Vedior's Q1 Results

For release at 6.00pm on 6 May 2004...Zach Miles, Vedior's Chief Executive, said: "Vedior has started 2004 on a positive note with steadily increasing sales and improving profitability. Our accounting and finance business in the US recorded growth for the first time in 13 quarters and IT staffing showed further growth in the majority of our markets worldwide. Overall growth of speciality staffing outpaced that of traditional business. We also experienced strong growth in the UK, Southern Europe, South America, Asia and Australia.

Our strategic development continues with the addition of three new companies in India, Portugal and Poland, adding to our existing presence in four out of the ten new EU member countries."

HIGHLIGHTS FOR THE FIRST QUARTER

• Sales up 7% at e1,476 million (organic growth of 4%)
• Operating income up 28% at e41 million (organic growth of 9%)
• Accelerating growth in IT and accounting staffing
• Net debt reduced by 14% to e547 million (2003: e636 million)
• Net income per share improved to e0.11 (2003: e0.06)
• Cash flow from operating activities improved by 11% to e59 million
• Acquisitions in India, Poland and Portugal take advantage of important strategic trends

N.B. Organic growth is measured by excluding the impact of currency effects and acquisitions and adjusting for the number of business days. Operating income and Net income per share is before goodwill amortisation.

Q1 2004 Financial Performance
The majority of our businesses account on a weekly basis. This reporting period includes an extra week to bring the financial reporting period in line with month end. Organic growth rates have been calculated excluding this extra week e see note on page 5 for further details.

Sales
Sales increased 7% (organic increase: 4%) to e1,476 million from e1,379 million in the same quarter in 2003. Currency fluctuations decreased sales by 1% mainly due to movements in the rate of the Euro compared to US dollar and sterling.

Gross Margin
Gross margin was 17.9% compared to 18.7% in the first quarter of 2003. The decrease reflects some pricing pressure and changes in business mix including a higher proportion of lower-margin large account business compared to higher-margin business from small and medium companies. Increased pricing pressure is not unusual during the early stages of economic recovery as companies seek to gain market share. Permanent placement was 2.1% of sales, the same as Q1 2003.

Operating Costs
Operating costs were 1% lower on an organic basis at e224 million despite the improvement in sales. SG&A as a percentage of sales improved to 15.2% from 16.4% in Q1 2003.

Operating Income
Operating income (income before interest, tax and goodwill amortisation) was e41 million, up from e32 million in Q1 2003. Currency fluctuations decreased operating income by 2%. On an organic basis, operating income increased by 9%. Operating income as a percentage of sales was 2.8% compared to 2.3% in Q1 2003. For Vedior, the operating result before goodwill amortisation and net result before goodwill amortisation are the most relevant internal and external measures of operating performance. Vedior's goodwill mainly relates to the acquisition of Select in 1999 which, under Dutch accounting standards, is being amortised over a period of seven years. In 2005, Vedior will adopt International Financial Reporting Standards which require that goodwill is no longer amortised on a systematic basis and will be tested for impairment annually.

Net Debt and Cash Flow
Net debt decreased by e40 million during the quarter to e547 million and by e89 million compared to the first quarter of 2003. Debtor days improved by one day overall and notably in Vedior's largest markets, France and the UK. Despite the increase in sales, cash flow from operating activities improved from e53 million in 2003 to e59 million in 2004.

Q1 2004 Operating Performance by Geography and Industry Sector

France

• Continued outperformance with organic sales increased by 3% compared to 2003, ahead of market growth.
• Operating profit same as prior year. · Strongest growth in tertiary, high-skilled blue collar and construction segments.
• Specialist staffing up 7% compared to Q1 2003 with good growth in engineering and IT.

United Kingdom

• Sales improvement continues with 9% organic growth over Q1 2003.
• Great start to year for IT sector; up 18% organically.
• Teleservices, healthcare and engineering staffing also began the year strongly
• Education contributed same level of profits and increased market share despite a 10% organic reduction in sales.

United States

• Organic sales increase of 8%. · IT staffing improvement with 6% organic sales growth.
• 10% organic sales growth in Accounting staffing; first positive growth in three years.
• Traditional staffing sales grew organically by 33%.

Netherlands

• Organic sales declined by 17% due to lower demand from the small and medium business segment and weak permanent placement.
• Sales trend in traditional staffing improved during the quarter and outlook is becoming more positive given less restrictive operating environment from April 2004 onwards.
• Operating profit maintained at same level as 2003 despite lower sales. · Vedior brand continues to improve market share.

Rest of Europe/Rest of World

• Strong improvement in profitability from both 'Rest of Europe' and 'Rest of World' regions.
• Belgium continues to substantially improve profitability
• Sales in the increasingly profitable and important Australian market grew organically by 12% over Q1 2003 with particular growth in the accounting sector.
• Other markets in which we performed strongly include Portugal, Italy, Spain, South America, Japan and Germany.

Analysis by Industry Sector

• Traditional staffing sales increased by 3% organically, outpaced by specialist organic growth of 7%.
• Specialist staffing contributed 35% of Group sales and 64% of operating profit.
• Engineering was the best performing specialist sector compared to Q1 2003.
• IT staffing sales up by 6% organically with positive growth in all major markets.
• Accounting sales up by 7% organically with notable pick-up in our largest accounting staffing market, the US and also in Australia.
• Traditional business affected by seasonal trends and is normally stronger over the summer period.

Business Development

Three acquisitions have been announced today which enable Vedior to take advantage of important strategic trends.

Ma Foi is the largest staffing and HR outsourcing company in India. Ma Foi also operates in Sri Lanka, bringing the total number of countries in which Vedior operates to 35.

The acquisition of Active Plus complements Vedior's existing operations in Poland as well as its growing presence in four of the Eastern European countries which were granted accession to the European Union on 1 May. The acquisition of Platoforma strengthens our established call centre staffing brand in Portugal.

An aggregate amount of e8 million has been paid for these three acquisitions which has been financed from internal resources.

Management Outlook
Sentiment has improved in Q1 2004 and, therefore, the outlook for the remainder of the year is becoming increasingly positive although the strength of the recovery remains difficult to predict. US trends are encouraging as are those in our most important specialist 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 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.

Notes to Editors: Vedior is one of the world's leading staffing companies. The Group operates in 35 countries with a network of 2,243 offices worldwide including Europe, North America, Australasia, South Africa, South America and Asia. Vedior provides a broad range of staffing services through distinct brand names targeting specific sectors including traditional administrative/light industrial sectors and specialist sectors such as information technology, healthcare, accounting, engineering and education. We offer temporary staffing, permanent placement and other employment-related services.

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