Highlights for Q1 2008

• Reported sales +5%, organic growth per working day +7% 
• Operating income increased by 4%
  - Traditional staffing up 9%
  - Engineering staffing up 10%
  - Accounting/Finance staffing up 18%
  - Healthcare staffing up 18%
• 15% increase in permanent placement fees
• Further expansion into Middle East extends global network to 52 markets 

All growth percentages quoted in this media release have been calculated on an organic basis which excludes the impact of currency effects, acquisitions and disposals. Currency effects decreased sales by 3% and operating income by 4%.

CEO’s Statement

Tex Gunning said, “ We have seen good growth in the first quarter of 2008 with notable growth in France, in professional/executive sectors and in our permanent placement business. We have enjoyed particularly strong performances in Belgium, Portugal, Canada, India and Latin America. Despite continued economic uncertainties, we expect positive growth in Q2 as well.

The preparations for the integration with Randstad are progressing and we are working side by side in a very positive spirit. I would like to thank all our staff for their continued focus and efforts during this period of transition.”

Q1 2008 Review

Reported sales increased by 5% while sales per working day increased by 7%. On average, the Group had 1.2 business days less than Q1 2007 due to the timing of Easter.

Gross profit was up 6% and operating income increased by 4%. Our professional/executive staffing brands increased sales at twice the pace of our traditional businesses.

Demand for permanent placement grew during the quarter resulting in a 15% organic increase in placement fees. Permanent placement now represents 4.2% of Group sales compared to 3.8% in Q1 2007, and 21.4% of gross profit (Q1 2007: 19.6%).

Gross profit was €396.8 million and the gross margin increased to 19.5% from 19.3% in Q1 2007.

As a percentage of sales, costs increased slightly from 15.5% to 15.6%.

Operating income was €77.9 million, an increase of 4%. The strongest growth in profit was led by our brands operating in the healthcare, accounting/finance and engineering sectors. The Group operating margin (operating income as a percentage of sales) was unchanged at 3.8%.

Cash flow from operating activities increased to €61million from €50 million in Q1 2007.

France, operating income increased by 9%, with the professional/executive business performing well, particularly the accounting/finance, healthcare and engineering sectors. French permanent placement activities grew by 57% in Q1. We enjoyed a particularly strong performance in the automotive industry.

UK operating income on a per working day basis grew by 3% while reported operating income decreased by 3%. Our education business lost 6 days mainly due to the timing of Easter. Despite the impact of Easter, we achieved good growth in the engineering, accounting/finance, healthcare, interim management and HR sectors. Placement fees in the UK, which account for 35% of the Group’s total permanent placement revenue, increased by 22%.

Operating income in the Netherlands increased by 28%, helped by a one-off gain of €2 million mainly relating to the realisation of training subsidies relating to prior years. Professional/executive brands achieved improved operating income., in particular those operating within the accounting/finance, IT, education and interim management sectors. Permanent placement fees in the Netherlands increased by 20%. 

Elsewhere in Europe, we saw good performances in Belgium, Luxembourg, Portugal, Norway, Turkey and Greece offset by lower operating income in Italy and Germany.

The US experienced a 1% increase in sales growth and a 2% increase in operating income. This growth was led by improved results from the IT and healthcare sectors.

In Australia, investments for growth and weakness in the financial services sector impacted operating income. Nevertheless, sales grew by 4% and we are confident of a return to positive improvement in profitability for the remainder of the year.

In Canada, operating income increased by 7% led by growth in the IT market while Latin America and India also reported strong operational growth.

Business Development 

As part of our continuing expansion into the Middle East, we commenced operations in Kuwait and Qatar under the Ma Foi brand offering temporary and permanent staffing, executive search and HR consulting services. We also completed the acquisition of Pareto Law, a UK based graduate assessment, placement and training organisation.

The addition of Kuwait and Qatar to our network means that Vedior is now active in 52 countries worldwide. Compared to the same quarter last year, the Group’s network has been extended by 102 offices to a total of 2,588 offices worldwide.

Randstad

On 1 April 2008, Randstad Holding and Vedior announced that Randstad has launched its recommended mixed cash and share exchange offer to all holders of issued and outstanding shares with a nominal value of EUR 0.05 each in the share capital of Vedior.

On 17 April 2008, Randstad Holding and Vedior received the approval of the European Commission regarding the merger of the two companies.

On 22 April 2008, Randstad Holding and Vedior announced details of the proposed new structure in the Benelux.

On 23 April 2008, Randstad shareholders approved of the combination and all related actions to complete the transaction. The preparations for the integration with Randstad are progressing and we are working side by side in a very positive spirit.

Management Outlook

We are facing an uncertain economic environment in 2008 with limited visibility, however, the year has got off to a satisfactory start in Q1. Despite continued economic uncertainties, we expect positive growth in Q2 as well.

For further information on these results, please join today’s conference call at www.vedior.com/webcast starting at 8.30am (CET) or contact one of the following on +31 (0)20 573 5609 after the event:

Tex Gunning, Chief Executive
Frits Vervoort, CFO
Jelle Miedema, Company Secretary

Investor Information here .

Any discussion regarding Randstad’s proposed acquisition of Vedior during this conference call does not constitute an offer or sale of any securities in connection with the transaction described. No securities will be offered or sold in connection with the transaction in the United States and any offer or sale will only be made outside the US in compliance with Regulation S under the US Securities Act of 1933.

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.

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. We also have a significant global network providing administrative/secretarial and light industrial recruitment.

Financial Agenda

Safe Harbour

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 long- term 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 slowdowns 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.