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FIRST CONSULTING GROUP (FCG) REPORTS
THIRD-QUARTER 2007 RESULTS
 Long Beach, Calif.  November 7, 2007 
    
  111 W. Ocean Blvd., 4 th Floor, Long Beach, California, 90802  Telephone 562.624.5200 Facsimile 562.432.5774




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First Consulting Group
Page 2
   About FCG
 Forward-Looking Statements
 Additional Information about the CSC Merger and Where to Find It




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First Consulting Group
Page 3
  Participants in Solicitation
 Contacts
 
 [Financial Tables to Follow]




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First Consulting Group, Inc. and Subsidiaries
Consolidated Statements of Operations
(in thousands except per share data)
 3 Months Ended
    
    
    9 Months EndedSept 28, 2007
    
    
    Sept 29, 2006
    
    
    Sept 28, 2007
    
    
    Sept 29, 2006Revenues before reimbursements (net revenues)
    
    $
    66,820
    
    
    $
    64,766
    
    
    $
    200,019
    
    
    $
    195,233Reimbursements
    
    
    3,817
    
    
    
    3,318
    
    
    
    10,656
    
    
    
    10,557Total revenues
    
    
    70,637
    
    
    
    68,084
    
    
    
    210,675
    
    
    
    205,790Cost of services before reimbursable expenses
    
    
    47,778
    
    
    
    46,406
    
    
    
    145,325
    
    
    
    140,603Reimbursable expenses
    
    
    3,817
    
    
    
    3,318
    
    
    
    10,656
    
    
    
    10,557Total cost of services
    
    
    51,595
    
    
    
    49,724
    
    
    
    155,981
    
    
    
    151,160Gross profit
    
    
    19,042
    
    
    
    18,360
    
    
    
    54,694
    
    
    
    54,630Selling expenses
    
    
    3,813
    
    
    
    3,938
    
    
    
    11,746
    
    
    
    12,119General and administrative expenses
    
    
    10,232
    
    
    
    8,775
    
    
    
    29,453
    
    
    
    26,862Operating income
    
    
    4,997
    
    
    
    5,647
    
    
    
    13,495
    
    
    
    15,649Interest income, net
    
    
    976
    
    
    
    646
    
    
    
    2,770
    
    
    
    1,409Other income (expense), net
    
    
    22
    
    
    
    (38
    )
    
    
    11
    
    
    
    (51
    )Income from continuing operations before income tax provision (benefit)
    
    
    5,995
    
    
    
    6,255
    
    
    
    16,276
    
    
    
    17,007Income tax provision (benefit)
    
    
    (4,562
    )
    
    
    454
    
    
    
    (1,759
    )
    
    
    1,188Income from continuing operations
    
    
    10,557
    
    
    
    5,801
    
    
    
    18,035
    
    
    
    15,819Income (loss) on discontinued operations, net of tax
    
    
    10,024
    
    
    
    288
    
    
    
    9,375
    
    
    
    (47
    )Net income
    
    $
    20,581
    
    
    $
    6,089
    
    
    $
    27,410
    
    
    $
    15,772Basic EPS:Income from continuing operations, net of tax
    
    $
    0.39
    
    
    $
    0.23
    
    
    $
    0.67
    
    
    $
    0.63Income (loss) on discontinued operations, net of tax
    
    
    0.37
    
    
    
    0.01
    
    
    
    0.35
    
    
    
    Net income
    
    $
    0.76
    
    
    $
    0.24
    
    
    $
    1.02
    
    
    $
    0.63Diluted EPS:Income from continuing operations, net of tax
    
    $
    0.38
    
    
    $
    0.22
    
    
    $
    0.66
    
    
    $
    0.62Income (loss) on discontinued operations, net of tax
    
    
    0.37
    
    
    
    0.01
    
    
    
    0.34
    
    
    
    Net income
    
    $
    0.75
    
    
    $
    0.23
    
    
    $
    1.00
    
    
    $
    0.62Basic weighted avg. shares
    
    
    27,108
    
    
    
    25,472
    
    
    
    26,848
    
    
    
    25,074Diluted weighted avg. shares
    
    
    27,495
    
    
    
    26,229
    
    
    
    27,461
    
    
    
    25,643




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First Consulting Group, Inc. and Subsidiaries
Consolidated Balance Sheet Data
(in thousands except per share data)
 Sept 28,
    
    
    Dec 29,2007
    
    
    2006Cash, cash equivalents, and investments
    
    $
    98,390
    
    
    $
    63,497Accounts receivable, net
    
    
    17,362
    
    
    
    20,485Unbilled receivables
    
    
    17,807
    
    
    
    12,124Current assets
    
    
    137,261
    
    
    
    100,279Total assets
    
    
    198,266
    
    
    
    151,493Current liabilities
    
    
    45,620
    
    
    
    29,958Long-term debt
    
    
    
    
    
    
    Total stockholders equity
    
    
    144,045
    
    
    
    111,342




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Selected Business Metrics
 Q3 2007
    
    
    Q2 2007
    
    
    Q1 2007
    
    
    Q4 2006
    
    
    Q3 2006Revenues before reimbursements (net revenues)
($ in millions)
    
    
    66.8
    
    
    
    66.8
    
    
    
    66.4
    
    
    
    66.2
    
    
    
    64.8Out-of-pocket reimbursements ($ in millions)
    
    
    3.8
    
    
    
    3.4
    
    
    
    3.4
    
    
    
    3.1
    
    
    
    3.3Total revenues ($ in millions)
    
    
    70.6
    
    
    
    70.2
    
    
    
    69.8
    
    
    
    69.3
    
    
    
    68.1Gross margin %
    
    
    28.5
    
    
    
    27.3
    
    
    
    26.2
    
    
    
    27.8
    
    
    
    28.3Selling expense %
    
    
    5.7
    
    
    
    6.1
    
    
    
    5.8
    
    
    
    5.6
    
    
    
    6.1General and admin expense %
    
    
    15.3
    
    
    
    15.2
    
    
    
    13.6
    
    
    
    14.5
    
    
    
    13.5Operating income %
    
    
    7.5
    
    
    
    5.9
    
    
    
    6.8
    
    
    
    7.7
    
    
    
    8.7Utilization %
    
    
    77.3
    
    
    
    75.6
    
    
    
    74.4
    
    
    
    75.7
    
    
    
    78.9Total associates
    
    
    2,492
    
    
    
    2,641
    
    
    
    2,686
    
    
    
    2,707
    
    
    
    2,603Billable associates
    
    
    1,554
    
    
    
    1,555
    
    
    
    1,597
    
    
    
    1,620
    
    
    
    1,547Outsourcing associates
    
    
    588
    
    
    
    742
    
    
    
    738
    
    
    
    745
    
    
    
    733Days sales outstanding
    
    
    33
    
    
    
    31
    
    
    
    33
    
    
    
    31
    
    
    
    36




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Delivery Units Selected Financial Metrics
 Health Delivery Services
    
    Q3 2007
    
    
    Q2 2007
    
    
    Q1 2007
    
    
    Q4 2006
    
    
    Q3 2006Revenues before reimbursements (net revenues)
($ in millions)
    
    
    15.1
    
    
    
    15.2
    
    
    
    14.6
    
    
    
    14.1
    
    
    
    14.2Out-of-pocket reimbursable expenses ($ in
millions)
    
    
    2.3
    
    
    
    2.3
    
    
    
    2.2
    
    
    
    2.0
    
    
    
    2.0Total revenues ($ in millions)
    
    
    17.4
    
    
    
    17.5
    
    
    
    16.8
    
    
    
    16.1
    
    
    
    16.2Gross margin %
    
    
    35.9
    
    
    
    36.6
    
    
    
    34.8
    
    
    
    38.6
    
    
    
    41.4Utilization %
    
    
    77.8
    
    
    
    81.0
    
    
    
    75.4
    
    
    
    78.6
    
    
    
    78.9Billable associates
    
    
    196
    
    
    
    195
    
    
    
    200
    
    
    
    205
    
    
    
    196Total associates
    
    
    213
    
    
    
    210
    
    
    
    216
    
    
    
    219
    
    
    
    215Health Delivery Outsourcing
    
    
    Q3 2007
    
    
    
    Q2 2007
    
    
    
    Q1 2007
    
    
    
    Q4 2006
    
    
    
    Q3 2006Revenues before reimbursements (net revenues)
($ in millions)
    
    
    27.6
    
    
    
    28.3
    
    
    
    28.3
    
    
    
    27.9
    
    
    
    26.9Out-of-pocket reimbursable expenses ($ in
millions)
    
    
    0.2
    
    
    
    0.2
    
    
    
    
    
    
    
    
    
    
    
    Total revenues ($ in millions)
    
    
    27.8
    
    
    
    28.5
    
    
    
    28.3
    
    
    
    27.9
    
    
    
    26.9Gross margin %
    
    
    16.4
    
    
    
    13.1
    
    
    
    11.1
    
    
    
    12.7
    
    
    
    13.3Total associates
    
    
    492
    
    
    
    642
    
    
    
    641
    
    
    
    644
    
    
    
    634Health Plan
    
    
    Q3 2007
    
    
    
    Q2 2007
    
    
    
    Q1 2007
    
    
    
    Q4 2006
    
    
    
    Q3 2006Revenues before reimbursements (net revenues)
($ in millions)
    
    
    9.4
    
    
    
    7.7
    
    
    
    8.3
    
    
    
    8.6
    
    
    
    8.1Out-of-pocket reimbursable expenses ($ in
millions)
    
    
    1.1
    
    
    
    0.7
    
    
    
    0.8
    
    
    
    0.9
    
    
    
    0.9Total revenues ($ in millions)
    
    
    10.5
    
    
    
    8.4
    
    
    
    9.1
    
    
    
    9.5
    
    
    
    9.0Gross margin %
    
    
    33.5
    
    
    
    27.8
    
    
    
    28.0
    
    
    
    26.3
    
    
    
    24.6Utilization %
    
    
    90.1
    
    
    
    80.8
    
    
    
    81.8
    
    
    
    86.5
    
    
    
    91.2Billable associates
    
    
    80
    
    
    
    70
    
    
    
    69
    
    
    
    74
    
    
    
    76Total associates
    
    
    107
    
    
    
    94
    
    
    
    94
    
    
    
    99
    
    
    
    100Life Sciences
    
    
    Q3 2007
    
    
    
    Q2 2007
    
    
    
    Q1 2007
    
    
    
    Q4 2006
    
    
    
    Q3 2006Revenues before reimbursements (net revenues)
($ in millions)
    
    
    8.6
    
    
    
    9.6
    
    
    
    8.7
    
    
    
    8.1
    
    
    
    8.2Out-of-pocket reimbursable expenses ($ in
millions)
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.1Total revenues ($ in millions)
    
    
    8.7
    
    
    
    9.7
    
    
    
    8.8
    
    
    
    8.2
    
    
    
    8.3Gross margin %
    
    
    52.8
    
    
    
    59.3
    
    
    
    56.8
    
    
    
    58.5
    
    
    
    49.4Utilization %
    
    
    65.9
    
    
    
    73.4
    
    
    
    71.8
    
    
    
    74.7
    
    
    
    69.2Billable associates
    
    
    133
    
    
    
    123
    
    
    
    103
    
    
    
    92
    
    
    
    95Total associates
    
    
    172
    
    
    
    158
    
    
    
    131
    
    
    
    116
    
    
    
    120Software Services
    
    
    Q3 2007
    
    
    
    Q2 2007
    
    
    
    Q1 2007
    
    
    
    Q4 2006
    
    
    
    Q3 2006Revenues before reimbursements (net revenues)
($ in millions)
    
    
    6.1
    
    
    
    6.0
    
    
    
    6.5
    
    
    
    7.2
    
    
    
    7.2Out-of-pocket reimbursable expenses ($ in
millions)
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.1
    
    
    
    0.1Total revenues ($ in millions)
    
    
    6.2
    
    
    
    6.1
    
    
    
    6.6
    
    
    
    7.3
    
    
    
    7.3Gross margin %
    
    
    31.2
    
    
    
    25.3
    
    
    
    27.5
    
    
    
    35.8
    
    
    
    36.1Utilization %
    
    
    80.8
    
    
    
    80.6
    
    
    
    83.3
    
    
    
    81.3
    
    
    
    86.2Billable associates
    
    
    36
    
    
    
    41
    
    
    
    46
    
    
    
    47
    
    
    
    47Total associates
    
    
    44
    
    
    
    49
    
    
    
    55
    
    
    
    56
    
    
    
    55Shared Services Centers
    
    
    Q3 2007
    
    
    
    Q2 2007
    
    
    
    Q1 2007
    
    
    
    Q4 2006
    
    
    
    Q3 2006Utilization %
    
    
    77.6
    
    
    
    74.3
    
    
    
    73.6
    
    
    
    74.4
    
    
    
    78.6Billable associates
    
    
    1,109
    
    
    
    1,126
    
    
    
    1,179
    
    
    
    1,202
    
    
    
    1,131Outsourcing associates
    
    
    77
    
    
    
    81
    
    
    
    79
    
    
    
    83
    
    
    
    81Total associates
    
    
    1,329
    
    
    
    1,348
    
    
    
    1,409
    
    
    
    1,426
    
    
    
    1,332