Exhibit 99.1

News Release

FOR IMMEDIATE RELEASE

Investor and Media Contact:
David Moon
312-255-4560
david.moon@diamondconsultants.com

DIAMOND REPORTS THIRD QUARTER FISCAL YEAR 2010 RESULTS
Third Quarter Net Revenue Increases 23% Year Over Year and 4% Sequentially

CHICAGO, February 4, 2010—Diamond Management & Technology Consultants, Inc. (NASDAQ: DTPI), a premier global management and technology consulting firm, today announced results for its third quarter of fiscal year 2010 (ended December 31, 2009).

	•		Third quarter net revenue was $45.5 million compared with $43.6 million in the second quarter of fiscal year 2010 and $37.0 million in the third quarter of fiscal year 2009.
	•		Third quarter diluted earnings from continuing operations was $0.08 per share compared with $0.07 per share in the second quarter of fiscal year 2010 and $0.00 per share in the third quarter of fiscal year 2009.
	•		Third quarter free cash flow was negative $1.0 million compared with positive $10.8 million in the second quarter of fiscal year 2010 and positive $7.1 million in the third quarter of fiscal year 2009. Third quarter free cash flow included the payout of variable compensation and came in above previous guidance of negative $6 million to negative $8 million.
	•		Fourth quarter net revenue is expected to increase and be in the range of $47 million to $49 million.

“We feel good about the state of our business today and look forward to fiscal year 2011,” said Adam Gutstein, President and CEO of Diamond. “Demand is strong, our client relationships are excellent, our industry knowledge is outstanding, and our offerings continue to be right for the times. Our people are among the very best and that is reflected in the quality and impact of our work.”

Diamond Reports Third Quarter Fiscal Year 2010 Results

Financial Review

The Company’s third quarter financial results are summarized as follows:

Financial Results ($ in millions except Earnings Per Share)

		Q3 FY10				Q2 FY10				Q3 FY09
Net Revenue		$	45.5			$	43.6			$	37.0
Income from Continuing Operations before Income Tax (Pretax Income)		$	4.4			$	3.7			$	2.4
Diluted Earnings Per Share from Continuing Operations		$	0.08			$	0.07			$	0.00
EBITDA		$	4.8			$	4.0			$	2.5
Free Cash Flow		$	(1.0	)1		$	10.8			$	7.1

Third Quarter 2010

Net revenue for the quarter ended December 31, 2009 was $45.5 million, an increase of 4% compared with $43.6 million in the second quarter of fiscal year 2010, and an increase of 23% compared with $37.0 million reported in the third quarter of the prior fiscal year.

Pretax income was $4.4 million in the third quarter of fiscal year 2010 compared with $3.7 million in the second quarter of fiscal year 2010 and $2.4 million in the third quarter of fiscal year 2009.

Income from continuing operations after taxes was $2.2 million, or $0.08 per diluted share, in the third quarter of fiscal year 2010. This compares with $1.8 million, or $0.07 per diluted share, in the second quarter of fiscal year 2010, and $14,000, or $0.00 per diluted share, in the third quarter of fiscal year 2009. Diluted weighted average shares outstanding was 27.6 million compared with 27.7 million in the second quarter of fiscal year 2010 and 25.9 million in the third quarter of fiscal year 2009.

The effective tax rate was 49% in the third quarter compared with 51% in the second quarter of fiscal year 2010 and 99% in the third quarter of fiscal year 2009.

EBITDA (defined as income from continuing operations before interest, taxes, depreciation, and amortization) was $4.8 million in the third quarter of fiscal year 2010 compared with $4.0 million in the second quarter of fiscal year 2010 and $2.5 million in the third quarter of fiscal year 2009.

Free cash flow (cash flow provided by operating activities less capital expenditures) was negative $1.0 million in the third quarter of fiscal year 2010 compared with $10.8 million in the second quarter of fiscal year 2010 and $7.1 million in the third quarter of fiscal year 2009. The third quarter free cash flow included the payout of $14.8 million in variable compensation. The Company ended the quarter with cash and cash equivalents of $49.8 million.

Diamond Reports Third Quarter Fiscal Year 2010 Results

Business Metrics

The Company’s business metrics are summarized as follows:

Business Metrics

		Q3 FY10				Q2 FY10				Q3 FY09
Total Clients			56				61				57
Top 5 Client Concentration (% of Net Revenue)			40	%			37	%			40	%
New Clients Added			7				8				10
Revenue Generated from New Clients			3	%			1	%			3	%
Client-Serving Professionals (Quarter End)			496				486				473
Revenue Per Professional (Annualized, $ in thousands)		$	370			$	376			$	305
Chargeability			71	%			76	%			60	%
Voluntary Attrition (Annualized)			11	%			8	%			11	%
Total Headcount (Quarter End)			610				598				589

Revenue by Industry

		Q3 FY10				Q2 FY10				Q3 FY09
Financial Services			29	%			31	%			33	%
Insurance			27	%			27	%			26	%
Healthcare			23	%			21	%			17	%
Enterprise*			18	%			17	%			21	%
Public Sector			3	%			4	%			3	%

Business Outlook

Fourth Quarter 2010

“We experienced strong growth in the third quarter and over the nine months ended December 31, 2009, and feel optimistic about the state of our business. We believe that we are well on our way to a return to double digit annual revenue growth, annual pretax margins, and free cash flow as a percent of revenue,” said Gutstein.

The Company expects fourth quarter net revenue to be in the range of $47 to $49 million, pretax income of $4.8 to $5.4 million and GAAP EPS to be $0.09 to $0.10 per diluted share. The Company expects stock based compensation expense to be $1.3 million, tax expense to be in a range of $2.2 to $2.5 million, and weighted average share count to be approximately 28 million shares. Free cash flow is expected to be in the range of $3 million to $5 million.

Diamond Reports Third Quarter Fiscal Year 2010 Results

Conference Call

Diamond will host a conference call today, February 4, 2010, at 8:00 am CT to discuss the results of the quarter. The dial-in number for the conference call is 1-800-750-5861 for North American callers and 212-231-2900 for international callers. The replay will be available until February 11, 2010 and can be accessed by calling 402-977-9140, then entering passcode number 21455378. The call will be broadcast live and archived on Diamond’s web site at www.diamondconsultants.com

About Diamond

Clients trust Diamond Management & Technology Consultants, Inc. (NASDAQ: DTPI) to help their companies grow, improve margins, and increase the productivity of their investments. Working together to design and execute business strategies that capitalize on changing market forces and technology, Diamond’s consultants are experts in helping clients attract and retain customers, increase the value of their information, and plan and execute projects that turn strategy into measurable results.

Diamond’s capabilities are rooted in deep strategy, technology, operations, and industry experience. The firm’s approach to client service is based on objectivity, collaboration, and an unwavering commitment to its clients’ best interests. Headquartered in Chicago, Diamond has offices in New York, Washington, D.C, Hartford, London, and Mumbai. To learn more, visit: www.diamondconsultants.com.

Forward-Looking Statements

Statements in this press release that do not involve strictly historical or factual matters are forward-looking statements within the meaning of the “safe harbor” provisions of the federal securities laws. Forward-looking statements involve estimates, projections, assumptions, risks, and uncertainties and speak only as of the date of this release based on information available to the Company as of the date of this release, and the Company assumes no obligation to update any forward-looking statements. Actual results may differ materially from the results projected in any forward-looking statement. For a discussion of some of the risks and uncertainties that could cause actual results to differ materially, please refer to the risks and uncertainties identified in our filings with the SEC.

Non-GAAP Financial Measures

The press release includes non-GAAP financial measures. For a description of these non-GAAP financial measures, including the reasons management believes the non-GAAP measures are useful to investors, and reconciliations of these non-GAAP financial measures to the most directly comparable financial measures prepared in accordance with U.S. generally accepted accounting principles (GAAP), please see the section entitled “Unaudited Reconciliations of GAAP to Non-GAAP Financial Measures.”

Diamond Reports Third Quarter Fiscal Year 2010 Results

DIAMOND MANAGEMENT & TECHNOLOGY CONSULTANTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)

		For the Three Months								For the Nine Months
		Ended December 31,								Ended December 31,
		2008				2009				2008				2009
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Revenue:
Net revenue		$	36,960			$	45,462			$	116,279			$	126,937
Reimbursable expenses			6,296				8,302				16,698				23,466
Total revenue			43,256				53,764				132,977				150,403
Project personnel expenses:
Project personnel costs before reimbursable expenses			27,168				31,219				87,058				91,451
Reimbursable expenses			6,296				8,302				16,698				23,466
Total project personnel expenses			33,464				39,521				103,756				114,917
Gross margin			9,792				14,243				29,221				35,486
Other operating expenses:
Professional development and recruiting			1,688				2,011				5,684				4,096
Marketing and sales			104				1,217				2,047				2,264
Management and administrative support			5,944				6,609				18,956				19,111
Restructuring recovery			—				—				(284	)			—
Total other operating expenses			7,736				9,837				26,403				25,471
Income from operations			2,056				4,406				2,818				10,015
Other income (expense), net			344				(30	)			629				(32	)
Income from continuing operations before income taxes			2,400				4,376				3,447				9,983
Income tax expense			2,386				2,161				2,192				5,093
Income from continuing operations after income taxes			14				2,215				1,255				4,890
Discontinued operations:
Gain from discontinued operations, net of income taxes			—				17				—				192
Net income		$	14			$	2,232			$	1,255			$	5,082
Basic income per share of common stock:
Income from continuing operations		$	0.00			$	0.08			$	0.05			$	0.18
Income from discontinued operations			—				0.00				—				0.01
Net income		$	0.00			$	0.08			$	0.05			$	0.19
Diluted income per share of common stock:
Income from continuing operations		$	0.00			$	0.08			$	0.05			$	0.18
Income from discontinued operations			—				0.00				—				0.01
Net income		$	0.00			$	0.08			$	0.05			$	0.18
Shares used in computing basic income per share of common stock			25,621				26,918				26,239				27,135
Shares used in computing diluted income per share of common stock			25,906				27,571				26,658				27,584

The following amounts of stock-based compensation expense (“SBC”) are included in each of the respective expense categories reported above:

		For the Three Months								For the Nine Months
		Ended December 31,								Ended December 31,
		2008				2009				2008				2009
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Project personnel costs before reimbursable expenses		$	3,029			$	809			$	9,102			$	2,548
Professional development and recruiting			23				13				80				33
Marketing and sales			66				166				212				375
Management and administrative support			582				506				1,822				1,190
Total SBC		$	3,700			$	1,494			$	11,216			$	4,146

Diamond Reports Third Quarter Fiscal Year 2010 Results

DIAMOND MANAGEMENT & TECHNOLOGY CONSULTANTS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)

		March 31,				December 31,
		2009				2009
						(Unaudited)
ASSETS
Current assets:
Cash and cash equivalents		$	46,112			$	49,846
Accounts receivable, net of allowance of $566 and $663 as of March 31 and December 31, 2009, respectively			15,872				15,854
Deferred tax asset — current portion			6,747				3,910
Prepaid expenses and other current assets			2,802				3,194
Total current assets			71,533				72,804
Restricted cash			4,099				4,104
Computers, equipment, leasehold improvements and software, net			4,280				3,568
Deferred tax asset — long-term portion			7,757				5,428
Other assets			1,480				1,652
Total assets		$	89,149			$	87,556
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable		$	4,595			$	4,079
Income taxes payable — current portion			1,493				2,861
Accrued compensation			4,269				8,302
Accrued benefits			2,481				2,009
Other accrued liabilities			3,623				4,549
Total current liabilities			16,461				21,800
Deferred rent — long term portion			1,593				1,690
Net tax indemnification obligation			368				189
Accrued income tax liabilities — long-term portion			687				605
Total liabilities			19,109				24,284
Commitments and contingencies
Stockholders’ equity:
Common stock, net, 27,202 and 27,025 shares issued and outstanding as of March 31 and December 31, 2009, respectively			516,937				510,410
Accumulated other comprehensive loss			(4,636	)			(4,234	)
Accumulated deficit			(442,261	)			(442,904	)
Total stockholders’ equity			70,040				63,272
Total liabilities and stockholders’ equity		$	89,149			$	87,556

Diamond Reports Third Quarter Fiscal Year 2010 Results

DIAMOND MANAGEMENT & TECHNOLOGY CONSULTANTS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

		For the Three Months								For the Nine Months
		Ended December 31,								Ended December 31,
		2008				2009				2008				2009
		(Unaudited)				(Unaudited)				(Unaudited)				(Unaudited)
Cash flows from operating activities:
Net income		$	14			$	2,232			$	1,255			$	5,082
Adjustments to reconcile net income to net cash provided by operating activities:
Restructuring recovery			—				—				(284	)			—
Depreciation and amortization			448				388				1,339				1,229
Stock-based compensation			3,700				1,493				11,216				4,145
Deferred income taxes			1,413				(1,615	)			1,365				5,166
Excess tax benefits from employee stock plans			(245	)			(53	)			(262	)			(83	)
Changes in assets and liabilities:
Accounts receivable			2,938				772				(1,300	)			160
Prepaid expenses and other			570				444				(290	)			(321	)
Accounts payable			1,293				1,405				268				(49	)
Accrued compensation			2,000				(6,417	)			(843	)			4,064
Income taxes payable			(1,451	)			2,011				(2,098	)			(5,172	)
Restructuring accrual			—				—				(55	)			—
Other assets and liabilities			(3,275	)			(1,358	)			(434	)			93
Net cash provided by (used in) operating activities			7,405				(698	)			9,877				14,314
Cash flows from investing activities:
Decrease (increase) in restricted cash			(15	)			—				3,085				(5	)
Distribution from available-for-sale investments			289				—				289				—
Capital expenditures, net			(291	)			(308	)			(1,297	)			(968	)
Net cash provided by (used in) investing activities			(17	)			(308	)			2,077				(973	)
Cash flows from financing activities:
Stock option and employee stock purchase plan proceeds			480				308				1,575				1,203
Payment of employee withholding taxes from equity transactions			(601	)			(257	)			(1,497	)			(518	)
Common stock cash dividends			(9,032	)			(1,892	)			(9,032	)			(5,724	)
Excess tax benefits from employee stock plans			245				53				262				83
Purchase of treasury stock			(2,615	)			(1,773	)			(13,145	)			(4,872	)
Net cash used in financing activities			(11,523	)			(3,561	)			(21,837	)			(9,828	)
Effect of exchange rate changes on cash			(530	)			5				(947	)			221
Net increase (decrease) in cash and cash equivalents			(4,665	)			(4,562	)			(10,830	)			3,734
Cash and cash equivalents at beginning of period			47,102				54,408				53,267				46,112
Cash and cash equivalents at end of period		$	42,437			$	49,846			$	42,437			$	49,846

Diamond Reports Third Quarter Fiscal Year 2010 Results

DIAMOND MANAGEMENT & TECHNOLOGY CONSULTANTS, INC.
UNAUDITED RECONCILIATIONS OF GAAP TO NON-GAAP FINANCIAL MEASURES
(In thousands)

RECONCILIATION OF INCOME FROM CONTINUING OPERATIONS AFTER INCOME TAXES TO EBITDA (1):

		For the Three Months Ended
		December 31,				September 30,				December 31,
		2009				2009				2008
		(Unaudited)				(Unaudited)				(Unaudited)
Income from continuing operations after income taxes		$	2,215			$	1,828			$	14
Depreciation and amortization			388				352				448
Interest income, net			(14	)			(20	)			(344	)
Income tax expense			2,161				1,877				2,386
EBITDA		$	4,750			$	4,037			$	2,504

RECONCILIATION OF CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES TO FREE CASH FLOW (1):

		For the Three Months Ended
		December 31,				September 30,				December 31,
		2009				2009				2008
		(Unaudited)				(Unaudited)				(Unaudited)
Net cash provided by (used in) operating activities		$	(698	)		$	10,938			$	7,405
Capital expenditures			(308	)			(180	)			(291	)
Free cash flow		$	(1,006	)		$	10,758			$	7,114