Aberdeen Group Reaches Key Milestones During Q1.

Business Editors

BOSTON--(BUSINESS WIRE)--April 24, 2003

Aberdeen Group, Inc., offering a premier destination research site for business executives responsible for information technology investments, today announced that it achieved significant progress milestones during the first quarter. As Aberdeen continues to build awareness of its multiple Web sites and qualified panels of end-users, the popularity of Aberdeen.com continues to grow. Also during Q1, Aberdeen completed a half-dozen major primary research studies and sold nearly two-dozen new supplier sponsorships.

Sales were 105% of plan for the first three months of the year. "We were especially pleased with the increased number of retainer services purchased by new customers," said Sandra Tubbs, Senior Vice-President, Sales. "This validates our customers' enthusiasm towards our new business model." Retainer renewal percentages during the quarter went up by 90% compared with the second half of 2002 and net contract value increased by 22%.

"Bookings were equal to Q4 2002, and because the fourth quarter traditionally accounts for a significant percentage of full-year sales, we were happy with this sequential result. Our backlog continues to be an important indicator of revenue performance for the following quarter, so we are guardedly optimistic about operating results in Q2," said Thomas Willmott, President and CEO. "We were concerned that uncertainty over the war in Iraq and the economy might weigh heavily on sales activity, but bookings were quite strong, especially during the last month of the quarter."

Another milestone during the quarter was the popularity of our flagship Web site, Aberdeen.com. Aberdeen continued to make significant progress in attracting new participants to our research communities. During the first three months of the year, 2,000 new members joined Aberdeen.com each week. This level of registration, in combination with growth in the circulation of Aberdeen's opt-in newsletters, delivers suppliers broad reach in marketing visibility.

"It has become increasingly important for suppliers to influence the business executive, not just the IT department, in order to make a sale," said Willmott. "Whether it's a financial planner in the CFO's organization, a chief marketing officer, or a purchasing manager, business users of technology have become a major catalyst in the sale of information technology applications." Aberdeen qualifies and surveys these buyers in each of its six communities on the Web.

Sponsorships of these research activities offer suppliers a high level of visibility with key buyers -- business-unit decision makers -- as well as those in traditional information technology planning roles. As Aberdeen continues to expand this new primary research model, there has been a high level of interest in research from the Supply Chain and Customer Relationship Management practice areas.

Aberdeen analysts completed important surveys of business professionals in purchasing as well as in sales and marketing during the quarter, and our supplier prospects were keenly interested in Aberdeen's analysis of this primary research data. Aberdeen looks forward to the Q2 launch of CIO and CFO-Corporate Performance Management online communities.

About Aberdeen Group

An IT market research leader since 1988, Aberdeen Group continues to distinguish itself in a rapidly changing industry. Its forward-thinking research initiatives and positioning services are designed to address specific needs of multiple enterprise technology buyers and supplier organizations.

Aberdeen's vigorous primary research program is based on surveys of targeted IT buyers in more than 25 market segments, providing real-time insights into buying patterns, growth rates and trends. In exchange for participation, a vast array of research is made available online - at no cost - to end users, a process that has proven particularly valuable to small and medium-sized businesses.

Aberdeen also works with a wide range of supplier organizations - from start-ups to established global corporations - to successfully bring products to market and effectively target marketing and sales efforts. Through Aberdeen's online Access sites, which are focused on specific end-user communities, suppliers can access qualified survey research that helps them identify opportunities and better understand the needs of customers. Aberdeen's Web traffic is among the highest - and fastest growing - of any major IT research firm.

Headquartered in Boston, Massachusetts, Aberdeen has research and consulting divisions in Palo Alto, California, and Fort Collins, Colorado. Aberdeen is accessible on the Web at www.aberdeen.com.