ARCADIS NV Announces First Quarter 2002 Results

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FOR IMMEDIATE RELEASE, Business Editors

ARCADIS NV Announces First Quarter 2002 Results

EUROPE, NETHERLANDS, ARNHEM, May. 7 -/E-Wire/Business Wire/-- ARCADIS (Nasdaq: ARCAF; Euronext: ARCAD) today reported results for the first quarter period ended March 31, 2002.

Net income in the 2002 first quarter increased 9%. Operating income also developed favorably, rising by 15%. Gross revenue increased by almost 7%, predominantly as a result of autonomous growth, and in line with the Company's strategy to speed up autonomous growth. The Company's infrastructure and environmental activities - together making up more than 75% of total revenues - were the primary contributors to the growth, continuing the growth pattern seen in these segments in earlier periods. In the buildings and communications segments, revenues were lower than the first quarter of last year, due to economic circumstances and the poor market situation in the telecommunications sector. Gross revenues in these activities stabilized compared to the situation in the fourth quarter of 2001.

Financial Highlights

Amounts in millions of euros unless otherwise stated

1st quarter 2002 2001 Increase ---------------------------------------------------------------------- Gross revenues 193.1 180.6(1) 7% Operating income 7.7 6.7 15% Net income, after goodwill 3.9(2) 3.6 9% Ditto, per share (in EUR)(3) 0.19 0.18 9% ----------------------------------------------------------------------

(1) Adjusted for comparison purposes

(2) This includes an amount of EUR 0.02 million for amortization of goodwill

(3) Based on 20.3 million shares outstanding for both 2002 and 2001

The growth in gross revenues includes a positive exchange rate effect of 1.5% that was offset by an almost equal decline resulting from earlier divestments or deconsolidations of activities, as a result of which the growth in revenues was almost entirely autonomous. Revenue growth was driven by infrastructure activities, which are growing in almost all countries in which the Company is active. Growth in the environmental markets was mainly achieved in the United States. Geographically, strong growth was achieved in the Company's activities in Spain, Belgium and Latin America.

The Company's net income growth lagged behind operating income growth somewhat, reflecting the effects of a higher tax rate, a lower contribution from non-consolidated companies and an increase in minority interest. The latter is predominantly the result of improved results in ARCADIS Logos in Brazil, in which the Company holds a 50.01% stake.

Commenting on the results, ARCADIS' Chairman Harrie Noy said: "As a result of favorable market circumstances in infrastructure and environmental segments, the Company was able to match the growth it achieved in these markets in full year 2001. In the infrastructure market, this is mainly the result of the long-term nature of investments in this segment. In Brazil, for example, concessions won in 2001 for the development of energy infrastructure contributed to revenues and earnings in the 2002 first quarter. In the environmental segment, the growth resulted from the Company's successful Guaranteed Remediation Program (GRIP(TM)), combined with its proprietary cost effective remedial strategies, which allowed further growth in market share in the United States. In the buildings market, ARCADIS is still experiencing the effects of the insecure economic situation. The market for property valuations in the Netherlands has stabilized, and our activities in that segment again contributed to profits. In telecommunications, no recovery is visible in the near-term and our capacity has been adjusted accordingly."

In the first quarter of 2002, ARCADIS worked on several projects, including:

-- Design of a draft trajectory for a new railroad line between the Dutch towns of Lelystad and Zwolle, in which ARCADIS is detailing the way the railroad will be situated in the countryside.

-- Integrated design for a residential/commercial area in the German city of Leipzig with the name "Watertown", including the creative application of bodies of water for which ARCADIS among other things is completing the technical details.

-- Architecture and detailed engineering for three penitentiaries in Chile for a consortium which is the first private party which will operate prison complexes under a concession granted by the Chilean government.

-- Project management for two logistical centers for Airbus in the Spanish cities of Illescas (Toledo) and Getafe (Madrid). These centers will be used for the production of the A-380 model of this airplane manufacturer.

-- Under the Company's Guaranteed Remediation Program (GRIP(TM)) it was tasked with two large remedial projects for the U.S. Department of Defense involving a US$ 19.4 million assignment for Fort Gordon in Georgia and a US$ 19.9 million assignment for Forth Leavenworth in Kansas.

-- Design, coordination and implementation of cellular communications facilities for both GSM as well as UMTS in terminal two of the Munich Airport in Munich, Germany. In this project, ARCADIS works for all six providers of mobile communications in Germany.

-- In several projects, ARCADIS worked on projects involving geographical information systems. In the Netherlands, these included a project for the ministry of Agriculture and Fisheries for mapping agricultural areas as well as a project for several municipalities involving a control system for permits.

In the infrastructure market, demand is expected to remain healthy. In this market, ARCADIS is working on long-term projects, mostly for governments, for which budgets have already been set aside. While some insecurity exists with regard to future budget allocations in this market, particularly in the United States, there continues to be a large need for investments in infrastructure in all countries in which ARCADIS operates. The environmental market offers growth opportunities through expansion of market share. The large GRIP(TM) projects that have been procured in the United States are a good basis for further growth in this segment. Additionally, the trend among companies to outsource their non-core activities is offering further opportunities for growth. Expectations for the buildings market, particularly in the United States, heavily depend on the level of economic recovery in the second half of 2002, while recovery of the telecommunications market is not expected before 2003. Offsetting this within the communications segment, however, is the increase in demand for geographical information systems.

Chairman Noy concluded: "ARCADIS' attention will continue to be focused on growth of profitability based on the revised strategy which was introduced in the year 2000. In addition to margin improvement, another priority for 2002 is growth through acquisitions. The Company repeats the expectation it announced at the publication of its 2001 full-year figures, that, depending on the economic recovery in the second half of 2002 and barring unforeseen circumstances, it expects to be able to improve 2002 net income by 5 to 10% over 2001 levels (excluding the extraordinary gain reported in 2001). This is excluding the effect of possible acquisitions."

ARCADIS is a leading, global, knowledge-driven service provider, active in the fields of infrastructure, buildings, environment and communications. With client success central to our total business approach, we fulfill project or program needs from concept to completion and beyond. Together, we generate EUR 800 million in annual revenues. There are 8,000 of us, results-oriented people, continually investing in our skills to maximize value while creating viable solutions that assure your success.

Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include, among others, risks associated with possible changes in environmental legislation and risks with regard to the Company's ability to acquire and execute projects. These and other risks are described in ARCADIS' filings with the Securities and Exchange Commission over the last 12 months, copies of which will be available from the SEC or may be obtained upon request from the Company.

ARCADIS NV CONSOLIDATED STATEMENT OF INCOME IN EUR Amounts x 1 million, except per share amounts) Amounts in accordance with NL-GAAP First quarter 2002 2001 Gross revenue 193.1 180.6(a) Materials, services of third parties 51.1 43.1(a) ---------------- Net revenue 142.0 137.5 Operational cost 130.5 127.0(a) Depreciation 3.8 3.8 ---------------- Operating income 7.7 6.7 Financing income/expenses net (0.5) (0.7) ---------------- Income before taxes 7.2 6.0 Taxes (2.8) (2.2) ---------------- Income after taxes 4.4 3.8 Income from non-consolidated companies (0.1) 0.1 ---------------- Group income after taxes 4.3 3.9 Amortization goodwill (0.0) -- Minority interest (0.4) (0.3) ---------------- Net income 3.9 3.6 Net income excluding amortization goodwill 3.9 3.6

Net income per share (1) 0.19 0.18 Net income per share excl. extraordinary items 0.19 0.18 Number of shares outstanding (in thousands) 20,286 20,278

(a) Adjusted for comparison reasons.

(1) Net income per share is based on the weighted average number of outstanding shares.

ARCADIS NV CONSOLIDATED STATEMENT OF INCOME IN US$ Amounts x 1 million, except per share amounts Amounts in accordance with NL-GAAP First quarter 2002 2001 Gross revenue 169.3 166.6(a) Materials, services of third parties 44.8 39.7(a) ---------------- Net revenue 124.5 126.9 Operational cost 114.4 117.2(a) Depreciation 3.3 3.5 ---------------- Operating income 6.8 6.2 Financing income/expenses net (0.4) (0.7) ---------------- Income before taxes 6.4 5.5 Taxes (2.5) (2.0) ---------------- Income after taxes 3.9 3.5 Income from non-consolidated companies (0.1) 0.1 ---------------- Group income after taxes 3.8 3.6 Amortization goodwill (0.0) -- Minority interest (0.4) (0.3) ---------------- Net income 3.4 3.3 Net income excluding amortization goodwill 3.4 3.3

Net income per share (1) 0.17 0.16 Net income per share excl. extraordinary items 0.17 0.16 Number of shares outstanding (in thousands) 20,286 20,278 Dollar exchange rate 1st quarter EUR 1= $0.88 $0.92 Dollar exchange rate 2nd quarter EUR 1= $0.87 Dollar exchange rate 3rd quarter EUR 1= $0.89 Dollar exchange rate 4th quarter EUR 1= $0.90

(a) Adjusted for comparison reasons.

(1) Net income per share is based on the weighted average number of outstanding shares.

ARCADIS NV CONSOLIDATED BALANCE SHEET IN EUR Amounts x 1 million Amounts in accordance with NL-GAAP March 31, December 31, ASSETS 2002 2001 ---------------- Fixed assets 53.4 51.8 Current assets 264.6 258.2 ---------------- TOTAL 318.0 310.0 ================

LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities 138.8 144.0 Long term debt 25.2 22.0 Provisions 18.4 13.1 Total equity 135.7 130.9 ---------------- TOTAL 318.0 310.0 ================

CHANGES IN SHAREHOLDERS' EQUITY IN EUR Amounts x 1 million Amounts in accordance with NL-GAAP Shareholders' equity at January 1, 2002 124.8 Changes: Net income current year 3.9 Stock purchase plans 0.1 Exchange rate differences 0.4 ------- Shareholders' equity at March 31, 2002 129.2 =======

ARCADIS NV CONSOLIDATED BALANCE SHEET IN US$ Amounts x 1 million Amounts in accordance with NL-GAAP March 31, December 31, ASSETS 2002 2001 ---------------- Fixed assets 46.7 45.6 Current assets 231.5 227.6 ---------------- TOTAL 278.2 273.2 ================

LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities 121.4 126.9 Long term debt 22.0 19.4 Provisions 16.1 11.5 Total equity 118.7 115.4 ---------------- TOTAL 278.2 273.2 ================

Calculated with US dollar rate of EUR 1.00 = US$: 0.87 0.88

CHANGES IN SHAREHOLDERS' EQUITY IN US$ Amounts x 1 million Amounts in accordance with NL-GAAP Shareholders' equity at January 1, 2002 110.0 Changes: Net income current year 3.4 Stock purchase plans 0.1 Exchange rate differences (0.5) ------- Shareholders' equity at March 31, 2002 113.0 =======

ARCADIS NV CONSOLIDATED CASH FLOW STATEMENT in EUR Amounts x 1 million Amounts in accordance with NL-GAAP First quarter 2002 2001 Net income 3.9 3.6 Depreciation 3.8 3.8 ---------------- Gross cash flow 7.7 7.4 Net working capital (28.8) (12.9) Other changes 0.9 0.2 ---------------- Total operational cash flow (20.2) (5.3) Investments (net) in: (In)tangible fixed assets (3.4) (2.6) Acquisitions/divestments (2.0) (1.2) Total financing activities 10.8 6.8 ---------------- Change in cash and equivalents (14.8) (2.4)

ARCADIS NV CONSOLIDATED CASH FLOW STATEMENT in US$ Amounts x 1 million Amounts in accordance with NL-GAAP First quarter 2002 2001 Net income 3.4 3.3 Depreciation 3.3 3.5 ---------------- Gross cash flow 6.7 6.8 Net working capital (25.2) (11.4) Other changes 0.8 0.2 ---------------- Total operational cash flow (17.7) (4.4) Investments (net) in: (In)tangible fixed assets (3.0) (2.3) Acquisitions/divestments (1.7) (1.1) Total financing activities 9.5 5.7 ---------------- Change in cash and equivalents (12.9) (2.1) *T

ARCADIS NV, Joost Slooten, +31-26-3778604, [REDACTED-EMAIL]

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