Bright Horizons Family Solutions Acquires Kinderquest; Move Pairs U.K. Leaders in Workplace Child Care.

Business/Education Editors

LONDON & BOSTON--(BUSINESS WIRE)--June 17, 2002

Bright Horizons Family Solutions (NASDAQ: BFAM), the world's leading provider of employer-sponsored child care, early education and work/life solutions, announced that it has acquired Kinderquest, the U.K.'s largest provider of workplace nurseries. This partnership of the industry's pioneers adds 48 high-quality workplace nurseries to Bright Horizons Family Solutions' network, for a total of 65 nurseries in Europe and more than 450 child care centres worldwide. The nurseries, which add important geographic breadth to the company's established network in London and Scotland where it operates as Nurseryworks Family Solutions and Red Apple, will give Bright Horizons Family Solutions an established presence throughout the rest of the United Kingdom. Terms of the acquisition were not disclosed.

"While we have enjoyed a strong track record of success in the London area, Kinderquest's reach throughout the rest of the United Kingdom and their talented management team will add important depth and strength to our European operations. This new partnership continues our strategy to operate in the U.K. as we do in the U.S. -- as the market and quality leader in providing customized child care solutions for employers. Our mission and track record of success in the U.K. and around the world make this an ideal step forward and will enhance our ability to provide work/life solutions for a global market, while maintaining the local expertise that is critical to providing child care and early education," said Bright Horizons Family Solutions Chief Executive Officer David Lissy.

"Bright Horizons Family Solutions is a partner with both a commitment to and successful track record of working with employers to meet families' growing work/life needs in the U.K. and around the world. I look forward to joining this team of industry leaders that will combine resources to provide an unmatched base for further growth in workplace child care and work/life solutions throughout the U.K., Ireland and other potential markets in Europe," said Kinderquest Group Operations Director Ian Stocks.

The partnership comes at a time when women are entering the British workforce in record numbers. Within the next 10 years, 80% of the two million new jobs created in the U.K. will be taken by women who will enter the workforce with increasing levels of education and training. By the year 2012, it is estimated that nearly three-quarters of all mothers with children under five years will be working. These trends will require growing numbers of employers to turn to benefits like workplace child care that can help attract and retain working parents, reduce absenteeism, and increase productivity. A study of Bright Horizons Family Solutions clients showed that parents who use a workplace nursery have a turnover rate one-third the rate of other parents, and they have an absenteeism rate seven times lower than other working parents.

"We are proud to welcome to our family Kinderquest and its affiliated businesses, Kinderquest Support Services and Staffquest, which provide nursery staff, training and recruiting services. They will not only expand our presence in the U.K. but will also provide a new platform for Bright Horizons Family Solutions to help even more employers develop customized child care solutions for their workforces throughout Europe," said Bright Horizons Family Solutions President and Chief Operating Officer Mary Ann Tocio. "With our combined 55 clients in Europe, including several in common such as Toyota and Merck, we are committed to creating the workplaces of the future that support business by supporting families."

Kinderquest currently serves more than 2,000 children, with an average capacity of 42 places per nursery. Approximately 30 percent of the nurseries operate under cost-plus management contracts, with the balance operating under commercial profit and loss contracts; annualised revenue for the group approximates $16 million. Incorporating this all-cash transaction and its associated costs, Bright Horizons Family Solutions has increased projected financial performance for the year ended December 31, 2002 to include annual revenue growth of approximately 20 percent over the $346 million reported in 2001, and earnings per share of $1.16 to $1.18, compared to $0.90 reported for 2001.

Bright Horizons Family Solutions

Bright Horizons Family Solutions (www.brighthorizons.com), headquartered in Boston, MA, is the world's leading provider of employer-sponsored child care, back-up care, early education and work/life solutions with nurseries in the U.S., U.K., Ireland, Canada and the Pacific Rim. Bright Horizons has been recognized for its commitment to quality by the Child Care Action Campaign and for its contributions to the community as the recipient of the Ron Brown Award for Corporate Citizenship. Bright Horizons' clients include 82 of the Fortune 500 and such industry leaders as IBM, Johnson & Johnson, J Sainsbury plc, the European Commission, Cisco Systems, The Pentland Group, Motorola, JPMorgan Chase, Citigroup, and HSBC among others. The company does business in the U.K. as Nurseryworks Family Solutions and Red Apple Nurseries and in Ireland as Bright Horizons Family Solutions Ireland.

This press release contains forward-looking statements, which involve a number of risks and uncertainties. Bright Horizons Family Solutions' actual results may vary significantly from the results anticipated in these forward-looking statements as a result of certain factors, including the ability of the Company to execute contracts relating to new commitments, to enroll families in new as well as existing centers, and to operate effectively and profitably abroad, as well as other factors that are discussed in detail in the Company's filings with the Securities and Exchange Commission, including the "Risk Factors" section in the Company's Annual Report on Form 10-K for the year ended December 31, 2001.