ARCADIS On Track With New Strategy; Net Income Up by 18%; Outlook 2001 Positive.

Business Editors

ARNHEM, The Netherlands--(BUSINESS WIRE)--March 22, 2001

ARCADIS (Nasdaq:ARCAF; ASE:ARCAD) today reported results for the fourth quarter and full year ended December 31, 2000. In the year 2000, ARCADIS achieved net income of EUR 20.7 million, 18% higher than in 1999. Net income per share rose to EUR 1.04 an increase of 16%. The results reflect the initial impact of ARCADIS' revised strategy, which was introduced in 2000. Development of operating income was good and increased by 26%, pushing the EBIT-margin (EBIT as a percentage of net revenue) from 6.1% to 6.4%. These results are in line with the financial goals presented in the strategy review.

2000 Full-Year Financial Highlights

-- Net income: EUR 20.7 million, 18% more than the EUR 17.6 million in 1999

-- Net income per share: increased 16% to EUR 1.04 versus EUR 0.90 in 1999

-- Gross revenue: 18% higher at EUR 776.2 million from EUR 655.5 million in
1999

-- Operating income: up 26% to EUR 35.2 million from EUR 27.8 million in 1999

2000 Fourth Quarter Highlights

-- Net income: EUR 7.2 million, 16% more than the EUR 6.2 million

in 1999

-- Net income per share: EUR 0.37 compared to EUR 0.32 in 1999

-- Gross revenue: 11% higher at EUR 217.5 million from EUR 195.5

million in 1999

-- Operating income: up 30% to EUR 11.5 million from EUR 8.8

million in 1999

Management proposes to raise the dividend by 18% to EUR 0.39 per share, compared to EUR 0.33 per share in 1999. In view of Dutch tax law changes, shareholders will no longer be offered the option to receive their dividend in stock. Instead, the year 2000 dividend will be fully distributed in cash.

The strong increase in net income reflects the predominantly favorable economic climate in most of the Company's markets, with ARCADIS' American operations demonstrating particularly good growth in both revenues and profits. The Dutch activities also contributed to growth, although this contribution was more modest. In addition, net income was higher as a result of the acquisition of ARCADIS Giffels in the United States and ARCADIS Logos in Brazil, both of which have been contributing to earnings since the fourth quarter of 1999. The higher exchange rate of the dollar against the Euro also contributed to the earnings improvement.

Net income improvement lagged the improvement in operating income due to an increase in the Company's tax rate, as a larger proportion of ARCADIS' profits are being generated in the United States. Net income was also affected by a lower contribution from non-consolidated companies due to substantial non-recurring dividend income which was received from one of these companies in 1999.

At 7%, organic revenue growth was considerably higher in 2000 than in past years. Of the total increase in gross revenues of more than 18%, another 6% resulted from acquisitions and approximately 5% resulted from the higher exchange rate of the dollar against the Euro. Strong growth in the United States, combined with the higher dollar exchange rate, impacted the geographical distribution of revenues. In line with the Company's revised strategy, revenues are broken down into three regions: the Netherlands (including ARCADIS Euroconsult); other European countries (Belgium, Germany, Poland, Spain, United Kingdom); and North and South America (United States, Brazil and Chile). Of total gross revenues in 2000, 44% was generated in the Netherlands (1999: 51%), while 18% came from other European countries (1999: 21%) and the remaining 38% from North and South America (1999: 28%).

Both balance sheet and operational cash flow improved considerably compared to the prior year. Solvency, defined as group equity as a proportion of the balance sheet total, rose to 37.4% at year-end 2000 compared with 32.8% at year-end 1999. This improvement primarily resulted from steps the Company has taken to improve working capital management. This also resulted in a strong rise in operational cash flow for 2000, which more than doubled to EUR 49.7 million, versus EUR 23.9 million in 1999.

Commenting on these results, Harrie L.J. Noy, Chairman of the Executive Board of ARCADIS said: "It is clear that our revised strategy is creating a positive impact on our performance. The improvement of operating income indicates that our policy of focusing on margin improvement is paying off. The increased level of organic growth in comparison to prior years is also positive and in line with our strategy. With these results and a much stronger focus on growth segments in our existing geographical markets, we have created a solid basis for the realization of our goals in future years."

Market Developments

ARCADIS is active in four market segments: infrastructure, buildings, environment and communications.

Infrastructure

In 2000, infrastructure was the most important market segment for ARCADIS, representing 38% of total gross revenues (1999: 38%). Growth in this segment was 17%. Developments in this market were positive in almost all areas, with both the public and private sectors investing heavily in the expansion and improvement of infrastructure. Market demand in the United States was fuelled by the Transportation Equity Act (TEA-21), which provides federal funding of $200 billion over 5 years (1998-2002). In the Netherlands, large-scale rail infrastructure projects contributed to a favorable market climate. ARCADIS has a strong position in this market and is involved in several projects for the development of new infrastructure, such as a freight rail line, high-speed rail connections and more traditional network expansions. In addition, the Company is involved in improvements to existing infrastructure. At the level of municipalities, a considerable amount of projects are being done in the area of expansion or revitalization of industrial parks, development of new housing estates and restructuring of urban areas. Public-private partnerships are increasingly popular in the realization of these projects. This approach is also gaining ground in Germany and Belgium. In Brazil, growing demand for roads, light rail systems and infrastructure for the power sector resulted in growth of the Company's activities in these infrastructure markets.

Environment

ARCADIS' environmental business saw strong growth of 20% in 2000. Of total gross revenues, 26% was derived from this segment (1999: 26%). Strong demand in the United States' environmental market was the main growth factor. The European environmental market was stable. As a result of favorable economic conditions, companies have been willing to invest in the solution of environmental issues. Growth in the Company's environmental activities was also driven by ARCADIS' unique capability to serve multinational clients globally. The guaranteed remediation program (GRiP(TM)), which ARCADIS introduced a number of years ago, is a distinguishing feature in the market, and its use in the marketplace is generating client interest and increasing revenues. This approach reduces client risk and speeds the implementation of remedial solutions. In the Netherlands, more lenient legislation in the field of soil remediation has created pressure on the amount of soil which is offered for clean up. For this reason, ARCADIS decided to sell its environmental contracting activities to AVR Group in Rotterdam, the Netherlands, at the beginning of the fourth quarter of 2000.

Buildings

In the buildings market, gross revenues increased sharply by 30%, growing to 18% of overall revenues in 2000 (1999: 16%). This growth is predominantly the result of the acquisition of ARCADIS Giffels in the United States. The specialized knowledge base of this company in the industrial engineering sector is a strong additional asset in ARCADIS' services package for industrial clients. In the Netherlands, the buildings market was favorable, but gross revenues in this segment declined because ARCADIS shifted its focus onto other, higher value-added market segments. In Germany, market demand was at a low level and the Company reduced its capacity in this market in response. The Company did, however, win a project for the renovation of the Olympia stadium in Berlin, aimed at bringing the stadium up to par with current demands in preparation of its reopening for the soccer world championships in 2006. In Spain, gross revenue rose due to solid market demand in combination with ARCADIS' capability to deliver turnkey projects.

Communications

The communications segment, which includes the Company's real estate information and telecommunications activities, contributed 15% of total gross revenues in 2000 (1999: 15%) and grew by 18% overall. Both types of activities contributed to the increase. The growth in the telecommunications market included both infrastructure for wireline, such as glass fiber and so called telehotels (switching points in these networks) as well as infrastructure for the expansion of GSM networks. In the telecommunications business, ARCADIS is concentrating on six countries: the United States, the Netherlands, Belgium, Germany, Spain and Brazil. The Company's international network, combined with its excellent relationships and reputation with local governments make it a logical partner for the expansion of telecommunications infrastructure. The Dutch real estate information market grew considerably as a result of the new round of real estate valuations that were completed under the Real Estate Valuation law.

Outlook

In most markets, conditions for ARCADIS' businesses are favorable and continue to offer opportunities for the Company. In the Dutch infrastructure market, the large rail infrastructure projects as well as investments in industrial estates and in urban and rural restructuring are creating a favorable market climate. The infrastructure market in the U.S. will continue to benefit from the TEA-21 funding, while a new program with similar funding levels is expected after the existing legislation runs out in 2 years. In Brazil, infrastructure work for the power industry is expected to contribute to further growth. The insecurity with regard to the development of the American economy has not affected order intake in the United States, which was at a good level in the first few months of 2001. While the pace of investments in the telecommunications market has decreased, ARCADIS expects to be able to grow its activities in this field in Germany and Spain. Furthermore the company expects to benefit from the changing economic conditions, which will contribute to the willingness of companies to outsource non-core activities. Given ARCADIS' excellent position with national and multinational companies, the Company expects to generate further growth in this segment.

Chairman Harrie Noy concluded: "We expect to be able to reach our strategic objectives in 2001 by strong growth in infrastructure and telecommunications as well as by expansion of our services to industry, all in line with the strategy review. In addition, we will continue our focus on margin improvement, particularly in the Netherlands. Provided that the U.S. economy remains stable, and barring other unforeseen circumstances, we expect net income to grow by at least 10% in 2001, excluding the effect of possible new acquisitions."

ARCADIS is an international knowledge-based services organization in the fields of infrastructure, buildings, environment and communications. Wherever the Company operates it aims to improve the physical quality of the living and working environment. From strong local market positions the Company works on integrated projects for public and private sector clients. Founded in 1888, ARCADIS currently has some 8,000 employees. The Company belongs to the top ten in its business worldwide.

Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include, among others, risks associated with possible changes in environmental legislation and risks with regard to the Company's ability to acquire and execute projects. These and other risks are described in ARCADIS' filings with the Securities and Exchange Commission over the last 12 months, copies of which will be available from the SEC or may be obtained upon request from the Company.

Auditors' report as referred to in section 395, para 2, Book 2 of the Netherlands Civil Code:

We have audited the accompanying consolidated income statement, the condensed consolidated balance sheet, and the condensed consolidated cash flow statement, which are derived from the 2000 financial statements of ARCADIS NV as audited by us. We issued an unqualified auditors' report on these financial statements on March 21, 2001.

The consolidated income statement, the condensed consolidated balance sheet, and the condensed consolidated cash flow statement are the responsibility of the Company's management. Our responsibility is to express an opinion on the consolidated income statement, the condensed consolidated balance sheet and the condensed consolidated cash flow statement based on our audit.

In our opinion, the consolidated income statement, the condensed consolidated balance sheet, and the condensed consolidated cash flow statement correspond in all material respects with the financial statements from which they are derived.

For a more comprehensive view of the financial position and results of the Company and the scope of our audit, the consolidated income statement, the condensed consolidated balance sheet, and the condensed consolidated cash flow statement should be read in conjunction with the complete financial statements from which they are derived and the auditors' report we issued thereon.

Arnhem, March 21, 2001

KPMG Accountants N.V.

                              ARCADIS NV
                CONSOLIDATED STATEMENT OF INCOME IN EUR
           (Amounts x 1 million, except per share amounts)


                                                  End of
                               4th quarter      4th quarter
                               2000    1999    2000      1999
Gross revenue                 217.5   195.5   776.2     655.5
Materials, services of
third parties                  69.1    63.5   225.3     195.7
Net revenue                   148.4   132.0   550.9     459.8
Operational cost              131.7   118.3   497.8     415.8
Depreciation                    5.2     4.9    17.9      16.2
Operating income               11.5     8.8    35.2      27.8
Financing income/
expenses, net                  (1.1)   (0.5)   (3.3)     (2.3)

Income before taxes            10.4     8.3    31.9      25.5
Taxes                         (3.1)   (2.2)  (11.2)     (8.5)
Income after taxes              7.3     6.1    20.7      17.0
Income from non-                0.2     0.4     0.8       1.4
consolidated companies
Group income after taxes        7.5     6.5    21.5      18.4
Minority interest             (0.3)   (0.3)   (0.8)     (0.8)
Net income                      7.2     6.2    20.7      17.6
Net income per share (1)       0.37    0.32    1.04      0.90

Number of shares
outstanding (in thousands)   20,275  19,769  20,275    19,769

(1) Net income per share is based on the weighted average number of
outstanding shares.



                              ARCADIS NV
                CONSOLIDATED STATEMENT OF INCOME IN US$
           (Amounts x 1 million, except per share amounts)

                                                      End of
                                4th quarter        4th quarter
                               2000     1999      2000      1999

Gross revenue                 188.7    202.6     713.2     696.2
Materials, services of         60.0     65.8     206.4     207.3
third parties
Net revenue                   128.7    136.8     506.8     488.9
Operational cost              114.2    122.7     458.2     442.2
Depreciation                    4.6      5.0      16.5      17.2
Operating income                9.9      9.1      32.1      29.5
Financing income/
expenses, net                 (0.9)    (0.5)     (3.0)     (2.4)

Income before taxes             9.0      8.6      29.1      27.1
Taxes                         (2.7)    (2.4)    (10.3)     (9.1)
Income after taxes              6.3      6.2      18.8      18.0
Income from non-                0.2      0.5       0.8       1.4
consolidated companies
Group income after taxes        6.5      6.7      19.6      19.4
Minority interest             (0.2)    (0.3)     (0.7)     (0.8)
Net income                      6.3      6.4      18.9      18.6
Net income per share (1)       0.31     0.33      0.94      0.95

Number of shares             20,275   19,769    20,275    19,769
outstanding (in
thousands)
Dollar exchange rate 1st quarter $ 1=             1.01      0.89
Dollar exchange rate 2nd quarter $ 1=             1.07      0.95
Dollar exchange rate 3rd quarter $ 1=             1.11      0.95
Dollar exchange rate 4th quarter $ 1=             1.15      0.96

(1) Net income per share is based on the weighted average number of
outstanding shares.

ARCADIS NV
CONDENSED CONSOLIDATED BALANCE SHEET IN EUR
(Amounts x 1 million, except per share              End of
amounts)
ASSETS                                        2000          1999
Fixed assets                                  58.2          63.1
Current assets                               240.6         233.2

TOTAL                                        298.8         296.3

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities                          149.6         177.0

Long term debt                                23.1           5.7
Provisions                                    14.4          16.4
Total equity                                 111.7          97.2

TOTAL                                        298.8         296.3


ARCADIS NV
CONDENSED CONSOLIDATED BALANCE SHEET IN US$
(Amounts x 1 million, except per share              End of
amounts)
ASSETS                                         2000          1999
Fixed assets                                   54.1          63.4
Current assets                                223.9         234.2

TOTAL                                         278.0         297.6

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities                           139.1         177.8
Long term debt                                 21.5           5.7
Provisions                                     13.4          16.5
Total equity                                  104.0          97.6

TOTAL                                         278.0         297.6

Calculated with US dollar rate of $1.00= EUR:  1.07          1.00


ARCADIS NV
CONDENSED CONSOLIDATED CASH FLOW
X EUR 1 million                                       End of
                                               2000          1999
Net income                                     20.7          17.6
Depreciation                                   18.0          16.1
Gross cash flow                                38.7          33.7
Net working capital                            13.6         (6.9)
Other changes                                 (2.6)         (2.9)
Total operational cash flow                    49.7          23.9

Investments (net) in:
(In-)tangible fixed assets                   (14.4)        (17.0)
Acquisitions                                  (3.8)        (11.9)
Total financing activities                   (25.2)           7.0
Total changes in cash & cash                    6.3           2.0
equivalents


ARCADIS NV
CONDENSED CONSOLIDATED CASH FLOW
X US$ 1 million                                      End of
                                              2000          1999
Net income                                    18.9          18.6
Depreciation                                  16.5          17.2
Gross cash flow                               35.4          35.8
Net working capital                           12.7         (7.0)
Other changes                                (2.5)         (2.9)
Total operational cash flow                   45.6          25.9

Investments (net) in:
(In-)tangible fixed assets                  (13.4)        (17.1)
Acquisitions                                 (3.5)        (11.9)
Total financing activities                  (22.8)           5.1
Total changes in cash & cash                   5.9           2.0
equivalents