CONTACT INFORMATION

Navigant Consulting, Inc.
www.navigantconsulting.com

CHICAGO, IL., February 27, 2001 /PRNewswire/ -- Revenues from the Company's core Financial & Claims and Energy & Water operations in the fourth quarter were $59.1 million, compared to$58.1 million in the fourth quarter of the previous year, and $61.3 million in the 2000 third quarter. EBITDA in the 2000 fourth quarter was $2.2 million, compared to a loss of $24.2 million in the comparable quarter of 1999, and $6.0 million in the third quarter of 2000.

Fourth quarter 2000 pro forma EBITDA, after retention costs of $4.7 million relating to the Value Sharing Retention Program and the Barrington acquisition costs of $1.2 million, was $8.7 million (or 14.7% of revenues), compared to$10.3 million in the third quarter of 2000 (or 16.8% of revenues). The third quarter reflected only the initial $1.7 million of the then newly implemented VSR Program, versus $4.7 million recorded in the fourth quarter.

Revenues from continuing core operations for the year ended December 31, 2000 were $244.6 million, compared toactual core revenues of $219.5 million for 1999, and pro forma revenues of $240.8 million for 1999. Pro forma revenues for 1999 include the full year results for the fourth quarter 1999 acquisitions of PENTA Advisory Services and The Barrington Consulting Group. Pro forma EBITDA for the years ended December 31, 2000 and 1999 were $35.2 million and $20.3 million, respectively.

William M. Goodyear, Chairman and Chief Executive Officer of Navigant Consulting, Inc. said: "The year 2000 was a year of restructuring, refocus and stabilization. We look forward togrowing our core businesses in 2001."

Core Operations:
The Financial & Claims business unit, which provides unique solutions in Litigation Consulting and Outsourcing and Claims Management, with special emphasis on technological solutions, generated 2000 revenues of $151.3 million and pro forma EBITDA of $23.2 million. Litigation Consulting revenues in 2000 aggregated $100.3 million, or 66.3% of total F&C revenues. Claims Management and Outsourcing revenues aggregated $51.0 million, or 33.7% of the unit's total revenues.

In conjunction with the commitment to further enhance its leadership position in the Construction and Government Contract sector, Navigant Consulting, Inc. Today announced that it has signed a definitive agreement to Acquire Barba-Arkhon International, Inc., a leader in dispute resolution related toConstruction and Government Contracts. Barba-Arkhon has offices in Mt. Laurel, New Jersey and Denver, Colorado. The purchase price totaled $5.3 million in cash at closing, and deferred payments of $3.0 million over 2 years. The transaction is expected toclose effective as of March 1, 2001 and further details will be provided at that time.

The Energy & Water business unit provides consulting and transaction- related services to all segments of the energy industry and is a recognized leader in generation asset divestiture, financial advisory, distribution company reliability, strategy and resource allocation, regulatory and litigation support and energy market assessment services. Revenues for the year 2000 aggregated $93.3 million, and pro forma EBITDA was $12.0 million. In the fourth quarter 2000, one of E&W's clients, Potomac Electric Power Company (Pepco), completed its previously announced sale of its power generation assets. Navigant Consulting's Energy & Water business unit managed the successful auction, which resulted in a sale price of $2.8 billion. The Pepco engagement generated $3.7 million of success fee revenues in the 2000 fourth quarter. As previously announced, Navigant Consulting's Energy & Water practice managed the successful auction of Central Hudson Gas & Electric Corporation's two electric generation plants, which were sold for $903 million. This transaction closed in February 2001, and Energy & Water received a success fee of $9.0 million, which will be recorded in the first quarter 2001.

Repurchase of Company Shares:
As previously announced, the Board of Directors has authorized the purchase, through December 31, 2001, of up tofive million shares of the Company's stock, which is equivalent to12% of shares currently outstanding. In the fourth quarter 2000, the Company purchased 1,071,500 shares pursuant to this authority, at an average cost per share of $3.38. Mr. Goodyear stated: "Given the Company's current and projected liquidity position, as well as the Company's current share price, we believe these purchases reflect an excellent use of funds. The Company will continue to use the authority granted by the Board, with due consideration given to the price of the Company's shares and its current and projected liquidity position, together with acquisition growth opportunities which the Company is reviewing."

Year End Balance Sheet, including Cash and other Liquidity Factors:
The Company's December 31, 2000 balance sheet reflects invested cash of $48.8 million, as compared tocash of $34.8 million dollars on its September 30, 2000 balance sheet and $2.1 million as of June 30, 2000. All bank debt has been repaid, and the Company's $35 million unsecured bank facility is fully available to Support our growth initiatives. The year-end cash balance is after the above-mentioned purchase of over one million shares of the Company's stock, and the fourth quarter disbursement of $4.7 million with respect to the Value Sharing Retention Program.

Accounts receivable decreased from $68.4 million as of September 30, 2000 to$55.0 million as of December 31, 2000. Ben W. Perks, the Company's Executive Vice President and Chief Financial Officer, stated: "This reflects continuing aggressive collection efforts on the part of the Company, resulting in a significant reduction in its days sales outstanding (DSO), from 100 days as of September 30, 2000 to84 days sales outstanding as of December 31, 2000. Days sales outstanding as of December 31, 1999 were 114."

Implementation of the 5-year Value Sharing Retention Program in the Fourth Quarter of 2000:
Navigant Consulting, Inc. also announced the successful implementation, in the fourth quarter, of its unique and comprehensive Value Sharing Retention Program. This program was designed to build increasingly robust retention power, motivate our senior level employees with a substantial financial stake in the future success of the Company, and further align employee interests with the shareholders. The program was extremely well received, as virtually all of our senior level employees are participants. Julie M. Howard, Vice President and Human Capital Officer, said: "Human Capital is the Company's most important and valuable asset, and we believe this innovative program motivates our leadership to Deliver value to our clients, the Company and ultimately the shareholders. The effect of this program will be tocreate "ownership equity" for our employees, as they will own approximately 25% of the Company's stock once vesting is complete."

The cash and equity granted under the program included approximately $20 million in cash, 2.1 million in restricted stock and 4.8 million stock options. These awards vest in stages over a 41/2-year period to provide continuous and growing retention power. The cash awards, which vest 25% per quarter over a 12-month period, commenced on September 1, 2000 and will be disbursed by September 1, 2001. The restricted stock grants vest 33% per year beginning in September 2001, and the option grants vest 10% on the date of grant and 5% per quarter thereafter through March 2004. Additionally, to further the program's retentive value, the Company also obtained extensions in current non-compete covenants and/or new non-competes for many of the participants.

Voluntary employee attrition in the fourth quarter was 3.9%, or 15.6% on an annualized basis. These percentages are significantly below the Company's 2000 annualized historical experience of 35.6% and 32.4% in the second and third quarters, respectively. Mr. Goodyear stated: "The immediate resulting positive effect of this program underscores the stabilization we have achieved in our human capital base. We are now positioned todrive performance over the long term."

Progress in Resolving Litigation:
As previously disclosed in August 2000, the Company settled its class action litigation for $23 million, subject tocourt approval and certain other conditions. The Company previously contributed $16.5 million toescrow, and to date its insurers have contributed $6.5 million under the settlement agreement pending final court approval. In addition, in December 2000 the Court gave preliminary approval with respect to the class action settlement. The Court has scheduled a hearing on March 22, 2001 with respect to the fairness and final approval of the proposed settlement.

As disclosed in 1999, Navigant International, Inc., a company providing corporate travel management and other services, sued the Company, claiming that the use of "Navigant" infringed on their use of and rights in such name. The Company has reached a preliminary agreement with Navigant International tosettle this lawsuit, wherein Navigant International will sublicense to the Company the right to use "Navigant" in its name, subject tocertain restrictions, in exchange for a one-time fee. Both parties also agree tocooperate and take certain measures toavoid any future customer or investor confusion.

Webcast of the Company's Announcement of Fourth Quarter and Year 2000 Results:
A live webcast of the Company's release of its fourth quarter and full year results is available by visiting the Company's website at www.navigantconsulting.com . To access the call, click the Investor Relations button and then select Conference Calls. This webcast will be available through May 27, 2001.

About Navigant Consulting
Navigant Consulting, Inc. (www.navigantconsulting.com ) is a globally- focused management consulting firm providing consulting services toFortune 100 companies, government agencies, law firms, and regulated and network industries. The Company is comprised of two business units -- Financial & Claims and Energy & Water. The Financial & Claims unit, consisting of Peterson Consulting, The Barrington Consulting Group and PENTA Advisory Services, provides consultation toclients facing the challenges of litigation, bankruptcy, claims, regulation and change in analyzing complex accounting, finance, economic, engineering, system and information management and retrieval, outsourcing and technology issues. The Energy & Water practice provides consulting services to the energy and electric, gas and water utility industries, focusing on M&A/divestiture financial advisory services, reliability regulatory and optimization reviews, electric generation and transmission assessments, including energy market assessments, and energy regulatory-related litigation support. The Company is not affiliated in any way with Navigant International, Inc., a provider of corporate travel management and other services traded on Nasdaq.

Statements included in this press release, which are not historical in nature, are intended to be, and are hereby identified as, "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended by Public Law 104-67. Forward- looking statements may be identified by words including "anticipate," "believe," "intends," "estimates," "expect" and similar expressions. The Company cautions readers that forward-looking statements, including without limitation, those relating to the Company's future business prospects, revenues, working capital, liquidity, income and margins, are subject tocertain risks and uncertainties that could cause actual results todiffer materially from those indicated in the forward-looking statements, due toseveral important factors, including those identified from time totime in the Company's reports filed with the SEC. Such risk factors include, but are not limited to: acquisitions and acquisitions under consideration, follow-on offerings, revenues and financial estimates, significant client assignments, recruiting and new business solicitation efforts, judicial proceedings, regulatory changes and general economic conditions.

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