FTI Consulting, Inc. Reports Record 2007 Results

    - 2007 Revenues Top $1 Billion

    - 2007 Record EPS of $2.00

    - Fourth Quarter Revenue Up 29 Percent to Record $280.5 Million

    - Fourth Quarter EPS Up 43 Percent to $0.60 Per Share

    - 2008 Guidance for Revenue of $1.28-$1.32 Billion and EPS of $2.40 -
      $2.50

BALTIMORE, Feb. 28 /PRNewswire-FirstCall/ -- FTI Consulting (NYSE: FCN), the global business advisory firm dedicated to helping organizations protect and enhance their enterprise value, today reported its financial results for the fourth quarter and full year ended December 31, 2007.

"With $1 billion in revenue and record earnings per share up over 92% for the year, 2007 was an historic year for FTI," said Jack Dunn, President and CEO of FTI. "I want to thank and salute all the people who made this possible by serving the world's leading enterprises on their most important matters. We look forward with them to even more exciting accomplishments as we enter 2008 with a platform of unparalleled intellectual capital, strong momentum and the right portfolio of services for a turbulent world and stressed global economy."

Fourth Quarter Results

For the fourth quarter of 2007, revenue increased 29.4 percent to a record $280.5 million compared to revenue of $216.8 million in the prior year period. Earnings per diluted share increased 42.9 percent to $0.60, compared to earnings per diluted share of $0.42 in the prior year period, despite a 24.1 percent increase in the weighted average shares outstanding to 51.3 million shares from 41.4 million shares in the prior year period. Earnings from operations before interest, taxes, depreciation and amortization and litigation settlement losses (EBITDA) increased 26.4 percent to $64.3 million, also a record, compared to EBITDA of $50.9 million in the prior year period.

Commenting on the quarter and full year, Mr. Dunn continued, "The fourth quarter of 2007 was a great finale to a record year for FTI:

    -- We experienced organic revenue growth of 24 percent and 19 percent for
       the fourth quarter and full year, respectively, driven by robust global
       demand for our diversified portfolio of services.

    -- We maintained strong margins consistent with our guidance for the year.

    -- Our operations are now truly global with revenue outside the U.S.
       representing 19 percent of our total revenue for the fourth quarter.
       This growth is driven both by strong local market needs and
       accelerating demand from multi-national organizations engaging FTI to
       help manage their risks around the world.

    -- We completed the key goals for our 2009 five year plan
       -- Annual revenue of $1 billion;
       -- Global expansion;
       -- Continued practice diversification;
       -- All while maintaining industry leading profitability;
    And these goals were accomplished fully two years ahead of plan.

    -- In October we raised $232 million from a public equity offering that
       provides the capital necessary to continue aggressively growing and
       serving the robust demand the Company is experiencing around the world.

    -- We continued to invest in our brand, as evidenced by our outstanding
       organic growth for the quarter and the year, and in our infrastructure
       to support our future growth."

Mr. Dunn added, "As we enter 2008, we are continuing to maintain our industry-leading pace and expect another very good year. In the first two months we have been actively engaged in attracting and recruiting the best talent, adding 22 senior managing directors through hiring, acquisition and promotion, and have acquired four businesses in three different countries that deepen our presence and expand our capabilities."

Mr. Dunn concluded, "On a final note, from a business driver perspective, the global credit crisis cannot be ignored. What began as a virus in the U.S. sub-prime mortgage sector has erupted into a financial and economic plague - destabilizing world-wide economies, roiling credit markets and whipsawing stock markets. This plague is attacking transparency, liquidity and, most importantly, confidence in the world's financial markets and the institutions and enterprises that rely on them. Transparency, liquidity and confidence - the very issues our skills are designed to enhance - are vital to enterprise value, which our mission statement calls out for us to protect. We are seeing broadly-based demand in every one of our segments from credit related engagements - and that demand appears to be accelerating."

At December 31, 2007, cash and cash equivalents were $360.5 million with total debt outstanding of $573 million and no borrowings were outstanding under the Company's senior bank revolving credit facility.

Fully diluted weighted average common shares outstanding increased 24.1 percent to 51.3 million in the fourth quarter compared to 41.4 million in the prior year period due to the Company's offering of 4,830,000 shares during the fourth quarter of 2007 and the effects of a higher average share price on the calculation of fully diluted shares outstanding associated with the Company's convertible notes and stock options.

On February 25, 2008, the Board of Directors authorized a stock purchase program for up to $50 million of the Company's common stock. This stock purchase program will expire on February 25, 2009. The Company did not purchase any shares of common stock under its stock purchase program during the fourth quarter. For the full year 2007, FTI repurchased 500,000 shares for a total cost of $18.1 million.

Total headcount as of December 31, 2007, was 2,549, of which 1,954 represented revenue-generating professionals, compared to 2,079 and 1,596, respectively, in the prior year period. Total headcount is approximately 2,800 as of February 28, 2008, over 2,200 of whom were client facing. Turnover for 2007 was 15.8%.

Fourth Quarter Business Segment Results

Segment earnings from operations before interest, taxes, depreciation, amortization and litigation settlement losses are defined as segment EBITDA.

Corporate Finance/Restructuring

Revenue in the Corporate Finance/Restructuring segment accelerated its strong growth, increasing 27.2 percent to $73.6 million compared to $57.9 million in the prior year period. Segment EBITDA increased 48.1 percent to $22.4 million from segment EBITDA of $15.1 million in the prior year period. Segment EBITDA margins expanded to 30.4 percent of revenue from 26.1 percent in the prior year period. The segment continued to perform well ahead of plan, led by improving market demand for restructuring resulting from recent economic and financial turmoil. Industries of importance included automotive, real estate, financial services and retailing. Transaction advisory services practice results were also strong, driven by post acquisition integration engagements and work with large private equity funds who are seeking to enhance returns in their portfolio companies. Services to the health care industry, particularly profit and operations improvement engagements for major hospitals, also continued to expand in the quarter. In addition, the recently-created U.K. practice continued to gain traction, with several significant engagements and the addition of 12 professionals in the second half of 2007.

Strategic Communications

In the Strategic Communications segment, revenue increased 47.4 percent to $60.0 million from $40.7 million in the prior year period. Segment EBITDA increased to $16.2 million, or 26.9 percent of revenue, from $14.2 million, or 34.8 percent of revenue, in the prior year period. The lower margin percent reflects the introduction of a bonus plan in 2007. The segment ended its first full year as part of FTI with strong performances in the U.K., France, Germany and the U.S., growth in retained clients, particularly in the U.K., and solid contributions from businesses acquired during the year. The developing regions of Russia, Asia and the Middle East continued to build momentum with growing profitability. Strategic acquisitions of financial communications firms in Dublin and Chicago in the fourth quarter complement those made earlier in the year in London, Latin America, Australia and China to extend the segment's global footprint and provide further geographical and service diversification. This segment also benefited from several significant engagements referred by other FTI segments as clients became aware of the opportunity to protect and enhance their reputations through strategic communications.

Forensic and Litigation Consulting

Revenue in the Forensic and Litigation Consulting segment increased 6.9 percent to $54.8 million compared to $51.2 million in the prior year period. Segment EBITDA was $15.4 million, compared to EBITDA of $15.6 million in the prior year period. As a percentage of revenue, the segment's fourth quarter EBITDA margin was 28.1 percent, reflecting continuing improvement during the year, but was less than the 30.5 percent in the prior year period. Fourth quarter results in 2006 were exceptionally strong due to a large number of stock option backdating cases that needed to be resolved by year end for financial reporting purposes. This segment's global business intelligence and investigations practice, formed last year, continued its solid growth driven by accelerated Foreign Corrupt Practices Act (FCPA) activity and a growing number of cross border assignments from domestic clients expanding into Asia and Latin America. This segment has significant opportunities in early 2008 as litigation surrounding the global credit crisis and turmoil in the financial markets has started to provide multiple engagements, as yet only in their early stages. Issues involved include valuation of complex financial instruments, financial statement reporting and investigations into business practices.

Technology

Revenue growth in the Technology segment continued to accelerate, increasing 52.4 percent to $47.5 million compared to $31.2 million in the prior year period. Segment EBITDA increased 54.0 percent to $19.6 million from $12.7 million in the prior year period. Segment EBITDA margin expanded to 41.1 percent of revenue from 40.1 percent in the prior year period. Growth of the segment continued to be driven by global product liability matters, board initiated investigations, including FCPA matters, large class actions, and antitrust "second requests". The Company also believes that the market is increasingly placing a premium on vertical industry knowledge and expertise, where the segment is particularly benefiting from its deep experience in the global pharmaceutical, financial services and banking, hedge fund and private equity industries. In addition, this segment is experiencing increasing demand for its on-demand software and related professional services from Europe and Asia due to greater market awareness of FTI's global presence, the full scale opening in the second quarter of a network operating center in Europe equipped to handle complex and large scale on-demand electronic discovery needs and its reputation for managing large and complex multinational cases.

Margins benefited from a continuing shift in the revenue mix from consulting fee focused services to the more profitable and recurring subscription based and on-demand software licensing and processing fees. The Company's Ringtail(R) suite of products is benefiting from new capability enhancements and heightened demand for tailored solutions that can scale for high volume/high profile matters and support a global base of opportunities based on Ringtail's(R) strong multi-lingual capabilities. To leverage its indirect and channel focused sales efforts, in the fourth quarter the segment formalized its channel sales program and began to sell its Ringtail(R) technology through value-added resellers in domestic and international markets. As a result of these new partnerships, and by offering resellers both engineering and sales support to a broader prospect base, the segment is seeing accelerating demand from its partners.

Economic Consulting

Revenue in the Economic Consulting segment increased 24.4 percent to $44.6 million compared to $35.8 million in the prior year period. Segment EBITDA increased 7.1 percent to $11.8 million from segment EBITDA of $11.0 million in the prior year period. Segment EBITDA margin were 26.4 percent of revenue compared to 30.7 percent in the prior year period. Segment EBITDA, while still very strong, was affected by (a) the need to use outside consultants to augment capacity driven by the large increase in demand for the segment's services and (b) non-cash compensation expense resulting from variable accounting treatment for certain options driven by the strong performance of FTI's common stock. The segment has benefited from the turmoil in the credit markets, which is driving an increased frequency of disputes and associated financial consulting engagements. Since December 2007, the segment has received 19 new engagements in the financial arena, including sub-prime. Demand for the segment's M&A services also continued to be strong with 14 new cases since December. Decreased liquidity in the credit markets is causing a shift in M&A activity from private equity toward strategic buyers, who are more likely to contend with anti-trust and competitive issues. The increased corporate M&A activity extends across a number of business sectors, notably financial services, hospitals, airlines and industrial corporations. In addition, this segment is seeing an increasing volume of rail commercial and regulatory work as a result of revised regulatory standards and continued strong demand resulting from antitrust enforcement. This segment has received eight new engagements since December involving anti-trust, price fixing and rate setting, as global competition becomes even more intense.

Full Year 2007 Results

For the full year 2007 period, company-wide revenue increased 41.4 percent to $1.0 billion from $707.9 million in the prior year. Earnings per diluted share for 2007 were $2.00, compared to earnings per diluted share of $1.04 in the prior year or adjusted earnings per diluted share of $1.36(1) in the prior year - an increase of 47.1 percent. EBITDA, as previously defined, for 2007 was $216.0 million, an increase of 40.9 percent over adjusted EBITDA(2) of $153.3 million. in the prior year.

    (1) Adjusted earnings per diluted shares are defined as earnings per
        diluted share adjusted for special charges of $23.0 million ($13.0
        million net of tax) in 2006.
    (2) Adjusted EBITDA is defined as earnings from operations before
        interest, taxes, depreciation, amortization, litigation settlement
        losses and special charges of $23.0 million in 2006.


    Corporate Finance/Restructuring

Corporate Finance/Restructuring revenue increased 23.0 percent to $261.6 million from $212.6 million in the prior year period. Segment EBITDA was $71.6 million, or 27.4 percent of revenue, an increase of 39.0 percent over adjusted segment EBITDA of $51.5 million, or 24.2 percent of revenue, in the prior year period. (Adjusted segment EBITDA is defined as segment EBITDA excluding special charges of $7.7 million for 2006.)

Strategic Communications

Strategic Communications revenue was $185.3 million for the year. Segment EBITDA was $48.8 million, or 26.3 percent of revenue. The prior year results include one quarter's contribution as this segment was acquired in October of 2006.

Forensic and Litigation Consulting

Forensic and Litigation Consulting revenue increased 12.3 percent to $217.0 million compared to $193.3 million in the prior year period. Segment EBITDA was $57.3 million, or 26.4 percent of revenue, an increase of 3.6 percent over adjusted segment EBITDA of $55.3 million, or 28.6 percent of revenue, in the prior year period. (Adjusted segment EBITDA is defined as Segment EBITDA excluding special charges of $9.9 million for 2006.)

Technology

Technology revenue increased 38.9 percent to $162.8 million from $117.2 million in the prior year period. Segment EBITDA was $62.9 million, or 38.6 percent of revenue, an increase of 34.0 percent over segment EBITDA of $47.0 million, or 40.1 percent of revenue, in the prior year period.

Economic Consulting

Economic Consulting revenue increased 21.1 percent to $174.5 million from $144.1 million in the prior year period. Segment EBITDA increased 30.4 percent to $48.1 million, or 27.6 percent of revenue, from adjusted segment EBITDA of $36.9 million, or 25.6 percent of revenue, in the prior year period. (Adjusted segment EBITDA is defined as Segment EBITDA excluding special charges of $4.1 million for 2006.)

Introduction of 2008 Guidance

Based on current market conditions, the Company is introducing the following 2008 guidance:



                    (Dollars and shares in millions except per share amounts)

                          2007                  2008 Guidance
                                           Low                   High
                                    Amount     Increase    Amount    Increase

    Revenues            $1,001      $1,275        27%      $1,315        31%
    EBITDA                 216         300        39%         310        44%
    Net Income              92         129        40%         135        47%
    Fully Diluted EPS    $2.00      $ 2.40        20%      $ 2.50        25%
    -----------------
    EBITDA Margin         21.6%       23.5%                  23.6%


The low end of the Company's guidance assumes organic revenue growth of 17.5% and the anticipated contribution from first quarter of 2008 acquisitions. The high end assumes organic revenue growth of 19.5% driven by greater activity generated by the global credit crisis and resulting operational leverage, as well as certain synergies from the acquisitions. The Company's current assumption on fully diluted common shares outstanding for both the high and low end of guidance is approximately 54 million shares compared to 46 million in 2007.

Fourth Quarter Conference Call

FTI will hold a conference call for analysts and investors to discuss fourth quarter and full year 2007 financial results at 5:30 p.m. Eastern time on Thursday, February 28, 2008. The call can be accessed live and will be available for replay over the Internet for 90 days by logging onto the Company's website, www.fticonsulting.com.

About FTI Consulting

FTI Consulting is a global business advisory firm dedicated to helping organizations protect and enhance enterprise value in an increasingly complex legal, regulatory and economic environment. With more than 2,800 professionals located in most major business centers in the world, we work closely with clients every day to anticipate, illuminate, and overcome complex business challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory issues, reputation management and restructuring. More information can be found at www.fticonsulting.com.

Note: Although EBITDA and Segment EBITDA are not measures of financial condition or performance determined in accordance with GAAP, FTI believes that they are useful operating performance measures for evaluating its results of operations from period to period and as compared to its competitors. EBITDA is a common alternative measure of operating performance used by investors, financial analysts and rating agencies to value and compare the financial performance of companies in FTI's industry. FTI uses EBITDA to evaluate and compare the operating performance of its segments and it is one of the primary measures used to determine employee bonuses. FTI also uses EBITDA to value businesses it acquires or anticipates acquiring. FTI provides Adjusted EBITDA and Adjusted earnings per diluted share information for 2006 to illustrate the effect of special charges that were incurred that year and reduced 2006 EBITDA and earnings per diluted share. Adjusted segment EBITDA is provided for 2006 for the three business segments that incurred those special charges. No special charges were incurred in 2007, so no Adjusted EBITDA or adjusted segment EBITDA information is provided for 2007. The adjusted EBITDA information is provided to assist investors in assessing period-to-period comparability. Adjusted EBITDA and Adjusted diluted earnings per share are not financial measures determined in accordance with GAAP. A reconciliation of EBITDA, Segment EBITDA and adjusted EBITDA to Net Income, and a reconciliation of adjusted diluted earnings per share to diluted earnings per share are included in the accompanying tables to this press release. EBITDA and adjusted EBITDA are not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies unless the definition is the same. In addition, EBITDA is one of the financial measures included in the maintenance covenants contained in FTI's bank credit facility and, thus, as a supplemental financial measure is also indicative of the Company's capacity to service debt and thereby provides additional useful information to investors regarding the company's financial condition and results of operations. EBITDA for purposes of those covenants is not calculated in the same manner as it is calculated in the accompanying table. With respect to FTI's guidance for 2008, a reconciliation of EBITDA to net income as projected for the year ending December 31, 2008 is not provided because FTI cannot reasonably determine the components of net income to provide a reconciliation to EBITDA for its 2008 fiscal year with certainty at this time.

Safe Harbor Statement

This press release includes "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 that involve uncertainties and risks including statements related our future financial results. There can be no assurance that actual results will not differ from the company's expectations. The Company has experienced fluctuating revenue, operating income and cash flow in some prior periods and expects this will occur from time to time in the future. As a result of these possible fluctuations, the Company's actual results may differ from our projections. Further, preliminary results are subject to normal year-end adjustments. Other factors that could cause such differences include the pace and timing of the consummation and integration of past and future acquisitions, the Company's ability to realize cost savings and efficiencies, competitive and general economic conditions, retention of staff and clients and other risks described under the heading "Item 1A. Risk Factors" in the Company's most recent Form 10-K and in the Company's other filings with the Securities and Exchange Commission. We are under no duty to update any of the forward-looking statements to conform such statements to actual results or events and do not intend to do so.

                           FINANCIAL TABLES FOLLOW



                             FTI CONSULTING, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
                FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
                    (in thousands, except per share data)

                                                    Year Ended December 31,
                                                    2007              2006
                                                 (unaudited)

    Revenues                                     $1,001,270         $707,933

    Operating Expenses
      Direct cost of revenues                       548,407          389,032
      Selling, general and administrative
       expense                                      255,238          178,572
      Special charges                                     -           22,972
      Amortization of other intangible assets        10,615           11,175
                                                    814,260          601,751

    Operating income                                187,010          106,182

    Other income (expense)
      Interest income                                 8,173            2,575
      Interest expense and other                    (44,391)         (29,405)
      Litigation settlement losses, net              (1,002)            (187)
                                                    (37,220)         (27,017)

    Income before income tax provision              149,790           79,165

    Income tax provision                             57,669           37,141

    Net income                                      $92,121          $42,024


    Earnings per common share - basic                 $2.14            $1.06
    Weighted average common shares
     outstanding - basic                             43,028           39,741

    Earnings per common share - diluted                2.00            $1.04
    Weighted average common shares
     outstanding - diluted                           45,974           40,526



                             FTI CONSULTING, INC.
                 CONDENSED CONSOLIDATED STATEMENTS OF INCOME
            FOR THE THREE MONTHS ENDED DECEMBER  31, 2007 AND 2006
                    (in thousands, except per share data)

                                                      Three Months Ended
                                                         December  31,
                                                    2007              2006
                                                          (unaudited)

    Revenues                                      $280,519          $216,841

    Operating expenses
      Direct cost of revenues                      151,746           112,136
      Selling, general and administrative
       expense                                      69,963            57,025
      Special charges                                    -                 -
      Amortization of other intangible assets        2,837             2,865
                                                   224,546           172,026

    Operating income                                55,973            44,815

    Other income (expense)
      Interest income                                4,182               688
      Interest expense and other                   (10,393)          (11,413)
      Litigation settlement losses, net               (130)             (606)
                                                    (6,341)          (11,331)

    Income before income tax provision              49,632            33,484

    Income tax provision                            18,838            16,128

    Net income (loss)                              $30,794           $17,356


    Earnings (loss) per common share - basic         $0.66             $0.43
    Weighted average common shares
     outstanding - basic                            46,996            40,574

    Earnings (loss) per common share - diluted       $0.60             $0.42
    Weighted average common shares
     outstanding - diluted                          51,347            41,392



                             FTI CONSULTING, INC.
                    OPERATING RESULTS BY BUSINESS SEGMENT
                                 (Unaudited)

                                                                       Revenue
                                                                Average    -
                                                                  Bill   Gener
                                                           Utiliz able   ating
                                                            ation Rate   Head
                                 Revenues  EBITDA(1) Margin  (2)   (2)   count
                                    (in thousands)
    Three Months Ended
     December 31, 2007
      Forensic and Litigation
       Consulting                 $54,770   $15,380  28.1%   71%  $331    430
      Corporate Finance            73,644    22,370  30.4%   82%  $402    406
      Economic Consulting          44,580    11,776  26.4%   81%  $400    236
      Technology                   47,535    19,557  41.1%    -      -    344
      Strategic Communications     59,990    16,147  26.9%    -      -    538
                                 $280,519    85,230  30.4%              1,954
      Corporate                             (20,943)
    EBITDA (1)                              $64,287  22.9%

    Year Ended
     December 31, 2007
      Forensic and Litigation
       Consulting                $217,028   $57,292  26.4%   75%  $321    430
      Corporate Finance           261,625    71,629  27.4%   80%  $409    406
      Economic Consulting         174,447    48,085  27.6%   85%  $412    236
      Technology                  162,837    62,921  38.6%    -      -    344
      Strategic Communications    185,333    48,826  26.3%    -      -    538
                               $1,001,270   288,753  28.8%              1,954
      Corporate                             (72,779)
    EBITDA (1)                             $215,974  21.6%

    Three Months Ended
     December 31, 2006
      Forensic and Litigation
       Consulting                 $51,229   $15,604  30.5%   76%  $312    388
      Corporate Finance            57,888    15,102  26.1%   82%  $398    322
      Economic Consulting          35,834    10,996  30.7%   81%  $389    206
      Technology                   31,182    12,695  40.7%    -      -    256
      Strategic Communications     40,708    14,173  34.8%    -      -    424
                                 $216,841    68,570  31.6%              1,596
      Corporate                             (17,693)
    EBITDA (1)                              $50,877  23.5%

    Year Ended
     December 31, 2006
      Forensic and Litigation
       Consulting                $193,287   $55,306  28.6%   78%  $305    388
      Corporate Finance           212,617    51,514  24.2%   77%  $400    322
      Economic Consulting         144,091    36,873  25.6%   80%  $386    206
      Technology                  117,230    46,965  40.1%    -      -    256
      Strategic Communications     40,708    14,173  34.8%    -      -    424
                                 $707,933   204,831  28.9%              1,596
      Corporate                             (51,492)
    ADJUSTED EBITDA (1)                    $153,339  21.7%

    (1) We use earnings before interest, taxes, depreciation, amortization
        ("EBITDA") and EBITDA excluding special charges ("adjusted EBITDA") in
        evaluating the company's financial performance. EBITDA is not a
        measurement under accounting principles generally accepted in the
        United States ("GAAP").  We define EBITDA as operating income before
        depreciation and amortization and amortization of intangible assets
        plus litigation settlements. This measure may not be similar to non-
        GAAP measures of other companies. We believe that the use of such
        measures, as a supplement to operating income, net income and other
        GAAP measures, is a useful indicator of a company's financial
        performance and its ability to generate cash flow from operations that
        are available to fund capital expenditures and service debt. Further,
        these measures exclude certain items to provide better comparability
        from period to period.  While depreciation and amortization are
        considered operating costs under GAAP, these expenses primarily
        represent the non-cash current period allocation of costs associated
        with long-lived assets acquired or constructed in prior periods.
        EBITDA is a common alternative performance measure used by investors,
        analysts and credit rating agencies to evaluate and compare the
        operating performance and value of companies within our industry.
        This non-GAAP measure should be considered in addition to, but not as
        a substitute for or superior to, the information contained in our
        statements of income. See also our reconciliation of Non-GAAP
        financial measures.

    (2) The majority of the Technology and Strategic Communications segments'
        revenues are not generated on an hourly basis.  Accordingly,
        utilization and average billable rate metrics are not presented as
        they are not meaningful. Utilization where presented is based on a
        2,032 hour year.



                             FTI CONSULTING, INC.
                RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
                    (in thousands, except per share data)
                                 (unaudited)

                                           Three Months Ended    Year Ended
                                              December 31,      December 31,
                                             2007     2006     2007     2006

    Net income (loss)                      $30,794  $17,356  $92,121  $42,024

    Earnings per common share-diluted        $0.60    $0.42    $2.00    $1.04

    Add back: Special charges                   $-       $-       $-  $22,972
          Less:  tax effect                               -            10,039
    Adjusted net income before special
     charges (1)                           $30,794  $17,356  $92,121  $54,957

    Adjusted earnings per common share-
     diluted before special charges (1)      $0.60    $0.42    $2.00    $1.36

    (1) We use earnings before interest, taxes, depreciation, amortization
        ("EBITDA") and EBITDA excluding special charges ("adjusted EBITDA") in
        evaluating the company's financial performance. EBITDA is not a
        measurement under accounting principles generally accepted in the
        United States ("GAAP").  We define EBITDA as operating income before
        depreciation and amortization and amortization of intangible assets
        plus litigation settlements. This measure may not be similar to non-
        GAAP measures of other companies. We believe that the use of such
        measures, as a supplement to operating income, net income and other
        GAAP measures, is a useful indicator of a company's financial
        performance and its ability to generate cash flow from operations that
        are available to fund capital expenditures and service debt. Further,
        these measures exclude certain items to provide better comparability
        from period to period.  While depreciation and amortization are
        considered operating costs under GAAP, these expenses primarily
        represent the non-cash current period allocation of costs associated
        with long-lived assets acquired or constructed in prior periods.
        EBITDA is a common alternative performance measure used by investors,
        analysts and credit rating agencies to evaluate and compare the
        operating performance and value of companies within our industry.
        This non-GAAP measure should be considered in addition to, but not as
        a substitute for or superior to, the information contained in our
        statements of income. See also our reconciliation of Non-GAAP
        financial measures.



    RECONCILIATION OF OPERATING INCOME AND NET INCOME TO ADJUSTED EARNINGS
  BEFORE INTEREST, TAXES, DEPRECIATION AND AMORTIZATION AND SPECIAL CHARGES
                                 (unaudited)

    Three Months Ended                   Forensic and
     December 31, 2007                    Litigation    Corporate    Economic
                                          Consulting     Finance    Consulting

    Net income (loss)
           Interest income
           Interest expense and other
           Litigation settlement losses
           Income tax provision
    Operating income                        $14,761      $21,876      $11,283
           Depreciation                         619          484          493
           Amortization of other
            intangible assets                     -            -            -
           Litigation settlement losses           -           10            -
    EBITDA (1)                               15,380       22,370       11,776
           Special charges                        -            -            -
    Adjusted EBITDA (1)                     $15,380      $22,370      $11,776


    Year Ended December 31, 2007

    Net income (loss)
           Interest income
           Interest expense and other
           Litigation settlement losses
           Income tax provision
    Operating income                        $55,237      $70,574      $46,313
           Depreciation                       2,230        1,581        1,772
           Amortization of other
            intangible assets                     -            -            -
           Litigation settlement losses        (175)        (526)           -
    EBITDA (1)                               57,292       71,629       48,085
           Special charges                        -            -            -
    Adjusted EBITDA (1)                     $57,292      $71,629      $48,085


    Three Months Ended
     December 31, 2006

    Net income (loss)
           Interest income
           Interest expense and other
           Litigation settlement losses
           Income tax provision
    Operating income                        $15,163      $15,292      $10,631
           Depreciation                         441          310          365
           Amortization of other
            intangible assets                     -            -            -
           Litigation settlement losses           -         (500)           -
    EBITDA (1)                               15,604       15,102       10,996
           Special charges                        -            -            -
    Adjusted EBITDA (1)                     $15,604      $15,102      $10,996


    Year Ended
     December 31, 2006

    Net income (loss)
           Interest income
           Interest expense and other
           Litigation settlement losses
           Income tax provision
    Operating income                        $43,566      $43,181      $31,381
           Depreciation                       1,855        1,323        1,344
           Amortization of other
            intangible assets                     -            -            -
           Litigation settlement losses          (5)        (730)           -
    EBITDA (1)                               45,416       43,774       32,725
           Special charges                    9,890        7,740        4,148
    Adjusted EBITDA (1)                     $55,306      $51,514      $36,873


    Three Months Ended                           Strategic
     December 31, 2007                            Communi-
                                     Technology   cations   Corp HQ    Total

    Net income (loss)                                                $30,794
           Interest income                                            (4,182)
           Interest expense and other                                 10,393
           Litigation settlement losses                                  130
           Income tax provision                                       18,838
    Operating income                    $17,590  $15,583  $(25,120)   55,973
           Depreciation                   1,967      654     1,390     5,607
           Amortization of other
            intangible assets                 -        -     2,837     2,837
           Litigation settlement losses       -      (90)      (50)     (130)
    EBITDA (1)                           19,557   16,147   (20,943)   64,287
           Special charges                    -        -         -         -
    Adjusted EBITDA (1)                 $19,557  $16,147  $(20,943)   64,287


    Year Ended
     December 31, 2007

    Net income (loss)                                                $92,121
           Interest income                                            (8,173)
           Interest expense and other                                 44,391
           Litigation settlement losses                                1,002
           Income tax provision                                       57,669
    Operating income                    $56,298  $46,547  $(87,959)  187,010
           Depreciation                   6,623    2,376     4,769    19,351
           Amortization of other
            intangible assets                 -        -    10,615    10,615
           Litigation settlement losses       -      (97)     (204)   (1,002)
    EBITDA (1)                           62,921   48,826   (72,779)  215,974
           Special charges                    -        -         -         -
    Adjusted EBITDA (1)                 $62,921  $48,826  $(72,779) $215,974


    Three Months Ended
     December 31, 2006

    Net income (loss)                                                $17,356
           Interest income                                              (688)
           Interest expense and other                                 11,413
           Litigation settlement losses                                  606
           Income tax provision                                       16,128
    Operating income                    $11,491  $13,726  $(21,488)   44,815
           Depreciation                   1,204      447     1,036     3,803
           Amortization of other
            intangible assets                 -        -     2,865     2,865
           Litigation settlement losses       -        -      (106)     (606)
    EBITDA (1)                           12,695   14,173   (17,693)   50,877
           Special charges                    -        -         -         -
    Adjusted EBITDA (1)                 $12,695  $14,173  $(17,693)  $50,877


    Year Ended
     December 31, 2006

    Net income (loss)                                                $42,024
           Interest income                                            (2,575)
           Interest expense and other                                 29,405
           Litigation settlement losses                                  187
           Income tax provision                                       37,141
    Operating income                    $42,833  $13,726  $(68,505)  106,182
           Depreciation                   4,132      447     4,096    13,197
           Amortization of other
            intangible assets                 -        -    11,175    11,175
           Litigation settlement losses       -        -       548      (187)
    EBITDA (1)                           46,965   14,173   (52,686)  130,367
           Special charges                    -        -     1,194    22,972
    Adjusted EBITDA (1)                 $46,965  $14,173  $(51,492) $153,339

    (1) We use earnings before interest, taxes, depreciation, amortization
        ("EBITDA") and EBITDA excluding special charges ("adjusted EBITDA") in
        evaluating the company's financial performance. EBITDA is not a
        measurement under accounting principles generally accepted in the
        United States ("GAAP").  We define EBITDA as operating income before
        depreciation and amortization and amortization of intangible assets
        plus litigation settlements. This measure may not be similar to non-
        GAAP measures of other companies. We believe that the use of such
        measures, as a supplement to operating income, net income and other
        GAAP measures, is a useful indicator of a company's financial
        performance and its ability to generate cash flow from operations that
        are available to fund capital expenditures and service debt. Further,
        these measures exclude certain items to provide better comparability
        from period to period.  While depreciation and amortization are
        considered operating costs under GAAP, these expenses primarily
        represent the non-cash current period allocation of costs associated
        with long-lived assets acquired or constructed in prior periods.
        EBITDA is a common alternative performance measure used by investors,
        analysts and credit rating agencies to evaluate and compare the
        operating performance and value of companies within our industry.
        This non-GAAP measure should be considered in addition to, but not as
        a substitute for or superior to, the information contained in our
        statements of income. See also our reconciliation of Non-GAAP
        financial measures.



                             FTI CONSULTING, INC.
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                FOR THE YEARS ENDED DECEMBER 31, 2007 AND 2006
                                (in thousands)

                                                    Year Ended December 31,
                                                    2007              2006
                                                 (unaudited)
    Operating activities
    Net income                                     $92,121           $42,024
    Adjustments to reconcile net income
     to net cash used in operating
     activities:
      Depreciation                                  19,351            13,197
      Amortization of other intangible assets       10,615            11,175
      Provision for doubtful accounts               11,777             8,573
      Non-cash share-based compensation             22,703            14,680
      Excess tax benefits from share-based
       compensation                                (17,986)           (2,118)
      Non-cash interest expense                      3,139             2,830
      Non-cash loss on subleased facilities              -               441
      Impairment of other intangible assets              -               933
      Other                                            357               785
      Changes in operating assets and
       liabilities, net of effects from
       acquisitions:
        Accounts receivable, billed and unbilled   (85,565)          (22,654)
        Notes receivable                           (22,037)          (33,351)
        Prepaid expenses and other assets           (1,771)             (697)
        Accounts payable, accrued expenses
         and other                                  26,734            16,323
        Accrued special charges                     (8,703)           14,288
        Income taxes                                  (683)            8,493
        Accrued compensation                        27,687           (14,286)
        Billings in excess of services
         provided                                      214             3,330
            Net cash provided by
             operating activities                   77,953            63,966

    Investing activities
      Payments for acquisition of
       businesses, including contingent
       payments and acquisition costs,
       net of cash received                        (32,243)         (267,332)
      Purchases of property and equipment          (36,422)          (30,359)
      Other                                            482               306
            Net cash used in
             investing activities                  (68,183)         (297,385)

    Financing activities
      Borrowings under revolving line of credit     25,000            40,000
      Payments of revolving line of credit         (25,000)          (40,000)
      Payments of long-term debt                    (7,945)          (25,476)
      Issuance of debt securities                        -           215,000
      Borrowings under long-term credit
       facilities                                        -               400
      Payments of debt financing fees and other          -            (9,119)
      Issuance of common stock, net of
       offering costs                              231,408                 -
      Purchase and retirement of common stock      (18,118)          (23,376)
      Issuance of common stock under equity
       compensation plans                           37,105            10,217
      Excess tax benefit from share based
       compensation                                 17,986             2,118
            Net cash provided by
             financing activities                  260,436           169,764

    Effect of exchange rate changes and
     fair value adjustments on cash and
     cash equivalents                               (1,666)            2,195

    Net decrease in cash and cash
     equivalents                                   268,540           (61,460)
    Cash and cash equivalents, beginning
     of period                                      91,923           153,383
    Cash and cash equivalents, end of
     period                                       $360,463           $91,923



                             FTI CONSULTING, INC.
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                      AS OF DECEMBER 31, 2007 AND  2006
                   (in thousands, except per share amounts)

                                                           December 31,
                                                     2007              2006
                                                 (unaudited)
                            Assets
    Current assets
       Cash and cash equivalents                  $360,463           $91,923
       Accounts Receivable
           Billed                                  190,900           135,220
           Unbilled                                 84,743            56,228
           Allowance for doubtful
            accounts and unbilled services         (30,467)          (20,351)
                                                   245,176           171,097
       Notes receivable                             11,687             7,277
       Prepaid expenses and other current assets    33,657            16,259
       Deferred income taxes                        10,544             8,393
    Total current assets                           661,527           294,949

    Property and equipment, net                     67,843            51,326
    Goodwill                                       940,878           885,711
    Other intangible assets, net                    84,673            77,711
    Notes receivable, net of current portion        52,374            35,303
    Other assets                                    51,329            46,156

        Total assets                            $1,858,624        $1,391,156

            Liabilities and Stockholders' Equity
    Current liabilities
        Accounts payable, accrued
         expenses and other                       $103,410           $77,914
        Accrued compensation                       102,054            76,765
        Current portion of long-term debt          157,772             6,917
        Billings in excess of services provided     17,826            16,863
    Total current liabilities                      381,062           178,459

    Long-term debt, net of current portion         415,653           563,441
    Deferred income taxes                           49,113            57,782
    Other liabilities                               40,546            26,374

    Stockholders' equity
        Preferred stock, $0.01 par value;
         5,000 shares authorized, none
         outstanding                                     -                 -
        Common stock, $0.01 par value; 75,000
         shares authorized; 48,979 shares
         issued and outstanding in 2007 and
         41,890 shares issued and outstanding
         in 2006                                       490               419
        Additional paid-in capital                 601,637           294,350
        Retained earnings                          361,058           268,937
        Accumulated other comprehensive income       9,065             1,394
    Total stockholders' equity                     972,250           565,100

        Total liabilities and
         stockholders' equity                   $1,858,624        $1,391,156

SOURCE  FTI Consulting
    -0-                             02/28/2008
    /CONTACT:  Jack Dunn, President & CEO, FTI Consulting, +1-410-951-4800; or
Investors, Gordon McCoun, or Media, Andy Maas, both of FD, +1-212-850-5600 /
    /Web site:  http://www.fticonsulting.com /
    (FCN)

CO:  FTI Consulting
ST:  Maryland
IN:  FIN WRK
SU:  ERN CCA ERP

CL-AA
-- NYTH127 --
3427 02/28/2008 16:08 EST http://www.prnewswire.com

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