Charles River Associates Hires DOD Appointee to Lead Aerospace/Defense Consulting; Steve Grundman Was Deputy Under Secretary for Industrial Affairs and Installations.

Business Editors

BOSTON--(BUSINESS WIRE)--Oct. 31, 2000

Charles River Associates Incorporated (NASDAQ:CRAI), a leading provider of sophisticated economic and financial consulting services, announced today that Steven C. Grundman has joined the firm's Boston headquarters as a Principal and Director of Aerospace and Defense Consulting. Prior to joining CRA, Mr. Grundman had been Deputy Under Secretary of Defense (Industrial Affairs and Installations) in the Office of the Secretary of Defense, U.S. Department of Defense.

"CRA is extremely fortunate to welcome an aerospace and defense expert of Steve Grundman's caliber to its ranks of senior consultants," said James Burrows, CRA president and CEO. "Although the firm has engaged in defense-industry projects in the past, Steve's particular expertise in Department of Defense budgets and programs and merger and acquisition analysis positions CRA at the forefront of consulting in this area."

At CRA, Mr. Grundman will apply the firm's strengths in antitrust economics, corporate finance, and market assessment to solve the strategic and operational challenges confronting aerospace and defense companies. In the near term, he will be particularly focused on facilitating trans-Atlantic business partnerships, supporting the capital markets' assessments in the sector, and assisting in the formulation and execution of corporate development initiatives.

During his six years at the Department of Defense, Mr. Grundman spearheaded key industrial-strategic and cost-reduction initiatives. He supervised the DoD's antitrust and foreign investment reviews of mergers and acquisitions, and he was a leading advocate of the policy to integrate the U.S. and European defense-industrial sectors. Mr. Grundman led the Department's initiatives to outsource commercial functions, privatize housing and utilities, and close and redevelop excess bases. He was also instrumental in the 1997 Quadrennial Defense Review, especially its program and financial plan, which has guided the Administration's recent defense budgets.

Founded in 1965, CRA is a leading provider of sophisticated economic and financial consulting services, expert testimony and litigation support, and business consulting. The firm's areas of expertise include auctions, antitrust, mergers and acquisitions, policy impact assessments, corporate finance, strategy and business operations, and regulatory economics. CRA has advised legal and corporate clients, government agencies, and other organizations in thousands of engagements. In addition to its corporate headquarters in Boston and international offices in London, Mexico City, and Toronto, CRA also has U.S. offices in Washington, DC, Los Angeles, Palo Alto, Berkeley/Oakland, and Salt Lake City. More information about the Company can be found on its Web site at www.crai.com.

Statements in this press release concerning CRA's ability to position itself at the forefront of consulting in the aerospace and defense industry and to solve the strategic and operational challenges confronting aerospace and defense companies are "forward-looking" statements as defined in the Private Securities Litigation Reform Act of 1995. Such statements are based on management's current expectations and are subject to a number of factors and uncertainties. Information contained in these forward-looking statements is inherently uncertain, and actual performance and results may differ materially. Such factors that could cause actual results to differ materially from any forward-looking statements made by the Company include, among others, the ability of the Company to successfully integrate Mr. Grundman into its practice, dependence on key personnel, attracting and retaining qualified consultants, dependence on outside experts, intense competition, and professional liability. Further information on factors that could affect the Company's financial results is included in the Company's filings with the Securities and Exchange Commission.