Monster Worldwide Reports First Quarter 2004 Results

2004 First Quarter Financial Highlights

Total Revenue Increases 11% to $187.7 Million
Diluted EPS of $0.11
Monster Divisionís Revenue Grows 18% Annually and 16% Sequentially to $122.2 Million
Monster Divisionís Deferred Revenue Grows to a New High of $161.3 Million
Advertising and Communications Division Posts a Profit
Monster Worldwide, Inc. (NASDAQ: MNST), the parent company of the leading global online careers property, Monster(R), the worldís largest Yellow Pages advertising agency and one of the worldís largest Recruitment Advertising agency networks, today reported financial results for the first quarter ended March 31, 2004.

First Quarter Results

Total revenue for Monster Worldwide increased 11% to $187.7 million from $168.5 million in the first quarter of 2003, primarily due to the Companyís targeted sales approach, larger dedicated sales force and improved market conditions. The Monster division recorded $122.2 million of revenue, an 18% increase over the comparable quarter a year ago, and a 16% sequential increase over the $104.9 million recorded in the previous quarter. The Monster divisionís deferred revenue was $161.3 million at March 31, 2004, a significant increase over the $113.2 million in the first quarter of 2003, and higher than the $153.2 million reported in the seasonally strong fourth quarter of 2003.

Detailed comparative results for Monster Worldwideís various business segments as well as a reconciliation of all GAAP to non-GAAP financial information are presented in the financial tables included with this release. Non-GAAP measures reflect adjustments made to exclude business reorganization, the spin-off of Hudson Highland Group and other special charges, and the tax benefits thereon.

Income from continuing operations was $12.6 million, or $0.11 per share in the first quarter of 2004, compared to a loss of $28.5 million, or $0.26 per share from continuing operations, and non-GAAP income from continuing operations of $10.0 million, or $0.09 per share in the first quarter of 2003. Net income for the first quarter of 2004 was $12.4 million compared to a loss of $115.9 million in the same period in 2003. Financial results for prior periods have been reclassified to reflect the Companyís previously announced discontinued operations.

Cash used for operating activities was $11.0 million in the first quarter of 2004 compared to $33.4 million generated in the fourth quarter of 2003 and $7.8 million in the first quarter of 2003. The use of cash for operating activities in the 2004 period includes $6.6 million of payments for restructuring and reorganization costs and the Companyís funding obligation to Hudson Highland Group, Inc. The Companyís first quarter operating cash flow has historically under-performed the remainder of the year, mainly as a result of the timing of transactions in its Directional Marketing division, where payments to Yellow Page publishers in the first quarter typically outpace cash receipts.

We are pleased with our strong first quarter performance which reflects our targeted sales approach in both field and telesales, our larger dedicated sales force, as well as increased demand for our services. We believe this kind of performance will set the tone for the balance of the year, said Andrew J. McKelvey, chairman and chief executive officer of Monster Worldwide. Our improved financial results were driven primarily by higher than anticipated revenue growth at the Monster division and an earlier than expected return to profitability in our Advertising & Communications unit. We are encouraged by the improving trends in the employment market as reflected in our Monster Employment Index for March, as well as the continued migration of employers to the online recruiting market. The record high deferred revenue number at the Monster division in the quarter demonstrates the underlying strength in our business.

Balance Sheet Highlights

Cash was $155.9 million at March 31, 2004, compared to $142.3 million and $125.3 million at December 31, 2003 and March 31, 2003, respectively. Net cash was $135.7 million at March 31, 2004, compared to $137.5 million and $118.4 million at December 31, 2003 and March 31, 2003, respectively. During the first quarter of 2004, the Company raised $55.7 million from the sale of 2.5 million shares of its common stock, however net cash decreased from year-end mainly as a result of the Companyís initial cash payment of $24 million to acquire Military Advantage, Inc. and a $15 million non-cash increase in debt for deferred purchase price related to the acquisition.

Recent Developments

-- jobpilot Acquisition

Monster Worldwide most recently announced the acquisition of jobpilot (www.jobpilot.com), one of the most successful online careers portals serving Europe, from Adecco S.A. The acquisition makes Monster the leading online careers property in the European market. With this acquisition, Monster further strengthens its dominant European position by expanding into several key markets in central Europe. jobpilot generated revenues of approximately $28 million in 2003 and was profitable.

-- Monster Employment Index Introduction

On April 1st, Monster released the first results of the Monster Employment Index, a broad and monthly analysis of American online job demand. The Company established the Index to provide U.S. labor market watchers with a valuable snapshot of U.S. online recruiting activity. The Index offers an extensive range of sub-indices by industry, occupation, and geographic region, including all 20 NAICS (North American Industry Classification System) industries, 23 occupational categories, all 50 states and the nine U.S. Census regions.

-- Military Advantage Acquisition

To accelerate the Companyís growth in the interactive market and further enhance Monsterís U.S. public sector initiatives, Monster Worldwide acquired Military Advantage, Inc., which operates Military.com, the nationís largest online military destination with over 3 million members. Military Advantage targets the 30 million Americans with military affinity to offer career services, educational opportunities, Veterans Association benefits resources and a host of other advantages earned through military service.

-- Monster Government Solutions

During the quarter, Monster Government Solutions (MGS) was awarded several key contracts, including ones with the prime recruitment contractor supporting the U.S. Transportation Security Administration, the U.S. Coast Guard Office of Civilian Human Resources, and the General Services Administration (GSA). The division already counts more than 90 government agencies as customers, including the U.S. Department of Health and Human Services, several agencies within U.S. Department of Agriculture, U.S. Department of the Treasury, U.S. Department of Transportation (except FAA) and several key agencies within the Department of Homeland Security.

-- U.S. Office of Personnel Management (OPM)

Monster Government Solutions has helped OPM make great strides with the federal governmentís USAJOBS one-stop recruitment Web site since its launch in August 2003. More than 52 million people have visited the site since then (a record 7.6 million people visited in March 2004) and more than 419,000 new resumes have been created. In addition, the siteís customer satisfaction level has reached an all-time high. USAJOBS scored 73 out of 100 on the University of Michiganís recent American Consumer Satisfaction Index for the first quarter 2004, five points higher than the previous quarter and competitive with numerous commercial sites of comparable size and scope.

-- New York City Host Committee Volunteer Drive

Monster Worldwide will serve as the primary recruiter for the more than 8,000 volunteers needed at the 2004 Republican National Convention in New York City from August 30th through September 2nd. The Company will help identify and recruit volunteers utilizing all of its resources and Web-hiring technologies, including that of its QuickHire subsidiary, serving federal, state and local governments. In addition, Monster is sponsoring a Web site (http://nyc2004.monster.com) that will serve as an online community for the volunteers, keeping them informed and connected throughout both the pre-Convention process and the sixteen-day Convention deployment.

-- New Monster Employer Products

Monster recently introduced Monster Hiring Solutions, a comprehensive suite of tools that allows employers to target and source quality candidates with greater efficiency and accuracy. Two core products, SmartFind Resume Search and TargetReach Job Postings, feature superior matching technology that increase productivity, save time and money, and improve the overall hiring cycle for employers. SmartFind enables employers to tap into Monsterís extensive resume database and quickly pinpoint the ideal candidate. TargetReach takes advantage of Monsterís industry-leading quality traffic, allowing employers to gain greater visibility, maintain a steady presence in the employment market, and attract job seekers whose resumes may not be searchable.

Outlook

Based on the early benefits of the marketing and sales force investments initiated in the first quarter of 2004 and improving business conditions, the solid momentum experienced in Q1í04 is expected to continue in this yearís second quarter. Monster Worldwide anticipates overall revenues and the Monster divisionís revenues to increase sequentially and year over year.

In the second quarter of 2004, Monster Worldwide will continue to invest in key areas, including marketing and sales force expansion, to build on its industry leading position. As a result, the Company anticipates fully diluted earnings per share of at least $0.12, representing over 30% growth from last yearís comparable earnings per share of $0.09.

Conference Call Information

First quarter 2004 results will be discussed on Monster Worldwideís quarterly conference call taking place on April 28, 2004 at 10:00am EDT. To join the conference call, please dial in on 1-888-882-0087 at 9:50 AM EDT. For those outside the United States, please call in on 1-212-346-7470. The call will begin promptly at 10:00 AM EDT. Individuals can also access Monster Worldwideís quarterly conference call online through the investor information section of the Companyís website at www.monsterworldwide.com. Interactive Metrics for Monster Worldwide and Monster are available at www.monsterworldwide.com or www.monster.com.