Monster Worldwide Reports 2005 First Quarter Results

Monster Worldwide, Inc. has today reported financial results for the first quarter ended March 31, 2005.



Monster Worldwideís total revenue grew 35% to $246.9 million in the first quarter of 2005 from $182.4 million in the first quarter of 2004. The Monster division recorded revenue of $189.5 million, a 55% increase over last yearís first quarter level of $122.2 million. Organic revenue growth for the Company and the Monster division was 21% and 34%, respectively, compared to the year ago quarter. The Monster divisionís deferred revenue balance of $240.8 million at the end of the first quarter represents a 49% increase over last yearís first quarter and a 5% sequential gain. Net income for the first quarter increased to $20.6 million from the $12.4 million reported in the first quarter of the prior year. Diluted earnings per share for the first quarter were $0.17 compared to $0.11 in the first quarter of 2004, a 55% increase.

Cash generated from operating activities in the first quarter of 2005 was $41.4 million compared with cash used of $11.0 million in the 2004 period. Free cash flow, defined as cash flow from operating activities less capital expenditures, grew to $32.7 million compared to a $17.7 million outflow in last yearís first quarter.

Monster Worldwide is off to a great start in 2005, with strong financial results for the first quarter driven by a terrific global sales performance, increased operating efficiencies at the Monster division and continued improvement at the Advertising & Communications division compared to a year ago, said Andrew J. McKelvey, Chairman and Chief Executive Officer of Monster Worldwide. We continued to make strategic investments in our sales force, products and services and technology during the first quarter, while also making strategic investments to further expand our Monster franchise in North America, Europe and other emerging international markets where significant opportunities exist to grow revenue and profitability.

Directional Marketing Strategic Alternatives
The Company also announced that it is currently evaluating strategic alternatives, including a possible sale, for its Directional Marketing business segment. There can be no assurance that any transaction or other corporate action will result from this effort.

Mr. McKelvey added, Given our corporate strategy of focusing our energy and resources on growing the Monster franchise across key local, national and global markets, we believe it is an appropriate time to evaluate strategic alternatives for our Directional Marketing business while considering whatís in the best interests of our shareholders and other stakeholders.

Operational Highlights
Monsterís highly successful January Jobs campaign, designed to support its GoLocal sales strategy, generated strong resume submissions from users and greater employer resume views for the month. Monster.com received 3.3 million new and updated resume submissions in January 2005, outperforming last Januaryís totals. Job applications submitted by job seekers increased 23% year over year in January 2005, while employer resume views registered a 28% increase over last January. The campaign included radio advertising and Monster.comís first ever Ultimate Career Day online which included career inspiration and guidance, success stories, local business features and career advice.

Monster Worldwide continued to expand its global footprint with the announcement of two strategic transactions in February. The Company acquired a 40% stake in ChinaHR.com Holdings LTD., the owner of ChinaHR.com, one of Chinaís leading and most widely recognized online recruitment web sites. ChinaHR.com has operations in ten major cities in China and attracts approximately 3.2 million monthly registered users and more than 280,000 corporate clients. The Company has certain rights and obligations to acquire a majority interest in ChinaHR.com in the event of an initial public offering or February 1, 2008, whichever comes first.

Separately, Monster Worldwide acquired the French online recruiter Emailjob.com to solidify Monsterís leadership position in France, a key European market, by uniting two of the leading players in the French online recruitment sector. Users of Emailjob.com will benefit from the reach of an expanded global online careers network, while customers will have a larger choice of qualified job candidates.

The Monster Employment Index (MEI) continued to reflect the steady growth in online job demand since December 2003. Measuring strong growth in online job availability across all Index categories, the Index jumped to 130 in March 2005 from 122 in February 2005, establishing a new all-time high since its inception. The Company also announced that it will expand the Monster Employment Index in Europe with the addition of data measuring online job demand in France, Germany, the Netherlands, Sweden, and the United Kingdom to be released in June 2005. In addition, it announced plans to expand the Index in the U.S. with the addition of local market data measuring online recruitment activity within the top 28 U.S. markets starting in August 2005.

Business Outlook
The following forward-looking statements reflect Monster Worldwide, Inc.ís expectations as of April 26, 2005. These expectations involve a number of uncertainties - in particular, assumptions about foreign currency exchange rates, future economic conditions, plans to cultivate new business, market share and growth rates, pricing power, capital spending, depreciation and amortization, the tax rate and the other risk factors contained in our Annual Report on Form 10-K for the year ended December 31, 2004. These expectations do not include the effect of acquisitions or any possible dispositions or implementation of accounting rule changes or other factors outside of our control which may have an impact on future financial results.

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