Arcadis Reports Fourth Quarter and Full Year 1999 Results.

Business Editors

ARNHEM, The Netherlands--(BUSINESS WIRE)--March 30, 2000

ARCADIS (Nasdaq:ARCAF; ASE:ARCAD) today reported results for the fourth quarter and year ended December 31, 1999.

Highlights

- 1999 fourth quarter gross revenue was 29% higher than last year's fourth
quarter;

- 1999 fourth quarter net income was 18% above the 1998 level;

- 1999 full-year gross revenue increased 13.3% to EUR 655.5 million;

- 1999 net income increased to EUR 17.6 million, an increase of 13.4% over 1998
net income excluding extraordinary items, and an increase of 28.1% over 1998
net income including extraordinary items;

- 1999 net income per share was EUR 0.90, compared to EUR 0.81 before and EUR
0.72 after extraordinary items in the prior year.

For the fourth quarter of 1999, ARCADIS reported gross revenues of EUR 195.5 million, 29% higher than gross revenues of EUR 152.0 million in the fourth quarter of 1998. Net revenue was EUR 132.0 million compared with EUR 105.5 million a year ago. Operating income in the fourth quarter of 1999 was EUR 8.8 million, compared with operating income of EUR 8.6 million in the fourth quarter of 1998. The Company reported fourth quarter 1999 net income of EUR 6.2 million or EUR 0.32 per share, an increase of 18% compared with EUR 5.3 million or EUR 0.28 per share excluding extraordinary items in last year's fourth quarter. Including an extraordinary charge related to restructuring in the Company's German contracting operations, net income in the fourth quarter of 1998 was EUR 3.5 million, or EUR 0.19 per share.

The rise in fourth quarter gross revenue was attributable to very favorable market conditions in the Netherlands, Belgium and the United States. In addition, fourth quarter revenues included the contributions of companies acquired subsequent to the fourth quarter of 1998. Operating income increased to EUR 8.8 million, from EUR 8.6 million. Expenses for rapid integration of our German units and adjustments within the ARCADIS Euroconsult organization exerted downward pressure on operating income.

For the year ended December 31, 1999, ARCADIS reported gross revenues of EUR 655.5 million, compared to EUR 578.6 million in 1998. 1999 full-year net revenues increased 12% to EUR 459.8 million versus EUR 410.8 million in the 1998 full-year period.

For 1999, operating income was EUR 27.8 million, versus operating income of EUR 27.2 million in the year ago period. Net income for the full year period amounted to EUR 17.6 million, or EUR 0.90 per share, an increase of 13.4% versus net income of EUR 15.5 million, or EUR 0.81 per share, before extraordinary items in the year-ago period. Including the aforementioned extraordinary charge in the fourth quarter of 1998, the Company reported net income of EUR 13.7 million, or 0.72 per share.

Results in U.S. Dollars, U.S.-GAAP

U.S. dollar results reflect the exchange rate of the dollar versus the euro. For the 1999 fourth quarter, gross revenue totaled $202.6 million compared with $178.7 million in the fourth quarter of 1998, an increase of 13%. Net revenue in the fourth quarter of 1999 was $136.8 million compared with $124.0 million in the year ago period. For the 1999 fourth quarter, net income was $5.6 million, or $0.29 per share, compared with net income of $6.7 million, or $0.34 per share before extraordinary items or $2.6 million, or $0.13 per share, after extraordinary items in the same quarter last year.

For the 1999 full-year period, gross revenue totaled $696.2 million versus $644.6 million in the 1998 full-year period. Net revenue in 1999 amounted to $488.9 million versus $457.3 million a year ago. Net income in 1999 was $20.1 million, or $1.03 per share, versus net income excluding extraordinary items of $20.5 million, or $1.07 per share in the comparable period a year ago. Including extraordinary items, net income for the 1998 full-year period was $16.4 million, or $0.86 per share.

Acquisitions and cooperative efforts

ARCADIS continued its aggressive growth plan with several major achievements during the year. The Company's acquisition of U.S.-based Giffels Associates at the end of the third quarter of 1999 expands the portfolio of services ARCADIS can offer its industrial clients, and - in particular - strengthens its offerings to multinational clients. In the 1999 third quarter, the Company also acquired a majority participation in Logos Engenharia S.A. in Brazil, providing it with exceptional access to the rapidly growing Latin American market. Through its Spanish operating company, ARCADIS also acquired a 70% participation in the Spanish firm, Acinco, which helped strengthen ARCADIS' position in the e-business market with geographic information made available via the Internet.

In 1999, the Company reached an agreement with the majority shareholder of its French consulting firm, Antea, to maintain ARCADIS' current shareholder position for another three years while eliminating financial risks and enabling ARCADIS to continue to support a presence in the strategically important French marketplace. During the second quarter of 1999, the Company increased its participation in ARCADIS Euroconsult to 100% in order to more rapidly respond to developing markets, including the market for donor-financed projects. The Company also increased its participation in its German operating companies to 100% in order to facilitate faster integration and cost efficiencies of these operations, and to address current circumstances in the German market.

Market Developments

For the year ended December 31, 1999, ARCADIS saw 16% growth in its infrastructure markets, buoyed by large projects such as the Betuwelijn freight railway and high-speed railway lines in the Netherlands, on which ARCADIS is working. Infrastructure represents 38% of total gross revenues and is the Company's most important market. In the U.S., ARCADIS worked on a traffic management system for Cobb County, Georgia, which enhances the capacity of the highway system and improves mass transport operations. In Sao Paulo, Brazil, ARCADIS is involved in the construction of a bridge span crossing the Pinheiro River.

Fourteen percent growth in ARCADIS' environmental activities was partly due to services related to large infrastructure projects such as environmental impact assessments, and partly due to a positive economic climate that encourages private companies to take a proactive role in addressing remediation challenges. Of total gross revenues, 26% is generated by environmental activities. ARCADIS' Guaranteed Remediation Program (TM) (GRiP TM) capitalizes on this market by offering guaranteed fixed-price approaches for regulatory closure of polluted sites. In 1999, ARCADIS signed a major fixed-price contract with Lockheed Martin Corporation in which ARCADIS has assumed responsibility for bringing several of Lockheed's U.S. sites to regulatory closure. This approach has been successfully introduced into the Dutch and German markets as well.

A slight decline in ARCADIS' building activities - 16% of total gross revenues - is primarily attributable to a stagnant building market in Germany. Attractive building markets in the Netherlands, Spain, and the U.S. buoyed our results in this market, but did not fully compensate for the German market decline. As a result of adjustments in Germany and the acquisition of Giffels in the United States, this sector is expected to return to growth in 2000. One of the largest building projects initiated in this sector in 1999 is the renovation of the Olympia Stadium in Berlin. Awarded in early 2000, this project involves an investment sum of over EUR 255 million.

A lucrative market for ARCADIS, the real estate information/telecommunications market represented 15% of ARCADIS' total gross revenue in 1999, 25% growth over 1998. Continued strong growth in telecommunications services in Spain and Belgium sustained this market, with new contracts in Brazil signed as well. ARCADIS is closely involved in collecting and providing real estate information and revaluation data related to the Dutch Real Estate Valuation Act, and has introduced a new software solution, called GIS-WOZ (TM).

Frans Luttmer, Chairman of the Executive Board, said, "Market conditions varied by country during 1999, with some markets robust, while others struggled. The Netherlands, Spain, Belgium, and the U.S. saw strong growth during the course of the year, while the German market remained weak."

Mr. Luttmer continued, "ARCADIS has recognized, and acted upon, our clients' requirements for advanced information and communication technology as part of the way in which we deliver our projects. In 1999, we further facilitated our employees' ability to work in virtual environments, thus enabling high-speed project development. Further, we continue to expand upon our ability to provide interactive client/consultant communication tools, such as extranets, in order to offer a platform for joint development of projects."

Mr. Luttmer concluded, "We anticipate that favorable market circumstances in our most important markets will prove sustainable in 2000. In the Netherlands, investments in large infrastructure projects will create a considerable increase in the amount of work for ARCADIS. In the United States, increases in government budgets for infrastructure improvements have made this an important growth market for ARCADIS as well. The sustained economic growth in most of Europe and the United States increases private sector investment directed at company facilities and business parks, as well as investment in remediating past pollution problems. Even though Germany appears on the brink of economic recovery, we do not yet expect growth in the markets that are of importance to us. However, corrective measures we have taken in 1999 will lead to considerable improvement within our German operations in 2000, resulting in improved profitability from these operations. Geographic expansion, as well as further strengthening of our portfolio remain key elements in our strategy. Additional expansion of our activities in the United States remains a high priority issue, as is strengthening our expertise in the field of telecommunication. Our growth target for gross revenue and net income is 10%. Meeting this goal depends in part upon our ability to acquire companies that fit within our strategic goals. Barring unforeseen circumstances, we expect to realize our goal of 10% growth for 2000."

ARCADIS, with its head office in Arnhem, The Netherlands, is an international consulting/ engineering and contracting company specializing in the fields of infrastructure, environment, buildings, and real estate information/telecommunications. ARCADIS has approximately 8000 employees involved in thousands of public and private sector projects every year.

Please visit the Company's website at www.arcadis.nl.

Safe harbor provision

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 which 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 are available from the SEC or may be obtained upon request from the Company.

For more information contact: Joost Slooten at ARCADIS : Phone Netherlands: *31-26-3778604 Phone USA: [phone] E-mail: [e-mail]

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

We have audited the accompanying consolidated income statement and the condensed consolidated balance sheet, which are derived from the 1999 financial statements of ARCADIS NV as audited by us. We issued an unqualified auditors' report on these financial statements on March 29, 2000. The consolidated income statement and the condensed consolidated balance sheet are the responsibility of the Company's management. Our responsibility is to express an opinion on the consolidated income statement and the condensed consolidated balance sheet based on our audit. In our opinion, the consolidated income statement and the condensed consolidated balance sheet 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 and the condensed consolidated balance sheet should be read in conjunction with the complete financial statements from which they are derived and the auditors' report we issued thereon.

Arnhem, March 29, 2000

KPMG Accountants N.V.

ARCADIS NV
CONSOLIDATED STATEMENT OF INCOME IN EUR
(Amounts x 1 million, except per share amounts)
                               Quarter Ended        Year Ended
                                 December 31,      December 31,
NL-GAAP                      1999        1998     1999     1998

Gross revenue                195.5       152.0   655.5     578.6
Materials, services
  of third parties            63.5        46.5   195.7     167.8
Net revenue                  132.0       105.5   459.8     410.8
Operational cost             123.2        96.9   432.0     383.6
Operating income               8.8         8.6    27.8      27.2
Financing income/expenses net (0.5)       (0.7)   (2.3)     (2.9)
Income before taxes            8.3         7.9    25.5      24.3
Taxes                         (2.2)       (2.6)   (8.5)     (7.8)
Income after taxes             6.1         5.3    17.0      16.5
Income from non-consolidated
  companies                    0.4         0.4     1.4       0.2
Group income after taxes       6.5         5.7    18.4      16.7
Minority interest             (0.3)       (0.4)   (0.8)     (1.2)
Net income excluding
  extraordinary income         6.2         5.3    17.6      15.5
Extraordinary items after taxes  -        (1.8)      -      (1.8)
Net income after
  extraordinary items          6.2         3.5    17.6      13.7

Net income per share 1)
Excluding extraordinary
  items                       0.32        0.28    0.90      0.81
After extraordinary
  items                       0.32        0.19    0.90      0.72

Number of shares outstanding
  (in thousands)            19,769      19,256  19,769    19,256


Net adjustments in accordance
  with US-GAAP:               (0.8)       (1.3)    1.4       1.1

Net income in accordance
  with US-GAAP                 5.4         2.2    19.0      14.8
Net income excluding
  extraordinary items          5.4         5.7    19.0      18.3

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

ARCADIS NV
CONSOLIDATED STATEMENT OF INCOME IN US$ (Amounts x 1 million, except
per share amounts)
                                   Quarter Ended      Year Ended
                                    December 31,     December 31,
NL-GAAP                            1999     1998     1999    1998

Gross revenue                    202.6     178.7    696.2   644.6
Materials, services of
  third parties                   65.8      54.7    207.3   187.3
Net revenue                      136.8     124.0    488.9   457.3
Operational cost                 127.7     113.9    459.4   426.9
Operating income                   9.1      10.1     29.5    30.4
Financing income/expenses net     (0.5)     (0.8)    (2.4)   (3.2)
Income before taxes                8.6       9.3     27.1    27.2
Taxes                             (2.4)     (3.1)    (9.1)   (8.7)
Income after taxes                 6.2       6.2     18.0    18.5
Income from non-consolidated
  companies                        0.5       0.5      1.4     0.3
Group income after taxes           6.7       6.7     19.4    18.8
Minority interest                 (0.3)     (0.5)    (0.8)   (1.4)
Net income                         6.4       6.2     18.6    17.4
Extraordinary items after taxes     --      (2.1)      --    (2.1)
Net income after
  extraordinary items              6.4       4.1     18.6    15.3

Net adjustments in accordance
  with US-GAAP:                   (0.8)     (1.5)     1.5     1.1

Net income in accordance
  with US-GAAP                     5.6       2.6     20.1    16.4
Net income excluding
  extraordinary items              5.6       6.7     20.1    20.5

Net income per share 1)
Including extraordinary items     0.29      0.13     1.03    0.86
Excluding extraordinary items     0.29      0.34     1.03    1.07

Number of shares outstanding
  (in thousands)                19,769    19,256   19,769  19,256

Dollar exchange rate 1st quarter  $ 1=               0.89    0.93
Dollar exchange rate 2nd quarter  $ 1=               0.95    0.92
Dollar exchange rate 3rd quarter  $ 1=               0.95    0.90
Dollar exchange rate 4th quarter  $ 1=               0.96    0.85

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



ARCADIS NV
CONSOLIDATED BALANCE SHEET IN EUR
(Amounts x 1 million, except per share amounts)
Amounts in accordance with NL-GAAP    December 31, December 31,
ASSETS                                      1999     1998
Fixed assets                                63.1     57.1
Current assets                             233.2    196.0
TOTAL                                      296.3    253.1
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities                        177.0    142.6
Long term debt                               5.7      6.4
Provisions                                  16.4     16.9
Total equity                                97.2     87.2
TOTAL                                      296.3    253.1
Amounts in accordance with US-GAAP:
Reconciliation in accordance with US-GAAP   90.4     79.5
Shareholders' equity in accordance
  with US-GAAP                             184.2    161.0

ARCADIS NV
CONSOLIDATED BALANCE SHEET IN US$
(Amounts x 1 million, except per share amounts)
Amounts in accordance with NL-GAAP      December 31, December 31,
ASSETS                                      1999     1998
Fixed assets                                63.4     66.8
Current assets                             234.2    229.6
TOTAL                                      297.6    296.4
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities                        177.8    167.0
Long term debt                               5.7      7.5
Provisions                                  16.5     19.8
Total equity                                97.6    102.1
TOTAL                                      297.6    296.4
Amounts in accordance with US-GAAP:
Reconciliation in accordance with US-GAAP   90.8     93.1
Shareholders' equity in accordance
 with US-GAAP                              185.1    188.6
Calculated with US dollar rate of
 $1.00= EUR:                                1.00     0.85