Revenue up 19% and net income up 20% in 2001 Named one of Fortune magazine's "100 Best Companies to Work For in America"

BOSTON, Feb 13, 2002 (BW HealthWire) -- Bright Horizons Family Solutions, Inc. (Nasdaq: BFAM) today announced financial results for the quarter and year ended December 31, 2001.

Revenues for the quarter ended December 31, 2001 increased 17% to $91.2 million compared to $78.0 million for the quarter ended December 31, 2000. Net income of $3.0 million, or $0.23 per share, increased 40% from $2.1 million, or $0.17 per share, in the fourth quarter of 2000.

Revenues of $345.9 million for the year ending December 31, 2001 increased 19% from $291.1 million in 2000. Net income for year ending December 31, 2001 increased 25% to $11.5 million, or $0.90 per share, from $9.2 million, or $0.74 per share, for the same 2000 period.

In the fourth quarter of 2000, the Company recorded a nonrecurring charge of $412,000, net of tax, to fully write down certain minority equity investments which were not recoverable. Excluding this charge, net income for the fourth quarter of 2000 was $2.6 million, or $0.20 per fully diluted share, and for the year 2000 was $9.6 million, or $0.77 per fully diluted share.

"We are very pleased with our results for both the quarter and the year," commented Roger Brown, Executive Chairman. "In 2001, we achieved 19% revenue growth and 20% bottom line growth in a tough economic climate, while improving overall parent satisfaction to 98.3% from 98.1% in the prior year. I am very proud of the way our team proactively managed the business through challenging economic times."

"The diversity of our client base, the wide range of solutions that we offer, and continued strong demand for child care have been key factors in maintaining our growth this past year," added David Lissy, Chief Executive Officer. "We added a total of 45 net new centers this year, including six this quarter, bringing our total number of centers to 390 worldwide. This past quarter marked our expansion into Canada through our first center in partnership with IBM and Seibel Systems. In addition, we opened our first new center in London, which is also our first dedicated back-up center outside the United States. We are proud to serve our more than 325 clients in four countries - a scope of operations unmatched in the employer-sponsored child care market."

"Bright Horizons was recently named one of Fortune magazine's `100 Best Companies to Work for in America' for the second year in a row," continued Lissy. "We are very pleased to be in the company of such great organizations, including 31 of our own clients. In addition, we were extremely honored to be named as the top company for women in the workforce. This is an important recognition of our organization as a caring team, full of purpose and promise, that makes a difference every day in the lives of the families we serve. As we strive to help our clients become employers of choice in their respective fields, we understand that we too must strive to be the employer of choice in the child care and early education field."

Bright Horizons Family Solutions will host an investor conference call today at 4:30 pm EST. The public is invited to listen to the call by dialing 973-633-6730 and asking for the Bright Horizons conference call. Replays will be available through Friday, February 22, 2002 at 973-341-3080, PIN# 3068607. Visit the Bright Horizons Family Solutions Web site at www.brighthorizons.com.

Bright Horizons Family Solutions is the world's leading provider of employer-sponsored child care, early education and work/life consulting services, managing more than 390 child care and early education centers in the United States, Europe, Canada and the Pacific Rim. Bright Horizons serves more than 325 clients, including 82 FORTUNE 500 companies and 48 of the "100 Best Companies for Working Mothers," as recognized by Working Mother magazine. Bright Horizons is one of FORTUNE magazine's "100 Best Companies to Work for in America."

This press release contains forward-looking statements, which involve a number of risks and uncertainties. Bright Horizons Family Solutions' actual results may vary significantly from the results anticipated in these forward-looking statements as a result of certain factors, including the ability of the Company to execute contracts relating to new commitments, to enroll families in new as well as existing centers, to open new centers for clients who control construction, and the impact of government tax and fiscal policies on employers considering work-site child care, as well as other factors that are discussed in detail in the Company's filings with the Securities and Exchange Commission, including the "Risk Factors" section in the Company's Annual Report on Form 10-K for the year ended December 31, 2000.

                   Bright Horizons Family Solutions
                    Selected Financial Information
                              (Unaudited)
                 (in thousands except per share data)
                                 Three months ended
                            12/31/01             12/31/00
Revenues                $ 91,197   100.0%    $ 77,951      100.0%
Cost of services          77,787    85.3%      66,370       85.1%
Gross profit              13,410    14.7%      11,581       14.9%
Selling, general and
 administrative
 expenses                  7,624     8.4%       6,554        8.4%
Amortization                 558     0.6%         535        0.7%
Income from
 operations                5,228     5.7%       4,492        5.8%
Other charges (1)           --       0.0%        (704)      -0.9%
Net interest
 (expense) income            (13)    0.0%        (132)      -0.2%
Income before income
 taxes                     5,215     5.7%       3,656        4.7%
Income tax provision      (2,228)   -2.4%      (1,515)      -2.0%
Net income              $  2,987     3.3%    $  2,141        2.7%
Per share data:
Net income per share
 - basic                $   0.24             $   0.18
Weighted average
 number of common
 shares outstanding       12,262               12,009
Net income per share
 - diluted              $   0.23             $   0.17
Weighted average
 number of common
and common equivalent
 shares                   12,811               12,751
Pro forma
 information:
Pro forma net income
 excluding asset
 impairment charge      $  2,987             $  2,553
Pro forma net income
 per share - diluted    $   0.23             $   0.20
Weighted average
 number of common
 and common
 equivalent
 shares                   12,811               12,751
(1) In Q4 2000 the company recognized an impairment in the value of
certain minority stake equity investments.
                   Bright Horizons Family Solutions
                    Selected Financial Information
                              (Unaudited)
                 (in thousands except per share data)
                                   Twelve months ended
                             12/31/01              12/31/00
Revenues               $ 345,862   100.0%    $291,143      100.0%
Cost of services         295,027    85.3%     248,405       85.3%
Gross profit              50,835    14.7%      42,738       14.7%
Selling, general and
 administrative
 expenses                 28,601     8.3%      24,388        8.4%
Amortization               2,213     0.6%       1,904        0.7%
Income from
 operations               20,021     5.8%      16,446        5.6%
Other charges (1)      $      --     0.0%        (704)      -0.2%
Net interest
 (expense) income            (85)    0.0%          30        0.0%
Income before
 income taxes             19,936     5.8%      15,772        5.4%
Income tax provision      (8,409)   -2.5%      (6,560)      -2.2%
Net income             $  11,527     3.3%    $  9,212        3.2%
Per share data:
Net income per share
 - basic               $    0.95             $   0.77
Weighted average
 number of common
 shares outstanding       12,189               11,895
Net income per share
 - diluted             $    0.90             $   0.74
Weighted average
 number of common
 and common
 equivalent shares        12,798               12,522
Pro forma
 information:
Pro forma net income
 excluding asset
impairment charge      $  11,527             $  9,624
Pro forma net income
 per share - diluted   $    0.90             $   0.77
Weighted average
 number of common
and common
 equivalent shares        12,798               12,522
(1) In Q4 2000 the company recognized an impairment in the value of
certain minority stake equity investments

CONTACT:          Bright Horizons Family Solutions, Inc.
                  Elizabeth Boland, 617-673-8000
                  or
                  Bright Horizons Family Solutions, Inc.
                  Ilene Hoffer, 617-673-8000