(Nov. 30, 2006) – CHICAGO - Navigant Consulting announced that it has reached an agreement with the City of Vernon, Calif. to settle for $7.4 million all claims related to its previously disclosed dispute with the City. The settlement resolves the arbitrator's "Interim Award" of $37.4 million against the Company.

The settlement relates to certain electric distribution maintenance services that the Company provided to the City prior to November 30, 2003. Since then, the Company no longer provides electric distribution maintenance services.

As announced on October 26, 2006, the Company recorded a pre-tax charge and related accrued liability of $9.3 million ($5.6 million after tax) during the third quarter related to this matter. The Company expects to reduce the accrued liability and record a pre-tax benefit during the fourth quarter to reflect this final settlement.

NOT FOR REPRINT

© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.