December 18, 2007
Miami, FL - December 18, 2007 - Answerthink, Inc. (NASDAQ: ANSR) commented today on its $8.2 million investment in Bank of America's Strategic Cash Portfolio (the "Fund"). On Friday, December 7, 2007, the Fund was closed to new investors, and on Monday, December 10, 2007, Bank of America informed Answerthink that the Fund would be liquidated.
Given Answerthink's substantial available cash balances which totaled over $25 million as of the end of its last fiscal quarter, Answerthink does not believe that the Fund's liquidation plans will have any material impact on its operating plans. Answerthink currrently estimates its year-end cash balances, excluding its investment in the Fund, to be in the range of $15-20 million. Answerthink has been an investor in the Fund since 2003, using it as one of its various AAA-rated money market oriented investment alternatives.
Bank of America informed Answerthink that it expects to liquidate approximately 90% of the Fund in the first six months of 2008, with the balance to be liquidated by the end of 2008 or early 2009. Bank of America has given Answerthink the option of maintaining its investment while the Fund is liquidated or taking a like-kind distribution of the underlying assets of the Fund. The Company currently believes that keeping the underlying assets with Bank of America will optimize the value of its investment.
Based on the latest information received from Bank of America, each share in the Fund is valued at $.99 of par value with par value representing $1.00. At this valuation, Answerthink's investment in the Fund has experienced an unrealized investment loss of approximately $80,000. Answerthink believes that this valuation is benefitting from a reported cash infusion by Bank of America.
The Company is closely monitoring the value of the underlying assets in the Fund, and will continue to evaluate the status and value of its investment in the Fund until the Fund assets are fully liquidated.
Answerthink, Inc. (www.answerthink.com) is a leading business and technology consulting firm that enables companies to achieve world-class business performance. By leveraging the comprehensive database of The Hackett Group, Answerthink's business and technology solutions help clients significantly improve performance and maximize returns on technology investments. Answerthink's capabilities include benchmarking, business transformation, business applications, business intelligence, and offshore application development and support. Founded in 1997, Answerthink has offices throughout the United States and in Europe and India.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and involve known and unknown risks, uncertainties and other factors that may cause The Hackett Group's actual results, performance or achievements to be materially different from the results, performance or achievements expressed or implied by the forward-looking statements. Factors that impact such forward-looking statements include, among others, the ability of our products, services, or practices mentioned in this release to deliver the desired effect, our ability to effectively integrate acquisitions into our operations, our ability to retain existing business, our ability to attract additional business, our ability to effectively market and sell our product offerings and other services, the timing of projects and the potential for contract cancellations by our customers, changes in expectations regarding the information technology industry, our ability to attract and retain skilled employees, possible changes in collections of accounts receivable, risks of competition, price and margin trends, foreign currency fluctuations, changes in general economic conditions and interest rates as well as other risks detailed in our Company's Annual Report on Form 10-K for the most recent fiscal year filed with the Securities and Exchange Commission. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.