BearingPoint IT Operating Costs Analysis Five Year Period 2001-2006

1. BearingPoint IT Operating Costs AnalysisFive Year Period 2001-2006 Author Chas M. White, MS EVP & Corporate CTO Date 25 January 2006 Business and Systems Aligned. Business Empowered.TM

2. BearingPoint Timeline & Impacts Year 1 – aggregated budget based upon various LLP TSA allocations – planning decision made to take no IT systems or staff from LLP’s – LLP model was a loose federation of national practices & therefore systems Year 2 – separations and TSA terminations in ASPAC & LA; creation of BENet MPLS WAN & global messaging for network consolidations based upon centrist, corporate model $158M $146M Year 3 – termination of Andersen practice TSA’s and integration of OneTeam HR system across all entities; adoption of middleware for data brokerage IT Annual Operating Costs $138M Year 4 – termination of KCA TSA’s and integration of OneView CRM system across all entities; VoIP begins $128M Year 5 – final TSA terminated in US; VoIP completes in US; OneGlobe replaces PEAT $107M Year 6 – IT steady state – includes OG support costs in IT for first time $95M 2001 2003 2005

3. Distribution of IT Spend 2006 - 2007 • Amortization & Depreciation • Office migration hardware • Software • Systems hardware • Organic Labor • ~115 Employees globally • Service Delivery Managers • Moving support functions for OneGlobe (MSO), SAP and iDEV off-shore • Outsourced Contracts • Variable cost – consumption based (WAN, Apps hosting, deskside support, etc.) • There is no BE data center • Global IT Costs • (Headcount & SLA’s essentially flat) Amortization & Depreciation Organic Labor (~34%) (~15%) Outsourced Services Contracts (~51%) ~ 63% of labor driven costs are provided outside North America

4. Services Contracts Benchmarking • 2001 – Jim Pitchell, KPMG World Class IT, performed study of nature and quality of IT services in provided by LLP firm preparation for formation of KCI entity • Reported that services were above average as specified in SLA’s and service definitions • Verified the services catalog was appropriate for a professional services firm • SLA’s have remained the same or improved through 2006 • 2002 – Gartner Study in cooperation with KPMG Int’l to set best practice costs for professional services organization • Comprehensive study involving multinational firms (approx cost was $250k) • Study determined 2001 pricing was essentially at industry standards • Adopted as standard for BE IT cost targeting with goal of 25% reductions • 2003 – Engaged HedgeHog to manage a reverse, blind auction for laptops and desktops • 2004 pricing was ~10% lower year over year despite loss of LLP procurement volumes • 2005 pricing was again ~10% lower year over year • Average laptop cost reduced to ~$1000/unit

5. Services Contracts Benchmarking • 2004 – Contracted with RiverMine to benchmark telecom services • Targeted US telecom services to benchmark pricing (WAN, dialtone, conference calling, remote access and toll) • Lowered MPLS WAN pricing through renegotiation ~$4M/yr • Negotiated other telecom contracts to ~3% below benchmark data • 2005 & 2006 – BE Analyst Relations IT Benchmarking exercise (Tom Wilde) • Internal group captured Gartner, Forrester, InformationWeek and other market analyst data • Interviews were conducted with Gartner and Forrester • Benchmarked against professional services firms in general • Benchmarked against Accenture and McKenzie in particular

6. Benchmarking Results Summary • Study Industry BE Actual • 2002 Gartner Study ($250k) 3.9% GR 3.9% GR • 2005 Gartner/Forrester 4%-6%GR 3.1% GR • 2006 Gartner/Forrester/Information Week • Industry 4%-6% GR • Accenture 6%-7% GR • McKenzie 4%-5% GR • Analyst target for BE ~6% GR • BE 2006 Budget 2.6% GR • Notes: • Costs are reported as published IT budget as a percentage of stated Gross Revenues (GR) • Most competitors are a generation behind in technology deployment (e.g. MPLS, VoIP, etc) • BE will continue to harvest savings from technology deployments through FY07 and beyond

7. Technological State of BearingPoint IT… a case of harvested savings not deferred cost • Fully deployed, single vendor, global, managed IP/VPN MPLS WAN (Equant) • 14,000 seats of Active Directory enabled VoIP across all regions with significant applications integration and global Cross-Cluster Extension Mobility (Cisco) • All major backoffice systems are < 3yrs old and web enabled • Single global CRM system (Siebel) • Single global HR/RMIS system (PeopleSoft) • Single performance evaluation/rewards system with integrated business metrics • Regional Finance systems (NA, EMEA & LA-ASPAC) • Enterprise Integration Broker allows single authoritative source for all discreet data elements across applications via publish and subscribe technology (WebMethods) • Single PC platform and standard desktop image worldwide supporting 8 languages via Microsoft MUI for OS and Office along with backoffice application language support • Standard global SOW and SLA’s for desktop support, office server support and IPT IMAC and a single service provider (Siemens SBS) • Good process and SOP documentation • Established IT Portfolio Management process • Nearly all services contracts are 2nd generation with established SOW’s & SLA’s • Architecture and solutions are scalable to support 40,000 users within technology and economic parameters (growth costs would be essentially linear) The journey from a loose federation to a corporate enterprise!