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Company Results for 2007 and 2008 Outlook

January 31, 2008 - Minneapolis, MN

"Fulcrum Consulting experienced triple digit percentage growth in revenues when compared to the prior year, said Eric Mahler, CEO of Fulcrum Consulting.”  “Similarly, we exceeded our goals for the year in profitability, new market and account growth, consultant headcount and most importantly, consultant retention.  2007 was an exceptional year and consistent with the pace of growth we have experienced since our inception.”

Market and Services Update:  “Fulcrum was founded with a focus on Management Consulting services in the areas of business and IT strategy formulation, operational improvement and change management.”  “Since our inception, we have continued to invest in the broadening of our services to include IT Professional Services, Financial Staffing, Outsourcing and Vendor Management Services.” 

“IT Professional Services accounted for over 75% of company revenues nationally, and it represented the fastest area of growth in 2007.”  “This is a significant flip over our revenue mix in earlier years when Management Consulting revenues were in the majority.”

“Similarly, the organization has grown from 12 Fortune 500 customers in 2003 to over 80 of the largest companies in the Fortune 500.”  “Over the past 5 years, we have diversified our industry mix to include financial services, manufacturing, transportation, consumer goods and healthcare.” 

“With respect to new markets, we have offices in over 12 cities at the close of 2007 and consultant presence in over 15 of the largest U.S. domestic markets.”

Customer Satisfaction:  “Our customers continue to tell us that our level of responsiveness, quality of our people, our level of flexibility and commitment to meeting/exceeding their expectations are our biggest differentiators.”  “To that end, we ended the year with a national customer service rating of 4.78 out of 5 (5 being the best).” 

Consultant Retention:  “Our national retention rate at the end of 2007 was 86%.”  “This above average industry measurement speaks to the strong opportunity pipeline we have built and the variety of assignments we can offer our consultants and opportunities for advancement we offer our consultants, management team and office staff”.

2008 and Beyond:  “We recognize the growing concern regarding the state of our national economy.”  “With industry slowdowns, unexpected company layoffs and general recessionary concerns, many are concerned about job security.”   “Despite these concerns, we believe the consulting and professional services industry will be strong.”  

“We believe there will be short term corporate spending swings and related unknowns attributable to the change in domestic leadership after this year, but the long term forecast for what we do should be steady.”  “Between the ongoing change in workforce demographics, the need for large companies to maintain competitive to survive, cost reduction, M&A activities, human capital management, etc., our industry should be strong for those who are focused on quality of service.”

“Our goals for 2008 and over the next 5 years are continued growth in revenues and market share.”  “In support of these goals we will continue to work toward “fair share” in existing Fulcrum markets by investing further in infrastructure that helps us to grow.”  “Additionally, we will continue to examine and invest in new markets.”  “We have a goal of adding one to two new markets per year through organic investment (“new start ups”) and acquisition of businesses that align to our service offering goals and direction….” (Excerpt from CEO, Eric Mahler -- Analyst Presentation, 1/3/08).

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