Gartner, Inc. (NYSE: IT), the leading provider of research and analysis on the global information technology industry, today reported results for second quarter 2008. The company also updated its financial outlook for 2008. Separately, Gartner announced promotions and new assignments for three senior vice presidents.

Highlights:

• Contract Value Increased 16% to $794.2 Million
• Total Revenue Increased 17% to $343.9 Million
• Diluted EPS from Continuing Operations Increased 173% to $0.30
• Cash Provided by Operating Activities Increased 54% to $67.6 Million
• Company Repurchased $84.7 Million of Stock

Contract value, a key leading indicator for Gartner's Research segment, increased 16% year-over-year to a record level of $794.2 million, reflecting the successful execution of the Company's strategy to accelerate the growth of its Research business. Total revenue for second quarter 2008 grew 17% year-over-year to $343.9 million, driven by double-digit growth in each of Gartner's three business segments. Excluding the impact of foreign exchange, research contract value and total revenue each increased 13% year-over-year.

For second quarter 2008, diluted EPS from continuing operations increased 173% year-over-year to $0.30, net income increased 113% year-over-year to $29.9 million and Normalized EBITDA increased 37% year-over-year to $60.7 million. These results were driven by the Company's strong revenue growth and operating leverage, coupled with the postponement of certain expenses and investments to later in the year. See "Non-GAAP Financial Measures" for a discussion of Normalized EBITDA and a reconciliation to net income.

Gene Hall, Gartner's chief executive officer, commented, "During the second quarter we continued to experience solid demand for our services. The performance of our Research and Events businesses was in-line with our expectations while our Consulting business grew ahead of expectations. Given our vast market opportunity and high-value products, we are well-positioned to meet our growth targets for the remainder of the year and beyond."

Business Segment Highlights

Research - Revenue for second quarter 2008 increased 20% year-over-year to $195.8 million and gross contribution margin improved 2 percentage points to 65%. At June 30, 2008, research contract value was a record $794.2 million, up 16% year-over-year. Client and wallet retention rates for second quarter 2008 were 81% and 101%, respectively.

Consulting - Revenue for second quarter 2008 increased 13% year-over-year to $94.6 million and gross contribution margin improved 2 percentage points to 43%. Second quarter utilization increased 2 percentage points year-over-year to 75% and backlog increased 2% year-over-year to $111.3 million at June 30, 2008. Billable headcount was 478 as of June 30, 2008, versus 487 last year, reflecting the exiting of consulting operations in Asia Pacific during 2007.

Events - Revenue for second quarter 2008 increased 20% to $51.0 million and gross contribution margin was 44%. The Company held 25 events with 13,873 attendees, as compared to 20 events with 12,842 attendees in second quarter 2007. As previously announced, four large events that were held in first quarter 2007 were shifted into second quarter 2008, which positively impacted revenue in the second quarter.

Cash Flow and Balance Sheet Highlights

During second quarter 2008, Gartner generated cash provided by operating activities of $67.6 million, up 54% versus last year, and had capital expenditures of $5.5 million. The Company deployed its cash principally to repurchase 3.9 million shares of its common stock at a cost of $84.7 million. As of June 30, 2008, the Company had total debt of $469.8 million and cash of $136.9 million.

Financial Outlook for 2008

Gartner updated its most recent financial outlook for 2008. The Company increased its projection for Research revenue and total revenue and reiterated its guidance for all other financial metrics. The increase in outlook for Research revenue was primarily due to higher foreign exchange benefits.

For the full year, the Company is now targeting total revenue of $1.288 to $1.313 billion, an increase of 10% to 12% versus 2007. By segment, the Company is now targeting Research revenue of $780 to $790 million, an increase of 16% to 17% versus 2007, and is continuing to target Consulting revenue of $335 to $345 million, an increase of 3% to 6% versus 2007, Events revenue of $168 to $172 million, an increase of 5% to 7% versus 2007, and other revenue of $5 to $6 million.

Based on the above revenue outlook, coupled with the Company's expectation that it will increase investments in its businesses during the second half of the year, Gartner is continuing to target Normalized EBITDA for the full year 2008 of $209 to $219 million, an increase of 10% to 15% versus 2007, Diluted EPS from continuing operations of $0.88 to $0.98, an increase of 33% to 48% versus 2007, cash flow from operations of $155 to $170 million and capital expenditures of $25 to $27 million. Normalized EBITDA excludes a projected $26 to $28 million of pre-tax expense related to SFAS 123R.

Gartner's 2008 outlook excludes the results of its former Vision Events business, which was sold in February 2008 and is now reported as a discontinued operation, and the $7.1 million gain-on-sale resulting from the divestiture.

Ken Davis to Lead EUP, Robin Kranich to Lead Human Resources, Michael Yoo to Lead HTTP

Separately, Gartner announced that Ken Davis, senior vice president and formerly leader of Gartner's High Tech and Telecom Programs (HTTP), will now lead Gartner's End User Programs (EUP) and Robin Kranich, senior vice president and formerly leader of EUP, will now lead Gartner's global human resources organization.

Michael Yoo, formerly head of product development and strategy for Gartner Executive Programs, has been promoted to senior vice president and will succeed Davis as leader of HTTP. Yoo joined the Company in 2006 as the head of product development for HTTP. During this time, he oversaw the development and launch of the Gartner for Business Leaders suite. In 2007, he led product development and strategy for the Executive Programs team, where he oversaw the development and launch of the Gartner for IT Executives product line for CIOs.

Conference Call Information

Gartner has scheduled a conference call at 10:00 a.m. ET today, Wednesday, July 30, 2008, to discuss the Company's financial results. The conference call will be available via the Internet by accessing the Company's web site at http://investor.gartner.com. A replay of the webcast will be available for 90 days following the call.

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