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Zach Miles, Vedior’s Chief Executive, said: “We continued to see profitable growth in all our major markets and sectors during the quarter led by strong performances in the US and Australia.

For the first time in four years, gross margins have increased primarily due to higher permanent placement revenues accompanied by an improvement in temporary margins. Our operating efficiency also improved with particularly strong increases in profitability in the US, Netherlands, and Rest of Europe region.

Our businesses in the UK and Netherlands exhibited a lower rate of sales growth compared to the first quarter of 2005, in line with the slower economic conditions in those countries.

During the quarter, we made good progress with Vedior’s strategy to diversify by geography and industry sector. Our global network has recently been extended from 37 to 43 countries as a result of both acquisitive and organic growth with continued emphasis on the development of professional/executive recruitment.”

HIGHLIGHTS FOR THE SECOND QUARTER

Sales up organically by 7% to €1,718 million

Operating income up organically by 11% to €60 million

Professional/executive recruitment sales up 10% organically

Permanent placement fees up 21% organically

Efficiency improves with conversion ratio (operating income divided by gross profit) increasing to 19.6% from 18.6%

Net income increased by 38% to €36 million excluding profit from the sale of investment (Q2 2004: €27 million)

Net income per share was up strongly to €0.30, or €0.21 excluding profit from the sale of investment (Q2 2004: €0.16)

Combination of acquisitions and internal expansion extends global network to 43 countries

HIGHLIGHTS FOR THE FIRST HALF YEAR

Sales up 9% organically to €3,249 million

Operating income up 15% organically to €98 million

Net debt reduced by €99 million compared to 30 June 2004

Net income per share was €0.42 or €0.33 excluding profit from the sale of investments (H1 2004: €0.26)

N.B. Organic growth is measured by excluding the impact of currency effects and acquisitions/disposals, and adjusting for the number of business days. There was, on average, one more business day in Q2 2005 compared to Q2 2004 due to the earlier Easter holiday but the impact varies by market as detailed in the individual country reviews below.

Q2 2005 Financial Performance

Sales

Sales increased organically by 7% to €1,718 million from €1,628 million in the same quarter in 2004. Permanent placement has increased 21% organically and now represents 2.4% of sales compared to 2.1% of sales in Q2 2004. Currency fluctuations had no significant impact on sales.

Professional/executive recruitment sales increased by 10% organically with notable performances from the IT, engineering and accounting recruitment sectors. IT recruitment sales grew by 17% organically with the strongest growth in the UK and US. Growth in engineering was driven mainly by the UK and France and in the accounting segment by the US, France, Australia and the Netherlands. Traditional recruitment grew organically by 5% with the strongest growth achieved in the US, Netherlands and southern Europe.

Gross Margin

Gross margin improved to 17.8% compared to 17.5% in Q2 2004 primarily due to increased permanent placement fees but also higher temporary margins.

Operating Costs

Operating costs were 8% higher on an organic basis at €246 million. This reflected increases in personnel costs driven by sales growth including permanent placement, higher marketing expenses and investment in new businesses and offices.

Our conversion ratio (operating income divided by gross profit) increased from 18.6% in Q2 2004 to 19.6% demonstrating continued efficiency improvement.

Operating Income

Operating income (before interest and tax) was €60 million, an 11% organic increase from Q2 2004. Currency fluctuations decreased operating income by 1%.

Net income and earnings per share

This quarter’s results include the gain from the sale of our investment in TriNet amounting to €15 million after tax.

Net income increased by 95% to €51 million from €27 million in the second quarter of last year. Excluding the gain on the sale of TriNet, our net income increased 38% to €36 million. Earnings per share (excluding the gain on TriNet) were €0.21, a 31% increase from €0.16 in Q2 2004.

Net Debt and Cash Flow

Net debt decreased to €527 million, a €99 million reduction compared to the second quarter of 2004. Cash flow used in operating activities was €25 million compared to €48 million in 2004 mainly due to lower working capital requirements. Debtor days improved by one day.

Q2 2005 Operating Performance by Geography and Industry Sector

France

Organic sales increased by 4% compared to Q2 2004.

Gross margins improved and operating income increased organically by 6%. In Q2 2004, we benefited from a one-off gain of €2 million relating to a reduction in accruals no longer required: like-for-like, operating income improved by 17%.

All segments within VediorBis showed growth during the quarter with the strongest performance coming from the construction, tertiary and industry professionals segments.

Permanent placement activity, which commenced in 2005 following changes to French legislation, has developed well during the course of the quarter.

Owing to a weak healthcare market, professional/executive recruitment increased by 3% compared to Q2 2004. Engineering, accounting and IT recruitment sectors all grew by more than 10%.

United Kingdom

Organic sales growth was 6% adjusted to take into account three extra business days.

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Operating income increased organically by 6%. Gross margins were lower, mainly as a result of changes to business mix which were offset by improved operating efficiency.

Professional/executive recruitment was up 7% compared to Q2 2004 mainly driven by the IT and engineering sectors.

Our education recruitment sales increased during the quarter but, after adjusting for the timing of Easter, the trend continued to be slightly negative.

Traditional recruitment sales were up 3% organically.

United States

Organic sales growth remains high at 19% adjusted to take into account one extra business day.

Very strong increase in organic operating income; up 66%. We continue to benefit from good operational leverage in the US with higher placement fees and a higher temporary margin.

Professional/executive recruitment sales up 18% organically compared to Q2 2004 with IT and accounting recruitment continuing to recover at a high rate of growth.

Our traditional recruitment business continued to grow well in advance of US market trends with an organic sales improvement of 22%.

Netherlands

The Dutch market continues to be positive despite weaker economic data and we achieved 5% organic sales growth compared to Q2 2004 adjusted to take into account two extra business days,

Operating income increased organically by 21% due to good operational leverage and cost control.

IT, accounting and interim management recruitment grew well while other specialist sectors were weaker resulting in overall organic sales growth of 1% for our professional/ executive sectors.

Traditional recruitment grew organically by 6% this quarter. The Vedior brand, our largest operating company in the Dutch market, once again outperformed the market.

Other Countries

In the Rest of Europe, sales improved by 7% organically. Operating income improved by 22% with good performances from Belgium, Switzerland, Spain and Portugal as well as emerging markets, particularly Greece and Turkey.

Vedior’s Australian operations increased sales, profitability and efficiency. Particular growth was achieved in the IT, executive and education sectors.

Our operations in Latin America and India continue to develop rapidly with all businesses performing well.

Business Development

Business development in this quarter has contributed to our strategic aim of further diversifying Vedior’s business mix.

We announced two acquisitions during the quarter and two more since the conclusion of the quarter. In line with our strategy, we have acquired majority stakes with management keeping a minority interest. In June, we announced the acquisition of two specialist recruitment companies based in the US, Locum Medical Group and Becker Executive Staffing/Becker Staffing Group, increasing the Group’s presence in both the healthcare and the finance and accounting sectors.

In July, we acquired the Mandeville Recruitment Group Ltd, a UK-based provider of permanent recruitment primarily in the sales and retail sectors, and the ConsulTeam Group of Companies, a market leader in the provision of temporary recruitment services, permanent placement, training and other HR related services from offices in Bulgaria, Romania, Croatia and Serbia & Montenegro. The combined consideration for our majority interests in these four companies was approximately €13 million.

Vedior aims to achieve a healthy balance of acquisitive and organic growth. In addition to our recent acquisitions, we have initiated new organic start-ups in Cyprus and Oman and we continue to invest in expansion of new businesses in the UK, US, Australia and Japan.

Vedior now operates in 43 countries through a network of 2,259 offices.

Management Outlook

We are pleased with the progress made on gross margins and also in the development of our global network.

The US market continues to grow strongly. The French recruitment market is stable with growth maintained at a relatively modest pace. In the rest of Europe, economic uncertainty is affecting the outlook for the remainder of the year but we expect further positive growth in our business.

Vedior’s strategy is to invest in markets and sectors promising above average long-term growth, and to seek further operational efficiencies and improved profitability in all its markets.



This media release includes forward-looking statements that reflect our intentions, beliefs or current expectations and projections about our future results of operations, financial condition, liquidity, performance, prospects, growth, strategies, opportunities and the industry in which we operate. Forward-looking statements include all matters that are not historical fact. We have tried to identify these forward-looking statements by using words including "may", "will", "should", "expect", "intend", "estimate", "project", "believe", "plan", "seek", "continue", "appears" and similar expressions or their negative.

These forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause our actual results of operations, financial condition, liquidity, performance, prospects or opportunities, as well as those of the markets we serve or intend to serve, to differ materially from those expressed in, or suggested by these forward-looking statements. Important factors that could cause those differences include, but are not limited to our financial position and our ability to implement our business strategy and plans and objectives of management for future operations, our ability to develop, balance and expand our business, our ability to implement our longterm growth strategy (including through organic growth and acquisitions), our ability to make improvements to our capital structure, industry and market trends and volumes, including the speed and strength at which the staffing services industry and the sectors in which we operate, rebound from economic slowdows and recessions, the effects of regulation (including employment and tax regulations), our ability to improve the efficiency of our operations and to reduce expenses in our operating companies and their network of offices, litigation and our ability to take advantage of new technologies.

In light of these risks, uncertainties, assumptions and other factors, the forward-looking events described in this media release might not occur. Additional risks that we may deem immaterial or that are not presently known to us could also cause the forward-looking events discussed in this media release not to occur. Except as otherwise required by applicable law, we undertake no obligations to update publicly or revise publicly any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason after the date of this media release.

Company Profile:

Vedior is one of the world’s largest recruitment companies and is a full-service recruitment provider with a diversified portfolio of brands targeting a broad range of industry sectors. Annual sales for 2004 were €6,467 million.

From its global network of offices spanning Europe, North America, Australasia, Asia, South America and Africa, Vedior offers temporary and permanent recruitment as well as a number of complementary employment-related services such as outplacement, HR outsourcing, payrolling and training.

Vedior has a leading market position in the provision of professional/executive recruitment in sectors such as information technology, healthcare, accounting, engineering and education. In order to meet client requirements for all categories of personnel, we also have a significant global network providing administrative/secretarial and light industrial recruitment.

Financial Agenda:

27 October 2005

Publication third quarter results*

2 February 2006

Publication of annual results 2005*

27 April 2006

Publication of first quarter results*

28 April 2006

Annual General Meeting

27 July 2006

Publication of second quarter results*

26 October 2006

Publication of third quarter results*

*Conference calls to discuss financial results are scheduled for 9am (CET) on the day of publication.

For further information, please contact:

Amsterdam

Zach Miles, Chief Executive

+31 (0)20 573 5609

Frits Vervoort, CFO

Jelle Miedema, Company Secretary

London

Michael Berkeley, Citigate Dewe Rogerson

+44 (0)20 7638 9571

Patrick Toyne-Sewell, Citigate Dewe Rogerson

+44 (0)20 7638 9571

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