Bearing Point Overview

BearingPoint provides business-consulting, systems integration and managed services to Global 2000 companies, medium-sized businesses, and government organizations. Our approximately 16,000 professionals in 39 countries leverage extensive industry and technology domain experience and flexible tools and methodologies to successfully deliver on time and on budget.

The name BearingPoint means setting direction to achieve results. As business systems integrators, we align our clients’ business processes and information systems to enable them to access the right information at the right time, empowering them to achieve their desired business results and create enterprise value.

BearingPoint, Inc. (formerly KPMG Consulting, Inc.) was incorporated as a business corporation under the laws of the State of Delaware in 1999. The principal offices are located at 1676 International Drive, McLean, Virginia 22102-4828. The Company previously was a part of KPMG LLP, one of the former “Big 5” accounting and taxfirms. In January 2000, KPMG LLP transferred its consulting business to KPMG Consulting. In February 2001 the company completed its initial public offering, and on February 8, 2001 common stock began to trade on the NASDAQ National Market under the ticker symbol “KCIN.” On October 2, 2002, the Company changed its name to BearingPoint, Inc. In connection with the name change, the Company moved to the New York Stock Exchange and began trading on October 3, 2002 under the new ticker symbol “BE.”

During the first quarter of fiscal year 2003, the company expanded its European presence with the purchase of KPMG Consulting AG (subsequently renamed BearingPoint GmbH (“BE Germany”)), which included employees in Germany, Switzerland and Austria. In addition, it furthered its global strategy by acquiring all or portions of selected Andersen Business Consulting practices in Brazil, Finland, France, Japan, Norway, Peru, Singapore, South Korea, Spain, Sweden, Switzerland, and in the United States and the consulting practice of the KPMG International member firm in Finland. It also strengthened its Latin American business with the acquisition of Ernst & Young’s Brazilian consulting practice. By significantly expanding the global reach, Bearing Point improved its ability to serve international clients, and has diversified its revenue base.

History Of Firsts

1 st among the big 5 firms to separate its consulting business from auditing

1^st among the big 5 consulting pratices to go public

1^st among big 5 consultants to its business by client industry

The focus on specific industries provides Bearing Point with the ability to tailor its service offerings to reflect its understanding of the marketplaces in which the clients operate. During fiscal year 2003, Bearing Point provided consulting services through five industry groups in which it has significant industry-specific knowledge. Beginning in fiscal year 2004, it combined the Consumer and Industrial Markets and High Technology industry groups to form the Consumer, Industrial and Technology industry group. The industry groups during fiscal year 2003 were:

• Public Services assists public services clients in process improvement, enterprise resource planning and Internet integration service offerings. This group also provides financial and economic advisory services to governments, corporations and financial institutions around the world. Bearing Point’s public services clients include federal government agencies, state and local governments, and private and public higher education institutions. In addition, this group provides services to public service healthcare agencies and private sector payor and provider companies.

• Communications & Content provides financial, operational and technical services to wireline and wireless communications carriers, public and private utilities, cable system operators and media and entertainment service providers. Bearing point’s services assist clients with business strategy development, business process flow optimization, technology integration and asset preservation.

• Financial Services focuses on delivering strategic, operational and technology services, including new, component-based business and technical architectures that leverage existing application systems and ebusiness strategies and development, delivered through consumer and wholesale lines of business. The clients in the financial services sector include banking, insurance, securities, real estate, hospitality and professional services institutions.

• Consumer and Industrial Markets designs and delivers solutions to assist clients with business challenges such as pressure to reduce costs, industry consolidation, global competition and accelerated time-to-market. To meet these challenges, Bearing Point supports its clients by implementing enterprise systems and business models, redefining business processes, improving supply chain efficiency and visibility by deploying product management, advanced planning and procurement solutions, capturing and integrating customer needs in customer management solutions, and implementing alternative business and systems strategies such as managed services. Bearing Point provides its clients with actionable blueprints and experience in project management. It transfers knowledge to support the current and future business initiatives of the clients. The Consumer and Industrial Markets practice offers segment solutions to the Global 2000 and mid-market clients in these segments: Automotive and Transportation; Chemicals and Natural Resources; Consumer Packaged Goods; Industrial Markets; Oil and Gas; and Retail/Wholesale.

• High Technology focuses on the identification and delivery of business process improvements. Areas of focus include: enterprise systems; supply chain; product lifecycle and collaboration; sales, marketing and customer care; and channel and human resource management. Its services support both global market industry leaders and fast growing businesses requiring a broad range of technology, integration, infrastructure and managed services assistance. These solutions address business challenges specific to the electronics industry (including contract manufacturers), and consumer electronics, semiconductor, hardware and network equipment manufacturers; large and emerging software companies; and life sciences clients consisting of pharmaceutical, medical device and distribution companies.

International Operations

Bearing point has multinational operations covering North America, Latin America, the Asia Pacific region, and Europe, the Middle East and Africa (EMEA). This multinational network is used to provide consistent integrated services to clients throughout the world. For the year ended June 30, 2003, international operations represented 29.8% of the business (measured in revenue dollars), compared to 8.0% for the year ended June 30, 2002.

Joint Marketing Relationships

As of June 30, 2003, Bearing Point had approximately 50 joint marketing relationships with key technology providers that support and complement its service offerings. The main objective for creating these joint marketing relationships to enhance its ability to provide its clients with high value services. The joint marketing relationships typically entail some combination of commitments regarding joint marketing, sales collaboration, training and service offering development.

The significant joint marketing and product development relationships are with Cisco Systems, Inc., Oracle Corporation, PeopleSoft, Inc., Microsoft Corporation, SAP AG, and Siebel Systems, Inc. These relationships are used to develop comprehensive solutions to common business issues, offer the expertise required to deliver those solutions, develop new products, capitalize on joint marketing opportunities and remain at the forefront of technology advances. These joint marketing agreements help to generate revenue since they provide a source of referrals and the ability to jointly target specific accounts.

Acquistions as a grouth Strategy

Commencing with our first acquisition of an international practice (Mexico) in December 1999, the Company has been executing a strategy to develop a global business platform primarily through acquisitions. During fiscal year 2003, it expanded its European presence with the purchase of KPMG Consulting AG (subsequently renamed BearingPoint GmbH (“BE Germany”)), which included approximately 3,000 employees in Germany, Switzerland and Austria. It its global strategy enabling it to better serve its multinational clients by acquiring all or portions of selected Andersen Business Consulting practices in Brazil, Finland, France, Japan, Norway, Peru, Singapore, South Korea, Spain, Sweden, Switzerland and in the United States, and the consulting practice of the KPMG International member firm in Finland. In addition, it strengthened the Latin American business with the acquisition of Ernst & Young’s Brazilian consulting practice. Through June 30, 2003, Bearing Point completed 32 transactions (all of which are accounted for as purchase business acquisitions, and will therefore be referred to in this Form 10-K as “acquisitions”), and has substantial multinational operations in North America, Latin America, the Asia Pacific region, and Europe, the Middle East and Africa (EMEA). These regional practices are organized along industry groups in which BearingPoint has specialized knowledge and expertise, including Public Services, Communications & Content, Financial Services, Consumer and Industrial Markets, and High Technology.

The following chart provides a summary of recent acquisitions:

Relevant Entity Transaction Date

Andersen Business Consulting, United States . . . . . . . . . . . . . . July 1, 2002

Andersen Business Consulting, Switzerland . . . . . . .. . . . . . . . . July 1, 2002

Andersen Business Consulting, Nordics (including Finland, Norway and Sweden) ............................... July 1, 2002

Andersen Business Consulting, Singapore . . . . . . . . . . . . . . . . . July 1, 2002

Andersen Business Consulting, South Korea . . . . . . . . . . . . . …. July 2, 2002

Andersen Business Consulting, Peru . . . . . . . . . . . . . . . . . . . August 1, 2002

Andersen Business Consulting, Spain . . . . . . . . . . . . .. . . . . . August 1, 2002

Andersen Business Consulting, Japan . . . . . . . . . . . . . . . . . August 1, 2002

KPMG Consulting AG (the consulting business of the German member of KPMG International) . . August 22, 2002

Andersen Business Consulting, Brazil . . . . . . . . . . . . . .. . . . . August 23, 2002

Andersen Business Consulting, France . . . . . . . . . . . . . . September 11, 2002

Business consulting practice of Ernst & Young, Brazil . . . September 18, 2002

Consulting business of the Finland member of KPMG International ..................................................... October 1, 2002

Pursuing the Vision

”Our vision is to be the world's most influential and respected business advisor and systems integrator. Achieving it will require the highest levels of passion, performance and professionalism. The higher we set our sights and standards, the better we serve the people we care most about. “

“It’s our unique ability to empower our clients to lead that sets us apart. By aligning their processes and systems, we help our clients access the right information. Because the right information brings knowledge. Knowledge is power. And sharing it is empowerment. “

“We already have some of the finest professionals in business consulting and systems integration. Our goal is not only to keep them, but also to keep them constantly challenged.

Alliances That Lead To Better Answers

To develop best-in-class solutions, BearingPoint forms alliances with market-leading hardware and software companies. These are more than merely marketing agreements. These relationships are an investment in the joint development of solutions to serve clients' special business needs. The resources of its alliance partners, combined with its own experience in business systems strategy and implementation, makes the alliance program a valuable resource for clients.