CIBER Reports Second Quarter 2000 Results; Internet Solutions Work Growing for CIBER, DigiTerra and Neovation.

Business Editors

ENGLEWOOD, Colo.--(BUSINESS WIRE)--July 26, 2000

CIBER, Inc. (NYSE: CBR) today reported revenues and earnings for the second quarter of calendar year 2000, ended June 30, 2000, and increasing Internet solutions work at CIBER and its subsidiaries, DigiTerra, Inc. and Neovation, Inc.

CIBER reported $157.4 million in revenues for the June 2000 quarter, compared to $195.0 million in revenues for the June 1999 quarter. Cash earnings per share (EPS) of $0.12 and EPS of $0.07 were reported for the June 2000 quarter, which compare to Cash EPS of $0.28 and EPS of $0.24 for the June 1999 quarter. Net income for the June 2000 quarter was $4.0 million, compared to net income of $14.2 million for the June 1999 quarter. These results are in line with CIBER's expectations for the quarter as announced on June 27.

"The unprecedented shift to Internet-led computer systems is in its infancy," CIBER Chief Executive Officer Mac Slingerlend said. "Commerce over the Internet has revolutionized how businesses are spending IT dollars in 2000. Building, running and monitoring Internet-led applications are the projects leading our industry's growth, as well as the growth underway at CIBER.

"It's no secret that we and our long-standing industry competitors had thousands of mainframe programmers that Corporate America has significantly stopped using in the last 12 months. Quality firms, including CIBER, unfortunately had no choice during the last year except to reduce these consultants within our ranks. Fortunately, our great client relationships have led to substantial growth of Internet-skilled consultants - thus mitigating, but not completely offsetting, the legacy decreases. This situation has led to an illusion that CIBER isn't growing while pure Internet solutions upstarts are, when in fact, CIBER's Internet growth parallels the pure players. We believe we are nearing the inflection point where our Internet solutions growth is greater than the offsetting legacy decreases, and revenues will be increasing again."

While CIBER's second quarter turned out to be more difficult than originally anticipated, it ended on a high note in many respects. CIBER offices endured a false start in accelerated IT industry spending in March followed by a tougher April. However, operating results improved as the quarter moved forward. DigiTerra, CIBER's package software, e-business-enabling subsidiary, continued to adjust its alliance partners while experiencing its most difficult operating quarter in more than two years. DigiTerra also invested in transitioning its consultants in the quarter toward those e-packages with significant, increasing demand. The result of these investments was a reduced gross profit and less contribution to CIBER's consolidated results, Slingerlend said.

Positive aspects of the June quarter increased by the month:

-- CIBER's traditional offices increased in headcount in June and

revenues per day hit a high not seen since November 1999.

Internet-skilled consultants have grown to more than 1,600, an

amount higher than many of the pure, niche players. CIBER's

new e-business projects include design and implementation of a

new B2B marketplace in the construction industry, and new

solutions work in government and the telecom,

banking/brokerage, high-tech, manufacturing and health

care/pharmaceutical industries.

-- DigiTerra's new contract signings for May were the highest in

its history, followed by another strong month in June. The

revenue ramp-up from these sales is expected to start

approximately Aug. 1. DigiTerra's new e-business work includes

multiple new portal development projects in the utility,

manufacturing, medical and financial services industries, and

an extensive Lawson implementation paired with Agilera

application hosting for a food services company.

-- Neovation, Inc., CIBER's 90 percent-owned digital

strategy/interactive creativity specialty group, grew in

revenue in the quarter, allowing CIBER to invest additionally

in its infrastructure without substantially affecting

operating results. New sales leadership should further

accelerate near-term results. New projects this quarter

include a customer relationship management initiative for a

large financial services company, and involvement in several

CIBER and DigiTerra projects.

-- Agilera, Inc., CIBER's Application Service Provider (ASP)

joint venture made its June numbers and has just closed,

subject to Hart-Scott-Rodino approval, its latest round of

private financing for $80 million. This financing will

decrease CIBER's ownership percentage in this non-consolidated

ASP investment to approximately 25 percent, but adds further

to the private value of this off-balance-sheet investment.

"Additionally, CIBER has created new marketing collateral and is offering new `solutions' through its National Practices, and is targeting specific market segments with offerings such as CIBER's .com in-a-box(TM) - all aimed directly at e-business and the marketplace," Slingerlend said. "We expect to continue our progress this quarter in separating DigiTerra, whose activities now are more than 50 percent e-business, new economy packages. DigiTerra is forecasting better revenues, gross margins and profit contributions for the September quarter."

CIBER expects its first sequential revenue growth quarter since June 1999 to be seen in the September quarter, with forecasts for better gross margins and pretax margins even with an extra holiday.

"CIBER's strength is in melding web-based applications with back-end integration," Slingerlend said. "CIBER's track record of being Corporate America's trusted right hand for IT solutions is accelerating our shift in becoming a new economy provider of leading e-business solutions."

CIBER, Inc. is the trusted technology leader transforming businesses to be agile, scalable and connected. Backed by 26 years of information technology consulting, CIBER provides thought leadership in Internet solutions to Global 2000 and rapidly scaling companies and governments through its National Practices. Based in Englewood, Colo., the company's consultants serve client businesses from 35 CIBER offices, 15 DigiTerra offices and four Neovation offices in the U.S., Canada and Europe. CIBER's web site is www.ciber.com.

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




In thousands,                  Three Months            Six Months
except per share data          Ended June 30,         Ended June 30,
                              2000       1999        2000       1999
                              ----       ----        ----       ----
Consulting services         $148,685   $183,775    $305,092   $357,231
Other revenues                 8,672     11,271      18,571     22,716
                            --------   --------    --------   --------
     Total revenues          157,357    195,046     323,663    379,947
                            --------   --------    --------   --------

Cost of consulting services  101,041    118,099     207,695    228,471
Cost of other revenues         5,489      7,002      11,496     14,955
Selling, general and
 administrative expenses      39,569     43,338      81,400     83,720
Nonrecurring and
 other expenses                  323         --       2,598         --
Amortization of
 intangible assets             4,041      3,055       8,087      5,369
                            --------   --------    --------   --------
     Operating income          6,894     23,552      12,387     47,432
Other income, net                302        666         587      1,310
                            --------   --------    --------   --------
     Income before
      income taxes             7,196     24,218      12,974     48,742
Income tax expense             3,216     10,043       5,669     19,684
                            --------   --------    --------   --------
     Net income             $  3,980   $ 14,175    $  7,305   $ 29,058
                            ========   ========    ========   ========

Earnings per share
 - diluted                  $   0.07   $   0.24    $   0.12   $   0.49
                            ========   ========    ========   ========

Cash EPS (1)                $   0.12   $   0.28    $   0.23   $   0.57
                            ========   ========    ========   ========

Weighted average shares
 - diluted                    58,780     59,895      58,996     58,958
                            ========   ========    ========   ========

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

For the three months ended June 30, 2000 and 1999, respectively, earnings per share - basic was $0.07 and $0.24 and weighted average shares - basic were 58,012 and 58,665. For the six months ended June 30, 2000 and 1999, respectively, earnings per share - basic was $0.13 and $0.51 and weighted average shares - basic were 57,929 and 57,410.

"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Forward-looking statements involve risks and uncertainties that could cause actual results to vary materially from such statements. Please refer to discussions of certain of these risks and uncertainties in the Company's Annual Reports, 10-Ks, 10-Qs and other Securities and Exchange Commission filings.