THE ADVISORY BOARD COMPANY REPORTS
FISCAL YEAR 2008 THIRD QUARTER RESULTS

Company Reports Quarterly Revenue of $55.9 Million and Contract Value Growth of 16%
Issues Guidance for Calendar Year 2008; Announces New Program Launch

WASHINGTON, D.C. — (February 5, 2008) — The Advisory Board Company (NASDAQ: ABCO) today announced financial results for the third quarter of its fiscal year ending March 31, 2008. Revenue for the quarter increased 15% to $55.9 million, from $48.6 million in the third quarter of fiscal 2007. Net income was $7.9 million, or $0.42 per diluted share, compared to $6.5 million, or $0.34 per diluted share, for the same period a year ago. Contract value grew 16% to $225.4 million as of December 31, 2007, up from $194.1 million as of December 31, 2006.

For the nine months ended December 31, 2007, revenue increased 15% to $161.0 million, from $139.5 million for the nine months ended December 31, 2006. Net income for the nine months ended December 31, 2007 was $23.5 million, or $1.25 per diluted share, compared to $20.2 million, or $1.03 per diluted share, for the same period a year ago.

To analyze results on a comparable basis to periods prior to the implementation of SFAS No. 123R, the Company’s management uses and is providing adjusted financial results, including adjusted net income and earnings per diluted share, that exclude share-based compensation expense. Adjusted net income for the third quarter of fiscal year 2008 was $10.3 million, up from $8.5 million for the third quarter of fiscal year 2007. Adjusted earnings per diluted share for the third quarter of fiscal year 2008 increased 25% to $0.55, from $0.44 in the same quarter of the prior year. See the “Reconciliation of Non-GAAP Financial Measures” section below for a reconciliation of the Company’s adjusted financial results with the results presented in accordance with generally accepted accounting principles (“GAAP”).

Frank Williams, Chairman and Chief Executive Officer of The Advisory Board Company, commented, “We are very pleased with our financial results for the quarter and for the calendar year. Our strong revenue performance and 16% growth in contract value illustrate the continued market attachment to our model of providing proven best practices to address the complexity inherent in today’s healthcare and education fields. Across the quarter, we saw consistent demand for our membership programs, driven by our cutting-edge research agendas, heavy member utilization of program services and analytical tools, and the continued impact we are having on our members’ most important issues. We continue to see a favorable market environment for renewals, cross-selling and new program launches, which are the primary growth drivers of our business.”

Williams added, “I am also pleased today to announce the launch of the University Provost Program, our second program in the education vertical. The University Provost Program is a renewable membership program that provides best practice research, peer networking, and tools to help Provosts better manage university operations, set institutional priorities, and measure and improve performance. Provost feedback has been very positive about our ability to provide proven best practices to assist with today’s difficult issues in higher education, such as the continued push to demonstrate academic outcomes, increased competition for research funding, and the challenge of faculty recruitment and retention. As always, we have established a strong charter membership for the program, including Duke University, College of William and Mary, Dartmouth College, New York University, University of North Carolina, University of California, Washington University, and University of Illinois. The group has provided valuable input regarding the design of the program and its inaugural research agenda. With this initial cohort of progressive institutions, we have established a strong foundation for the future growth and success of the program.”

Outlook for Calendar Year 2008

Although the Company operates on a fiscal year ending March 31, 2008, the following statements summarize the Company’s guidance for calendar year 2008. For the twelve months ending December 31, 2008, the Company estimates revenue of approximately $243.0 million. For calendar year 2008, the Company estimates GAAP income from operations of approximately $45.7 million, compared to $39.7 million for calendar year 2007. The Company estimates GAAP earnings per diluted share of approximately $1.86 for calendar year 2008, compared to $1.63 for calendar year 2007. Included in the calendar year 2008 income from operations and earnings per diluted share estimates is approximately $0.49 to $0.52 of share-based compensation and related expense. The Company expects an effective income tax rate of approximately 33.3% for calendar year 2008. For the quarter ending March 31, 2008, the Company estimates revenue of approximately $57.9 million and GAAP earnings per diluted share of approximately $0.46.

Share Repurchase

During the three months ended December 31, 2007, the Company repurchased 156,190 shares of its common stock at a total cost of approximately $10.0 million. To date, the Company has repurchased 4,312,627 shares of its common stock at a total cost of approximately $195.9 million. Repurchases will continue to be made from time to time in open market and privately negotiated transactions subject to market conditions. No minimum number of shares has been fixed. The Company intends to fund its share repurchases with cash on hand and cash generated from operations. At December 31, 2007, the Company had approximately $171.8 million in cash and marketable securities and no debt.

Web and Conference Call Information

The Company will hold a live conference call to discuss its fiscal year 2008 third quarter news release this evening, February 5, 2008, at 6:00 p.m. Eastern Standard Time. The conference call will be available via live audio webcast on the Company’s web site at www.advisoryboardcompany.com in the section entitled “The Firm” found under the tab “Investor Relations.” To participate by telephone, the dial-in number is 888.873.4896 and the access code is 20590693. Please be advised to dial-in at least five minutes prior to the call to register. The webcast will be archived for seven days: from 8:00 p.m. Tuesday, February 5, until 8:00 p.m. Tuesday, February 12, 2008.

About The Advisory Board Company

The Advisory Board Company provides best practices research and analysis primarily to the health care industry, focusing on business strategy, operations and general management issues. The Company provides best practices and research through discrete programs to a membership of more than 2,600 hospitals, health systems, pharmaceutical and biotech companies, health care insurers, medical device companies, and universities in the United States. Each program typically charges a fixed annual fee and provides members with such services as best practice research reports, executive education, on-line analytical tools, and other supporting research services.

THE ADVISORY BOARD COMPANY
FINANCIAL HIGHLIGHTS
(In thousands, except per share data)
(Unaudited)

(1)

In order to allow investors to assess results on a basis consistent with those used by management, the tables below under “Reconciliation of Non-GAAP Financial Measures” reconcile GAAP to adjusted amounts for the three and nine months ended December 31, 2007 and 2006. Adjusted results exclude the share-based compensation expense recognized by the Company in accordance with SFAS No. 123R. Adjusted results include the employer taxes paid in connection with the exercise of employee stock options of $70,000 and $283,000 for the three and nine months ended December 31, 2007, respectively, and $58,000 and $206,000 for the three and nine months ended December 31, 2006, respectively.

Reconciliation of Non-GAAP Financial Measures

The Company believes its calculations of adjusted results to exclude share-based compensation expense provide additional information about the Company’s operating performance. The Company’s management uses the adjusted presentations to evaluate operating results on a basis that is comparable to that used for periods prior to implementation of SFAS No. 123R and provides such information publicly to assist in comparisons to prior periods. For historical results, a reconciliation between results as adjusted and in conformity with GAAP is shown in the attached schedule. Because adjusted financial results are not measurements determined in accordance with GAAP and are thus susceptible to varying calculations, they may not be comparable as presented to other similarly titled measures of other companies.

Adjusted financial results are not measures of financial performance under GAAP and should not be viewed as a pro-forma presentation reflecting the elimination of the underlying share-based compensation programs, as those programs are an important element of the Company’s compensation structure and generally accepted accounting principles indicate that all forms of share-based payments should be valued and included as appropriate in results of operations. Management compensates for this aspect of the non-GAAP financial measures by separately evaluating its share-based compensation arrangements.

THE ADVISORY BOARD COMPANY
RECONCILIATION OF GAAP TO ADJUSTED RESULTS
(In thousands, except per share data)
(Unaudited)

Forward Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on information available to the Company as of February 5, 2008, the date of this news release, as well as the Company’s current projections, forecasts and assumptions, and involve risks and uncertainties. You are hereby cautioned that these statements may be affected by certain factors, including those set forth below. Consequently, actual operations and results may differ materially from the results discussed in the forward-looking statements, and reported results should not be considered as an indication of future performance. Factors that could cause actual results to differ materially from those indicated by forward-looking statements include, among others, the dependence on renewal of membership-based services, dependence on key personnel, the need to attract and retain qualified personnel, management of growth, new product development, competition, risks associated with anticipating market trends, industry consolidation, variability of quarterly operating results, possible volatility in the Company’s stock price, the impact on our financials associated with some of our newer programs that are more dependent upon technology, share-based compensation expense under SFAS No. 123R including the effect of the amount, type and timing of future stock-based compensation grants, and various factors related to income and other taxes, including whether the District of Columbia withdraws the Company’s status as a Qualified High-Tech Company, as well as those risks and uncertainties described in the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2007 and also disclosed from time to time in its subsequent reports on Form 10-Q and Form 8-K, which are available on the Company’s website at www.advisoryboardcompany.com in the “Investor Relations” section and at the SEC’s website at www.sec.gov. Additional information will also be set forth in the Company’s report on Form 10-Q for the quarter ended December 31, 2007, which will be filed with the SEC in February 2008.

Accordingly, readers are cautioned not to place undue reliance on forward-looking statements made in this news release, which speak only as of the date of this press release, and the Company does not undertake to update these statements, whether as a result of circumstances or events that arise after the date they are made, new information, or otherwise. You should, however, consult any further disclosures the Company may make in its future filings of its reports on Form 10-K, Form 10-Q and Form 8-K.

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