Huron Consulting Group Reports Second Quarter 2008 Financial Results

CHICAGO--(Business Wire)--
Huron Consulting Group Inc. (NASDAQ: HURN):

-- Revenues of $143.4 million for Q2 2008 increased 21.3% from
$118.3 million in Q2 2007.

-- Revenues of $282.8 million for the first half of 2008
increased 20.7% from $234.3 million for the first half of
2007.

-- Diluted earnings per share for Q2 2008 was $0.54 compared to
$0.56 in Q2 2007.

-- Average number of full-time billable consultants(4) totaled
1,224 for Q2 2008 compared to 936 for Q2 2007. Average number
of full-time equivalent professionals(7) totaled 863 for Q2
2008 compared to 413 in the same period last year.

Huron Consulting Group Inc. (NASDAQ: HURN), a leading provider of
financial and operational consulting services, today announced
financial results for the second quarter ended June 30, 2008.

"Huron's Health and Education Consulting and Legal Consulting
businesses had very strong quarters and we are optimistic about their
position to generate future growth. The addition of the Stockamp team
will create a real powerhouse by serving multiple segments of the
healthcare industry, including major health systems, academic medical
centers and community hospitals," said Gary E. Holdren, chairman and
chief executive officer, Huron Consulting Group. "We are making
targeted adjustments in certain businesses to make sure that we have
people with the rights skill sets in place to meet marketplace needs.
At the same time, we are executing our business plan by identifying
market demands, meeting the evolving needs of the marketplace, and
helping clients solve complex business challenges. We are confident
that our balanced portfolio of offerings will continue to deliver
results."

Second Quarter 2008 Results

Revenues of $143.4 million for the second quarter of 2008
increased 21.3% from $118.3 million for the second quarter of 2007.
The Company's second quarter 2008 operating income increased 2.3% to
$20.2 million compared to $19.8 million in the second quarter of 2007.
Net income was $9.8 million, or $0.54 per diluted share, for the
second quarter of 2008 compared to $10.1 million, or $0.56 per diluted
share, for the same period last year. Financial results for the second
quarter of 2007 included $2.3 million of rapid amortization of
intangible assets. There was no rapid amortization in the second
quarter of 2008.

Second quarter 2008 earnings before interest, taxes, depreciation
and amortization ("EBITDA")(8) was $25.6 million, or 17.9% of
revenues, compared to $26.2 million, or 22.2% of revenues, in the
comparable quarter last year. Adjusted EBITDA(8), which excludes
share-based compensation expense, was $32.8 million, or 22.9% of
revenues, compared to $31.1 million, or 26.3% of revenues, in the
comparable quarter last year.

The average number of full-time billable consultants(4) increased
30.8% to 1,224 in the second quarter of 2008 compared to 936 in the
same quarter last year. Huron also has a number of consultants who
work variable schedules as needed by clients, as well as contract
reviewers and other professionals who generate revenues primarily
based on number of hours worked and units produced, such as pages
reviewed and data processed. The average number of these full-time
equivalent professionals(7) increased 109.0% to 863 in the second
quarter of 2008 compared to 413 for the comparable period in 2007.
Full-time billable consultant utilization rate was 66.8% during the
second quarter of 2008 compared with 77.9% during the same period last
year. Average billing rate per hour for full-time billable consultants
was $273 for the second quarter of 2008 compared to $281 for the
second quarter of 2007.

Year-to-Date Results

Revenues of $282.8 million for the first six months of 2008
increased 20.7% from $234.3 million for the first half of 2007. The
Company's first half 2008 operating income increased 5.6% to $40.9
million compared to $38.7 million in the first half of 2007. Net
income was $20.0 million, or $1.10 per diluted share, for the first
half of 2008 compared to $19.9 million, or $1.11 per diluted share,
for the same period last year. Financial results for the first half of
2007 included $4.5 million of rapid amortization of intangible
assets. There was no rapid amortization in the first half of 2008.

EBITDA(8) for both the first half of 2008 and 2007 was $51.4
million, or 18.2% of revenues in 2008 and 22.0% of revenues in 2007.
Adjusted EBITDA(8), which excludes share-based compensation expense,
rose 7.4% to $65.0 million, or 23.0% of revenues, compared to $60.5
million, or 25.8% of revenues, in the comparable period last year.

The average number of full-time billable consultants(4) increased
32.1% to 1,223 in the first half of 2008 compared to 926 in the same
period last year. The average number of full-time equivalent
professionals(7) increased 83.0% to 807 in the first half of 2008
compared to 441 for the comparable period in 2007. Full-time billable
consultant utilization rate was 65.9% during the first half of 2008
compared with 78.0% during the same period last year. Average billing
rate per hour for full-time billable consultants was $275 for the
first half of 2008 compared to $276 for the first half of 2007.

Operating Segments Results

Huron continues to demonstrate the success of its broad portfolio
of service offerings with solid revenue growth based upon strong
market demand. The Company's operating segments are as follows: Health
and Education Consulting; Financial Consulting; Legal Consulting; and
Corporate Consulting.

Segment results are included in the attached schedules and in
Huron's Form 10-Q filing for the quarter ended June 30, 2008.

Stockamp & Associates Acquisition

On July 8, 2008, Huron announced the acquisition of the assets of
Stockamp & Associates, Inc., a nationally recognized management
consulting firm specializing in helping high-performing hospitals and
health systems optimize their financial and operational performance.

The initial purchase price was made for approximately $219
million, consisting of $169 million in cash and $50 million in stock,
subject to adjustment. Additional purchase consideration will be
payable if specific performance targets are met.

In the 12 months ended March 31, 2008, Stockamp had cash basis
revenues of approximately $94 million.

Workforce Reductions

During July 2008, the Company initiated reductions in workforce to
balance its employee base with current revenue expectations, market
demand, and areas of focus. These initiatives will include the
elimination of the operational consulting group within the Corporate
Consulting segment and a reduction in the number of consultants in the
Financial Consulting segment. The Company estimates restructuring and
severance charges relating to the workforce reductions of
approximately $2 million.

Outlook for the Remainder of 2008

The table below presents the components of the Company's outlook
based on currently available information, for both the low and high
end of the ranges, for the third quarter and the full year 2008 (in
millions except earnings per share):

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Legacy Restructuring Combined
Huron (1) Stockamp (2) and Huron
------------- --------------- Severance -------------
Low High Low High Impact (3) Low High
------ ------ ------- ------- ------------- ------ ------
Third Quarter
2008
-------------
Revenues $152.0-$157.0 $ 14.0 -$ 16.0 $ (2.0) $164.0-$171.0
EBITDA $ 32.0-$ 35.0 $ (1.5)-$ -- $ (2.5) $ 28.0-$ 32.5
Operating
Income $ 26.0-$ 29.5 $ (5.0)-$ (4.0) $ (2.5) $ 18.5-$ 23.0
Diluted EPS $ 0.72-$ 0.82 $(0.26)-$(0.24) $ (0.08) $ 0.38-$ 0.50

Full Year
2008
-------------
Revenues $595.0-$615.0 $ 35.0 -$ 40.0 $ (5.0) $625.0-$650.0
EBITDA $116.5-$124.5 $ 4.5 -$ 6.5 $ (2.5) $118.5-$128.5
Operating
Income $ 94.5-$102.5 $ (4.0)-$ (2.0) $ (2.5) $ 88.0-$ 98.0
Diluted EPS $ 2.53-$ 2.77 $(0.35)-$(0.30) $ (0.08) $ 2.10-$ 2.39

-------------
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(1) The Legacy Huron column represents revenues and earnings estimates
without giving consideration to the acquisition of Stockamp, the
impact of the elimination of the operational consulting group
within the Corporate Consulting segment, and the severance
charges relating to the workforce reductions as described above.

(2) While the Stockamp acquisition will be dilutive to 2008 earnings,
it should be accretive to 2009 earnings, as we estimate Stockamp
will have revenues in excess of $100 million for 2009 and should
have comparable operating metrics to our Health and Education
Consulting segment. Based on a preliminary valuation that is
subject to refinement, estimated results for the third quarter
and full year 2008 also include estimates for intangible assets
amortization totaling $3.5 million and $5.0 million,
respectively, of which $2.0 million and $3.2 million,
respectively, represents rapid amortization. This column also
includes the estimated interest cost associated with the
acquisition as well as dilution resulting from shares issued in
connection with the acquisition.

(3) The Restructuring and Severance Impact column represents estimated
revenues and earnings foregone due to the elimination of the
operational consulting group and includes $2 million in severance
charges relating to the workforce reductions.
*T

Share-based compensation expense of approximately $7.5 million and
$28.0 million is included in the Q3 and full year 2008 estimates,
respectively. Weighted average diluted share counts for 2008 are
estimated to be 19.9 million for Q3 2008 and 19.1 million for full
year 2008.

Second Quarter 2008 Webcast

The Company will host a webcast to discuss its financial results
today at 11:00 a.m. Eastern Time (10:00 a.m. Central Time). The
conference call is being webcast by Thomson and can be accessed at
Huron Consulting Group's website at
www.huronconsultinggroup.com/webcasts.aspx. A replay will be available
approximately two hours after the end of the webcast and for 90 days
thereafter.

About Huron Consulting Group

Huron Consulting Group helps clients effectively address complex
challenges that arise in litigation, disputes, investigations,
regulatory compliance, procurement, financial distress, and other
sources of significant conflict or change. The Company also helps
clients deliver superior customer and capital market performance
through integrated strategic, operational, and organizational change.
Huron provides services to a wide variety of both financially sound
and distressed organizations, including Fortune 500 companies,
medium-sized businesses, leading academic institutions, healthcare
organizations, and the law firms that represent these various
organizations. Learn more at www.huronconsultinggroup.com.

Statements in this press release that are not historical in
nature, including those concerning Huron Consulting Group's current
expectations about the Company's future results are "forward-looking"
statements as defined in Section 21E of the Securities Exchange Act of
1934 and the Private Securities Litigation Reform Act of 1995.
Forward-looking statements are identified by words such as "may,"
"should," "expects," "plans," "anticipates," "believes," "estimates,"
or "continues." These forward-looking statements reflect our current
expectation about our future results, levels of activity, performance
or achievements, including without limitation, that our business
continues to grow at the current expectations with respect to, among
other factors, utilization rates, billing rates, and number of
revenue-generating professionals; that we are able to expand our
service offerings; that we successfully integrate the businesses we
acquire; and that existing market conditions, including those in the
credit markets, do not change from current expectations. These
statements involve known and unknown risks, uncertainties and other
factors that may cause actual results, levels of activity, performance
or achievements to be materially different from any future results,
levels of activity, performance or achievements expressed or implied
by these forward-looking statements. Therefore, you should not place
undue reliance on these forward-looking statements. Please see "Risk
Factors" in our 2007 Annual Report on Form 10-K and in other documents
we file with the Securities and Exchange Commission for a complete
description of the material risks we face.

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HURON CONSULTING GROUP INC.
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)

Three months ended Six months ended
June 30, June 30,
------------------- -------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Revenues and reimbursable
expenses:
Revenues $143,408 $118,266 $282,802 $234,275
Reimbursable expenses 12,565 10,910 24,178 20,945
--------- --------- --------- ---------
Total revenues and
reimbursable expenses 155,973 129,176 306,980 255,220
Direct costs and reimbursable
expenses
(exclusive of depreciation and
amortization shown in
operating expenses):
Direct costs 85,991 66,508 169,435 133,411
Intangible assets amortization 24 2,304 48 4,544
Reimbursable expenses 12,578 10,814 24,188 20,931
--------- --------- --------- ---------
Total direct costs and
reimbursable expenses 98,593 79,626 193,671 158,886
--------- --------- --------- ---------
Operating expenses:
Selling, general and
administrative 31,780 25,606 61,942 49,433
Depreciation and amortization 5,370 4,177 10,508 8,219
--------- --------- --------- ---------
Total operating expenses 37,150 29,783 72,450 57,652
--------- --------- --------- ---------
Operating income 20,230 19,767 40,859 38,682
Other income (expense):
Interest income (expense), net (2,294) (1,825) (4,127) (3,250)
Other income (expense) (35) 95 (329) 125
--------- --------- --------- ---------
Total other expense (2,329) (1,730) (4,456) (3,125)
--------- --------- --------- ---------
Income before provision for
income taxes 17,901 18,037 36,403 35,557
Provision for income taxes 8,092 7,936 16,381 15,645
--------- --------- --------- ---------
Net income $ 9,809 $ 10,101 $ 20,022 $ 19,912
========= ========= ========= =========

Earnings per share:
Basic $ 0.56 $ 0.60 $ 1.15 $ 1.19
Diluted $ 0.54 $ 0.56 $ 1.10 $ 1.11

Weighted average shares used in
calculating earnings per
share:
Basic 17,558 16,842 17,465 16,784
Diluted 18,178 17,993 18,197 17,881

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HURON CONSULTING GROUP INC.
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)

June 30, December 31,
2008 2007
----------------------------------------------------------------------
Assets
Current assets:
Cash and cash equivalents $ 14,335 $ 2,993
Receivables from clients, net 90,198 86,867
Unbilled services, net 43,255 28,245
Income tax receivable 7,636 13,492
Deferred income taxes 13,960 13,680
Prepaid expenses and other current assets 13,298 10,435
------------ ------------
Total current assets 182,682 155,712
Property and equipment, net 44,378 38,147
Deferred income taxes 2,662 3,628
Other non-current assets 12,876 8,737
Intangible assets, net 10,519 13,936
Goodwill 246,386 223,053
------------ ------------
Total assets $ 499,503 $ 443,213
============ ============

Liabilities and stockholders' equity
Current liabilities:
Accounts payable $ 8,138 $ 5,823
Accrued expenses 16,206 17,748
Accrued payroll and related benefits 29,490 58,279
Accrued consideration for business
acquisitions -- 32,422
Income tax payable 2,843 1,342
Deferred revenues 7,377 5,278
Note payable and current portion of capital
lease obligations 23,246 1,309
------------ ------------
Total current liabilities 87,300 122,201
Non-current liabilities:
Deferred compensation and other liabilities 5,233 3,795
Capital lease obligations, net of current
portion 127 234
Bank borrowings 179,500 123,500
Deferred lease incentives 9,046 9,699
------------ ------------
Total non-current liabilities 193,906 137,228
Commitments and contingencies -- --
Stockholders' equity
Common stock; $0.01 par value; 500,000,000
shares authorized; 19,553,211 and 19,279,176
shares issued at June 30, 2008 and December
31, 2007, respectively 185 182
Treasury stock, at cost, 328,428 and 589,755
shares at June 30, 2008 and December 31,
2007, respectively (18,297) (20,703)
Additional paid-in capital 128,128 116,148
Retained earnings 108,123 88,101
Accumulated other comprehensive income 158 56
------------ ------------
Total stockholders' equity 218,297 183,784
------------ ------------
Total liabilities and stockholders' equity $ 499,503 $ 443,213
============ ============

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HURON CONSULTING GROUP INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

Six months ended
June 30,
---------------------
2008 2007
---------- ----------
Cash flows from operating activities:
Net income $ 20,022 $ 19,912
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 10,556 12,763
Deferred income taxes 687 (7,171)
Share-based compensation 13,568 9,051
Allowances for doubtful accounts and unbilled
services 1,172 4,219
Changes in operating assets and liabilities,
net of businesses acquired:
Increase in receivables from clients (1,647) (19,623)
Increase in unbilled services (17,866) (12,741)
Decrease in income tax receivable / payable,
net 7,356 1,987
Increase in other assets (5,755) (8,572)
Increase in accounts payable and accrued
liabilities 3,357 3,880
Decrease in accrued payroll and related
benefits (28,789) (7,324)
Increase (decrease) in deferred revenues 2,099 (1,599)
---------- ----------
Net cash provided by (used in) operating
activities 4,760 (5,218)
---------- ----------

Cash flows from investing activities:
Purchases of property and equipment, net (13,324) (8,094)
Net investment in life insurance policies (1,249) (1,641)
Purchases of businesses, net of cash acquired (34,554) (98,345)
---------- ----------
Net cash used in investing activities (49,127) (108,080)
---------- ----------

Cash flows from financing activities:
Proceeds from exercise of stock options 181 405
Shares redeemed for employee tax withholdings (5,744) (1,894)
Tax benefit from share-based compensation 6,384 3,866
Proceeds from borrowings under line of credit 173,500 184,500
Repayments on line of credit (117,500) (85,500)
Principal payment of note payable and capital
lease obligations (1,214) (1,141)
---------- ----------
Net cash provided by financing activities 55,607 100,236
---------- ----------

Effect of exchange rate changes on cash 102 (73)
---------- ----------

Net increase (decrease) in cash and cash
equivalents 11,342 (13,135)
Cash and cash equivalents at beginning of the
period 2,993 16,572
---------- ----------
Cash and cash equivalents at end of the period $ 14,335 $ 3,437
========== ==========

Supplemental disclosure of cash flow information:
Non-cash investing activity:
Issuance of note payable for purchase of a
business $ 23,000 $ --

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HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA
(Unaudited)

Three Months Ended
June 30,
------------------- Percent
Segment and Consolidated Operating Increase
Results (in thousands): 2008 2007 (Decrease)
----------------------------------------------------------------------
Revenues and reimbursable expenses:
Health and Education Consulting $ 56,696 $ 42,810 32.4%
Financial Consulting 34,789 32,669 6.5%
Legal Consulting 30,498 22,795 33.8%
Corporate Consulting 21,425 19,992 7.2%
--------- ---------
Total revenues 143,408 118,266 21.3%
Total reimbursable expenses 12,565 10,910 15.2%
--------- ---------
Total revenues and reimbursable
expenses $155,973 $129,176 20.7%
========= =========
Operating income:
Health and Education Consulting $ 22,679 $ 14,021 61.8%
Financial Consulting 7,980 15,281 (47.8%)
Legal Consulting 10,076 7,272 38.6%
Corporate Consulting 6,617 5,920 11.8%
--------- ---------
Total segment operating income 47,352 42,494 11.4%
Operating expenses not allocated to
segments 27,122 22,727 19.3%
--------- ---------
Total operating income $ 20,230 $ 19,767 2.3%
========= =========

Other Operating Data:
----------------------------------------------------------------------
Number of full-time billable
consultants (at period end) (4):
Health and Education Consulting 489 355 37.7%
Financial Consulting 338 291 16.2%
Legal Consulting 159 126 26.2%
Corporate Consulting 221 168 31.5%
--------- ---------
Total 1,207 940 28.4%
Average number of full-time billable
consultants (for the period) (4):
Health and Education Consulting 481 356
Financial Consulting 352 288
Legal Consulting 166 122
Corporate Consulting 225 170
--------- ---------
Total 1,224 936
Full-time billable consultant
utilization rate (5):
Health and Education Consulting 80.8% 80.5%
Financial Consulting 51.9% 74.6%
Legal Consulting 62.6% 79.0%
Corporate Consulting 62.3% 77.1%
Total 66.8% 77.9%
Full-time billable consultant average
billing rate per hour (6):
Health and Education Consulting $ 267 $ 255
Financial Consulting $ 285 $ 311
Legal Consulting $ 236 $ 247
Corporate Consulting $ 303 $ 311
Total $ 273 $ 281
Revenue per full-time billable
consultant (in thousands):
Health and Education Consulting $ 106 $ 99
Financial Consulting $ 66 $ 111
Legal Consulting $ 68 $ 85
Corporate Consulting $ 91 $ 114
Total $ 87 $ 104

HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED)
(Unaudited)

Three Months Ended
June 30, Percent
-------------------- Increase
Other Operating Data: 2008 2007 (Decrease)
----------------------------------------------------------------------
Average number of full-time equivalents
(for the period) (7):
Health and Education Consulting 50 60 (16.7%)
Financial Consulting 185 6 N/M
Legal Consulting 619 341 81.5%
Corporate Consulting 9 6 50.0%
--------- ---------
Total 863 413 109.0%
Revenue per full-time equivalents (in
thousands):
Health and Education Consulting $ 113 $ 125
Financial Consulting $ 63 $ 97
Legal Consulting $ 31 $ 36
Corporate Consulting $ 98 $ 91
Total $ 43 $ 51

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HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED)
(Unaudited)

Six Months Ended
June 30,
------------------- Percent
Segment and Consolidated Operating Increase
Results (in thousands): 2008 2007 (Decrease)
----------------------------------------------------------------------
Revenues and reimbursable expenses:
Health and Education Consulting $107,784 $ 81,662 32.0%
Financial Consulting 73,600 69,281 6.2%
Legal Consulting 55,721 46,066 21.0%
Corporate Consulting 45,697 37,266 22.6%
--------- ---------
Total revenues 282,802 234,275 20.7%
Total reimbursable expenses 24,178 20,945 15.4%
--------- ---------
Total revenues and reimbursable
expenses $306,980 $255,220 20.3%
========= =========
Operating income:
Health and Education Consulting $ 44,811 $ 26,221 70.9%
Financial Consulting 17,569 31,456 (44.1%)
Legal Consulting 16,663 15,174 9.8%
Corporate Consulting 15,994 10,116 58.1%
--------- ---------
Total segment operating income 95,037 82,967 14.5%
Operating expenses not allocated to
segments 54,178 44,285 22.3%
--------- ---------
Total operating income $ 40,859 $ 38,682 5.6%
========= =========

Other Operating Data:
----------------------------------------------------------------------
Number of full-time billable
consultants (at period end) (4):
Health and Education Consulting 489 355 37.7%
Financial Consulting 338 291 16.2%
Legal Consulting 159 126 26.2%
Corporate Consulting 221 168 31.5%
--------- ---------
Total 1,207 940 28.4%
Average number of full-time billable
consultants (for the period) (4):
Health and Education Consulting 467 350
Financial Consulting 360 284
Legal Consulting 170 122
Corporate Consulting 226 170
--------- ---------
Total 1,223 926
Full-time billable consultant
utilization rate (5):
Health and Education Consulting 79.5% 79.4%
Financial Consulting 51.9% 79.8%
Legal Consulting 60.1% 77.3%
Corporate Consulting 63.8% 72.7%
Total 65.9% 78.0%
Full-time billable consultant average
billing rate per hour (6):
Health and Education Consulting $ 268 $ 252
Financial Consulting $ 276 $ 304
Legal Consulting $ 235 $ 243
Corporate Consulting $ 317 $ 302
Total $ 275 $ 276
Revenue per full-time billable
consultant (in thousands):
Health and Education Consulting $ 210 $ 193
Financial Consulting $ 131 $ 237
Legal Consulting $ 133 $ 163
Corporate Consulting $ 196 $ 213
Total $ 174 $ 206

HURON CONSULTING GROUP INC.
SEGMENT OPERATING RESULTS AND OTHER OPERATING DATA (CONTINUED)
(Unaudited)

Six Months Ended
June 30, Percent
-------------------- Increase
Other Operating Data: 2008 2007 (Decrease)
----------------------------------------------------------------------
Average number of full-time equivalents
(for the period) (7):
Health and Education Consulting 43 60 (28.3%)
Financial Consulting 212 8 N/M
Legal Consulting 544 368 47.8%
Corporate Consulting 8 5 60.0%
--------- ---------
Total 807 441 83.0%
Revenue per full-time equivalents (in
thousands):
Health and Education Consulting $ 223 $ 234
Financial Consulting $ 124 $ 256
Legal Consulting $ 61 $ 71
Corporate Consulting $ 181 $ 223
Total $ 87 $ 98

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(4) Consists of our full-time professionals who provide consulting
services and generate revenues based on the number of hours
worked.
(5) Utilization rate for our full-time billable consultants is
calculated by dividing the number of hours all our full-time
billable consultants worked on client assignments during a period
by the total available working hours for all of these consultants
during the same period, assuming a forty-hour work week, less
paid holidays and vacation days.
(6) Average billing rate per hour for our full-time billable
consultants is calculated by dividing revenues for a period by
the number of hours worked on client assignments during the same
period.
(7) Consists of consultants who work variable schedules as needed by
our clients, as well as contract reviewers and other
professionals who generate revenues primarily based on number of
hours worked and units produced, such as pages reviewed and data
processed.
N/M Not meaningful, change greater than 500%.
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HURON CONSULTING GROUP INC.

RECONCILIATION OF OPERATING INCOME TO ADJUSTED EARNINGS BEFORE
INTEREST, TAXES, DEPRECIATION AND AMORTIZATION (8)
(in thousands)

Three months ended Six months ended
June 30, June 30,
------------------- -------------------
2008 2007 2008 2007
--------- --------- --------- ---------
Revenues $143,408 $118,266 $282,802 $234,275
========= ========= ========= =========

Operating income $ 20,230 $ 19,767 $ 40,859 $ 38,682
Add back:
Depreciation and amortization 5,394 6,481 10,556 12,763
--------- --------- --------- ---------
Earnings before interest,
taxes, depreciation and
amortization (EBITDA) (8) 25,624 26,248 51,415 51,445
Add back:
Share-based compensation 7,150 4,845 13,568 9,051
--------- --------- --------- ---------
Adjusted EBITDA (8) $ 32,774 $ 31,093 $ 64,983 $ 60,496
========= ========= ========= =========
Adjusted EBITDA as a percentage
of revenues 22.9% 26.3% 23.0% 25.8%
========= ========= ========= =========

RECONCILIATION OF NET INCOME TO ADJUSTED NET INCOME (8)
(in thousands)

Three months ended Six months ended
June 30, June 30,
------------------- -------------------
2008 2007 2008 2007
--------- --------- -------- ---------
Net income $ 9,809 $ 10,101 $20,022 $ 19,912
========= ========= ======== =========
Diluted earnings per share $ 0.54 $ 0.56 $ 1.10 $ 1.11
========= ========= ======== =========
Add back:
Amortization of intangible
assets 1,694 3,868 3,418 7,657
Share-based compensation 7,150 4,845 13,568 9,051
Tax effect (3,618) (3,564) (6,948) (6,834)
--------- --------- -------- ---------
Total adjustments, net of
tax 5,226 5,149 10,038 9,874
--------- --------- -------- ---------
Adjusted net income (8) $ 15,035 $ 15,250 $30,060 $ 29,786
========= ========= ======== =========
Adjusted diluted earnings per
share (8) $ 0.83 $ 0.85 $ 1.65 $ 1.67
========= ========= ======== =========

-------------------------------
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*T
(8) In evaluating the Company's financial performance, management uses
earnings before interest, taxes, depreciation and amortization
("EBITDA"), adjusted EBITDA, and adjusted net income, which are
non-GAAP measures. Management believes that the use of such
measures, as supplements to operating income, net income and
other GAAP measures, are useful indicators of the Company's
financial performance and its ability to generate cash flows from
operations that are available for taxes and capital expenditures.
Investors should recognize that these non-GAAP measures might not
be comparable to similarly titled measures of other companies.
These measures should be considered in addition to, and not as a
substitute for or superior to, any measure of performance, cash
flows or liquidity prepared in accordance with accounting
principles generally accepted in the United States.
*T

Huron Consulting Group
Media Contact:
Jennifer Frost Hennagir
312-880-3260
jfrost-hennagir@huronconsultinggroup.com
or
Investor Contact:
Gary L. Burge, Chief Financial Officer
312-583-8722
investor@huronconsultinggroup.com

Copyright Business Wire 2008