%       24.1%
Pro forma net income (1)                            17.0%       16.2%

(1) Excludes stock option and related expenses.

                 THE CORPORATE EXECUTIVE BOARD COMPANY
                       CONDENSED BALANCE SHEETS
                            (in thousands)

                                      June 30, 2001    Dec. 31, 2000
                                      -------------    -------------
                                      (Unaudited)
Assets

Current assets:
    Cash and cash equivalents         $      16,330    $      19,493
    Marketable securities                    35,367            5,765
    Membership fees receivable, net          15,587           29,519
    Deferred income taxes, net               15,324           14,742
    Deferred incentive compensation           2,583            2,827
    Prepaid expenses and other
      current assets                          2,739            3,015
                                      -------------    -------------
      Total current assets                   87,930           75,361

Deferred income taxes, net                   49,952           16,606
Marketable securities                        51,397           44,115
Property and equipment, net                  18,552           16,412
                                      -------------    -------------
      Total assets                    $     207,831    $     152,494
                                      =============    =============

Liabilities and stockholders' equity

Current liabilities:
    Accounts payable and
     accrued liabilities              $      9,907     $       8,102
    Accrued incentive compensation           1,806             3,013
    Stock option repurchase liability           --             3,140
    Deferred revenues                       66,170            71,281
                                      ------------     -------------
       Total current liabilities            77,883            85,536

Other liabilities                            1,660             1,397
                                      ------------     -------------
       Total liabilities                    79,543            86,933

       Total stockholders' equity          128,288            65,561
                                      ------------     -------------
Total liabilities and
  stockholders' equity                $    207,831     $     152,494
                                      ============     =============

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

                                              Six Months Ended
                                                    June 30,
                                          ---------------------------
                                             2001             2000
                                          ----------      -----------
CASH FLOWS FROM OPERATING ACTIVITIES:
   Net income                             $    9,480      $     6,308
   Adjustments to reconcile net income
      to net cash flows from
      operating activities:
      Depreciation                             1,923              915
      Deferred income taxes                    5,810            4,034
      Stock option and related expenses          186              192
      Changes in operating assets and
        liabilities:
         Membership fees receivable, net      13,932           17,783
         Deferred incentive compensation         244              405
         Prepaid expenses and other
           current assets                        276             (612)
         Accounts payable and accrued
           liabilities                         1,805            2,162
         Accrued incentive compensation       (1,207)          (1,947)
         Deferred revenues                    (5,111)          (9,464)
         Other liabilities                       263              112
                                          ----------      -----------
              Net cash flows provided by
                 operating activities         27,601           19,888
                                          ----------      -----------

CASH FLOWS FROM INVESTING ACTIVITIES:
   Purchase of property and equipment, net    (4,063)          (4,120)
   Purchase of marketable securities, net    (36,219)         (23,455)
                                          ----------      -----------
    Net cash used in investing activities    (40,282)         (27,575)
                                          ----------      -----------

CASH FLOWS FROM FINANCING ACTIVITIES:
   Proceeds from the exercise of common
      stock options                           12,658            5,009
   Reimbursement of offering costs               375              650
   Payment of offering costs                    (375)            (650)
   Stock option repurchases                   (3,140)          (1,570)
                                          ----------      -----------
    Net cash provided by financing
      activities                               9,518            3,439
                                          ----------      -----------
NET DECREASE IN CASH AND
   CASH EQUIVALENTS                           (3,163)          (4,248)

Cash and cash equivalents,
  beginning of period                         19,493           19,726
                                          ----------      -----------

Cash and cash equivalents,
  end of period                           $   16,330      $    15,478
                                          ==========      ===========

CONTACT: The Corporate Executive Board Company
Clay Whitson, 202/777-5193
johnsonj@executiveboard.com
www.executiveboard.com