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PA Consulting Group Announces Financial Results

PA Consulting Group Announces Financial Results for 2001

PA Consulting Group, the leading management, systems and technology consulting firm, today announced strong financial results in a difficult consulting climate, with group revenues increased to $1.4billion (from $1.1billion in 2000) and the group share price increased to $12.24 (from $10.70 in 2000). This group figure comprises revenues from PA's consulting business and its venture companies. Underlying consulting revenues increased to $1.3billion (from $1.0billion in 2000, up 23%); and consulting operating profits were $241million ($310million in 2000, down 22%)

Jon Moynihan, PA's Chairman and Chief Executive, commented: "PA remains successful and profitable. Our profits this year were hit, as expected, by the cost of the integration of our US acquisition into PA in 2001. We believe that our results represent a strong achievement in the current consulting climate, particularly when so many of our competitors have been losing money, shedding staff, imposing a moratorium on recruitment, cutting salaries and in several cases going out of business."

Highlights of financial year 2001

Award winning at the MCA PA repeated its success for an unprecedented fifth year running at the Management Consultancies Association Best Management Practice Awards. PA was named Overall Winner for its work with the Swiss Government Federal Office of Transport and also won a 'highly commended' award in the Best Use of Outsourcing category for its work with the travel technology company, Sabre. Since the awards were established six years ago, PA has won more times than any other consultancy, winning over 30% of the top awards in that period. Other awards In addition PA's work for Clifford Chance (CliffordChanceConnect) won the Best Innovation award in the IoD's E-business Transformation Awards and our work for the Office of the e-Envoy (part of the Cabinet Office) on was Highly Commended in the Government Internet Forum Awards.

Top employer PA was listed in The Sunday Times "Best 50 companies to work for".

Ventures Our ventures are both the outcome and the enabler of the great client work we do. During 2001, PA launched a new venture company, Meridica, which specialises in developing innovative and market leading medical devices. Our wireless technology venture, UbiNetics, has a new CEO, Bjorn Krylander, and is meeting plan in developing proprietary capability in 3G wireless telephony, despite the downturn in the telelcoms sector. UbiNetics 2002 budget calls for the company to be in profit by the end of the year. Cubiks, our specialist HR consultancy, has grown its revenues and profits over the year, while at the same time developing significant new products.

Acquisition integration We have successfully integrated the US-based consultancy, Hagler Bailly, into PA around the world and HB (as was) is now very much a part of PA.

Paul Baron, Country Head for New Zealand, added: "Within Asia Pacific, PA has remained successful and profitable despite a difficult consulting climate. Total billings to clients in this region rose by a small margin over 2000.

PA continued to develop its business in the Region and in 2001: We have relocated our Beijing office to support business growth. A software resource centre was established in Bangalore to augment PA's software development capabilities elsewhere. UbiNetics, one of PA's ventures, continued to expand its regional presence, and was selected as the supplier of 3G protocol software to technology research institutions funded by the Taiwan government.

Within New Zealand PA grew in terms of revenue during 2001. Highlights include: CubikSurvey(tm), the on-line pay and benefits database from PA venture company Cubiks, was named Best Business-to-Business Development by the ANZ and TUANZ (Telecommunication User's Association of New Zealand). Successful integration of Hagler Bailly team in Wellington. Establishment of a strong IT project management and rapid application development capabilities. Appointment of key personnel, Paul Baron as Country Head and Peter McConnell as Auckland Office Head.

Despite continued global economic uncertainty, the business climate in NZ appears favourable with respect to the services PA offers. PA in New Zealand will continue to focus relentlessly on adding value to our clients and we remain bullish about our prospects in 2002."

Jon Moynihan concluded: "Our ability to be profitable in these hard times is testament to PA's unrelenting focus on increasing our clients' value, measured for private sector companies as increase in shareholder return and for public sector organisations as their success in serving their stakeholders. Increasing the value of our clients and increasing PA's value are two sides of the same coin. Our clients realise that PA represents an unbiased, leading-edge source of advice and help to them that does not have any associated conflict. This focus and approach means we are well placed to succeed in both good and bad times.''

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