Press Release

Navigant Consulting Acquires HP3, Inc.

December 1, 2006 at 8:36 AM EST

CHICAGO, Dec 01, 2006 (BUSINESS WIRE) -- Navigant Consulting, Inc. (NYSE:NCI), an international consulting firm providing dispute, investigative, operational, risk management and financial advisory solutions to legal counsel, government agencies and companies experiencing regulatory or structural challenges, announced today that it has acquired HP3, Inc. The investment enhances Navigant Consulting's Healthcare practice, specifically in the area of revenue cycle performance improvement.

"HP3 is well-known in the healthcare provider sector and is highly regarded for their work in clinical documentation and coding," stated David Zito, Managing Director of Navigant Consulting's Healthcare practice. "HP3's specialized expertise, as well as its proprietary tools and software, enhance our national Healthcare platform and are exceptionally complementary to our existing capabilities. The combination with HP3 allows us to offer important additional solutions to our healthcare clients."

HP3 is a specialized management consulting firm which assists senior healthcare executives with clinical documentation, coding, and data solutions for improved reimbursement, compliance, and patient care. HP3 professionals assist healthcare providers nationwide in providing solutions such as clinical documentation improvement (CDI), coding management, health information management (HIM), operational improvement, coding audits, and data services.

"For more than eight years, HP3 has assisted healthcare organizations across the U.S. in addressing documentation management and reimbursement issues through programs such as clinical documentation improvement and others focusing on coding, auditing and compliance," stated Ruthann Russo, CEO and one of the founders of HP3. "Our success has been achieved by the longevity of our business relationships and client loyalty. We are excited to join Navigant Consulting's national Healthcare practice because both organizations believe in delivering the highest levels of client service. Our professionals and clients will benefit greatly from the opportunities that arise from working together and merging best practices."

Founded in 1998, HP3 has a team of nearly 100 billable professionals based in Bethlehem, Pa. and Baltimore, Md. HP3 began as the HP3 Research Institute to develop and distribute healthcare education products designed to improve the reimbursement process for healthcare providers. Stressing quality, innovation and continuing customer satisfaction, the company expanded rapidly and was renamed HP3 in 2001.

The purchase price was approximately $19 million, including accounts receivable. Revenues and pro forma EBITDA for the last 12 months approximated $19 million and $2.7 million, respectively. The acquisition is expected to be accretive in 2007.

About Navigant Consulting

Navigant Consulting, Inc. (NYSE:NCI) is a specialized independent consulting firm providing dispute, financial, regulatory and operational advisory services to government agencies, legal counsel and large companies facing the challenges of uncertainty, risk, distress and significant change. The Company focuses on industries undergoing substantial regulatory or structural change including healthcare, energy and financial and insurance services, and on the issues driving these transformations. "Navigant" is a service mark of Navigant International, Inc. Navigant Consulting, Inc. (NCI) is not affiliated, associated, or in any way connected with Navigant International, Inc. and NCI's use of "Navigant" is made under license from Navigant International, Inc. More information about Navigant Consulting can be found at

Except as set forth below, statements included in this press release, which are not historical in nature are forward-looking statements as defined within the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by words including "anticipates," "believes," "intends," "estimates," "expects" and similar expressions. These statements are based upon management's current expectations as of the date of this press release. The Company cautions readers that there may be events in the future that the Company is not able to accurately predict or control and the information contained in the forward-looking statements is inherently uncertain and subject to a number of risks that could cause actual results to differ materially from those indicated in the forward-looking statements including, without limitation: risks inherent in international operations, pace, timing and integration of acquisitions, management of professional staff, including dependence on key personnel, recruiting, attrition and the ability to successfully integrate new consultants into the Company's practices, utilization rates, dependence on the expansion of and the increase in the Company's service offerings and staff, conflicts of interest, potential loss of clients, risks inherent with litigation, significant client assignments, professional liability, potential legislative and regulatory changes and general economic conditions. Further information on these and other potential factors that could affect the Company's financial results is included in the Company's filings with the SEC under the "Risk Factors" sections and elsewhere in those filings. The Company cannot guarantee any future results, levels of activity, performance or achievement and also undertakes no obligation to update any of its forward-looking statements after the date of this press release.

SOURCE: Navigant Consulting, Inc.

Navigant Consulting, Inc.
Ben W. Perks
Executive Vice President and Chief Financial Officer
Andrew J. Bosman
Executive Director of Marketing and Communications

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