SUPC Superior Consultant Holdings (MM)

Superior Consultant Raises 2004 Forecast and Expects Strong 2005 Consulting and Outsourcing Driving Strong Performance DEARBORN, Mich., Sept. 20 /PRNewswire-FirstCall/ -- Superior Consultant Holdings Corporation (NASDAQ:SUPC) today raised its earnings forecast for 2004 and also stated that the company expects continued growth in revenue, EBITDA and earnings in 2005. The company expects to generate earnings before interest, taxes, depreciation and amortization (EBITDA) in 2004 of $8.9 million, prior to the effect of a non-cash charge related to the sale of an underutilized office building, or $8.3 million after the effect of the non-cash charge related to the sale of an office building, on revenue of $108 million. As previously reported, the sale of the office building occurred in the second quarter. Earnings per basic share is expected to reach $0.17, or $0.23 before the effect of a non-cash charge related to the office building sale. Superior expects to continue its strong financial performance in 2005, with increases in revenue, EBITDA, and EPS throughout 2005. The addition of long-term, recurring revenue contracts has greatly enhanced visibility. The company expects to enter 2005 at a revenue run rate of approximately $118 million, and expects to increase the revenue performance during the year. The current revenue backlog for 2005 is $73.2 million and the opportunity pipeline for new assignments is strong with a growing number of larger transactions. * The revenue forecast for 2004 is based on revenue of $51.5 million for the first half of 2004, $51.6 million in second-half 2004 recognized revenue and revenue backlog, and current client indications of an additional $1.5 million. * The EBITDA forecast is based on results achieved in the first half of 2004 of $4.3 million prior to the effect of the non-cash charge related to the sale of an underutilized office building, and expected results for the remainder of the year. * The earnings per basic share forecast of $0.23 prior to the effect of the building sale is based on achievement of $0.11 for the first half of 2004, also absent the effect of the building sale, and the anticipated company performance in the second half of 2004. With the effect of the building sale, earnings per basic share for the first half of 2004 was $0.05, and the current forecast for 2004 is $0.17. The company's cash position is good, and it has commitments for outsourcing expansion-related financing for equipment, software, and services. As Superior's financial performance continues to improve, additional financing is more readily available for new contracts. "Superior is grateful for the clients who have entrusted us to be their strategic advisor, IT consultant, and outsourcing partner," said Richard D. Helppie, Superior's Chief Executive Officer. "We owe thanks to our clients who provide us the privilege of serving them and to our colleagues who bring an extraordinary level of commitment and competence to each assignment. Concentrating on innovation and service to our clients and support to our colleagues has led to our positive financial performance." Helppie continued: "At the beginning of 2004, we forecasted consulting bookings of $56 million to $62 million for the year. Superior's consulting segment is generating stronger sales performance, with bookings year to date of $58 million. The company's outsourcing client base has reached critical mass, and the efficiencies in the model also support our growing profitability." The company believes its full-service, healthcare-specific, vendor- independent offering is finding increasing favor in the marketplace. Outsourcing sales commitments for 2004 now total more than $136 million with more than $900 million in Superior's sales prospect pipeline. The company today received a client indication for a multi-year outsourcing relationship to provide network management, network control, help desk, and consolidated data center services for a Midwest health system. Statements included in this press release which are not historical in nature, are intended to be, and are hereby identified as "forward-looking statements" for purposes of the safe harbor provided by Section 21E of the Securities Exchange Act of 1934, as amended by Public Law 104-67. Forward- looking statements may be identified by words including, but not limited to: "anticipate," "believe," "intends," "estimates," "promises," "expect," "should," "conditioned upon" and similar expressions. This release contains forward-looking statements relating to future financial results or business expectations. Business plans may change as circumstances warrant. Actual results may differ materially as a result of factors and events which the company is unable to accurately predict or over which the company has no control. Such factors include, but are not limited to: the award or loss of significant client assignments, timing of contracts, recruiting and new business solicitation efforts, the healthcare market's acceptance of and demand for the company's offerings, demands upon and consumption of the company's cash and cash equivalent resources or changes in the company's access to working capital, regulatory changes and other factors affecting the financial constraints on the company's clients, competitive pressures (both domestic and foreign), the ability to successfully manage currency risk, obtain foreign work permits and otherwise successfully execute and manage international contracts, economic factors specific to healthcare, general economic conditions, unforeseen disruptions in transportation, communications or other infrastructure components, acquisitions under consideration and the ability to integrate acquisitions on a timely basis. Additional information regarding these risk factors and others, and additional information concerning the company are included in the company's reports on file with the Securities and Exchange Commission. About Superior Consultant Holdings Corporation Recipient of Frost & Sullivan's 2003 Best Bang for the Buck Award for providing services and solutions with the highest ratio of value to cost, Superior Consultant is a leading national provider of transformational outsourcing, management and information technology consulting services and solutions to the healthcare industry. Superior specializes in Digital Business Transformation(TM) services that enable clients to thrive in the information-driven economy, and its transformational outsourcing, management and information technology consulting services and solutions help clients plan and execute better business strategies and meet their fiscal challenges while advancing clinical quality. Superior's best practices outsourcing model includes a full range of flexible business process and information technology solutions, including data center services, 24/7/365 network monitoring and help desk services, facility management, interim management, and application outsourcing services. For 20 years, Superior has been recognized as an innovative leader within the healthcare industry and has been rewarded with full and partial outsourcing contracts, thousands of engagements, approximately 170 interim management assignments, and nearly 3,000 clients. For more information on Superior Consultant Holdings Corporation simply dial 1-800-PRO-INFO and enter the Company ticker: SUPC (a no-cost fax-on- demand service) or visit the Company's Web site at http://www.superiorconsultant.com/ . DATASOURCE: Superior Consultant Holdings Corporation CONTACT: Richard D. Helppie - Chief Executive Officer, Richard R. Sorensen - Chief Financial Officer, or Susan M. Synor - Executive Vice President, of Superior Consultant Holdings Corporation, +1-248-386-8300 Web site: http://www.superiorconsultant.com/

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