THE ADVISORY BOARD COMPANY REPORTS
FISCAL YEAR 2008 FIRST QUARTER RESULTS

Company Reports Quarterly Revenue Growth of 16% and Contract Value Growth of 17%;
Increases Share Repurchase Program; Announces New Program Launches

WASHINGTON, D.C. — (August 2, 2007) — The Advisory Board Company (NASDAQ: ABCO) today announced financial results for the first quarter of its fiscal year ending March 31, 2008. Revenues for the quarter increased 16% to $51.1 million, from $44.2 million in the first quarter of fiscal 2007. Net income was $7.1 million, or $0.38 per diluted share, compared to $6.5 million, or $0.33 per diluted share, for the same period a year ago. Contract value grew 17% to $210.6 million as of June 30, 2007, up from $180.5 million as of June 30, 2006.

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 first quarter of fiscal year 2008 was $9.4 million, up from $8.6 million for the first quarter of fiscal year 2007. Adjusted earnings per diluted share for the first quarter of fiscal year 2008 increased 16% to $0.50, from $0.43 in the same quarter in the prior year. A reconciliation of the Company’s reported and adjusted results is set forth in the notes to the financial highlights table included below.

Frank Williams, Chairman and Chief Executive Officer of The Advisory Board Company, commented, “We are very pleased with our first quarter performance as we achieved strong revenue and contract value growth. Our success continues to be driven by cutting-edge, highly applicable research, as well as an ongoing focus on program innovation. Most importantly, our key business metrics are on track as we have had strong renewal performance, success in cross-selling new and existing programs and the continued addition of new member institutions to our customer roster.”

He added, “I am also pleased to announce two new program launches. The first, the Infection Control Performance Program is rooted in research feedback from member Chief Medical Officers and offers a comprehensive approach to improving clinical quality performance. Infections comprise over $5 billion in annual spending, affect over 2 million patients a year and are under increasing scrutiny from payors, employers and patients. Through best practice research and a robust, web-based analytical tool, the program aims to hardwire optimum performance in infection control and antibiotic optimization by automating surveillance, isolating root causes, instilling accountability and providing proven best practices. As always, this program benefited from the advice and guidance of a stellar group of charter members, including Stamford Hospital, Doylestown Hospital, Indiana Regional Medical Center, and Northridge Hospital Medical Center.”

Williams continued, “Our second launch, the Student Affairs Program, is especially exciting as it marks our inaugural program serving the higher education market. The education sector shares much in common with health care in terms of its large market size, fragmented delivery system and strong mission orientation. College and University executives also face a similar set of challenges stemming from rising expectations and heightened public scrutiny, growing concerns around affordability and access, and difficult questions around revenues and resource allocation. Our first foray here serves Vice Presidents for Student Affairs at major colleges and universities, providing best-practice research, networking, benchmarking, and data analysis tools to elevate member performance. As always, we have established a strong charter membership for the program, leveraging our existing university relationships and strong brand within academic circles. The group, which includes Columbia University, the University of South Carolina, the University of Alabama at Birmingham, Rice University and Washington University, has provided invaluable feedback regarding the design of the program and its inaugural research agenda.”

Outlook for the Remainder of Calendar Year 2007

The Company announced revenue guidance for the next calendar quarter of approximately $53.8 million, and increased its full year revenue guidance to approximately $211.1 million. The company has also increased its full year adjusted operating income guidance to approximately $53.4 million and adjusted earnings per diluted share guidance to $2.09. The company expects adjusted earnings per share of $0.56 for the quarter ending September 30, 2007, and $0.55 for the quarter ending December 31. 2007. The Company expects an effective income tax rate of approximately 33.3% for the remainder of fiscal year 2008.

Adjusted results exclude share-based compensation expenses and are estimated using effective tax rates and number of weighted average diluted shares calculated in accordance with accounting principles generally accepted in the United States (GAAP). Beginning in fiscal year 2008, the Company no longer excludes from its adjusted results employer taxes related to the exercise of employee stock options. See “Reconciliation of Non-GAAP Financial Measures” for additional information on adjusted financial presentations and a reconciliation with results presented in accordance with GAAP.

Share Repurchase

During the three months ended June 30, 2007, the Company repurchased 281,869 shares of its common stock at a total cost of approximately $14.3 million. To date the Company has repurchased 3,880,081 shares of its common stock at a total cost of approximately $170.4 million.

The Company also announced that its Board of Directors authorized an increase in its share repurchase program of up to an additional $50 million of the Company’s common stock, bringing the total amount authorized to be spent under the program to $250 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 will fund its share repurchases with cash on hand and cash generated from operations. At June 30, 2007, the Company had approximately $148.4 million in cash and marketable securities and no debt.

The Company will hold an investor conference call to discuss its first quarter performance this evening, August 2, 2007, at 6:00 p.m. Eastern Standard Time. The conference call will be available via live web cast on the Company’s web site at www.advisoryboardcompany.com in the section entitled “Investor Information” found under the tab “About Us.” To participate by telephone, the dial-in number is 866.383.8003 and the access code is 13532194. Investors are advised to dial-in at least five minutes prior to the call to register. The web cast will be archived for seven days: from 8:00 p.m. Thursday, August 2, until 8:00 p.m. Thursday, August 9, 2007.

About The Advisory Board Company

The Advisory Board Company provides best practices research and analysis to the health care industry, focusing on business strategy, operations and general management issues. The Company provides best practices and research through discrete annual programs to a membership of more than 2,600 hospitals, health systems, pharmaceutical and biotech companies, health care insurers, and medical device companies 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 following tables reconcile GAAP to adjusted amounts for the three months ended June 30, 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 $139,000 and $103,000 for the three months ended June 30, 2007 and 2006, respectively.

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

Three Months Ended June 30, 2007

Reconciliation of Non-GAAP Financial Measures

The Company believes its calculations of adjusted results to exclude equity-based compensation charges provide additional information about the Company’s ongoing operating performance. The Company’s management uses the adjusted presentations to evaluate projected 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. The Company is not able to provide a quantitative reconciliation of its outlook for the remainder of calendar year 2007 to GAAP as equity-based compensation is dependent upon a number of unknown factors, including the amount, type and timing of stock-based compensation grants and future stock prices. 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.

Forward Looking Statements

This news release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You are hereby cautioned that these statements may be affected by certain factors, among others, set forth below and in the Company’s filings with the Securities and Exchange Commission, and consequently, actual operations and results may differ materially from the results discussed in the forward-looking statements. 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, impact on our financials associated with some of our newer programs that are more dependent upon technology, the effects of adoption of 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. These factors are discussed more fully in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

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