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FIRST CONSULTING GROUP (FCG) REPORTS
SECOND QUARTER 2003 RESULTS

Reports Second Quarter Record Net Revenues of $71.3 Million



Restructures Life Sciences Business and Takes a $3.9 Million Restructuring Charge



Records a Net Loss of $3.5 Million and Loss Per Share of $0.14



Balance Sheet Focus Produces Continued Strong Cash Position and No Debt

        LONG BEACH, Calif., July 24, 2003First Consulting Group, Inc. (Nasdaq: FCGI), a leading provider of information-based consulting, integration and outsourcing services to the health-related industries, today reported financial results for its second quarter ended June 27, 2003.

Second Quarter 2003 Performance

        Revenues before reimbursements ("net revenues") for the second quarter of 2003 were an all time record of $71.3 million, up 1.7% percent from the prior quarter and up 7.7% from the second quarter of 2002. The increase from the prior year was largely due to the revenues of acquired companies. The growth from the prior quarter was due to approximately 8% growth in Healthcare and Outsourcing revenues, partially offset with declines in Life Sciences revenues. FCG reported a net loss of $3.5 million, or $0.14 per share, for the second quarter of 2003, versus a net loss of $2.9 million, or $0.12 per share, in the second quarter of 2002.

        Working capital remained strong at $66.1 million. Total cash and investments increased to $60.2 million in the second quarter of 2003, as compared to $59.2 million in the first quarter of 2003, and $58.1 million in the second quarter of 2002. Day's sales outstanding (DSO) decreased to 42 days in the second quarter of 2003, compared to 46 days in the first quarter of 2003. FCG continues to have no debt outstanding.

        Luther Nussbaum, FCG's chairman and chief executive officer, said, "We have continued to invest in our business to extend our deep domain expertise and improve the performance of our clients over the past several years. We expected that our existing business base would cover those investments. However, as we faced some severe and sustaining setbacks within each of our business units, most recently in Life Sciences, much of the anticipated financial support for our investments was removed. Now, these investments have impacted our financial results and have negatively impacted our performance for the second quarter and our outlook for the remainder of 2003. While disappointed in the near-term result, we believe these investments are necessary for us to meet the service and product requirements that we now believe exist in what have been rapidly changing healthcare and life sciences markets. We remain committed to this path while also focusing on additional steps to improve our performance, further rationalize our costs and improve our predictability."

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