Investor News

Cambridge, Mass. — Sapient (NASDAQ: SAPE), a leading business consulting and technology services firm, today announced financial results for its first quarter ended March 31, 2004.

Consolidated service revenues for the first quarter of 2004 were $58.9 million, representing a 14% increase from service revenues of $51.8 million for the fourth quarter of 2003, and a 34% increase from the first quarter of 2003. Gross revenues for the first quarter of 2004 were $61.1 million, which included $2.2 million of reimbursable expenses.

Net income for the first quarter of 2004 was $1.3 million, or $0.01 per diluted share. This compared to a net income of $2.6 million, or $0.02 per diluted share (which included a $1.4 million gain on the sale of an investment), for the fourth quarter of 2003, and a net loss of $4.1 million or $0.03 per diluted share for the first quarter of 2003.

"Our top line sequential growth of 14% in the first quarter validates how well our value proposition matches the needs of our existing and prospective clients," said Jerry A. Greenberg, Sapient’s co-chairman and co-chief executive officer. "We achieved growth in virtually all of our industry units, services and geographies, and secured several key wins on the larger, longer-term client opportunities we had been pursuing."

In the first quarter, Sapient won assignments with both new and established clients, including BP, BioLab, Comcast, Deutsche Telekom, Essent, Exelon, Harrah’s Entertainment, Insurance Bureau of Canada, Janus Capital Group, Le Meridien, Newmarket International, Nextel, Scotiabank, Sequent Energy, Sony Electronics, Star Alliance, T-Online, TUI, U.S. Department of Homeland Security, U.S. Navy, Verizon, Vodafone, and Wells Fargo Bank.

In a separate press release, Sapient announced today that it was selected by BT for a major London National Health Service contract. Sapient will provide extensive technology design, development and support services for BT’s Local Service Provider London contract, which is worth up to £996 million. BT is the prime contractor for the 10-year contract to design, deliver and operate integrated local patient record applications and systems for the entire London care community. BT’s contract is one of several awarded by the UK’s Department of Health as part of the National Programme for IT (NPfIT), the largest civilian IT project in the world.

Conference Call
Sapient will host a discussion of the first quarter results in a conference call today at 4:30 p.m. (ET), which will be broadcast live on the Internet. For webcast registration information, please go to http://www.sapient.com/earnings.htm. It is advisable to register at least 15 minutes prior to the call to download and install any necessary audio software. A re-broadcast of the call will be available from April 29 at 7:30 p.m. (ET) through May 6 at 11:59 p.m. (ET) by dialing 877-660-6853 (within the U.S.) or 201-612-7415 (outside the U.S.) and entering account number 1628 and conference ID 100265 when prompted.

Forward-Looking Statements
This press release contains forward-looking statements that involve a number of risks and uncertainties. There are a number of factors that could cause actual events to differ materially from those indicated. Such factors include, without limitation, the continued acceptance of the Company’s services, the Company’s ability to accurately set fees for and timely complete its current and future client projects, its ability to successfully manage risks associated with its international operations, its ability to manage its growth and projects effectively and its ability to continue to attract and retain high quality employees, as well as other factors set forth in the Company’s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as filed with the SEC.

You may download the Consolidated Statements of Operations and Consolidated Balance Sheets in PDF format at http://www.sapient.com/pdfs/press_releases/sapient_charts_29-04-04.pdf.

About Sapient
Sapient is a leading business consulting and technology services firm that plans, designs, implements, and manages information technology to improve business performance for Global 2000 clients. Sapient was founded in 1991 based on a single promise: to deliver the right business results, on time and on budget. Sapient's fixed-price/fixed-time model, combined with industry, design, technology, and process expertise, provides clients with the highest business value at the lowest total cost of ownership. Headquartered in Cambridge, Massachusetts, Sapient has offices in Canada, Germany, India, the United Kingdom, and the United States. More information about Sapient can be found at www.sapient.com

Sapient is a registered service mark of Sapient Corporation.