FTI Consulting, Inc. Acquires The Schonbraun McCann Group, the Leading Consulting...

FTI Consulting, Inc. Acquires The Schonbraun McCann Group, the Leading
Consulting Firm to the Real Estate Industry
- SMG will form the core of FTI's Real Estate Practice

NEW YORK, March 31 /PRNewswire-FirstCall/ -- FTI Consulting, Inc.
(NYSE: FCN), the global business advisory firm dedicated to helping
organizations protect and enhance their enterprise value, today announced that
it has signed a definitive agreement to acquire The Schonbraun McCann Group
("SMG") in a transaction valued at approximately $125 million, of which
approximately $100 million is in cash and approximately $25 million is in
restricted FTI stock. In addition, there will be the opportunity for
additional consideration if earnings exceed certain targets over the next five
years. The Company expects to close on April 1, 2008.
Founded in 1973 by its Managing Partner Bruce Schonbraun, SMG is the
leading, dedicated national real estate and finance consulting firm. SMG is
headquartered in New York City and has additional offices in New Jersey and
Florida. The firm offers a full range of real estate financial consulting
services including complex financial analysis and transaction structuring, tax
planning and compliance, restructuring and bankruptcy, litigation support,
mergers and acquisitions, due diligence, IPO advisory, valuations, corporate
strategy and executive compensation. SMG is a trusted adviser to the most
prominent REITs, REOCs, leading owners and developers from the private and
public sectors, financial institutions, sovereign funds, hedge funds and
pension fund advisors. Importantly, SMG also has a high percentage of
recurring revenue from major real estate clients.
SMG has advised on some of the largest and most complex real estate
transactions in recent years, including SL Green on its $6.0 billion
acquisition of Reckson Associates Realty Corp.; Beacon Capital Partners on its
$6.4 billion acquisition of office properties in Seattle and Washington D.C.;
Broadway Partners on its $4.7 billion acquisition of 14 office properties;
Gale International on its $30 billion master development of Songdo City, South
Korea; Mack-Cali on its $600 million acquisition of the Bellemeade portfolio;
and many recent REIT IPOs including Douglas Emmett, Northstar Realty, and
Gramercy Capital. In the last two years, SMG has been involved in transactions
valued at over $100 billion.
Mr. Schonbraun will join FTI as a Senior Managing Director and Group
Leader of its Real Estate Practice. In addition, SMG brings 170 professionals
to FTI, 11 of whom will become Senior Managing Directors. SMG will operate and
function as the Real Estate Division of FTI within the Company's Corporate
Finance Sector and continue to operate under its highly recognized name.
"We are delighted to welcome The Schonbraun McCann Group, the most
respected advisory firm to the real estate industry, to FTI," said Jack Dunn,
President and CEO of FTI. "No other firm has SMG's unparalleled depth of
experience in the real estate and real estate finance markets, breadth of
capabilities or its elite clientele. Increasingly, we believe the basis of
competition, the path to better serve clients, will be based on focused
industry expertise -- not merely product knowledge -- and SMG provides that
expertise to FTI."
Mr. Dunn continued, "SMG brings three important attributes to FTI. First,
SMG is the leading and most recognized provider of premium, value added
services to the real estate industry - an industry that comprises almost 12
percent of the U.S. GDP. Second, SMG's practice continues to expand the
portion of our business that is based on a recurring revenue model from
important clients. Similar to our strategic communications business which has
approximately 70% of revenue from retainer-based clients and our hosting
business in the technology group, SMG will provide consistency and stability
to our future revenues and earnings. Third, SMG and FTI will benefit from our
combined ability to drive growth in Europe and Asia where SMG's intellectual
capital and demonstrated expertise in real estate coupled with FTI's existing
practices should open significant new channels for growth."
Mr. Dunn added, "We think now is a particularly opportune time to join
practices with SMG. The precipitous decline in liquidity in the global
financial system is creating stress in the real estate market and driving
demand for conflict resolution, restructuring and strategic counsel from even
the strongest players. Furthermore, in markets such as these there is often a
transfer of wealth from those shedding their holdings to opportunistic buyers
with the foresight and financial strength to invest in a down cycle. With its
access to the capital markets, strong relationships with strategic investors
and deep expertise in real estate restructuring, valuation, complex financial
transactions, tax planning and financing, SMG expands our capacity and
capabilities to provide the most robust advice and opportunistic financing to
our clients both domestically and abroad as they confront these challenges."
"We are thrilled to be part of FTI Consulting, a $1 billion plus firm that
ranks among the most respected and fastest growing in the industry," said SMG
Managing Partner Bruce Schonbraun. "As part of FTI, we will be able to more
rapidly develop our real estate industry platform, not just on a national, but
on a global basis. SMG is now part of an organization that is in virtually
every major business center around the world. As a result, we will be able to
provide dedicated, localized service wherever our clients need us. The
combination of world class, global expertise with local "last mile" execution
is becoming increasingly important as our real estate clients are expanding
their developments and investments abroad. Similarly, FTI's global reach will
help us better serve our international clients, notably the so-called
"sovereign funds," that are seeking real estate opportunities in the U.S.
Finally, FTI's expertise in restructuring is especially valuable at this time
in our economy and will leverage SMG's expanding practice in this area."
FTI Consulting to Host Conference Call
FTI will host a conference call to discuss its acquisition of The
Schonbraun McCann Group and other recent transactions tomorrow, Tuesday, April
1, at 8:30 AM Eastern Daylight Time. You can access the live call via
internet broadcast through the Home Page of the Company's Web site at
www.fticonsulting.com.
About The Schonbraun McCann Group
The Schonbraun McCann Group is a national real estate and finance
consulting firm, headquartered in midtown Manhattan, with offices in New
Jersey and Florida. Established in 1973, the firm has a staff of
approximately 170 professionals and provides the following services: Mergers &
Acquisitions, Real Estate Due Diligence, REIT Services, IPO Advisory, Tax
Structuring & Compliance, Executive Compensation, State & Local Tax Services,
Private Client Tax & Advisory Services, Restructuring & Bankruptcy, Strategy
Group, Lease Consulting, Hospitality, Litigation Support, Cost Segregation,
Valuation Services, and Financial Outsourcing.
About FTI Consulting, Inc.
FTI Consulting, Inc. 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 3,000
employees 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.
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 revenues,
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.
FOR FURTHER INFORMATION
AT FTI CONSULTING: AT FD:
Jack Dunn, President & CEO Investors: Gordon McCoun
(410) 951-4800 Media: Amy Rosenberg
(212) 850-5600

SOURCE FTI Consulting, Inc.

Jack Dunn, President & CEO of FTI Consulting, Inc., +1-410-951-4800; or
Investors, Gordon McCoun, or Media: Amy Rosenberg, both of FD,
+1-212-850-5600