Andersen Consulting Revenues Top $5.3 billion, up 26 Percent.

CHICAGO--(BUSINESS WIRE)--March 5, 1997--Andersen Consulting reported record net revenues of $5.3 billion for the year ended December 31, 1996, an increase of 26 percent over 1995 results. Robust growth across all global areas drove the management and technology consulting firm's stellar performance, with Europe/Middle East/Africa/India achieving the biggest revenue gain at 32 percent, to $1.9 billion. The firm's Asia/Pacific revenues grew 21 percent to $509 million while its Americas revenues increased 22 percent to $2.9 billion. Included in the Americas results, United States revenues accounted for $2.6 billion, up 23 percent.

Andersen Consulting, which counts more than half of the Fortune Global 500 companies as clients, showed strong growth in industries buffeted by major change, especially Communications, up 32 percent to $756 million in revenues; Retail Financial Services, which grew 31 percent, to $697 million in revenues; and Utilities, which increased 30 percent to $368 million in revenues.

"Andersen Consulting is thriving because we are very focused on helping our clients to deliver greater value to their customers, and through such efforts, increased value to their shareholders," says George T. Shaheen, Andersen Consulting's worldwide managing partner. "Our ability to develop and deliver inventive solutions is fueling our vigorous growth."

AMP, Australia's largest financial institution, and Andersen Consulting, for example, have jointly created and staffed a new AMP business unit named AMPlus. AMPlus' charge: to develop and drive major initiatives aimed at propelling AMP from a national financial-services powerhouse into a global one. Through AMPlus, Andersen Consulting will manage A$750 million of AMP's technology budget for the next five years--and will be paid on a sliding scale, based on the contribution that AMPlus makes to the overall business.

Business process management offers creative answers for a growing list of clients, including DuPont, Texas Instruments, and J.P. Morgan. Business process management collaborations are as varied as the firm's clients and their needs: In some arrangements, clients focus on building their core businesses while turning over essential operations, such as logistics or information technology, to Andersen Consulting. In some cases, Andersen Consulting also builds or upgrades the operation before assuming responsibility for running it. Under other arrangements, Andersen Consulting not only manages a business process but also teams with the client to package and market to other companies solutions developed during the relationship.

Andersen Consulting began running British Petroleum's accounting and related administrative services for the North Sea in 1991. Because the firm improved service and cut costs of the operations by 30 percent, British Petroleum has expanded this relationship with Andersen Consulting to the United States, and in its alliance with Mobil, to eight other countries in Europe.

With a string of such successes, Andersen Consulting's business process management practice saw 1996 revenues soar 46 percent percent to $582 million. The practice's backlog also jumped to more than $3 billion, from less than $2 billion in 1995.

Like British Petroleum, more companies are demanding world-class solutions executed on a global scale, notes Shaheen. "With our global network, Andersen Consulting offers our clients the powerful combination of deep local knowledge melded to best thinking and practices from across the firm. Our strength lies in delivering consistently high-quality work to our clients around the world."

Andersen Consulting is a $5.3 billion global management and technology consulting organization whose mission is to help its clients change to be more successful. The organization works with clients from a wide range of industries to link their people, processes and technologies to their strategies. Andersen Consulting has nearly 45,000 persons in 47 countries. Its home page address is http://www.ac.com. -0-

STATEMENT OF OPERATIONS
(In millions of dollars)

                    Dec. 31   Dec. 31   Percent
                      1996     1995     Change

Revenues

Worldwide            5,302     4,224      26
Americas             2,917     2,385      22
EMEAI                1,876     1,420      32
Asia/Pacific           509       419      21

Industry Revenues

Communications         756       573      32
Financial Services   1,380     1,125      23
Government             423       380      11
Healthcare             115       125      (8)
Products             2,251     1,718      31
Utilities              368       282      30

Business Process
Management             582       400      46

Employment
Worldwide           44,801     38,027      18
Americas            24,193     20,915      16
EMEAI               16,128     13,309      21
Asia/Pacific         4,480      3,802      18

Training               332        290      14

CONTACT: Andersen Consulting

Lois T. Padovani

312/507-9530

[e-mail]