MPS Group Announces Third Quarter 2009 Results

MPS Group revenue decreased 29% versus last year's third quarter. Excluding the impact of changes in foreign currency exchange rates, revenue was down 25% versus the third quarter of 2008. On a sequential basis, revenue declined 2% versus the second quarter of 2009. Excluding the impact of changes in foreign currency exchange rates, revenue decreased 5% sequentially versus the second quarter of 2009.

Third quarter gross margin of 26.8% was adversely affected by fewer permanent placement fees, which represented 2.9% of total revenue in the third quarter of 2009 versus 5.3% of total revenue in the prior year's third quarter. In the third quarter, operating income was $8 million, or 2.1% of third quarter revenue, compared with $7 million, or 1.6% of revenue, in the second quarter of 2009.

A detailed analysis of revenue, gross profit and operating income by segment is provided below. A summary balance sheet is provided below as well.

Timothy Payne, MPS Group Chief Executive Officer, stated, "We were pleased with our financial performance for the quarter despite the current weakness in the employment market."

"During the quarter, general and administrative expenses declined $6 million sequentially versus the second quarter of 2009, which produced a higher level of taxable income resulting in a lower-than-expected effective income tax rate," added MPS Group Chief Financial Officer Robert Crouch. "The combination of these two items resulted in earnings per share being above the range of guidance previously provided."

As previously announced, MPS Group has signed a definitive agreement to be acquired by Adecco Group for $13.80 per common share in a cash transaction valued at approximately $1.3 billion. The Adecco Group (SIX:ADEN-VX) (Euronext:ADE), based in Zurich, Switzerland, is a Fortune Global 500 Company and the world's leading provider of human resource solutions with operations in over 60 countries. The transaction is expected to close in the first quarter of 2010 and is subject to MPS Group shareholder approval, antitrust clearance and certain other regulatory approvals and closing conditions.

About MPS Group

MPS Group is a leading provider of staffing, consulting, and solutions in the disciplines of information technology, finance and accounting, law, engineering, marketing and creative, property, and healthcare. MPS Group delivers its services to businesses and government entities in the United States, Europe, Canada, Australia, and Asia. A Fortune 1000 company with headquarters in Jacksonville, Florida, MPS Group trades on the New York Stock Exchange. For more information about MPS Group, please visit www.mpsgroup.com.

Additional Information and Where To Find It

In connection with the proposed merger, MPS Group will file a proxy statement with the Securities and Exchange Commission ("SEC"). Investors are urged to read the proxy statement when it becomes available because it will contain important information about the merger as well as other documents filed by MPS Group at the SEC's Internet site, www.sec.gov. These documents can also be obtained for free from MPS Group's Investor Relations web site (www.mpsgroup.com) or by calling 904-360-2500.

MPS Group and its directors, executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies from its stockholders in connection with the proposed merger. Information regarding MPS Group's directors and executive officers is available in MPS Group's proxy statement dated April 20, 2009, filed with the SEC. Additional information regarding the interests of participants of MPS Group will be included in the proxy statement to be filed with the SEC in connection with the merger.

Forward-Looking Statements

This press release contains forward-looking statements that are subject to certain risks, uncertainties or assumptions described above and may be affected by other factors, including, but not limited to: fluctuations in the economies and financial markets in the U.S. and foreign countries where we do business and in the Company's industry segments in particular; the market price of the Company's common stock has been, and may continue to be, materially affected by the anticipated commencement and completion of the proposed acquisition of the Company, or the failure of the acquisition of the Company to be completed; uncertainties associated with the proposed acquisition may cause a loss of employees and may otherwise adversely affect the Company's business operations; the proposed acquisition agreement contains restrictive covenants that may limit the Company's ability to respond to changes in market conditions or pursue business opportunities; industry trends toward consolidating vendor lists; the demand for the Company's services, including the impact of changes in utilization rates; consolidation or bankruptcy of major customers; the effect of competition, including the Company's ability to expand into new markets and to remain profitable or maintain profit margins in the face of pricing pressures; the Company's ability to retain significant existing customers or obtain new customers; the Company's ability to recruit, place and retain consultants and professional employees; the Company's ability to identify and complete acquisition targets and to successfully integrate acquired operations into the Company; possible changes in governmental laws and regulations affecting the Company's operations, including possible changes to laws and regulations relating to benefits for consultants and temporary personnel, and possible increased regulation of the employer-employee relationship; employment-related claims, costs, and other litigation matters; adjustments during periodic tax audits; litigation relating to prior and current transactions and activities; claims and liabilities asserted for the acts or omissions of our temporary employees; fluctuations in interest rates or foreign currency exchange rates; loss of key employees; fluctuations in the price of the Company's common stock due to actual or anticipated changes in quarterly operating results, financial estimates, statements by securities analysts, and other events; and other factors discussed in the Company's filings with the Securities and Exchange Commission. In some cases, you can identify forward-looking statements by terminology such as: "will," "may," "should," "could," "expects," "intends," "plans," "hopes," "indicates," "projects," "can," "anticipates," "perhaps," "probably," "believes," "estimates," "appears," "predicts," "potential," "continues," "would," or "become," or other comparable terminology or the negative of these terms or other comparable terminology. Readers are urged to review and consider the matters discussed in "Item 1A. Risk Factors" of the Company's Form 10-K for the year ended December 31, 2008 and discussion of risks or uncertainties in subsequent filings with the Securities and Exchange Commission.

Should one or more of these risks, uncertainties or other factors materialize, or should underlying assumptions prove incorrect, actual results, performance or achievements of the Company may vary materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements are based on beliefs and assumptions of the Company's management and on information then currently available to management. Undue reliance should not be placed on such forward-looking statements. Forward-looking statements are not guarantees of performance. Such forward-looking statements were prepared by the Company based upon information available at the time of such statements. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events.

MPS Group, Inc.
Unaudited Operating Highlights
(in thousands, except per share amounts)
                                                         Three Months Ended                 Nine Months Ended
                                                         September 30,                      September 30,
Operating Highlights:                                    2009           2008                2009               2008
Revenue:
North American Professional Services                     $    128,257   $    192,185        $      421,893     $    557,453
International Professional Services                           107,616        142,033               309,347          443,383
North American Information Technology Services                124,793        154,765               376,343          471,854
International Information Technology Services                 47,105         88,501                147,474          262,065
Total revenue                                                 407,771        577,484               1,255,057        1,734,755
Gross profit:
North American Professional Services                          37,101         58,380                120,344          171,296
International Professional Services                           23,826         41,597                71,293           135,046
North American Information Technology Services                38,966         47,797                117,902          145,525
International Information Technology Services                 9,522          16,320                29,073           45,631
Total gross profit                                            109,415        164,094               338,612          497,498
Operating income:
North American Professional Services                          6,145          17,104                20,588           51,645
International Professional Services                           2,811          5,213                 6,629            23,839
North American Information Technology Services                6,613          10,367                14,663           33,326
International Information Technology Services                 743            4,009                 3,477            9,879
Operating income before unallocated corporate expenses        16,312         36,693                45,357           118,689
Unallocated corporate expenses                                7,865          7,513                 24,032           22,721
Total operating income                                        8,447          29,180                21,325           95,968
Other income (expense), net                                   1,573          (2,715  )             601              (4,259    )
Income before provision for income taxes                      10,020         26,465                21,926           91,709
Provision for income taxes                                    4,568          9,257                 11,950           34,702
Net income                                               $    5,452     $    17,208         $      9,976       $    57,007
Diluted net income per common share                      $    0.06      $    0.19           $      0.11        $    0.62
Diluted common shares outstanding                             89,199         90,315                88,161           91,738
                                                                                            As of
                                                                                            September 30,      December 31,
                                                                                            2009               2008
Cash and cash equivalents                                                                   $      152,848     $    90,566
Accounts receivable, net of allowance                                                              259,220          282,093
Other                                                                                              32,111           24,198
Current assets                                                                                     444,179          396,857
Long-term assets                                                                                   384,422          399,035
Total assets                                                                                $      828,601     $    795,892
Current liabilities                                                                         $      178,795     $    173,147
Other                                                                                              28,568           31,275
Stockholders' equity                                                                               621,238          591,470
Total liabilities and stockholders' equity                                                  $      828,601     $    795,892
Working capital                                                                             $      265,384     $    223,710
                                                         Three Months Ended
                                                         September 30, 2009
Net cash provided by operating activities                $ 29,773

MPS Group, Inc.
Unaudited Reconciliation of Non-GAAP Financial Measures to Most
Comparable GAAP Financial Measures
Reconciliation of EBITDA to Net Income
(in thousands)
                                                                      Three Months Ended                             Nine Months Ended
                                                                      September 30,                                  September 30,
                                                                      2009                        2008               2009               2008
EBITDA                                                                $           12,529          $    34,857        $    34,428        $    112,740
Depreciation and intangibles amortization                                         4,082                5,677              13,103             16,772
Operating income                                                                  8,447                29,180             21,325             95,968
Other income (expense), net                                                       1,573                (2,715 )           601                (4,259  )
Income before provision for income taxes                                          10,020               26,465             21,926             91,709
Provision for income taxes                                                        4,568                9,257              11,950             34,702
Net income                                                            $           5,452           $    17,208        $    9,976         $    57,007
Reconciliation of Year-Over-Year Quarterly Revenue Growth Rate,
Excluding
the Effects of Changes in Foreign Currency Exchange Rates
                                                                                                  MPS                N. American        International
                                                                                                  Group              Businesses         Businesses
Revenue growth rate 3Q2008 to 3Q2009, excluding the effects of                                         -25.4  %           -26.9  %           -23.2   %
changes in foreign currency exchange rates
Revenue growth rate contributed from effects of changes in currency                                    -4.0   %           -0.2   %           -9.7    %
GAAP revenue growth rate 3Q2008 to 3Q2009                                                              -29.4  %           -27.1  %           -32.9   %
Reconciliation of Year-Over-Year Quarterly Revenue Growth Rate,
Excluding
the Effects of Changes in Foreign Currency Exchange Rates
                                                                      Professional                IT                 IT                 Professional
                                                                      N. American                 N. American        International      International
Revenue growth rate 3Q2008 to 3Q2009, excluding the effects of                    -33.3       %        -19.0  %           -39.3  %           -13.2   %
changes in foreign currency exchange rates
Revenue growth rate contributed from effects of changes in currency               -                    -0.4   %           -7.5   %           -11.0   %
GAAP revenue growth rate 3Q2008 to 3Q2009                                         -33.3       %        -19.4  %           -46.8  %           -24.2   %
Reconciliation of Sequential Quarterly Revenue Growth Rate,
Excluding
the Effects of Changes in Foreign Currency Exchange Rates
                                                                      MPS                         International      IT                 Professional
                                                                      Group                       Businesses         International      International
Revenue growth rate 2Q2009 to 3Q2009, excluding the effects of                    -4.9        %        -4.5   %           -11.2  %           -1.3    %
changes in foreign currency exchange rates
Revenue growth rate contributed from effects of changes in currency               2.5         %        6.4    %           5.7    %           6.9     %
GAAP revenue growth rate 2Q2009 to 3Q2009                                         -2.4        %        1.9    %           -5.5   %           5.6     %

SOURCE: MPS Group, Inc.

MPS Group, Inc. 
Tyra Tutor, 904-360-2500 
Senior Vice President - Corporate Development 
tyra.tutor@mpsgroup.com