The Advisory Board Company Reports Fiscal Year 2008 Third Quart...(hose used by management the tables below...),Health

of Non-GAAP Financial Measures" reconcile GAAP to adjusted amounts

for the three and nine months ended December 31, 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 $70,000 and $283,000 for the

three and nine months ended December 31, 2007, respectively, and

$58,000 and $206,000 for the three and nine months ended December 31,

2006, respectively.

Reconciliation of Non-GAAP Financial Measures

The Company believes its calculations of adjusted results to exclude share-based compensation expense provide additional information about the Company's operating performance. The Company's management uses the adjusted presentations to evaluate 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. 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 inc
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