CIBER To Reduce Intangible Assets, Increasing GAAP EPS 8 Cents Per Year Prospectively; Management Comments on Upcoming Quarterly Results.

Business Editors

ENGLEWOOD, Colo.--(BUSINESS WIRE)--Oct. 11, 2000

CIBER, Inc. (NYSE:CBR) today announced its plan to take a one-time, non-cash charge of approximately $79 million, net of approximately $1.7 million in income taxes, to its September 30, 2000, quarterly results to reduce business combination intangible assets.

This accounting entry principally reverses a significant portion of the entry that added $100 million to intangible assets in Spring 1999. The majority of these intangibles were created when CIBER announced a share repurchase program that caused previous mergers to be reclassified from "poolings of interest" to "asset purchases." In ironic accounting parlance, these intangibles were added directly to CIBER's balance sheet, but are now charged to the profit and loss statement to indirectly reverse the earlier balance sheet increase.

"Our tangible net worth and 'Cash EPS' will not be diminished at all, this quarter or in the future, from these entries," said Mac Slingerlend, CIBER's President and Chief Executive Officer. "Prospectively, this will improve our 'GAAP EPS' by approximately $0.08 per year and improve our income tax rate normality. We strongly believe our results will be improving in 2001 as our industry continues its comeback from ERP and Y2K woes. CIBER's balance sheet remains very strong; we have $275 million in equity and no debt. And, our operations are profitable and we have significant positive cash flow. This is a bold step, but it is well-timed and well-considered.

"Underlying this action is the substantial decrease in the valuations of virtually all IT services companies since we completed these business combinations. This impairment adjustment involves very few (less than one in eight) of the 40-plus business combinations completed by CIBER. Further, we would not have paid in cash transactions the amounts now reflected on our balance sheet by virtue of the post-acquisition accounting changes resulting from the share repurchase program. Since a meaningful portion of this charge is related to DigiTerra, Inc.'s operations, their positioning is also improved in anticipation of their pending separation as an independent public company, in that their future earnings will proportionately benefit from the reduced charges for the amortization of intangibles.

"As to the upcoming report on third-quarter results, we currently estimate revenues per billing day will be approximately constant with June 2000 results, thus stemming the slide over the past 12 months. However, because of less billing days in the quarter, revenues are anticipated to be between $150 million and $156 million. CIBER will be profitable, excluding the above one-time charge, and Cash EPS is expected to approximate but be down slightly from the June 2000 quarter. September results will be net of, as previously announced, the brand awareness marketing expenses of the quarter in conjunction with CIBER's sponsorship of the well-received International Golf Tournament."

CIBER will hold its earnings conference call for the third quarter of 2000 at 9:30 a.m. Mountain time on Oct. 26. To participate in this call, dial 952/556-2835 and provide confirmation code 4684099. A replay of the call will be available through Oct. 30 at 703/326-3020 and at www.ciber.com, with the same confirmation code.

"CIBER has great employees and long-term client relationships. Our core employee team is a very proud group, dedicated to outlasting this industry cycle. Continued focus on short-term revenue opportunities, cost containment and leadership in wireless, security and overall business applications in e-business environments, both custom and package solutions, should drive our resurgence in the near term. We are also working on infusing our management group with additional resources to accelerate our recovery. While we realize many companies in our sector, including CIBER, have struggled, we are committed to reclaiming a leadership chair in operational performance and shareholder value that CIBER had for several years in the `90s," Slingerlend concluded.

CIBER, Inc. is the trusted technology leader transforming businesses to be agile, scalable and connected. Backed by 27 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 -- Strategy and Enterprise Integration, Wireless, Internet Services, Business Intelligence, Network Integration and Outsourcing. 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.

"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 CIBER's Annual Reports, 10-Ks, 10-Qs and other Securities and Exchange Commission filings.