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Vedior NV (0J9M)


Friday 27 April, 2007

Vedior NV

1st Quarter Results

Vedior NV
27 April 2007

Amsterdam, The Netherlands
Q1 2007

                        Record results in first quarter;
                            net income increase 44%

                     For release at 7.00am on 27 April 2007

Highlights for Q1 2007

Amounts in € million           Q1 2007    Q1 2006   Increase   Organic Growth(1)
Sales                          1,939.7    1,724.2     +12%          +9%
Gross Profit                     373.7      316.8     +18%         +13%
Operating Income                  73.4       51.7     +42%         +34%
Net Income                        44.7       31.1     +44%
Net Income per share (in Euro)    0.26       0.18     +44%

•    Operating income increased by 34%
     -    Traditional staffing up 48%
     -    Engineering staffing up 44%
     -    Education staffing up 13%
•    Conversion ratio strong at 19.6% (Q1 2006: 16.3%)
•    Increase in gross margin to 19.3% (Q1 2006: 18.4%)
•    29% increase in permanent placement fees
•    Global network extended to 50 markets following expansion into Thailand

(1)   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 both sales and 
      operating income by 1%.

CEO's Statement

Zach Miles said, 'These quarterly results are the best ever achieved in Q1,
reflecting the progress we have made in implementing the Group's strategy and
taking us closer towards our margin targets.'

We experienced strong growth in profits and sales within many of our traditional
staffing markets. In addition, we have seen very good performances this quarter
in a number of our professional/ executive sectors.

Change to Reporting Analysis

In order to better reflect the successful development of Group activities, we
have expanded the scope of our geographic reporting to include a number of
additional markets, namely Belgium, Spain, Australia & New Zealand, and Canada.
The results for the equivalent quarter in the prior year have been provided for
comparison purposes.

With a focus on improving profitability rather than market share, we have also
decided to disclose the percentage increase in our gross profit within each
major market.

These refinements to our reporting analysis will enable investors to better
monitor our progress towards achieving our strategic objectives.

Q1 2007 Review

Sales increased overall this quarter by 9%, with strong increases across key
markets worldwide. Gross profit was up 13% and operating income increased by

Demand for permanent placement grew during the quarter resulting in a 29%
organic increase in placement fees. Permanent placement fees more than doubled
in France. Permanent placement now represents 3.8% of Group sales compared to
2.9% in Q1 2006.

Gross profit was €373.7 million compared to €316.8 million in Q1 2006.  Our
focus on higher margin business and increased permanent placement fees helped to
improve gross margin to 19.3% from 18.4% in Q1 2006. The gross margin earned
from the supply of temporary staffing also increased.

We continue to deliver greater operational efficiencies. As a result, our
conversion ratio (operating income divided by gross profit) increased to 19.6%
from 16.3%. As a percentage of sales, costs were 15.5% (Q1 2006: 15.4%).

Operating income was €73.4 million, an increase of 34%. This strong growth in
profit was led by our brands in the traditional, engineering, education and
legal sectors. The Group operating margin (operating income as a percentage of
sales) was 3.8% - an improvement of 80 basis points over Q1 2006.

          Country/        Gross Profit     Operating Income      % of Group
           Region      Organic Increase   Organic Increase     Operating Income

France                          +17%            +47%                  32%
UK                               +7%             +7%                  22%
Netherlands                     +12%            +38%                   8%
Belgium                         +10%            +23%                   6%
Spain                           +19%            +76%                   4%
Other Europe                    +14%           +105%                   8%

US                              +5%              -8%                   8%
Australia & New Zealand         +19%            +43%                   6%
Canada                          +21%            +65%                   4%
Latin America, Asia, Middle     +32%            +19%                   2%
East, and Africa

In France, our largest market, all traditional business segments performed well.
Demand within the professional/executive sector is continuing to accelerate with
double digit sales growth achieved in Q1 2007. The successful development of our
permanent placement activities has contributed to our improvement in

In the UK, our education staffing brands continued to benefit from a leading
market position and a better operating environment. The engineering/technical
and teleservices sectors both recorded good growth in sales and operating
income. Our interim management business goes from strength to strength given
strong organic growth and recent acquisitions. These positive trends have offset
more challenging conditions in the traditional and IT sectors of the market.

The Netherlands reported strong growth in gross profit and even stronger growth
in operating profit, reflecting our focus on higher margin business and improved
operating leverage.  Belgium also continued to make excellent progress.

Our Spanish network performed especially well this quarter in a favourable
market and supported by a very strong increase in permanent placement fees. Both
of our traditional Spanish staffing brands, Laborman and Select, achieved
significantly higher levels of operating income.

Our operations across other parts of Europe are also performing very well,
resulting in a considerable profit increase. Significant contributors were
Germany, Portugal, Switzerland, Italy and Scandinavia, as well as Central and
Eastern Europe.

Within the US, we increased sales by 7% in our professional/executive sectors.
Operating profit in the US was lower due to slower growth in permanent
placement, new office openings and weakness in the traditional sector.

Our brands in Australia and New Zealand continue to perform exceptionally well
across all parts of the market. In particular, during this quarter, our
accounting/finance, IT and education brands achieved high growth in operating

In Canada, the IT and engineering/technical sectors both performed exceptionally
well. The organic growth given in the table above does not include the results
of CNC Global, Canada's largest IT staffing company, which Vedior acquired
during Q2 2006. On an actual basis, including CNC Global, our sales in Canada
increased by €42 million and operating income by €3.0 million in Q1 2007.

Elsewhere in the world, our Latin American and Indian operations have, once
again, achieved excellent results and we continue to make good progress with the
investments we have made in the Japanese market.

Business Development

In Q1 2007, we completed the acquisition of Major Players, a leading provider of
marketing/media and creative recruitment services in the UK.

During the quarter, we also continued our active organic growth programme
including expansion of existing operations in France, Australia, Latin America,
mainland China and Thailand. The addition of Thailand to our network means that
Vedior is now active in 50 countries worldwide. Compared to the same quarter
last year, the Group's network has been extended by 187 offices to a total of
2,486 offices worldwide.

Management Outlook

Trends in April have continued to reflect the positive environment we
experienced in Q1 2007 and we expect to see another strong performance in Q2,
especially in continental Europe.

The social security authorities in France have recently issued additional
guidance on the calculation of certain social security charges relating to
temporary workers, with retroactive effect from 1 January 2006. Detailed
calculations are in the course of preparation but we estimate at this stage that
the impact will be to increase operating margin in France by between 1% to 1.5%
for 2006 and the first quarter of 2007.

We will continue to focus on improving the mix of our business and developing
our leading market position in the professional/executive recruitment sectors.

For further information on these results, please join today's conference call
starting at 3.00pm (CET). Details can be found on our website at

Zach Miles, Chief Executive
Frits Vervoort, CFO
Jelle Miedema, Company Secretary

Investor Information

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

9 May 2007              Dividend made payable
26 July 2007            Publication of second quarter results
25 October 2007         Publication of third quarter results
7 February 2008         Publication of annual results 2007

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.

                      This information is provided by RNS
            The company news service from the London Stock Exchange                        

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