CIBER Announces Second-Quarter Results; Business Combinations, Cost Cutting and Repositioning for Sector Growth.

Business Editors/High-Tech Writers

GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--July 26, 2001

CIBER, Inc. (NYSE:CBR) announced the results of the second quarter ended June 30, 2001, and the first six months of 2001.

Revenues for the second quarter of 2001 were $140.0 million compared to $145.9 million for the March 2001 quarter. Cash earnings per share (EPS), were $.06 for the second quarter, before one-time charges of approximately $.01, compared to $.07 for the March 2001 quarter. The one-time charges were incurred primarily in our DigiTerra and Waterstone subsidiaries and helped to better align their overhead and billable staff with current revenues. For the six months ended June 30, 2001, revenues reached $285.9 million and cash earnings, before one-time charges, totaled $7.2 million.

"There can be no secret that the IT Services sector remains languished. With layoffs and delayed hire dates at the Big 5 consultancies, it is clear there continues to be a delayed start for major projects by Corporate America. The industry meetings I have attended recently point to between the fourth quarter of 2001 or first half of 2002 for a reversal of IT spending fortunes. In the meantime, competition is shrinking with the nouveau Internet-only consultants selling out, being delisted and/or closing. The serious players are persevering," stated Mac Slingerlend, CIBER's president/CEO.

Corporate America is somewhere between a freeze in IT spending plus a concern over the viability of certain of our competitors on one hand, and the commencement of new and continuation of existing projects on the other. Turnover doesn't appear to be accelerating, but new starts are low compared to traditional experiences. While healthy for the IT sector over the intermediate and long term, these near-term issues put a ceiling on the sector's recovery.

"Our industry outlook has to focus on opportunities for extending current enterprise systems and creating interoperability between companies. These can be the lynchpins to growth of Corporate America and our sector. All of CIBER's practices, offices and subsidiaries are dedicated to the opportunities.

"Fortunately, the quality of our employees, our long-standing relationships, the breadth of our business model, our team-wide dedication to performance, and a single mission to CIBER's success, make our outlook better than our sector as a whole and positions us to recover more quickly when the sector experiences IT spending increases. While we were gratified to have 90+% support for proxy issues at our recent annual shareholders' meeting, we realize our need to demonstrate superior industry performance in the upcoming recovery period.

"Our revenues were 96% of the March 2001 quarter total. Continuous cost alignment programs, particularly at DigiTerra and Waterstone, and to a lesser extent at operations of 'CIBER' branches, positioned us to remain profitable. Our European operation (Solution Partners BV) and hardware reselling activities at DigiTerra were growth areas for this last quarter. Otherwise, to say we are slugging it out daily, is pretty accurate. Albeit not stellar, our continued profitability and positive cash flow is a testament to our great employees and client relationships.

"The documentation for our pending merger with Aris Corporation is coming along well. They will be sending a proxy to their shareholders seeking approval of our transactions subject to the terms and conditions agreed to by Aris and CIBER.

"We are pleased to mention our leadership in Holland, Tom van den Berg and Rene Ritsema, reached out and began operations at quarter's end in both Germany and Hungary. The quality of the people beginning these operations locally gives us optimism for growth and stability later in 2001 and 2002," Slingerlend concluded.

Dave Durham, CFO, added: "We are not inclined to give guidance on the balance of the year except to say that we believe our operations will battle well in a weak demand environment and that operating results of current operations should only show modest changes for the second half. Further, that our pending business combinations are projected to be excellent additions at good values at this stage of our industry sector's demand cycle; when closed, these operations are forecasted to positively impact our results during the second half of 2001."

CIBER, Inc. is a leading international, e-business integrator, providing IT services for Internet strategy and development, complete life cycle system integration (from customer quotation through cash collection), with superior value-priced services for both private and government sector clients. CIBER's services are offered on a project or strategic staffing basis, in both custom and ERP package environments, and across all technology platforms, operating systems and infrastructures. Founded in 1974, the company's consultants now serve client businesses from 35 CIBER, 15 DigiTerra, three Waterstone, three Solution Partners and four Enspherics offices in the U.S., Canada and Europe. With offices in six countries, CIBER's 5,000 IT specialists continuously build and upgrade our client's systems to "competitive advantage status."

                              CIBER, Inc.
            Condensed Consolidated Statements of Operations
                              (Unaudited)

                                      Three Months      Six Months
In thousands, except per-share data  Ended June 30,    Ended June 30,
                                     2001     2000     2001     2000
                                     ----     ----     ----     ----
Consulting services                132,258  148,685  271,082  305,092
Other revenues                       7,751    8,672   14,791   18,571
                                   -------  -------  -------  -------
  Total revenues                   140,009  157,357  285,873  323,663
                                   -------  -------  -------  -------

Cost of consulting services         91,604  101,041  188,166  207,695
Cost of other revenues               4,050    5,489    8,595   11,496
Selling, general and administrative
 expenses                           39,926   39,569   79,105   81,400
Amortization of intangible assets    3,065    4,041    6,090    8,087
Other charges                        1,242      323    1,242    2,598
                                   -------  -------  -------  -------
  Operating income                     122    6,894    2,675   12,387
Other income, net                      283      302      418      587
                                   -------  -------  -------  -------
  Income before income taxes           405    7,196    3,093   12,974
Income tax expense                      30    3,216    1,153    5,669
                                   -------  -------  -------  -------
  Net income                           375    3,980    1,940    7,305
                                   =======  =======  =======  =======

Earnings per share -- diluted      $  0.01  $  0.07  $  0.03  $  0.12
                                   =======  =======  =======  =======

Cash EPS (a) per share -- diluted  $  0.05  $  0.12  $  0.11  $  0.23
                                   =======  =======  =======  =======

Weighted average shares -- diluted  57,577   58,780   57,638   58,996


      (a) Cash EPS is calculated excluding amortization of intangibles,
net of tax effects.

      For the three months ended June 30, 2001 and 2000, respectively,
earnings per share -- basic was $0.01 and $0.07 and weighted average
shares -- basic were 57,149 and 58,012.
      For the six months ended June 30, 2001 and 2000, respectively,
earnings per share -- basic was $0.03 and $0.13 and weighted average
shares -- basic were 57,207 and 57,929.



                              CIBER, Inc.
                 Condensed Consolidated Balance Sheets
                              (Unaudited)


                                       December 31,        June 30,
In thousands, except per-share data       2000               2001
                                          ----               ----

Assets
------
Current assets:
  Cash and cash equivalents            $ 19,193           $ 15,958
  Accounts receivable, net              127,217            120,459
  Prepaid expenses and other current
   assets                                11,002             13,467
                                       --------           --------
    Total current assets                157,412            149,884
                                       --------           --------

Property and equipment, net              25,306             25,029
Intangible assets, net                  137,057            135,216
Other assets                              6,572              6,342
                                       --------           --------
    Total assets                       $326,347           $316,471
                                       ========           ========

Liabilities and Shareholders' Equity
------------------------------------
Current liabilities:
  Accounts payable                     $ 17,092           $ 13,893
  Accrued compensation and payroll
   taxes                                 24,342             24,187
  Other accrued expenses and
   liabilities                           13,060              9,540
                                       --------           --------
    Total current liabilities            54,494             47,620
                                       --------           --------

Minority interest & contingent
 redemption value of put options          1,611               (401)
Shareholders' equity                    270,242            269,252
                                       --------           --------
    Total liabilities and
     shareholders' equity              $326,347           $316,471
                                       ========           ========

This news release may include statements that may constitute "forward-looking statements," including estimates of future business prospects or financial results and statements containing the words "believe," "expect," or similar expressions. Any forward-looking statements herein are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. There are many factors that could cause actual results of CIBER and its subsidiaries (collectively, the "Company") to differ materially from forward-looking statements. Please refer to a discussion of these factors in the Company's Annual Reports on Form 10-K, 10-Qs and other Securities and Exchange Commission filings, which are incorporated herein by reference. The Company disclaims any intent or obligation to update publicly such forward-looking statements, whether as a result of new information, future events or otherwise. CIBER and the CIBER logo are trademarks or registered trademarks of CIBER, Inc.