As the Company was closing its books for fiscal 2002 and preparing its press release for fiscal 2002 financial results, an issue arose related to reporting its potential claims for professional liability. The issue is that the balance sheet should reflect an actuarially determined liability for claims not yet reported but potentially incurred (IBNR) for appropriate presentation. The Company, with independent actuaries, is sizing the IBNR, estimated from all of its previously disclosed professional liability claims, as well as determining which periods in earlier years might be affected.

"We decided, in the interest of complete and accurate disclosure, to postpone the release of the fourth quarter and fiscal year ended June 30, 2002 results pending the completion of our review and analysis and the concurrence of the Audit Committee of our Board of Directors, our independent accountants and outside actuarial firm," said John Haley, President and CEO of Watson Wyatt. "There are no new claims activity that has not been previously disclosed in SEC filings. Based on initial actuarial estimates, we believe that the liability will be between $6 million and $10 million and will be reflected as an adjustment to Accumulated Deficit (retained earnings) as of July 1, 1999.

"We believe that there is no effect on the current or the two prior years' revenue, net income or cash flow. For the fiscal 2002, we expect to report net income of $47.1 million on revenue of $710.5 million."

The company intends to file its Form 10-K with the Securities and Exchange Commission no later than September 30, 2002, and plans to announce its fourth quarter results on August 20, 2002 after which management will hold a conference call to discuss the company's results and performance for the fourth quarter and fiscal year ended June 30, 2002.

    Conference Call

Watson Wyatt is an international human capital consulting firm that provides services in the areas of employee benefits, human resources technologies and human capital strategies. The firm is headquartered in Washington, D.C., and has 4,250 associates in 61 offices in the Americas and Asia-Pacific. Together with Watson Wyatt LLP, a leading European-based consulting partnership, the firm operates globally as Watson Wyatt Worldwide. Watson Wyatt Worldwide has more than 6,300 associates in 87 offices in 30 countries.

Statements in this press release regarding projections and expectations of future earnings, revenues, operations, business trends and other such items are forward-looking statements. A number of risks and uncertainties exist which could cause actual results to differ materially from the results reflected in these forward-looking statements. Such factors include, but are not limited to, the Company's continued ability to recruit and retain highly qualified associates, outcomes of litigation, changes in the demand for the consulting services the Company offers as a result of changing economic conditions or other factors, and other factors discussed under "risk factors" in the Company's prospectus filed on Form S-3 dated June 25, 2001, which is on file with the Securities and Exchange Commission. These statements are based on assumptions that may not come true. All forward-looking disclosure is speculative by its nature. The Company undertakes no obligation to update any of the forward-looking information included in this release, whether as a result of new information, future events, changed expectations or otherwise. The inclusion of any statement in this release does not constitute an admission by Watson Wyatt & Company Holdings or any other person that the events or circumstances described in such statement are material.

CONTACT:          Watson Wyatt, Washington
                  Carl D. Mautz, 202/715-7056
                  or
                  Investor Relations: 
                  Lippert Heilshorn & Associates, Inc.
                  Jody Burfening
                  Media Contact:
                  Chenoa Taitt
                  212/838-3777

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