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<p>Company Achieves Profitable Operating Results on 24% Year-Over-Year Revenue Increase</p>
<p>STAMFORD, Conn. (August 9, 2004) — META Group, Inc. (Nasdaq: METG), a leading information technology (IT) research and consulting firm, today announced financial results for the second quarter ended June 30, 2004.</p>
<p>Second-Quarter Results</p>
<p>Total revenues for the second quarter were up 24% to $37.2 million, compared to revenues of $30.1 million in the year-ago period. Ongoing operations grew by $3.3 million, including $0.8 million from currency fluctuations, while acquisitions added $3.8 million of revenue. Net income for the quarter was $0.4 million, or $0.03 per fully diluted share. This compares to a net loss of $1.5 million, or $0.11 per fully diluted share, in the year-ago period.</p>
<p>A breakdown of the quarter's results is as follows:</p>
<p>• Research and Advisory Services revenue in the second quarter was $24.5 million, up 26% from $19.3 million in the second quarter of 2003.</p>
<p>• Revenue from Strategic Consulting was up 22% to $10.6 million in the second quarter, compared to $8.7 million in the year-ago period.</p>
<p>• Revenue from Published Research Products was $1.4 million, roughly flat from the second quarter of 2003.</p>
<p>• The gross margin increased to 47% in the second quarter, compared to 45% in the year-ago period.</p>
<p>• Operating expenses for the second quarter were $36.7 million, up from $31.8 million in the year-ago period. Acquisitions increased expenses by $4.9 million. Expenses associated with ongoing operations declined by $0.7 million after adjusting for currency fluctuations, which increased expenses by $0.7 million.</p>
<p>• The Company's net cash position (cash including restricted balances, less bank debt and notes payable) at June 30, 2004, was $13.3 million, compared with $22.3 million in the first quarter of 2004, reflecting seasonal billing cycles and payment of bonuses.</p>
<p>"We are very pleased to have achieved profitable operating results for the quarter," said Herb VanHook, META Group acting president and COO. "I would like to congratulate everyone at META Group for their hard work and continued focus on executing the objectives we set forth at the beginning of the year."</p>
<p>Year-to-Date Results</p>
<p>For the six months ended June 30, 2004:</p>
<p>• Total revenues were $70.0 million, a 20% increase over the comparable prior year period.</p>
<p>• Total operating expenses were $71.0 million, an 18% increase over the prior year.</p>
<p>• Net loss was $1.0 million versus $1.4 million in the previous year.</p>
<p>Conference Call</p>
<p>META Group will hold a conference call at 5:00 pm ET (US) today, Thursday, August 5, to discuss its financial results and quarterly highlights. All interested parties are invited to listen to the call live over the Internet at www.viavid.net. For persons unable to listen to the live Internet broadcast, a replay will be available shortly after the call on the Viavid site for seven days. A link to the Viavid conference call replay will also be posted at www.metagroup.com.</p>
<p>About META Group</p>
<p>META Group is a leading provider of information technology research, advisory services, and strategic consulting. Delivering objective and actionable guidance, META Group's experienced analysts and consultants are trusted advisors to IT and business executives around the world. Our unique collaborative models and dedicated customer service help clients be more efficient, effective, and timely in their use of IT to achieve their business goals. Visit metagroup.com for more details on our high-value approach.</p>
<p>EDITORIAL CONTACTS:</p>
<p>Jessie Shepherd
Markom Marketing
+61-2-9977-8922
jessieshepherd@markom.com.au</p>
<p>Peter Carr, Vice President, Director Operations
META Group
+61-2-9290-8624
peter.carr@metagroup.com</p>
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