BOSTON--(BUSINESS WIRE)--Feb. 15, 2001--Bright Horizons Family Solutions, Inc. (NASDAQ:BFAM) today announced financial results for the quarter and year ended December 31, 2000.

Revenues for the quarter ended December 31, 2000 increased 24% to $78.0 million from $62.7 million for the quarter ended December 31, 1999. Net income for the fourth quarter ended December 31, 2000 increased 24% to $2.6 million, or $.20 per diluted share, from $2.1 million, or $0.17 per diluted share, in the same 1999 period, excluding the write-down of certain minority investments recognized in the current quarter ($412,000, net of tax, or $.03 per diluted share). Including the effect of this nonrecurring charge, net income was $2.1 million and fully diluted earnings per share was $0.17 for the fourth quarter of 2000.

Revenues for the year of 2000 increased 20% to $291.1 million from $243.3 million for the same period in 1999. Net income for the year ended December 31, 2000 increased 21% to $9.6 million, or $0.77 per diluted share, from $7.9 million, or $0.63 per diluted share in 1999, excluding the effect of the nonrecurring investment write-off in the fourth quarter of 2000. Including this charge, net income was $9.2 million, or $0.74 per diluted share, for the year ended December 31, 2000.

As previously announced, Bright Horizons recently ended its partnership with Kids Online America. Kids Online America discontinued its program and content development for KOLA, a family Internet service, until additional funding or financial partners could be secured, and this month filed for bankruptcy. In connection with these events, the Company has recorded a nonrecurring charge in the fourth quarter of 2000, amounting to $412,000 after tax, to fully write down the investment.

"We added 11 net new centers this quarter and a record total of 45 net new centers for the year," observed Roger Brown, CEO of Bright Horizons. "We opened our eighth and ninth centers for J.P. Morgan Chase and our twelfth center for Motorola this quarter. In addition, Charles Schwab and PNC Bank each opened their first Family Center. We also moved into Ireland through the acquisition of Circle of Friends, one of Ireland's premier nursery operators with two nurseries in Dublin."

"Demand for high quality child care continues to be very strong," said Brown. "Even with the record number of new openings this year, our pipeline of centers under development still stands at well over 60 centers. The clients represented in our pipeline cut across a broad range of industries, including financial services, pharmaceuticals, technology, manufacturing and service industries. The locations of these centers are equally diverse, with centers currently under development in 28 U.S. states and the District of Columbia, and internationally in England, Ireland and Canada. As we look ahead to the coming year and beyond, the visibility of these new center openings lends tangible support to our optimistic outlook for future growth and financial performance."

"Bright Horizons was recently named one of the '100 Best Companies to Work For in America' by FORTUNE magazine," continued Brown. "We are extremely gratified that our employees are pleased with their work life and career opportunities here at Bright Horizons. This high level of employee satisfaction and dedication is a major factor in our parent satisfaction ratings - currently at an all time high of 98.1%. We believe that in order to help our clients be great places to work, we need to be one ourselves."

Bright Horizons Family Solutions will be hosting an investor conference call today at 4:30 pm EST. The public is invited to listen to the conference call by dialing 973-633-1010. Replays of the entire call will be available through Friday, March 2, 2001 at 402-220-9917, PIN #3307. 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 345 family centers in the United States, Europe and the Pacific Rim. Bright Horizons serves more than 250 clients, including 80 FORTUNE 500 companies and 44 of the "100 Best Companies for Working Mothers," as recognized by Working Mother magazine. Bright Horizons was recently named one of the "100 Best Companies to Work For in America" by FORTUNE magazine.

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 and to expand and operate effectively and profitably in the international market, 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 Quarterly Report on Form 10-Q for the period ending September 30, 2000 and Annual Report on Form 10-K for the year ended December 31, 1999.

                   Bright Horizons Family Solutions
                    Selected Financial Information
                             (Unaudited)
                 (in thousands except per share data)

                                          Three months ended
                                  12/31/2000             12/31/1999

Revenues                     $ 77,951   100.0%       $ 62,730   100.0%

Cost of services               66,370    85.1%         53,674    85.6%
Gross profit                   11,581    14.9%          9,056    14.4%

Selling, general and
 administrative expenses        6,554     8.4%          5,337     8.5%
Amortization                      535     0.7%            238     0.3%

Income from operations          4,492     5.8%          3,481     5.6%

Other charges (1)                (704)   -0.9%           --       0.0%
Net interest income
 (expense)                       (132)   -0.2%            148     0.2%

Income before income taxes      3,656     4.7%          3,629     5.8%

Income tax provision           (1,515)   -2.0%         (1,562)   -2.5%

Net income                   $  2,141     2.7%       $  2,067     3.3%


Per share data:

Net income per share
 - basic                       $ 0.18                  $ 0.18
Weighted average
 number of common
 shares outstanding            12,009                  11,795

Net income per share
 - diluted                     $ 0.17                  $ 0.17
Weighted average
 number of common and
 common equivalent shares      12,751                  12,252

Pro forma information:

Pro forma net income
 excluding asset
 impairment charge             $2,553                  $2,067

Pro forma net income
 per share - diluted           $ 0.20                  $ 0.17
Weighted average
 number of common and
 common equivalent shares      12,751                  12,252



                   Bright Horizons Family Solutions
                    Selected Financial Information
                              (Unaudited)
                 (in thousands except per share data)


                                        Twelve months ended
                                 12/31/2000              12/31/1999

Revenues                    $ 291,143   100.0%      $ 243,290   100.0%

Cost of services              248,405    85.3%        208,631    85.8%
Gross profit                   42,738    14.7%         34,659    14.2%

Selling, general and
 administrative expenses       24,388     8.4%         20,903     8.6%
Amortization                    1,904     0.7%            913     0.3%

Income from operations         16,446     5.6%         12,843     5.3%

Other charges (1)                (704)   -0.2%            --      --
Net interest income                30     0.0%            715     0.3%

Income before income taxes     15,772     5.4%         13,558     5.6%

Income tax provision           (6,560)   -2.2%         (5,631)   -2.3%

Net income                  $   9,212     3.2%      $   7,927     3.3%


Per share data:

Net income per share
 - basic                       $ 0.77                  $ 0.66
Weighted average
 number of common shares
 outstanding                   11,895                  11,945

Net income per share
 - diluted                     $ 0.74                  $ 0.63
Weighted average
 number of common and
 common equivalent shares      12,522                  12,586

Pro forma information:

Pro forma net income
 excluding asset
 impairment charge             $9,624                  $7,927

Pro forma net income
 per share - diluted           $ 0.77                  $ 0.63
Weighted average
 number of common and
 common equivalent shares      12,522                  12,586



(1) In Q4 2000 the company recognized an impairment in the value of
    certain minority stake equity investments.

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