Forsythe Technology Records 31st Year of Consecutive Profitability.

Business Editors

SKOKIE, Ill.--(BUSINESS WIRE)--April 23, 2002

Despite Difficult Economy, Full-Service Technology-Infrastructure

Company Continues Steady Growth and Increases Customer Base by 20%

Despite a difficult economy, Forsythe Technology Inc. kept its notable

The privately-held provider of full-service technology infrastructure solutions said net income last year climbed 8 percent to $34 million, even after significant investment in acquisitions and hiring. Revenues increased 10 percent to $691 million; since 1996, the company has posted a striking 29 percent compound annual growth rate (CAGR) in revenues.

Forsythe found that even in challenging economic times, serving as a trusted, long-term partner has proven invaluable for many customers, including H&R Block, the Nasdaq stock market and U.S. Bancorp, who are profiled in its 2001 annual report. In fact, over the last year, Forsythe's customer base jumped 20 percent to 3,000 from 2,500.

"Our company succeeds because the marketplace values our model," says Rick Forsythe, Forsythe's chairman and president. "`Full-service technology infrastructure solutions provider' is a complex series of words, but its meaning is simple: Our customers can come to us for individual components to meet their technology needs. Or we can provide it all in a package that we evaluate, architect, build and manage for them. We make technology easier for customers by offering a single point of accountability."

Capitalizing on its unbroken, three-decades-long track record of profitability and its financial strength, Forsythe made several significant investments for the future in 2001. In December, the company merged its managed service provider (MSP) subsidiary, Nuclio Corp., with SevenSpace Inc. This was completed in January, creating SevenSpace/Nuclio Corp., the industry's "go-to" source for enterprise-level application and infrastructure management. Forsythe invested $3 million in the new company and retains a 40 percent ownership position.

Forsythe also strengthened its position in several geographic areas and expanded its offerings through a combination of acquisitions and personnel additions. In particular, it expanded its security and IT-management capabilities, and also continued to develop expertise in such leading-edge technologies as content delivery, optical networking and storage-area networks.

"Listening to our customers is paramount, and their strong demand led Forsythe in these directions," explains Eva Losacco, senior vice president, Forsythe Technology and president of Forsythe Solutions Group, the product and consulting arm of Forsythe.

Unusual among private companies, Forsythe Technology has published an annual report for 16 years. Reflecting the company's financial openness and today's heightened concern toward straightforwardness in financial reporting, Albert Weiss, senior vice president and chief financial officer, notes that Forsythe's pre-tax earnings in 2001 fell slightly from the previous year, primarily because of investments made last year. After-tax earnings, however, climbed 8 percent.

"As a privately-owned company, we have the luxury of taking actions that lay a foundation for future growth and increased profitability, even if they are not reflected in near-term earnings," explains Weiss, who is also president of Forsythe McArthur Associates, Forsythe's leasing arm. "In 2001, for just this reason, we chose to make investments through acquisitions and increased staffing, particularly in the sales and consulting areas."

Forsythe Technology employs 545 people in 35 offices throughout the U.S. Forsythe Solutions Group and Forsythe McArthur Associates are wholly-owned subsidiaries of Forsythe Technology.

About Forsythe Technology:

Forsythe Technology Inc. is an expert technology infrastructure provider. As a premier architect, builder, evaluator and manager of the technology needed to run business, Forsythe serves the complete technology life cycle, including assessment, design, integration, management and financing. With a solid foundation and proven experience, Forsythe serves 3,000 customers nationwide. A process-oriented approach to exceptional customer service, coupled with best-of-breed providers including Brocade, Check Point, Cisco, Compaq, EMC, Hewlett-Packard, IBM, Nokia, SevenSpace/Nuclio, StorageTek, Sun Microsystems and VERITAS, ensures customers the most comprehensive technology solutions available. For more information, visit Forsythe at http://www.forsythetech.com.