Second Quarter Results

Revenues for the second quarter of 2009 were $360.5 million, an increase of 6.8% compared to revenues of $337.7 million in the prior year period and $347.8 million in the 2009 first quarter. Net income was $37.2 million for the second quarter of 2009, compared to net income of $34.8 million in the prior year period. Diluted earnings per common share were $0.69, compared to $0.65 in the prior year period. EBITDA, as defined below, was $84.6 million, or 23.5% of revenues, compared to $77.6 million, or 23.0% of revenues, in the prior year period. Revenues, net income, diluted earnings per share and EBITDA were all-time quarterly records for the Company. At the end of the second quarter, the Company had 3,414 employees worldwide.

Excluding the effect on results of changes in the exchange rate of the U.S. dollar against non-U.S. currencies, revenues increased 10.3%, net income increased 10.5%, diluted EPS increased 10.2% and EBITDA increased 12.5% as compared to the 2008 second quarter.

Commenting on the quarter, Jack Dunn, FTI's president and chief executive officer, said, "FTI generated another strong performance in the second quarter despite a difficult global economy. The world continued to seek its way from the panic and paralysis that were prevalent during the credit crisis of last year to a more stable environment that allows for deliberate steps to develop strategies and plan for future opportunities and challenges. In this context we reported all-time record results, with solid performance from our existing businesses and growth from acquisitions propelling higher revenues, net income, earnings per share and EBITDA compared to both an extremely strong period a year ago and a very good first quarter. Our results were driven by the strength of our restructuring activities, higher activity in fraud investigations and regulated industries and increasing momentum in strategic M&A in certain of our practices. This is a tribute to the depth of our intellectual capital, our business model with its complementary practices and the diversity of our global platform, all of which contribute to our goal to do well across all market and economic cycles.

"In the quarter we continued to aggressively convert this excellent performance into cash. We generated $55 million of operating cash flow on the strength of higher net income and our focus on accounts receivable collection. This allowed us to exit the quarter with cash of $213 million, up from $158 million a quarter ago, which puts us in excellent financial position to invest in our business and expand our talent pool at a time when other consulting firms are retrenching. We are continuing to invest in key hires globally across our practices and further build out our platform and strengthen our presence in geographical markets outside the United States.

"We are pleased with the progress of our businesses and look forward to further growth and stronger year over year earnings comparisons in the second half of 2009. Based on our strong first half performance we are increasing our EPS guidance for the year. Even considering the usual seasonal impact of the summer months on our third quarter, we expect to experience rising momentum into the fourth quarter which accelerates through 2010."

Second Quarter Business Segment Results

Corporate Finance/Restructuring

Revenues in the Corporate Finance/Restructuring segment increased to a record $134.0 million from $96.1 million in the prior year period, driven by organic growth of 29.8%, and supplemented by the contributions of the acquisitions of CXO and our Toronto-based restructuring practice during the last 12 months. Sequentially, revenues increased from $127.5 million in the first quarter. Segment EBITDA increased 60.2% to $47.4 million, or 35.4% of segment revenues, compared to $29.6 million, or 30.8% of segment revenues, in the prior year period and $40.7 million, or 31.9%, in the first quarter. The segment continues to see historically high demand for restructuring services from a broad range of economic sectors, with particular strength in the second quarter in the automotive, real estate and energy/utility sectors, as well as ongoing activity in the retail, construction, leisure and financial services markets. The worldwide recession continued to generate demand for restructuring services, enabling the segment's European practice to more than double its revenue compared to the same period last year, and the recently-added Canadian/Latin American practice to quickly begin to make substantial contributions to the segment's revenue. To further meet global demand, the segment recently expanded its London- based European Corporate Finance practice with the launch of a restructuring business in Munich, Germany.

Forensic and Litigation Consulting

Revenues in the Forensic and Litigation Consulting segment were $65.5 million compared with $69.3 million in the prior year period and $66.9 million in the 2009 first quarter. Segment EBITDA increased 3.3% to $16.2 million, or 24.8% of segment revenues, compared to $15.7 million, or 22.7% of segment revenues, in the prior year period. Sequentially, segment EBITDA grew 3.3% from the first quarter of 2009, and segment EBITDA margins improved by 130 basis points. While the environment for generic litigation services remained soft, the segment benefited from several large global investigations cases and increasing emphasis on its specialized practices including intellectual property, construction, regulated industries and South American investigations.

Technology

Revenues in the Technology segment increased 5.5% to a record $59.4 million, compared to $56.3 million in the prior year period. Segment revenues grew 6.3% on a sequential basis from the first quarter of 2009. Segment EBITDA was $23.8 million, compared to $21.2 million in the prior year period. Segment EBITDA was 40.1% of segment revenues, compared to 37.7% in the prior year period. On a sequential basis, segment EBITDA grew 23.2% from the first quarter of 2009, and segment EBITDA margins improved by 550 basis points. Large fraud investigations, bankruptcy and M&A second requests were significant contributors to second quarter revenue, as were product liability cases, although to a much smaller degree than in the prior year. The strong margins in the quarter resulted from increased revenue, particularly in software sales that carry greater margins, and certain expense control measures. These improvements more than offset a substantially greater investment in research and development.

Economic Consulting

Revenues in the Economic Consulting segment increased 6.2% to a record $57.1 million, compared to $53.8 million in the prior year period. On a sequential basis, segment revenues increased 4.2% from the first quarter of 2009. Segment EBITDA was $10.3 million, or 18.1% of segment revenues, compared to $14.0 million, or 26.0% of segment revenues, in the prior year period. The segment was active in regulatory issues in pharmaceuticals, railroads and telecommunications. The 26 professionals recently hired in the segment's new practices in the U.K., Canada, New York and Los Angeles have begun to gain traction in their respective regions, and have been experiencing rapidly rising utilization and revenue contributions. While the rate of retention on new securities and commercial financial engagements in the segment began to accelerate in the second quarter, utilization has been hampered by the slow commencement of work.

Strategic Communications

Revenues in the Strategic Communications segment were $44.6 million, compared to $62.2 million in the prior year period. Segment EBITDA was $5.9 million, or 13.2% of segment revenues, compared to $16.4 million, or 26.4% of revenues, in the prior year period. Weakness in foreign currencies relative to a year ago reduced revenues by $6.3 million and segment EBITDA by $1.7 million, respectively. The segment continued to be negatively impacted by both the significantly lower level of capital markets activity, which reduced revenues from M&A- and IPO-related work, the global economic recession, which has caused clients to reduce their spending on discretionary communications programs, and the impact of the stronger U.S. Dollar as compared to a year ago. The segment began to stabilize in the second quarter and grew sequentially by 4.2% compared to the first quarter. Most recently, the segment is beginning to experience increasing activity in capital market related activities including possible IPO's in Asia and strategic M&A assignments.

2009 Guidance Update

Based on current market conditions, the Company is increasing its 2009 guidance for fully diluted EPS to a range of $2.65 to $2.75. The Company is reaffirming its previous guidance for 2009 revenues of between $1.45 billion and $1.55 billion.

Second Quarter Conference Call

FTI will hold a conference call for analysts and investors to discuss second quarter financial results at 8:30 a.m. Eastern time on Tuesday, August 4, 2009. The call can be accessed live and will be available for replay over the Internet for 90 days by logging onto the Company's website, www.fticonsulting.com.

About FTI Consulting

FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations protect and enhance enterprise value in an increasingly complex legal, regulatory and economic environment. With more than 3,400 employees located in most major business centers in the world, we work closely with clients every day to anticipate, illuminate, and overcome complex business challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory issues, reputation management and restructuring. More information can be found at www.fticonsulting.com.

Use of Non-GAAP Measure

Note: We define EBITDA as operating income before depreciation and amortization of intangible assets plus non-operating litigation settlements. We use EBITDA in evaluating financial performance. Although EBITDA is not a measure of financial condition or performance determined in accordance with GAAP we believe that it can be a useful operating performance measure for evaluating our results of operation as compared from period to period and as compared to our competitors. EBITDA is a common alternative measure of operating performance used by investors, financial analysts and rating agencies to value and compare the financial performance of companies in our industry. We use EBITDA to evaluate and compare the operating performance of our segments and it is one of the primary measures used to determine employee bonuses. We also use EBITDA to value the businesses we acquire or anticipate acquiring. Reconciliations of EBITDA to Net Income and segment EBITDA to segment operating profit are included in the accompanying tables to today's press release. EBITDA is not defined in the same manner by all companies and may not be comparable to other similarly titled measures of other companies unless the definition is the same. This non-GAAP measure should be considered in addition to, but not as a substitute for or superior to, the information contained in our statements of income.

Safe Harbor Statement

This press release includes "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 that involve uncertainties and risks.