Grant Thornton International issues financial results - Member firm financial performance 2004 up by 20%

Press Release - December 2004

Grant Thornton International (GTI) today (13 December 2004) announced financial results for member firms worldwide to the year ended 30 September 2004. The members of the GTI network achieved significant revenue growth in 2004, with an increase of 20 per cent. This follows two years of strong performance in 2003 and 2002.

The fee income of Grant Thornton International member firms was up by US$350 million (20%). Member firm staff numbers and the number of partners remained steady.

(*see definitions below)	2004		2003		2002
Total member firm(*) fee income	US$2,092	+20%	US$1,742m	+20%	US$1,451m
Member firms fee income from core (*) activities	US$2,011m	+20%	US$1,675m	+23%	US$1,365m
Number of member firms	91		92		85
Number of memer firm offices	504	+1%	498	+3%	483
Member firm staff (*)	20,486	+2%	20,180	+5%	19,170
Member firm partners (*)	2,026	+2%	1,983	+4%	1,910
Number of correspondent firms (*) (income excluded)	21		20		25
Year end	30 Sept 2004		30 Sept 2003		30 Sept 2002

The performance of member firms was very strong in all regions of the world. Growth in the Americas and Asia was particularly strong at 24% and 20% revenue growth respectively, with the EMEA region (Europe, Middle East & Africa), growing at 16% year on year. The United States member firm grew fees billed to clients by 30 per cent.

Total member firm fee income by region

	2004 ($'000)		2003 ($'000)		2002 ($'000)
EMEA (Europe, Middle East & Africa)	US$981,119	+16%	US$834,904	+21%	US$698,360
Americas	US$977,114	+24%	US$786,262	+19%	US$659,301
Asia Pacific	US$134,018	+20%	US$111,549	+19%	US$93,825
Year end	30 Sept 2004		30 Sept 2003		30 Sept 2002

Said David McDonnell, chief executive, Grant Thornton International: "These results show a continuing very strong performance by member firms around the world, even though it was a year which saw overall economic performance falter in some areas. The member firm in the US, the world's major economy, showed outstanding growth with a 30 per cent increase in revenues.

The results demonstrate the strength of the Grant Thornton International network, and the trust which clients have shown in member firms all around the globe. As mid-sized companies become more global, Grant Thornton firms have been able to support them; and as the implications of Sarbanes-Oxley in the US and other new regulations come into force, Grant Thornton International member firms have proved a high-quality, independent alternative to the Big Four."

The largest five member firms in the network in 2004 were:

Member firm	2004 $ revenues (in '000s)
USA	$643,584
UK	$433,424
Canada	$269,014
Germany	$126,469
France	$93,718

BACKGROUND

Methodology

1. Turnover

1.1 Revenue from correspondent firms has been excluded to give a more accurate picture of the real performance of the network.

1.2 All member firms have reported to a single year-end date (30 September) for consistency and comparability

1.3 Member firms reported revenues net of VAT (Value Added Tax) or GST (General Sales Tax)

1.4 Revenue is reported inclusive of rechargeable expenses.

2 Core Activities

2.1 The core activities of the members of the Grant Thornton International network are defined as follows: o audit & accountancy o tax compliance & consultancy o consultancy - management & financial o insolvency / bankruptcy and corporate recovery o litigation support o capital markets - mergers & acquisitions and valuation

2.2 The other activities of the members of the Grant Thornton International network include: o company formation, secretarial and administration o provision of legal advice other than accounting and tax advice o executive recruitment o licensing software to non-member and non-correspondent firms o education

3 Firms

The Grant Thornton International network consists of member firms and correspondent firms. This results reported in this financial report are for member firms only as Grant Thornton International believes this reflects more clearly the breadth and strength of international networks. Correspondent firms can appear in the networks of more than one international accounting organisation and therefore there is danger of 'double-counting' if their revenues are included by more than one network.

4 Member Firm Offices

An office is defined as a single building or collection of buildings in a separate location within a city or town

5 Exchange Rate

Financial results reported by independent member firms were translated into US dollars using the average inter-bank exchange rate over the year ended 30 September

6 Member Firm Partners

A partner is a legal partner or director of a member firm