Accenture is the world's leading management consulting and technology services company. Committed to delivering innovation, Accenture collaborates with its clients to help them realize their visions and create tangible value. With deep industry expertise, broad global resources and proven experience in consulting and outsourcing, Accenture can mobilize the right people, skills, alliances and technologies. 
With more than 75,000 people in 47 countries, Accenture works with clients in nearly every major industry worldwide. Through the integration of consulting and outsourcing, Accenture: 
Identifies critical areas with potential for maximum business impact.
Innovates and transforms the processes in those areas. 
Delivers performance improvements and lower operating costs by assuming responsibility for certain business functions or areas—and Accenture holds itself accountable for results.

NEW YORK; Sept. 28, 2006 — Accenture (NYSE: ACN) reported record financial results and the successful resolution of previously reported issues with its contracts with the National Health Service (NHS) in England. 

“I’m delighted that we have resolved the NHS contracts, arriving at an agreement that benefits all parties, is clearly in the best interest of our shareholders, and puts this matter successfully behind us,” said William D. Green, Accenture’s chairman and CEO. “Our results for the quarter and the year clearly demonstrate the strength and momentum of our business. We had record revenues for the fifth consecutive year. We exceeded our outlook for EPS for both the quarter and the full year. We achieved solid bookings in both consulting and outsourcing, demonstrating strong demand for our services. Our cash flows are exceptionally strong. And we continue to return cash to shareholders, repurchasing more than $2 billion of our shares during the year and declaring our second annual cash dividend.” 

Accenture’s results include the financial impact of the agreement announced earlier today resolving the NHS matter (the Agreement), which resulted in a reduction of Accenture’s net revenues in the fourth quarter of $339 million. This reduction in net revenues was offset by a corresponding decrease in cost of services. As a result, there was no impact on operating income or EPS for the quarter. 
Financial Review 
Fourth Quarter 2006
Net Revenues

Revenues before reimbursements (“net revenues”) for the fourth quarter of fiscal 2006 were $3.97 billion, including the impact of the Agreement, which resulted in a reduction of consulting net revenues in the fourth quarter of $339 million. Net revenues of $3.97 billion for the fourth quarter of fiscal 2006 compare with $3.92 billion for the fourth quarter of fiscal 2005, flat in local currency and an increase of 1 percent in U.S. dollars. Absent the impact of the Agreement, net revenues for the fourth quarter were $4.31 billion, an increase of 8 percent in local currency and 10 percent in U.S. dollars.

Consulting net revenues, reflecting the Agreement, were $2.20 billion, a decrease of 9 percent in local currency and 8 percent in U.S. dollars from the fourth quarter last fiscal year. Absent the impact of the Agreement, consulting net revenues for the fourth quarter were $2.53 billion, an increase of 5 percent in local currency and 7 percent in U.S. dollars over the fourth quarter last year.
Outsourcing net revenues were $1.77 billion, an increase of 12 percent in local currency and 14 percent in U.S. dollars over the same period last year. 

As previously reported, Accenture began expensing stock options and employee stock purchase plans on Sept. 1, 2005, in accordance with SFAS 123R. Therefore, in addition to providing year-over-year GAAP comparisons, the company is presenting results for the fourth quarter and full fiscal year 2005 on an options-adjusted basis to provide meaningful comparisons on relevant metrics.