The Corporate Executive Board Reports Third Quarter Earnings of $0.52 Per Diluted Share and 27% Revenue Growth.

WASHINGTON -- The Corporate Executive Board Company (CEB) (NASDAQ: EXBD) today announced financial results for the third quarter and nine months ended September 30, 2006. Revenues for the third quarter increased 26.7% to $118.4 million from $93.4 million for the third quarter of 2005. Net income and earnings per diluted share for the third quarter of 2006 were $21.1 million and $0.52, respectively.

For the first nine months of 2006, revenues were $335.1 million, a 27.7% increase from $262.4 million for the first nine months of 2005. Net income and earnings per diluted share for the first nine months of 2006 were $56.0 million and $1.37, respectively.

Effective January 2006, the Company adopted Statement of Financial Accounting Standards No. 123(R) (FAS No. 123(R)), which provides the accounting rules for share-based compensation. To present results on a comparable basis to the prior year, the Company is providing adjusted financial results, including net income and earnings per diluted share that exclude the effects of share-based compensation.

Excluding the effects of share-based compensation related to FAS No. 123(R), adjusted net income for the third quarter of 2006 increased 26.2% to $24.7 million from $19.6 million for the third quarter of 2005. Adjusted earnings per diluted share for the third quarter of 2006 increased 29.8% to $0.61 from $0.47 in 2005.

Excluding the effects of share-based compensation related to FAS No. 123(R), adjusted net income for the first nine months of 2006 increased 25.8% to $67.7 million from $53.8 million for the first nine months of 2005. Adjusted earnings per diluted share for the first nine months of 2006 increased 26.0% to $1.65 from $1.31 in 2005. A reconciliation of CEB's reported and adjusted results is set forth in the notes to the Financial Highlights section below.

Tom Monahan, Chief Executive Officer of the Corporate Executive Board, commented, "We are pleased with our third quarter performance. Growth from both cross-sell and from new clients is continuing at the high end of their target ranges. Our average cross-sell ratio across all members rose to 3.80 from 3.74 at this time last year. Excluding the effects of our new single-program middle market effort, cross-sell rose to 4.04 at our traditional large company members. This growth, combined with a strong suite of new program launches, positions us well going into the close of 2006. You can see the total impact of these key growth metrics reflected in our 28.4% contract value growth for the quarter - the best leading indicator for our business.

"Today, I am also delighted to announce our 41st and 42nd membership programs: the Quality Executive Board and the Sales Operations Excellence Center, each of which serves an exciting group of senior executives charged with managing important corporate challenges. The Quality Executive Board serves the very senior executives responsible for driving product quality and process excellence at large corporations. The inaugural research agenda is focused on driving quality standards into the vendor management process and reducing defects through adapted new product development processes. The charter advisors who shaped the early agenda and program offering include Beiersdorf AG, Cardinal Health, Inc., Cisco Systems, Inc., Johnson & Johnson, and Motorola, Inc. The early feedback from our members has been very positive.

"I'm also pleased to announce the launch of the Sales Operations Excellence Center (SOEC) which serves the senior sales executives responsible for driving sales force performance and productivity. The SOEC has already begun helping members address urgent issues such as implementing higher return training strategies and better leveraging CRM investments. As always, the program's inaugural research and service agenda have benefited from the guidance of a tremendous group of charter members, including American International Group, Inc., AmerisourceBergen Corporation, Electronic Data Systems Corporation, and Texas Instruments Incorporated. The program is off to a strong start and is already receiving very positive feedback from our early members."

Share Repurchase

During the nine months ended September 30, 2006, the Company repurchased approximately 1,837,000 shares of its common stock at a total cost of approximately $166.8 million. Repurchases will continue to be made in open market and privately negotiated transactions subject to market conditions. No minimum number of shares has been fixed. The Company is funding its share repurchases with cash on hand and cash generated from operations.

Outlook for 2006

The following statements summarize the Company's guidance for 2006.

For the fourth quarter of 2006, the Company is reaffirming its target revenue of approximately $125.5 million, its GAAP diluted earnings per share of $0.56, and its adjusted diluted earnings per share of $0.66. Adjusted diluted earnings per share exclude share-based compensation under FAS No. 123(R).

For 2006, the Company expects other income of approximately $23.7 million, an effective income tax rate of approximately 38.5% and diluted weighted shares outstanding of approximately 40.8 million.

The earnings per diluted share, interest income and weighted shares outstanding guidance includes only share repurchases made as of September 30, 2006.

The Company also expects continued modest expansion in the adjusted operating margin, excluding share-based compensation under FAS No. 123(R), within the target annual range of 25 - 30%. As in the past, the operating margin may fluctuate on a quarterly basis.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You are hereby cautioned that these statements may be affected by the important factors, among others, set forth below and in CEB's filings with the U.S. Securities and Exchange Commission, and consequently, actual operations and results may differ materially from the results discussed in the forward-looking statements. Factors that could cause actual results to differ materially from those indicated by forward-looking statements include, among others, our dependence on renewals of our membership-based services, difficulties we may experience in anticipating market trends, our need to attract and retain a significant number of highly skilled employees, fluctuations in operating results, our potential inability to protect our intellectual property rights, our potential exposure to loss of revenue resulting from our unconditional service guarantee, various factors that could affect our estimated income tax rate or our ability to use our existing deferred tax assets, changes in estimates or assumptions under FAS No. 123(R), whether the Washington, D.C. Office of Tax and Revenue withdraws our QHTC status and possible volatility of our stock price. These and other factors are discussed more fully in the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of CEB's filings with the U.S. Securities and Exchange Commission, including, but not limited to, its 2005 Annual Report on Form 10-K. The forward-looking statements in this press release are made as of October 24, 2006 and we undertake no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

The Corporate Executive Board Company is a leading provider of best practices research and analysis focusing on corporate strategy, operations and general management issues. CEB provides its integrated set of services currently to more than 2,800 of the world's largest and most prestigious corporations, including over 80% of the Fortune 500. These services are provided primarily on an annual subscription basis and include best practices research studies, executive education seminars, customized research briefs and Web-based access to a library of over 275,000 corporate best practices.

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To supplement the Company's consolidated financial statements
presented in accordance with GAAP, CEB uses non-GAAP measures of
certain components of financial performance. These non-GAAP measures
include non-GAAP net income, certain expenses (including cost of
services, member relations and marketing and general and
administrative) and non-GAAP earnings per diluted share. CEB uses
these measures of operating income, gross profit, net income and
earnings per share for the three and nine months ended September 30,
2006, which exclude FAS No. 123(R) share-based compensation to better
understand and compare results in the current period to those in prior
periods that did not include FAS No. 123(R) share-based compensation.
Although these non-GAAP financial measures adjust expense and other
items to exclude the accounting treatment of share-based compensation,
they should not be viewed as a pro-forma presentation reflecting the
elimination of the underlying share-based compensation programs, as
those programs are an important element of CEB's compensation
structure and generally accepted accounting principles indicate that
all forms of share-based payments should be valued and included as
appropriate in results of operations. CEB discloses this information
to the public to enable investors who wish to more easily assess the
Company's performance on the same basis applied by management and to
ease comparison on both a GAAP and non-GAAP basis among other
companies that separately identify share-based compensation expenses.
Although these non-GAAP measures present financial results on the same
basis as prior year's results, they do not reflect the effects of the
Company's share-based compensation programs and therefore may not be
useful in comparing CEB's results with companies with different
compensation structures.  CEB's reference to these measures should be
considered in addition to results that are prepared under current
accounting standards but should not be considered a substitute for
results that are presented as consistent with GAAP. FAS No. 123(R)
did not have a significant effect on the diluted share numbers for
the three and nine months ended September 30, 2006.

For the nine months ended September 30, 2006 and 2005, the Company
also recognized $1.9 million and $0.5 million, respectively,
reflecting additional employer taxes as a result of the taxable income
that our employees recognized upon the exercise of non-qualified
common stock options in March 2006 and 2005, respectively. The Company
has recorded such expenses in the same expense line item as other
compensation paid to the relevant categories of employees as follows:
Cost of services, $0.8 million and $0.3 million, Member relations and
marketing, $0.3 million and $0.1 million, and General and
administrative, $0.8 million and $0.1 for 2006 and 2005, respectively.
The additional employer taxes incurred by the Company are reflected
within both the GAAP amounts as reported and the adjusted financial
results presented within this press release.
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(1) In accordance with FAS No. 123(R), excess tax benefits related to
    share-based compensation are now classified as a cash flow from
    financing activities rather than as a cash flow from operating

    activities. The net effect of this change for the nine months
    ended September 30, 2006 is to move $29.0 million of excess tax
    benefits from an operating cash flow to a cash flow from financing
    activities, leaving total cash flows unchanged.