Cambridge Technology Partners Releases Preliminary First Quarter Results; Estimated Full Year 1999 Results.

CAMBRIDGE, Mass.--(BUSINESS WIRE)--March 18, 1999--Cambridge Technology Partners (Massachusetts), Inc. (NASDAQ:CATP) (Cambridge) today announced that based on preliminary review of the Company's results for the first quarter ended March 31, 1999, revenues are expected to be between $148.0 - $151.0 million, and earnings per share to be in the range of $.12 to $.14 for the quarter, which is below security analysts revenue estimates of approximately $163.0 - $170.0 million and earnings per share estimates of $.21 - .24 per share. Cambridge Technology Partners expects to report actual results for the first quarter on or about April 15, 1999.

Cambridge also reported that based on currently available information it expects revenues for the full year of 1999 to be between $660.0 - $675.0 million, with earnings per share in the range of $.72 - $.74 . These estimates compare with security analysts' expectations of $750.0 - $795.0 million in revenues and $1.06 to $1.15 in earnings per share.

Cambridge reported that the benefits of the North American reorganization initiatives undertaken during the fourth quarter of 1998 did not materialize as quickly as anticipated and, as a result, sales growth for the first quarter was lower than expected. In addition, a decrease in market demand for ERP software licenses negatively affected demand for the Company's ERS package implementation offerings.

James K. Sims, President and Chief Executive Officer commented on today's announcement, "During February and March, we stated that the first half of 1999 would be choppy for Cambridge as we progress with the implementation of our reorganization to a service line structure. In the first half of 1999, we are investing in the service line infrastructure to support the Company's next level of growth. Investments in sales and technical training, the new managing partner (client relationships) and alliance organizations, field marketing, and project delivery methodologies are being made. It is my assessment that this major initiative is taking more time and management attention than originally expected, therefore, we have made adjustments to the full year expectation. While we are disappointed with these results, we are beginning to see market awareness and acceptance of our strategy to become a provider of integrated e-commerce business solutions."

Sims continued, "The new organization, with its new management team, processes, and lack of historical perspective made it difficult for us to predict the revenue shortfall before today. While this has had a negative impact on our first quarter, we believe that these initiatives will enable us to achieve our long-term strategy of helping clients integrate and extend their value chains for competitive advantage in the new, digital economy. During the quarter, we won several strategic wins with clients of major global brands, demonstrating early evidence of the benefits of the reorganization."

About Cambridge Technology Partners

Cambridge Technology Partners is a new breed of consulting and systems integration firm. Since its founding in 1991, the company has applied its unique core values to the consulting and application development markets to fundamentally reinvent the way business and technology solutions are delivered. Working within a fixed-time/fixed-price model, Cambridge's services span strategic consulting, process innovation, custom and package software deployment (including ERP applications), networking, and training to rapidly deliver end-to-end business systems that create immediate bottom-line impact for its clients. Cambridge has 53 offices and more than 4,400 employees worldwide. Cambridge on the Web: http://www.ctp.com.

FORWARD-LOOKING STATEMENTS

This Press Release includes forward-looking statements (statements that are not historical facts and relate to future performance) that involve risks and uncertainties. These forward-looking statements include statements about future net revenues, profits, and financial results, the market for Cambridge's services, future service offerings, client relationships, and Cambridge's sales, marketing and operational capabilities. These forward-looking statements are subject to risks and uncertainties. Actual results may differ materially from those stated in any forward-looking statements based on a number of factors, including the completion of the financial results for the first quarter, the effectiveness of the realignment of Cambridge's North American operations, risks associated with management of growth, acquisitions, attraction and retention of employees, variability of quarterly operating results, including the effects of the client purchasing patterns due to Year 2000 issues, competitive factors, risks associated with international operations, and protection of intellectual property, as well as the risks identified in Cambridge's SEC filings, including information (i) under the heading "Forward-looking Statements" in its Form 10-K for the year ended December 31,1997 and Form 10-Q for the first; second; and third quarters of 1998 and (ii) under the heading "Risk Factors" in its Form S-3 filed in September 1998. Cambridge assumes no obligation to update the information contained in this press release.

There will be a conference call today at 5:15 p.m. EST for pre-release discussion. Please call 973/628-6885.