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Adecco SA Reports 21% Increase in Operating Income for First Half of 1999

Adecco SA, the world's leading personnel services firm, today announced excellent financial results for the first half of 1999 that highlight the success of the company's global strategy of both staffing and human resource services.

Chéserex, Suisse, Jul 29, 1999 

Adecco's first half results are a measure of the Company's continuing position of industry leadership and growth in the major employment market countries that collectively account for over 90% of staffing industry revenues. A local currency comparison shows revenue growth in the mid-twenty percent range or higher for Switzerland, Spain, Germany and Belgium, and about ten percent for France, Australia and the United Kingdom, not including the acquisition of Delphi.

Reviewing the prospects for second half performance, Mr. Bowmer stated, "We are particularly pleased with the improvement in our operating margin. In France, we have successfully implemented a strategy to improve operating margins, and revenues are increasing at about 11% after record growth of 34% in 1998. In the USA we grew at 4%; after restatement for businesses sold and discontinued un-profitable contracts arising from the TAD acquisition, like-for-like growth in the USA was 7% in local currency. In addition, we have successfully continued our program to enhance US operating margins and have achieved over 20% growth in operating profit, not including acquisitions. Correspondingly, the operating margin has increased by nearly 1%. These results make us confident that we have the right strategy, the right network, the right systems, and the right people in place to achieve continued success."

US GAAP Results

For the six months ended July 4, 1999 Adecco reported under US Generally Accepted Accounting Principles (GAAP) revenues of CHF 8.3 billion and a net loss of CHF 109 million after charging goodwill amortization of CHF 324 million.

According to Chief Financial Officer Felix Weber, "Adecco considers operating income and income before amortization of goodwill to be the most relevant benchmarks of the company's financial performance, as they measure our operational performance and our ability to fund growth and to distribute dividends."

Unaudited Financial Highlights


  In CHF Millions
6 MonthsEnding
4 July 1999
6 MonthsEnding
28 June 1998
Operating Income
Income Before Amortization of Goodwill
Amortization of Goodwill
Net Loss
Revenues by Region
 In CHF Millions
6 Months
4 July 1999
6 Months
28 June 1998
Change at Constant Rates
10 %
11 %
Rest of Europe
28 %
30 %
North America
3 %
4 %
Rest of the World
61 %
57 %
15 %
Specialist/Career Services Brands(included in geographic regions.)
51 %
53 %


Statements made in this press release, other than those concerning historical information, should be considered forward-looking and subject to various risks and uncertainties. The Company's actual results may differ materially from the results anticipated in these forward looking statements as a result of certain factors as set forth in the Company's reports on Form 20-F made pursuant to the Securities Exchange Act of 1934. For instance, the Company's results of operations may differ materially from those anticipated in the forward-looking statements due to, among other things: management's ability to effectively integrate Delphi Group and Career Staff Co. Ltd., of Japan into the Company's existing operations; the Company's ability to mitigate the effects of legislation in France upon gross margins; increased price competition, the general level of economic health and activity in the markets and countries in which the Company operates; the impact of the year 2000 on customers and suppliers; and the continued availability of qualified personnel. In addition, the market price of the Company's stock may be volatile from time to time as a result of, among other things: the Company's operating results, the operating results of other staffing service providers, and changes in the performance of global stock markets in general.

Adecco SA is the global leader in personnel services, connecting up to 450,000 associates with business clients each day through its network of over 19,000 employees and 3,000 offices in 52 countries around the world. Registered in Switzerland, and managed by a multinational team with expertise in markets spanning the globe, Adecco delivers an unparalleled range of flexible staffing and career resources to corporate clients and qualified associates.

Adecco provides clients with staffing services and solutions covering all major industries as well as specific professions. The worldwide Adecco Brand network focuses on global industries in transition, including automotive, banking, electronics, logistics, and telecommunications. Adecco is also positioned as a worldwide leader in each of the major professional staffing segments with several world-class business lines: Accountants on Call and Jonathan Wren for Finance, Banking and Accounting; Ajilon and Computer People for high-end Information Technology, TAD and Roevin for Engineering and Technical. These Adecco businesses provide their clients with a broad range of staffing solutions, from temporary work to permanent placement, to consulting and managed services. Adecco also offers a range of HR solutions with Econova/Lee Hecht Harrison, offering outplacement and career management services.

Adecco clients retain this unique range of services through local, national and multinational contracts.

Adecco SA is listed on The Swiss Exchange [ADECCO I (ADE-136973); ADECCO PS (ADEP - 136963)], the Bourse de Paris [RM 12819] and NASDAQ [ADECY].
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